Stocks Drift Higher Ahead of Thanksgiving Holiday
The shortened trading week leading up to the Thanksgiving holiday saw stocks drifting higher, with the Dow Jones Industrial Average (^DJI) gaining nearly 2% for the past week. The S&P 500 and Nasdaq Composite also recorded gains, with the latter reaching a new all-time high.
Market Outlook: Bullish on 2025
Despite the recent market volatility, Wall Street research firms are issuing bullish outlooks for 2025. Many reports have projected the S&P 500 to finish between 6,400 and 7,000 next year. However, DataTrek co-founder Nicholas Colas points out that these targets fall in line with the traditional average annual return of the S&P 500 over the last century.
Why the Bullish Calls are Right
Colas argues that the stability of the US economy is the most important factor to consider for investors in 2025. He cites the solid footing of the labor market, lower interest rates, and an incoming administration expected to bring tax cuts and deregulation as reasons for optimism.
"We remain positive and believe the S&P 500 can rally more than its long-term average over the coming year," Colas wrote. "The setup going into 2025 more closely resembles exceptionally strong years rather than weak ones."
Weekly Calendar: Economic Data and Earnings Releases
Here is a list of economic data releases and earnings announcements for the week:
- Monday:
- Dallas Fed manufacturing activity, November (-3 prior)
- Earnings: Bath & Body Works (BBWI), Zoom (ZM)
- Tuesday:
- S&P CoreLogic 20-city year-over-year NSA, August (5.20% prior)
- New home sales month-over-month, October (-1.8% expected, 4.1% prior)
- Conference Board Consumer Confidence, November (112.5 expected, 108.7 prior)
- Richmond Fed manufacturing index, November (-14 prior)
- FOMC Meeting Minutes (November meeting)
- Earnings: Abercrombie & Fitch (ANF), Autodesk (ADSK), Best Buy (BBY), Burlington Stores (BURL), CrowdStrike (CRWD), Dell (DELL), HP (HPQ), Kohl’s (KSS), Macy’s (M), Manchester United (MANU), Urban Outfitters (URBN), Workday (WDAY)
- Wednesday:
- Personal income, October (0.3% expected, 0.3% prior)
- Personal spending, October (0.4% expected, 0.5% prior)
- PCE index month-over-month, October (0.2% expected, 0.2% prior)
- PCE Index year-over-year, October (2.3% expected, 2.1% prior)
- Core PCE Index month-over-month, October (0.3% expected, 0.3% prior)
- Core PCE Index, year-over-year, October (2.8% expected, 2.7% prior)
- MBA mortgage applications, Nov. 22 (0.5% prior)
- GDP annualized quarter-over-quarter, third quarter second estimate (+2.8% expected, +2.8% prior)
- Core PCE Price Index quart-over-quarter, third quarter second estimate (2.2% prior)
- Wholesale inventories month-over-month, October (+0.8% prior)
- Initial jobless claims, week ending Nov. 23 (213,000 prior)
- Pending home sales month-over-month (7.4% prior)
- Thursday:
- Markets are closed for the Thanksgiving holiday.
- Friday:
- MNI Chicago PMI, November (41.6 prior)
What to Expect in the Coming Weeks
The coming weeks will be crucial for investors as they await key economic data releases and earnings announcements. The market is likely to remain volatile, but a strong economy and favorable corporate earnings could drive stocks higher.
As always, it’s essential to stay informed about market news and trends to make informed investment decisions. Stay tuned for the latest updates on Yahoo Finance.
