Stocks performed well during the shortened Thanksgiving week, gaining about 1.5%, getting a boost on Friday as it appears that retailers’ strategy to move “Black Friday” to “Black Thursday” could pay off, as traffic and early sales volume reports are stronger than expected. Investors should be warned and recall the same period in 2008, when Thanksgiving weekend retail sales were also very strong, only to fizzle out over the coming weeks.
Next Week's Market Moving Events:
Monday: Dallas Fed Manufacturing Survey data and weekend retail sales reports will be at the forefront of investors’ minds.
Tuesday: Durable goods orders, S&P Case-Shiller Index, and Consumer Confidence reports are on tap. As deadlines loom, European politics related to Spain and Greece will also drive market direction.
Wednesday: New homes sales data should help confirm the housing turnaround.
Thursday: GDP data, jobless claims, and pending home sales will be reported.
Friday: Personal income and spending will be released.
As of Friday November 23, there are 108 stocks within the S&P 500
(INDEXSP:.INX) with positive momentum (up from 42 a week ago), concentrated in the consumer staple and consumer discretionary sectors. Continue to rotate into the sectors with best momentum, especially if this week's data is strong. Tech, telecom, and utilities appear set to underperform again this week.
Follow Oliver Pursche on Twitter: @opursche.
No positions in stocks mentioned.