The Stock Market Closes Positive on Smaller Week Ahead For Investors
As investors reached the end of a shortened week, major market averages pushed higher on Monday morning. The Nasdaq Composite (COMP.IND) gained 0.4%, the S&P 500 (SP500) increased 0.2%, and the Dow (DJI) rose 0.2%.
Kit Juckes, a strategist at Société Générale, commented on the outlook for the week, saying “We have a quiet week ahead for economic data and with Thanksgiving potentially a distraction for some, there isn’t a lot to challenge the market’s view that a US soft-landing is coming.”
He continued, “European PMI data on Friday could be a reminder that growth on this side of the Atlantic isn’t anything to write home about, but US PMIs will be ignored in favor of waiting for ISM a week later (and then payrolls a week after that, followed by CPI and the FOMC).”
Yields on Government Bonds Increase as October Leading Indicators Fall
As of Monday morning, the 10-year Treasury yield (US10Y) had increased 2 basis points to 4.46%, whilst the 2-year yield (US2Y) had risen 2 basis points to 4.91%. The October measure of leading economic indicators showed a drop of 0.8%, slightly more than the 0.7% decrease predicted by economists.
With yields rising and economic indicators declining, investors were still optimistic on Monday morning. They remain hopeful that the US can achieve a soft-landing despite lackluster growth in the European economy, with data from US PMIs, ISM, payrolls, CPI and the FOMC expected in the coming weeks.