US Market Open Or Closed On Thanksgiving Day; Weekly Outlook On Dow Jones, S&P 500, Nasdaq

The US market is expected to witness a broader bullish trend in the coming week's trading sessions. However, upside treasury yields could limit the gains, and hence a spoilsport for the market. Notably, the trading period of November 25-29 is likely to be a holiday-shortened week due to Thanksgiving Day which is a federal holiday. Last week, the performance of Dow Jones, S&P 500 and Nasdaq Composite was positive with gains between 1.5% to 2%.

US Market Holiday Next Week:

There are two main exchanges in the United States of America namely NYSE and Nasdaq. As per both the exchange holidays for 2024, Thanksgiving Day will be a market holiday. Hence, trading will be closed on exchanges for equities, bonds, dollars, derivatives, commodities and other market related instruments.

Thanksgiving Day Date:

This year, Thanksgiving Day in the USA will be celebrated on November 28, 2024. Apart from being considered a federal holiday when states declare public holidays along with banks and government offices are also shut, Thanksgiving Day is also a national holiday in the USA which makes it a compulsory holiday for everyone including private offices and the stock market.

Thanksgiving is a national holiday celebrated on various dates in October and November in the United States, Canada, Saint Lucia, Liberia, and unofficially in countries like Brazil, Germany and the Philippines. It is also observed in the Dutch town of Leiden and the Australian territory of Norfolk Island. It began as a day of giving thanks for the blessings of the harvest and of the preceding year. Various similarly named harvest festival holidays occur throughout the world during autumn. Although Thanksgiving has historical roots in religious and cultural traditions, it has long been celebrated as a secular holiday as well, as per Wikipedia.

US Market Outlook For Next Week:

Nate Peterson Director of Derivatives Analysis at Charles Schwab in his note said, "From a seasonality perspective, November is a bullish month for stocks and "Thanksgiving Week" tends to be an up week more often than not. The earnings calendar is relatively light next week, though we'll hear from high-profile tech companies DELL, CRWD and WDAY on Tuesday. On the economic front, we'll get PCE Prices on Wednesday which is the Federal Reserve's preferred inflation gauge. Lastly, one other interesting development that I've got on my radar is the recent rally in the U.S. Dollar's (DXY), which has pushed the greenback above prior resistance (~107) to the highest levels since mid-2022."

As per Nate, a stronger Dollar is generally bullish for U.S. stocks, though if the velocity of the move is too swift it can create near-term market volatility. Taking everything into consideration, bullish seasonality, bullish technicals, a strong fundamental backdrop and a friendly Fed leave me in the bullish camp for next week.

" Therefore, my forecast for next week is "bullish"," he added.

However, what could challenge the outlook? Nate added that a "leg up" in bond yields (4.50% looks to be a key level for the 10-year) and/or a hotter-than-expected PCE report, which would likely push yields higher, are the most likely culprits in his mind. He added, "I'm not concerned about the rise of the U.S. Dollar, not yet at least, since markets don't appear to be concerned with today's breakout."

Economic, Other Key Data Next Week:

Monday, November 25: No Reports.

Tuesday, November 26: Consumer Confidence, FHFA Housing Price Index (FHFA), New Home Sales, S&P Case-Shiller Home Price Index.

Wednesday, November 27: Advanced International Trade in Goods, Advanced Retail Inventories, Advanced Wholesale Inventories, Durable Goods, Continuing Claims, EIA Crude Oil Inventories, EIA Natural Gas Inventories, GSP - Second Estimate, Initial Claims, Mba Mortgage Applications Index, PCE Prices, Pending Home Sales, Personal Income, Personal Spending.

There are no major economic data seen on the upcoming Thursday and Friday.

Corporate Earnings to watch out next week are - Bath & Body Works Inc. (BBWI), Agilent Technologies (A), Zoom Video Communications Inc. (ZM), Woodward Inc. (WWD), Analog Devices Inc. (ADI), Best Buy Co. (BBY), Burlington Stores Inc. (BURL), Dick's Sporting Goods (DKS), Abercrombie & Fitch Co. (ANF), Dell Technologies Inc. (DELL), CrowdStrike Holdings Inc. and (CRWD), Workday Inc. (WDAY).

US Market Last Week:

Dow Jones: The Dow Jones Industrial Average or DJIA ended at 44,296.51 on Friday last week, up by 426.16 points or 0.97%. Its weekly performance is up by 864.62 points or 1.99%.

S&P 500 Index: This index closed on November 22 at 5,969.34, up by 0.35%. In its weekly performance, the index surged by 1.62%.

Nasdaq Composite: The tech-heavy index ended last week at 19,003.65, up by 0.16% on Friday. Its weekly performance is up by 285.72 points or 1.53%.

According to Trading Economics data, investor rotation from technology into economically sensitive sectors like financials, industrials, and consumer discretionary supported broader market gains. Additionally, Wall Street awaits the announcement of Trump's Treasury secretary pick, a decision that could influence market sentiment. Additionally, former Florida Attorney General Pam Bondi has been selected as U.S. attorney general, following Matt Gaetz's withdrawal from consideration.