Stocks jumped Monday to start a holiday shortened week, boosted by strong tech gains led by Microsoft and Nvidia.
The Dow Jones Industrial Average gained 203.76 points, or 0.58%, to close at 35,151.04 . The S&P 500 added 0.74% and ended at 4,547.38, while the Nasdaq Composite climbed 1.13% to close at 14,284.53. It was the fifth consecutive day of gains for the S&P 500 and the tech-heavy Nasdaq.
Chipmaker Nvidia also added 2.3%, closing at an all-time high for the stock ahead of its earnings report Tuesday afternoon.
The tech and communication services sectors were the biggest gainers in the S&P 500, up 1.5% and 1%, respectively. Palo Alto Networks jumped 5.2%, while Intel climbed 2.1%. Meanwhile, Paramount rose 5.6%, followed by Netflix, which gained 1.8%.
U.S. markets will be closed Thursday due to the Thanksgiving holiday. Friday will also be a shortened trading day. Trading around the Thanksgiving holiday has been choppy in recent years, but November is still the best-performing month for the S&P 500, according to the Stock Traders' Almanac.
Market bulls remain enthusiastic into year-end, particularly after cooler-than-expected U.S. inflation data released last week calmed investors' nerves about stubbornly high prices and provided a hopeful indication that the Federal Reserve could stop raising interest rates. Yields also continued their decline on Monday following a strong auction on 20-year Treasury notes.
"One of the things that's fueled this recent rally from the end of October and today has been about a half-a-percent drop in Treasury yields, that obviously supports asset values," said Tom Hainlin, senior investment strategist at Ascent Private Capital Management of U.S. Bank.
To be sure, he noted that fiscal spending and deficit issues put the risk of upward pressure on yields.
"So we still see volatility in the bond market, but so far the drop in yields has really supported those riskier asset prices, [which] will be a key focal area for us in 2024," Hainlin added.
Wall Street will also keep an eye on the latest Fed minutes, which are scheduled to be released Tuesday.
Stocks closer higher Monday
U.S. stocks ended Monday's session in the green.
The Dow Jones Industrial Average added 203.76 points, up 0.58%, to close at 35,151.04.
The S&P 500 gained 0.74% and closed at 4,547.38. The tech-heavy Nasdaq Composite added 1.13% to close at 14,284.53.
— Hakyung Kim
Monday sees low trading volume
Monday has marked a relatively quiet start to the holiday-shortened trading week.
With less than an hour left in the session, about 43.3 million shares in the SPDR S&P 500 ETF Trust (SPY) have traded hands. By comparison, nearly 83.2 million shares were exchanged on Friday. (The ETF tracks the broad S&P 500 index.)
The low volumes kick off a shorter trading week than usual, with the market dark on Thursday for Thanksgiving and closing early on Friday. Still, trading has been choppy around Thanksgiving in recent years.
— Alex Harring
Oil prices rise more than 2% as market anticipates OPEC cuts
Oil prices rose more than 2% on Monday amid anticipation that the Organization of Petroleum Exporting Countries could implement another production cut this weekend.
The global benchmark Brent crude contract for January rose $1.71, or 2.12%, to settle at $82.32 a barrel, while the West Texas Intermediate contract for December increased $1.71, or 2.25%, to settle at $77.60 a barrel.
Oil has gained for two sessions in a row now after rapid selloff late last week on supply and demand concerns.
Traders are now eying whether OPEC and its allies will implement additional production cuts at a meeting Sunday in response to the drop in oil prices.
— Spencer Kimball
Treasury auctions between now and the end could push yields higher, Wolfe Research says
Treasury yields could reverse course higher before the end of 2023 thanks to forthcoming auctions, according to Wolfe Research.
"In our view, the Treasury's 4Q refunding plan only provides temporary relief for concerns about supply/demand imbalances," Wolfe Research chief investment strategist Chris Senyek wrote in a Monday note. "More episodes like the most recent 30-year treasury auction have the potential to push rates higher between now and year end."
— Brian Evans
Gas prices are falling and could hit lowest Thanksgiving price since 2020
U.S. drivers could see the cheapest prices for a gallon of gas on Thanksgiving since 2020.
The price for a gallon in the U.S. has fallen for nine weeks now and is on the longest downward streak since the summer of 2022, according to GasBuddy.
By Thursday, the price of gas could hit $3.25 which would be the lowest level on Thanksgiving since 2020 when the pandemic crushed demand.
There are already 11 states where gas is currently below $3 a gallon, according to AAA and GasBuddy.
Prices are falling due to softening demand which is normal this time of year, but also as a consequence of the decline in crude oil prices in recent weeks.
The meeting of the Organization of Petroleum Exporting Countries on Sunday could determine where gas prices go next. There is growing speculation that OPEC could implement further production cuts.
