Here are five things you should know for Monday, November 22:
1. – Stock futures
US stock futures rose on Monday, while Treasury yields held steady and the dollar settled against its global peers, as investors entered the brief Thanksgiving week in a cautiously bullish mood.
With markets closed on Thursday, and only half-day trading on Friday, liquidity is likely to be thin this week, with only 12 S&P 500 companies reporting their earnings and a light economic calendar highlighted by the minutes of the Federal Reserve’s November meeting on Wednesday afternoon.
Stocks are getting their boost early Monday, however, from the continued strength of the third-quarter earnings season, which is winding down to an end, as the S&P 500 collective profit rose 42.3% from a year ago to $452.9 billion. Stronger-than-expected consumer spending data, as well as continued improvements in the labor market add to the bullish tone.
However, inflation prospects are showing few signs of abating, and the current rally – which has led the S&P 500 to a yearly gain of around 25.1% – could be tested if the Fed is to accelerate its downside plans. In order to slow the sharp pace of CPI gains.
On Wall Street, futures linked to the Dow Jones Industrial Average are pointing to an opening gain of 145 points while those linked to the S&P 500 are priced to move 16 points to the upside.
Futures linked to the technology-focused Nasdaq Composite are pointing to a gain of 65 points as 10-year Treasury yields settled at 1.578% in overnight trading.
2. Thanksgiving a week ago
The minutes of the Federal Reserve’s November monetary policy meeting, during which it revealed plans to slow the pace of $120 billion in monthly bond purchases in order to cushion the impact of rising inflation, will shed light on a quiet calendar of events during the holiday week.
The minutes, due out Wednesday at 2:00 PM ET, will follow the same day’s initial jobless claims data, as well as an advanced look at third-quarter GDP from the Commerce Department, after the previous growth estimate of 2.0%. The Fed’s preferred measure of inflation, the PCE price index, will also be published Wednesday at 8:30 a.m. ET.
In terms of corporate earnings, only 12 companies on the S&P 500 are due this week, most notably updates from retailers including Best Buy. (BBY) – Get the Best Buy Co., Inc. report., the difference (GPS) – Get the Gap, Inc. report. (GPS)Nordstrom (JWN) – Get Nordstrom, Inc.’s report. (JWN) And the dollar tree (DLTR) – Get a Dollar Tree, Inc. report.. Deer & Co. (from) – Get a Deere & Company report He will also submit a report on Wednesday.
3. – Biden’s Fed Choice: Powell or Brainard
President Joe Biden is expected to reveal his pick to lead the Federal Reserve from next year sometime this week, as reports suggest he is leaning toward reappointing incumbent Chairman Jerome Powell.
Powell, whose term ends on February 5, led the economy through the worst of the coronavirus pandemic, and also demonstrated impressive determination in resisting pressure from former President Donald Trump for the greater part of his four-year term.
However, Democratic progressives – led by Senator Elizabeth Warren – have been pushing for Fed Governor Lyle Brainard, who is seen as pessimistic on Fed rate policy and more in line with their need to integrate monetary policy in the fight against climate change. . It is also seen as a tougher one in relation to the banking sector, an issue that Warren has raised several times during her questioning of Powell at Senate committee hearings.
4. Activision CEO vows to engage with culture
Activision Blizzard (ATVI) – Get the Activision Blizzard, Inc. report. Shares rose in pre-market trading after the Wall Street Journal reported that CEO Bobby Kotik may consider stepping down if he is not able to make meaningful changes to the video game maker’s workplace culture.
The suggestion came after employees withdrew on Tuesday after the newspaper reported that Kotick was aware of the sexual harassment allegations, among other issues, earlier than had been announced.
Activision fired 20 employees, and disciplined another 20, earlier this month amid allegations of sexual harassment and discrimination that followed a settlement with the US Equal Employment Opportunity Commission in September. The group also committed $18 million to compensate victims of the allegations and said Kotick would take a modest pay cut.
Activision shares, which have fallen more than 35% over the past six months, are down 0.6% in premarket trading to indicate an opening bell price of $62.02 per share.
5. – Musk says Plaid S is coming to China soon
Tesla (TSLA) – Get a Tesla Inc . report Shares jumped higher in pre-market trading after founder and CEO Elon Musk said the Model S Plaid, the automaker’s high-performance luxury sedan, will be available in China early next year.
In a tweet early Monday, Musk said Plaid will arrive in China “likely in March,” after its official launch in September. The Plaid is priced at $140,000, has a charging range of 520 miles and can reach a top speed of 200 miles per hour.
The tweet comes after a weekend of outage for some Tesla owners following an app server outage that prevented many from connecting to or getting into their Tesla cars.
Tesla shares were marked 2% higher in premarket trading to indicate an opening bell price of $1,169.10 per share.