Monday saw a small increase in the S&P 500 as Wall Street looked to keep up the momentum from the impressive performance of the previous week.
The Nasdaq Composite gained 0.35%, while the S&P 500 crept up 0.15%.Ten points were added to the Dow Jones Industrial Average.
Ahead of Bank of America’s earnings release, excitement around the company helped Nvidia shares rise by more than 1%. Following a Reuters story stating that Tesla intends to assemble electric cars at its Berlin plant that will retail for 25,000 euros, the company’s stock increased by 1%.
November trading is off to a good start for all the major averages, which are coming off of their best weeks of the year. For the first time since October 2022, the Dow finished last week up 5.1%. During that period, the Nasdaq Composite surged 6.6% and the S&P increased 5.9%. It was the strongest week for both indexes since November 2022. Bond yields declined as a result of a weak monthly jobs data, which also helped stocks.
“November has seen a strong start for the stock market, and the increase seems justified given what we’re seeing in most, but not all, of our sentiment indicators,” stated RBC Capital Markets’ head of U.S. equities strategy Lori Calvasina in a written statement.
Over the past month or so, she continued, “our belief has generally been that US stocks may escape without incurring too much extra harm provided the spike in yields ended shortly.”
There won’t be much information released this week regarding the economy or business earnings, but seasonal positives could support the rise in stocks. The Stock Traders’ Almanack states that November is the S&P 500’s best-performing month. Additionally, it begins the best six-month return period for the market since 1950, according to Adam Turnquist of LPL Financial. Since then, from November through April, the S&P has produced an average return of 7%, he noted.
Source (CNBC)
