We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Relief came to the stock market today after a big sell-off which began yesterday afternoon and closed at session lows. Today we closed at session highs. I guess you could call that a “bounce-back.” We didn’t gain all the losses from a day ago, and are still off all-time highs, so a positive read would say that we may have some room to run from here. The Dow gained +322 points, +0.87%, the S&P 500 was +48 points, +1.03%, and the Nasdaq gained +185 points, +1.26%. The small-cap Russell 2000 won the day, however, +1.54%.
Healthy Weekly Jobless Claims this morning helped support the bullish narrative, and neither a more-realistic downward Q3 GDP revision nor another weak Philly Fed number were enough to quash it. But a bigger takeaway today is there wasn’t a slide continuing a second day on the markets; at this point, we can see yesterday as pocketing some profits gained from late-October lows.
NIKE (NKE - Free Report) posted fiscal Q2 results after today’s closing bell, with better-than-expected earnings on in-line revenues. Earnings of $1.03 per share easily surpassed the 84 cents in the Zacks consensus (and swung to a positive year over year from 85 cents per share posted a year ago), while revenues of $13.4 billion were exactly as analysts were anticipating. But shares are selling off nearly -5% on the news, as the company stated it expects softer revenues in the second half of next fiscal year. This may be a forecast for cooler markets in China next year; details will no doubt be available on the conference call.
Tomorrow morning, we get the Fed’s preferred inflation metric: Personal Consumption Expenditures (PCE) for November. One reason for this is that PCE combines data from across other economic reports, and hence has a fewer amount of revisions month over month. Expectations are for core (subtracting volatile food and energy prices) PCE month over month to come down to +0.1% from +0.2% the previous month, +3.3% on core year over year, down from the +3.5% in October.
These would all be consistent with what the Fed sees as cooling inflation overall. Supply-chain disruptions have not only been ironed out over time, but higher interest rates — 5.25-5.50% since late July — have curbed runaway pricing for goods and services. As of now, skirmishes in the Red Sea are not much of a factor in freezing up supply chains going forward, and in any case we wouldn’t see them in November numbers.
All in all, it’s been a lovely couple months on the stock market; you can say Christmas came early this year. Whether this continues into a legit “Santa Claus Rally” — considered the time period between tomorrow and the end of the year — remains to be seen. We do know that markets tend to tick up to end a year. But even if they don’t, we’ve had a strong bounce-back day, quarter and full-year 2023. Ho ho ho!
Image: Bigstock
Bouncing Back for the Day, Quarter and Full Year
Relief came to the stock market today after a big sell-off which began yesterday afternoon and closed at session lows. Today we closed at session highs. I guess you could call that a “bounce-back.” We didn’t gain all the losses from a day ago, and are still off all-time highs, so a positive read would say that we may have some room to run from here. The Dow gained +322 points, +0.87%, the S&P 500 was +48 points, +1.03%, and the Nasdaq gained +185 points, +1.26%. The small-cap Russell 2000 won the day, however, +1.54%.
Healthy Weekly Jobless Claims this morning helped support the bullish narrative, and neither a more-realistic downward Q3 GDP revision nor another weak Philly Fed number were enough to quash it. But a bigger takeaway today is there wasn’t a slide continuing a second day on the markets; at this point, we can see yesterday as pocketing some profits gained from late-October lows.
NIKE (NKE - Free Report) posted fiscal Q2 results after today’s closing bell, with better-than-expected earnings on in-line revenues. Earnings of $1.03 per share easily surpassed the 84 cents in the Zacks consensus (and swung to a positive year over year from 85 cents per share posted a year ago), while revenues of $13.4 billion were exactly as analysts were anticipating. But shares are selling off nearly -5% on the news, as the company stated it expects softer revenues in the second half of next fiscal year. This may be a forecast for cooler markets in China next year; details will no doubt be available on the conference call.
Tomorrow morning, we get the Fed’s preferred inflation metric: Personal Consumption Expenditures (PCE) for November. One reason for this is that PCE combines data from across other economic reports, and hence has a fewer amount of revisions month over month. Expectations are for core (subtracting volatile food and energy prices) PCE month over month to come down to +0.1% from +0.2% the previous month, +3.3% on core year over year, down from the +3.5% in October.
These would all be consistent with what the Fed sees as cooling inflation overall. Supply-chain disruptions have not only been ironed out over time, but higher interest rates — 5.25-5.50% since late July — have curbed runaway pricing for goods and services. As of now, skirmishes in the Red Sea are not much of a factor in freezing up supply chains going forward, and in any case we wouldn’t see them in November numbers.
All in all, it’s been a lovely couple months on the stock market; you can say Christmas came early this year. Whether this continues into a legit “Santa Claus Rally” — considered the time period between tomorrow and the end of the year — remains to be seen. We do know that markets tend to tick up to end a year. But even if they don’t, we’ve had a strong bounce-back day, quarter and full-year 2023. Ho ho ho!
Questions or comments about this article and/or author? Click here>>