The Week Ahead.
Robert R. Fragnito
Chief Operating Officer | Financial Advisor | Portfolio Manager at MCF Capital Management, LLC
U.S. stocks finished in positive territory on Monday as traders digested Trump's latest Treasury Secretary pick and this week's inflation data.??
Daily Market Commentary will be off this week and will return next Monday.
Stocks traded higher Monday as Wall Street welcomed President-elect Donald Trump's selection of hedgefund manager Scott Bessent as Treasury Secretary. The U.S. dollar fell, and U.S. Treasury yields fell sharply on the news. Investors generally view Bessent as a moderate on Trump's tariff policy.
On the geopolitical front, oil prices retreated significantly over reports that Israel was close to reaching a ceasefire deal with the militant group Hezbollah in Lebanon.
Investors looked ahead to a shortened trading week; markets will be closed on Thursday during the Thanksgiving Day holiday.
On Wednesday, traders will review key economic updates covering revisions to Q3 U.S. GDP, inventory data, jobless claims, durable-goods orders, and the Fed's favored inflation gauge, the PCE price index.? ?
This week's PCE data will be the last report before the Federal Reserve's December 17-18 policy meeting.
Trading on Monday:
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Looking Ahead
Stocks traded mostly in positive territory on Monday despite a few lulls intraday as Wall Street welcomed the Bessent pick. Investors enter a generally positive week for stocks and a historically downbeat week for commodity prices.
Questions over the future path of monetary policy continue to weigh, however. Wednesday's PCE data, widely expected to show an uptick in inflation, will be critical. November consumer (CPI) and wholesale (PPI) inflation data are still ahead of the Fed's December policy meeting.
So far, Wall Street appears pleased with President-elect Trump's economic cabinet picks. Except for a few market-moving events, investors seem poised to enter a seasonally strong period leading into year-end.??
Our assessment of financial markets remains positive.
We want to take this opportunity to wish all our readers a Happy Thanksgiving!
?? Last Week’s Chart
Source: Wells Fargo Investment Institute, “Looking Ahead,” November 22, 2024.
OUR FIRM
MCF Capital Management, LLC is an independent, family-run, financial advisory firm that manages investment portfolios for individuals and businesses through Quantitative Market Data Analysis.
THIS ARTICLE IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT INVESTMENT ADVICE.?
???SOURCES:?LSEG Workspace, Dow Jones NewsPlus, MarketWatch, Wall Street Journal, Barron’s, FinancialJuice, Investing .com, CNBC, Reuters, Wells Fargo Investment Institute, TradingView, Zacks
Image: Monday’s Intraday Chart (1 Minute), Source: TradingView via LSEG Workspace