-- Spencer Kimball
Nvidia stock hits all-time high ahead of earnings report
Nvidia stock climbed more than 2% during Monday's session, trading at its most-expensive level ever.
Monday's record-breaking advance comes as investors prepare for the chip maker's earnings report expected Tuesday after the bell. Analysts polled by FactSet expect the company to report $16.19 billion in revenue and $3.37 in earnings per share for the third quarter.
The high comes amid a banner year for the stock, with shares up more than 240% since the start of 2023.
— Alex Harring
Expect 'continued volatility' this holiday quarter, KeyBanc Capital Markets says
KeyBanc Capital Markets expects "continued spending volatility" this holiday season, holding a cautious near-term view on the consumer ahead of Black Friday.
"Broadly, we believe the consumer will likely show up for the Black Friday weekend and the pre-Christmas shopping period," analyst Bradley B. Thomas wrote in a Monday note. "However, we believe the consumer will increasingly shop sales events as they look for deals and bargains"
According to Thomas, spending volatility this holiday quarter will most notably occur in home furnishings, furniture, mattress and consumer electronics segments. Companies including Best Buy, Big Lots, RH and Wayfair could therefore see a slump, he said.
The firm said it has seen weakness in discretionary spending in recent months, particularly as consumers remain pressured by stubbornly high inflation, geopolitical uncertainty, the resumption of student loan payments this fall and tightening consumer credit markets, among other factors.
— Pia Singh
Microsoft stock hits all-time high on Monday
Microsoft is trading at record high levels since its IPO in March 1986, hitting an all-time high of $378.81 on Monday. Shares are up 2.3%.
The moves were fueled by Microsoft's announcement that former OpenAI CEO Sam Altman and president and board chair Greg Brockman will be joining the big tech giant to head a new artificial intelligence research team. Analysts and investors viewed this as a positive catalyst for Microsoft's AI story in the long term.
— Pia Singh
8 S&P 500 stocks reach new all-time highs
The stock market started Thanksgiving week off with a boom, with eight S&P 500 stocks reaching all-time highs during Monday's trading session.
- Chipotle Mexican Grill, since its IPO in 2006.
- Hilton Worldwide, since its IPO in 2013.
- Paccar, since its IPO in 1971.
- Broadcom, since going public in 2009.
- Fair Isaac, since listing on the New York Stock Exchange in 1986.
- KLA Corporation, since its IPO in 1980.
- Microsoft, since its IPO in 1986.
- Roper, since its IPO in 1992.
— Christopher Hayes, Lisa Kailai Han
Keep an eye on consumer spending this holiday week, says strategist
Weaker-than-expected consumer spending on Black Friday and Cyber Monday could negatively impact the markets, according to LPL Financial's chief global strategist Quincy Krosby.
"As the market appears to be taking a rest and consolidating its $2.7 trillion rally leading up to the Thanksgiving holiday, the historical pattern over the last five years suggests the shortened holiday week typically enjoys modest gains," said Krosby.
"With concerns over the resiliency of consumer spending, however, the market can be affected by any indication that Black Friday doesn't witness the throngs of consumers out hunting for bargains, or indications that the start to Cyber Monday won't result in the billions of dollars that are spent online," she added.
— Hakyung Kim
The market is ignoring hard landing risks in 2024, says Bank of America
Stocks and the economy prospered in 2023 despite persistent inflation and a host of other challenges, but they may not be so lucky in 2024, according to Bank of America.
The bank expects the year ahead to be more challenging, with markets underpricing risks that could make bonds and cash attractive and riskier assets such as stocks less so, investment strategist Michael Hartnett said in his look-ahead at the year to come.
More about his 2024 outlook can be found here.
— Hakyung Kim, Jeff Cox
A "Santa Claus rally" could be ahead, says Strategas
Historically, the S&P 500 has gained around 5% over 100 days in the period between the last interest rate hike from the Federal Reserve, and the first rate cut, according to Strategas.
To be sure, the firm noted that the S&P 500 falls to a trough of more than 23% over 200 days after the first rate cut.
"We believe this has a lot to do with the blunt nature of the tools a central bank can use to slow an economy down. Historically, the odds of 'sticking the landing' with an immaculate contraction have not been high," CEO and chief investment strategist Jason De Sena Trennert wrote in a Monday note.
"Perhaps this time will be different. In the interim, a Santa Claus rally may be at hand," he added.
— Hakyung Kim
CNBC Pro: Company stock purchases may give year-end rally additional lift
Some market observers expect the year-end rally we've been enjoying could get another lift as companies scoop up shares of their own stock.
"We mentioned the potential this has to add an additional bid to equities heading into year end and it appears that we may very well be in the midst of that now," Strategas' Ryan Grabinski wrote in a Thursday note.
CNBC Pro subscribers can read the full story here.
