The upcoming release of the Labor Department’s CPI inflation report on Tuesday is highly anticipated. Prior to the start of trading on Monday, there was minimal movement in Dow Jones futures, as well as the S&P 500 and Nasdaq 100. Notably, the Magnificent Seven stocks experienced a decline on Monday, with significant losses observed in Tesla (TSLA), Nvidia (NVDA), and Meta Platforms (META).
On Tuesday at 8:30 a.m. ET, the Labor Department is scheduled to unveil the CPI data. It is expected that the CPI will show an annual increase of 3.1%, remaining steady for the month of November. Additionally, core prices are projected to rise by 0.3% in November, reflecting an annual increase of 4%.
Amidst the financial updates this week, all eyes are on the Federal Reserve’s plan update on Wednesday. Investors are more concerned about market perceptions of the Fed’s actions rather than its actual statements. Market expectations currently suggest four quarter-point rate cuts for 2024, with a 50⁄50 chance of a fifth cut. However, it seems unlikely that the Fed will align its projections with these expectations.
Key earnings reports to watch this week include those from Adobe (ADBE), Darden Restaurants (DRI), and Lennar (LEN).
Oracle (ORCL) experienced an 8% drop in after-hours trading on Monday following lower-than-expected sales figures. Despite exceeding analyst targets for income, the company faced a decline in its stock value.
In the stock market, the S&P 500 and Dow Jones Industrial Average both saw a 0.4% increase on Monday, while the tech-heavy Nasdaq rose by 0.2%. The Magnificent Seven stocks faced significant declines, particularly Meta, which dropped by 2.2%. Notable decreases were also seen in Alphabet (GOOGL), Nvidia, Tesla, and Amazon.
Tech giants Apple and Microsoft traded lower in the market, with Microsoft shares falling by 0.8% and Apple stock declining by 1.3%.
Highlighted as top stocks in the current market rally are Amazon, Booking, Eli Lilly, Snowflake, Boeing, UnitedHealth, and Visa.
Oil prices remained steady, with West Texas Intermediate futures settling above $71 per barrel. The 10-year U.S. Treasury yield stood at 4.23% on Monday.
As the market rally continues, investors are advised to stay informed through resources like IBD’s The Big Picture column. With a confirmed upswing in the market, maintaining a business exposure level of 80% to 100% is recommended. MarketSmith’s tools such as the “Breaking Out Now” and “NearbyPivot” lists can provide valuable insights for investors looking to capitalize on emerging opportunities.
