Stocks closed higher on Friday and for the week. The small-cap Russell 2000 led the pack on Friday with a gain of 1.80%, followed by the mid-cap S&P 400 with 1.67%. The mid-cap index made a new all-time high and close in the process, while the Dow (up 0.97% on Friday) made a new all-time high close.

The small-cap and mid-caps led the weekly gains as well with 4.41% and 4.19% respectively, with the closest index after that being the Dow with 1.96% for the week.

The post-election rally remains intact. Once again, it was the small-cap and mid-caps leading the charge with gains of 6.45% and 5.89% since the election. The Dow takes the number three spot with 4.91%. The S&P 500 was next with 3.23% and then the Nasdaq with 3.06%.

YTD, however, the Nasdaq still takes the cake with a gain of 26.6%, followed by the S&P 500 with 25.2%, and the mid-cap S&P 400 rounding out the top three with 20.1%. The small-cap Russell 2000 raced into the number four spot with 18.7%, with the Dow close behind at 17.6%.

Upbeat earnings last week (not to mention all earnings season) continued to lift stocks. Even though earnings season officially comes to a close on Tuesday, 11/26, when HP reports after the close (although plenty of other stocks will continue to report), the trend of upward earnings estimates for the coming quarters should continue to fuel stock gains. (Q3'24 S&P 500 earnings are currently up 7.7%; Q4'24 earnings are expected to be up 7.7% as well; Q1'25 is expected to be up 11.3%; and Q2'25 is expected to be up 12.7%.)

In other news on Friday, the PMI Composite report showed the Composite Index at 55.3 vs. last month's 54.1. The Manufacturing Index was at 48.8, in line with views and up vs. last month's 48.5. The Services Index came in at 57.0, beating estimates for 55.1 and last month's 55.0.

Consumer Sentiment dipped a bit to 71.8 vs. last month's 73.0 and views for the same. The year-ahead inflation expectations portion came in at 2.6%, the same as last month and the consensus.

This week, the main event for economic reports will be Wednesday's (11/27) Personal Consumption Expenditures (PCE) index. This is the Fed's preferred inflation gauge, and will be the last PCE report the Fed gets before their next FOMC announcement on 12/18. Although, we will get another look at the Consumer Price Index (CPI ? retail inflation) and the Producer Price Index (PPI ? wholesale inflation) on 12/10 and 12/11.

This week should be a busy week. Not the least of which it being a holiday week with the markets closed on Thursday, 11/28, for Thanksgiving. And then a half day on Friday, 11/29. So everything will be compressed into 3 and a half trading days.

But it should be an exciting week, especially since stocks typically go up the week of Thanksgiving.

Investors have a lot to be thankful for this year with the major indexes sporting stellar gains.

And it looks like they're shaping up to end the year on an even stronger note.

There are so many positives working in the markets' favor right now. Add in the bullish backdrop of Q4, which is the best quarter of the year for stocks, and it's easy to see why stocks appear to have a lot more upside to go.

See you tomorrow,