Morning Market Prep | Stock & Options Trading | 11-26-24

The morning market is mixed, with Asian and European markets reacting negatively to potential tariffs while US futures are bullish. The US dollar weakened, and oil and gold prices are fluctuating, following a potential truce between Israel and Hezbollah and the overall market movement. The market is in a bullish trend but showing signs of exhaustion and potential profit-taking, with a possible rotation towards defensive stocks.

Overnight Market Performance

• 00:00:55 Asian markets were mostly lower, with Australia, Japan, India, and South Korea seeing declines, while Hong Kong saw a slight increase due to positive manufacturing numbers. Shanghai also saw a decrease. European markets were also reacting negatively to the potential tariffs, with Germany, the UK, and France all experiencing declines.

US Futures & Market Outlook

• 00:08:37 US futures are showing a pre-market pump, with Dow futures marginally up and S&P and NASDAQ futures also increasing. However, the market is stretched to the upside after six days of gains, and declining volume suggests potential bearishness. A push back down to fill the gap and test support is possible, with further downside if the bears gain momentum.

Economic Calendar & Upcoming Events

• 00:17:55 The economic calendar for the day includes data on the Case-Shiller home price index, FHFA purchase-only index, consumer confidence, new home sales, and Richmond Fed manufacturing. The FOMC minutes will be released at 2 p.m. Eastern. The following days leading up to Thanksgiving will be marked by high volatility and declining trading volume as the week ends, potentially leading to suspect price action.

Earnings Reports

• 00:22:02 Several companies are reporting earnings this morning and afternoon, including ANF, AMWD, AI, BNS, BBY, and several retail companies. Afternoon reports include notable names such as Dell, HPQ, and WDAY, providing potential for market activity. The retail earnings, however, indicate a weaker-than-expected consumer base.

Stock and Sector Outlook

• 00:25:13 Several individual stocks are reviewed for potential trading opportunities. CAR and some oil sector stocks are seen as bullish, while Fang, AMD, Microsoft, and Google show signs of weakness and potential short-selling opportunities. Defensive sector stocks such as Colgate, Hershey, Coke, Pepsi, Kroger, and others are experiencing upward trends, potentially indicating a rotation away from growth stocks due to the extended market rally.