Dow Jones, Nasdaq, S&P 500 weekly preview: Can this rally hold?
The S&P 500 (SPX) recorded its fifth consecutive candle last week (+0.8%), matching the May-June streak. The index is now testing the 2023 highs around 4600. A break above this level would pave the way towards the record highs around 4800 while a failure would increase the risk of a double top pattern.
The Dow Jones Industrial Average (DJI) added as much as 2.4% with the index now up more than 12% since October lows. This marks the biggest 5-week gain since last October. The DJI ended the week at 36245 as bulls eye a new record high above 36952. Finally, the Nasdaq Composite Index (IXIC) rose 0.4% after nearly posting a fresh 2023 high above 14446.
New recent highs for major indices came after traditionally hawkish Federal Open Market Committee (FOMC) members, including Fed Governor Christopher Waller and Cleveland Fed President Loretta Mester, adopted an unusually dovish tone in their public speeches.
NFP in focus
For this week, traders will pay closer attention to the JOLTS report on Tuesday and the ISM services data, both out on Tuesday.
“The ISM services gauge likely continued cooling in November, though it’s expected to remain in expansionary territory,” analysts at Bloomberg Intelligence said.
The NFP report for November is out on Friday. Prior to that, the report on initial jobless claims is out on Thursday.
“November’s job report will send mixed signals about the state of the labor market. A solid nonfarm payroll print following a resolution to the UAW strikes will contrast with a weak household survey, where we expect the unemployment rate to edge up to 4.0%. Our view is that the economy is likely in a turning point toward a recession,” the analysts added.
On the earnings front, the most notable reporters
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