— Sarah Min
PENN pops after Bank of America says to buy shares
PENN Entertainment jumped more than 6% after Bank of America moved off the sidelines.
Analyst Shaun Kelley upgraded the gambling and entertainment stock to buy from neutral with a price target implying a 22% upside from Friday's close. He specifically said shares could get a boost from ESPN Bet, the company's new sportsbook.
"We think ESPN Bet creates an asymmetric risk-reward, with 1) initial download and app activity much stronger than anticipated, 2) initial offers showing promotional discipline, and 3) stable Q3 earnings being better than expected for PENN's core gaming business," he wrote.
CNBC Pro subscribers can read all of Monday's market-moving Wall Street chatter here.
— Alex Harring, Lisa Kailai Han
Oil rises as traders eye OPEC meeting
Oil prices rose more than 2% on Monday amid anticipation that the Organization of Petroleum Exporting Countries could cut production further at a meeting this weekend.
Oil prices have risen in the wake of a selloff last week that pushed U.S. crude into a bear market. WTI is currently down 18% from a September high.
Expectations are growing that OPEC and its allies could implement additional production cuts at a meeting slated for Nov. 26. Sources at OPEC+ told Reuters and the Financial Times that the group will discuss such action at its upcoming meeting.
In June, OPEC agreed to limit supply into 2024. Saudi Arabia recently reaffirmed its intention to maintain a voluntary cut of 1 million barrels per day through the end of 2023.
-- Spencer Kimball
Dow, S&P 500 headed for best month since October 2022
The S&P 500 and Dow Jones Industrial Average are up 8.01% and 6.05% in November. The two major averages are on pace for their best monthly performance since Oct. 2022, when the broad market index jumped about 8%, while the 30-stock Dow surged 13.95%.
— Hakyung Kim
Argentina-focused ETF surges after country's presidential election
A U.S.-traded fund tied to Argentina's equity market is rallying following libertarian Javier Milei's victory in the presidential election
The Global X MSCI Argentina ETF (ARGT) climbed nearly 10% in Monday morning trading. With the gain, the fund was trading at its highest level since September.
Monday's advance comes after the Latin American country elected Milei in the run-off election held on Sunday. Milei has garnered comparisons to former U.S. President Donald Trump and former Brazil President Jair Bolsonaro,
The ultra-right politician has promised shock therapy-like changes to the inflation-strapped economy, including dollarization and abolishing the central bank. He is also pro-bitcoin.
— Alex Harring
Tech-focused QQQ ETF reaches new 52-week high
The Invesco QQQ Trust hit its highest level since Jan. 2022.
Microsoft had the largest positive-point impact on the Nasdaq-100, up 0.7%, followed by Apple, which is 0.5% higher.
The Nasdaq-100 is also within roughly 30 points of its 52-week high of 15,932.74.
— Hakyung Kim, Gina Francolla
Leading indicators down 0.8% in October, worse than expected
Leading economic indicators again pointed to a contraction in the U.S. economy, though the series looks like it's bottoming out, The Conference Board reported Monday.
The board's LEI index registered a reading of -0.8% in October, a touch below the -0.7% in September and slightly worse than the Dow Jones estimate for -0.7%.
While the narrative indicated that the index was consistent with a "very short recession" ahead, the indicator "may have reached a bottom." The index combines 10 different metrics, including S&P 500 prices, bond yields and employment and manufacturing data points.
Copper prices hit their highest level since September
Copper prices on Monday hit their highest level since September, bolstered by hopes of fresh China stimulus as well as a softer dollar.
Copper rose to 3.7645, its best level since Sept. 29 when copper traded as high as 3.7860. Meanwhile, the Global X Copper Miners ETF was higher in premarket trading. Notably, shares of Freeport-McMoRan gained more than 1% in premarket trading; the mining stock is already higher by 8.7% in the last five days.
Meanwhile, LME Aluminum hit a high of $2,241 per metric tonne, or the highest level since Nov. 14 when aluminum traded as high as $2,244.50
— Sarah Min, Gina Francolla
Stocks are little changed Monday morning
U.S. stocks opened flat on Monday.
The Dow Jones Industrial Average inched up just 9 points, or 0.03%. The S&P 500 and Nasdaq Composite added 0.1% and 0.3%, respectively.
— Hakyung Kim
Stocks making the biggest moves Monday premarket
Check out the companies making the biggest moves in premarket trading:
Boeing — The aerospace stock added 1.5% following an upgrade to buy from hold by Deutsche Bank. The bank noted Boeing's acceleration of aircraft deliveries and said it believes this improved performance can be sustained.
PENN Entertainment — The gambling stock popped 4.4% on the back of a Bank of America upgrade to buy from neutral. The firm said shares could be helped by the company's new sportsbook, which is called ESPN Bet.
The full list can be found here.
— Hakyung Kim