US Stock Futures Rise After Thanksgiving Break: Market Outlook and Key Movers
US stock futures experienced a significant uptick on Friday, the day after Thanksgiving, as investors looked to conclude November on a positive note. This upward trend follows a shortened trading week, with US markets closing early at 1 p.m. ET. Futures contracts for the three major US indices – the Nasdaq 100, S&P 500, and Dow Jones – all showed gains, while yields on two-year and 10-year Treasury notes eased. This movement further fueled market speculation regarding the Federal Reserve’s potential for another 25 basis point interest rate cut in December, a probability estimated at 66% by the CME Group’s FedWatch tool.
Pre-Market Performance and Previous Session’s Recap:
In pre-market trading, key exchange-traded funds (ETFs) reflected this positive sentiment. The SPDR S&P 500 ETF Trust (SPY) increased by 0.31% to $600.69, while the Invesco QQQ Trust ETF (QQQ) rose 0.44% to $507.50. However, the previous session closed with mixed results. The S&P 500 dipped by 0.38%, losing 22.89 points to finish at 5,998.74. Similarly, the Dow Jones Industrial Average fell 0.31%, dropping 138.25 points to close at 44,722.06. The Nasdaq Composite Index experienced a more significant decrease of 0.60%, losing 115.10 points to settle at 19,060.48. The 10-year Treasury note yield also saw a decline, falling six basis points to reach a one-month low of 4.24%.
Economic Data and Analyst Insights:
On the economic front, October’s core Personal Consumption Expenditures (PCE) price index remained steady at a 0.3% month-over-month increase, aligning with market expectations. Initial jobless claims also held steady at 213,000 for the week ending November 23rd, matching market forecasts. Positive news came from the housing sector, with pending home sales rising 2% month-over-month in October, following a revised 7.5% increase in September.
Analyst perspectives on the market’s trajectory are varied. Ryan Detrick, chief market strategist at Carson Group, presented historical data indicating that December has only once been the worst month for equities in the past 95 years (2018), while September has held that unfortunate distinction 13 times during the same period. This historical context tempers overly bearish forecasts for the end of the year. Conversely, David Cox, portfolio manager at Raymond James, utilized the 13/34-week Exponential Moving Average (EMA) to suggest a potential upcoming market correction, emphasizing the importance of monitoring trend indicators to navigate potential market declines. He highlights past bearish crossovers as signals for strategic adjustments.
Individual Stock Performance:
Several individual stocks experienced noteworthy price movements. Cabaletta Bio Inc. (CABA) saw a significant 11.63% increase in pre-market trading to $3.36 per share, driven by positive updates on its systemic sclerosis drug trial. Frontline Plc. (FRO) experienced a downturn, falling 2.38% to $16.78 per share after releasing mixed third-quarter results, despite exceeding revenue expectations. Rigetti Computing, Inc. (RGTI) saw a jump, increasing 8.33% to $2.60 apiece in pre-market trading following a registered direct offering of shares. ZenaTech Inc. (ZENA) experienced a 6.89% decrease, pulling back after previous gains, while Bitdeer Technologies Group (BTDR) rose 7.52% to $13.15 per share on news of a significant private placement of convertible senior notes.
Commodities and Global Markets:
Crude oil futures fell 0.60% in early New York trading to hover around $68.30 per barrel. Gold prices saw a more significant rise, increasing 0.94% to $2,662.10 per ounce. Asian and European markets exhibited mixed performance, with some major indices declining while others showed gains.
Looking Ahead:
No major economic data releases are currently scheduled for the remainder of the day.
