Stock Market News | Wells Fargo Investment Institute

Closing Comment — Friday, November 25, 2022

DJIA: 34,347.03, up 152.97
S&P 500: 4,026.12, down 1.14
Nasdaq: 11,226.36, down 58.96

Stocks finish week in positive territory

U.S. equities finished mixed Friday as investors look to close out the short holiday week with a look into this year’s Black Friday sales amid high inflation. While recent retail data suggested consumers are continuing to spend, some analysts have a mixed outlook on sales for the holiday season. The S&P Global Market Intelligence estimated holiday sales to increase 4.5% this year compared to last year’s 12.6% growth. The Dow added 152 points, while the Nasdaq Composite decreased 0.5%. The S&P 500 remained unchanged. Seven of the 11 sectors in the S&P 500 finished in positive territory, with Real Estate and Utilities pacing gains. All three indices ended the week higher as the Dow added 1.8%, the tech heavy Nasdaq increased 0.7%, and the S&P 500 gained 1.5%.

Treasury yields finished little changed Friday, as market participants continue to assess the Federal Reserve’s (Fed’s) meeting minutes from Wednesday which suggested a possible slowdown in interest rate hikes. The yield on the benchmark 10-year note remained unchanged at 3.69%, while the 30-year bond yield added three basis points (0.03%) to 3.75%. The yield on the two-year note dipped one basis point (0.01%) to 4.47%. In commodities, West Texas Intermediate (WTI) crude declined 1.4% to $76.87/barrel, ending the week down 4.3%, as global diplomats continue to discuss Russian price caps at the G7 Summit. While an agreement still hasn’t been reached ahead of the December 5 start date, the price cap is forecasted to be between $65 and $70 a barrel.

Opening Comment — Friday, November 25, 2022

DJIA: 34,194.06, up 95.96
S&P 500: 4,026.53, up 22.95
Nasdaq: 11,285.32, up 110.91

Stocks push to finish the week strong

U.S. equity futures are mixed Friday morning after being closed for the Thanksgiving holiday. The Dow is up 0.2%, while the S&P 500 is increasing 0.1% in pre-market action. The Nasdaq 100 is trading 0.2% below fair value on the GLOBEX. On Wednesday, the Dow added 95 points, while the Nasdaq Composite climbed 1%. The S&P 500 advanced 0.6%. Wednesday’s movements followed the release of the Federal Reserve’s (Fed’s) November meeting minutes. The minutes detailed the central bank is seeing progress with its fight against record high inflation and describes its expectations that monetary policy tightening may soon slow down.

Over in the commodity pits, West Texas Intermediate (WTI) crude is increasing 2.3% to $79.74/barrel as global diplomats discuss Russian price caps at the G7 Summit. While an agreement still hasn’t been reached ahead of the December 5 start date, the price cap is forecasted to be between $65 and $70 a barrel. Across the pond, Germany’s yield curve just hit its deepest inversion since 1992. This inversion is viewed by many economists as a precursor to a recession. However, Friday’s Gross Domestic Product (GDP) reading showed 0.4% growth quarter-over-quarter and 1.3% annualized growth. This data may suggest the expected recession may not be as bad as some feared. Overnight in Asia, Tokyo’s November core inflation rose 3.6% year-over-year, topping analyst estimates of 3.5%. This reading marks the fastest annual growth Japan has seen since April 1982. Over in China, the People’s Bank of China cut the ratio of deposits by 0.25% to 7.8% on Friday. This cut is expected to release approximately $70 billion of funds back into the economy as COVID-19 cases continue to run ramped. In FOREX trading, the U.S. Dollar Index is down 0.2% against a basket of major currencies amid reports the Fed will slow rate hikes.

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