The Dow Jones and S&P 500 rose to new highs on Friday, capping off a strong November for stocks. Last week, the Dow Jones added 1.4%, bringing its gain for November to 7.5%. In addition, the S&P 500 and Nasdaq Composite each advanced 1.1% last week. For November, the S&P 500 was higher by more than 5% and the Nasdaq up by 6%. The November gains have largely been centered on the post-election rally of President-elect Trump’s victory. Small companies of the Russell 2000 outperformed other stock indexes in November, surging 10.8% for the month. As December begins, it looks like the stock market rally can very well continue into year-end.
Economic reports from last week came back mixed:
•Manufacturing (Dallas) - higher than expectation
•Manufacturing (Richmond) - lower than expectation
•Single-Family Home Values - higher than expectation
•New Home Sales - lower than expectation
•Pending Home Sales - higher than expectation
•Personal Income - higher than expectation
•Gross Domestic Product - in-line with expectation
•Jobless Claims - lower than expectation
This week, investors will look for guidance from economic reports like Construction Spending, Vehicle Sales, Job Openings, Employment, Consumer Sentiment, Consumer Credit and Jobless Claims.
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