Us Stocks Likely to Remain Low as Week Starts
The stock market closed with mixed and mostly low numbers on Friday, and we anticipate a muted start to the week as trading begins Monday morning.
The Dow Jones closed at a loss of 0.20%, ending an unspectacular week for the market that was mostly just trying to stabilize after recent highs. The Nasdaq Composite climbed 0.12%, and the S&P 500 index closed flat.
The recent record highs we saw from the stock market appear to be settling down and many investors are left holding stocks that are no longer climbing and that may struggle through the holiday season. The stock market experienced a boom after Donald Trump won the US presidential election, but while the cryptocurrency market is still booming, the stock market is no longer bullish.
Trump did visit the New York Stock Exchange last week to make vague predictions about how the market would do well under him, but there have been no solid developments from his administration that have keyed investors into what to expect.
The Market Could Pick Up This Week
There are a few events this week that could help the stock market perk up, most notably the interest rate decision from the Federal Reserve. If that comes through, then the market could jump sharply in response. That decision is coming on Wednesday, and we could see the market tick up in anticipation ahead of that announcement.
Later on Monday, Manufacturing and Services PMI reports will be coming in. These could help indicate the direction inflation is moving. The expectation is that both of these numbers will drop slightly from the previous reports.
A number of quarterly earnings reports will be coming out on Monday, including reports from Comtech (CMTL), US Gold (USUA), Energy Services of America (ESOA), and Mesa Air (MESA). Few heavy hitters are issuing reports, but the dozens that are releasing could be enough to shift the market slightly.
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