Stock futures fell on Monday ahead of another batch of retail gains to kick off a shorter week leading up to the Thanksgiving holiday.
Futures linked to the Dow Jones Industrial Average fell 66 points, or 0.20%. S&P 500 and Nasdaq 100 futures fell 0.52% and 0.82%, respectively.
However, Disney bucked the negative trend, rising more than 8% after the media giant announced that Bob Iger would return as CEO, effective immediately.
Investors have been mulling the strength of a recent bear market rally, which began earlier in the month with the October consumer price index reading and gained some strength from last week’s wholesale price reading.
Last week, traders were fixated on messages from Federal Reserve officials, who were less impressed with the numbers and reassessed their optimism about slowing inflation. The market will get more Fedspeak to digest when Cleveland Fed President Loretta Mester and St. Louis Fed President James Bullard speak on Tuesday.
Yardeni Research’s Ed Yardeni said the Oct. 12 low was the bottom in his view and the S&P 500 could rally to near 4,300 by the end of the year, he told CNBC on “Closing Bell: Overtime” on Friday. the night. The benchmark index currently stands at 3,965.34.
“What is making the big difference in the market is the resilience of the economy, it has been spectacular,” he said. “Everyone has been debating whether we’re going to have a soft landing or a hard landing; meanwhile, there’s no landing at all. The consumer didn’t get the recession memo and keeps spending.”
Retail sales rose in October, but corporately Target reported slowing demand and Amazon announced it will lay off 10,000 employees, though Home Depot and Walmart have reported strong results.
“Despite what holiday season spending may suggest, retail stocks tend to be in the top three in November, but in the bottom three in December and somewhere in between in January,” said Liz Young, chief strategist. of SoFi investments. she said in a note this weekend.
“Seasonality has a place in market analysis and has some predictive power. But the power of the business cycle is stronger, regardless of the time of year,” he added. “With 375 basis points of Fed rate hikes so far, an inverted yield curve, spikes in inflation and commodity prices still part of the narrative, we can almost conclude that we are at the end of the business cycle. “.
This week, shortened by the Thanksgiving holiday, investors will be busy with another batch of retail earnings. Best Buy, Nordstrom, Dick’s Sporting Goods and Dollar Tree are among the companies on deck.