Dow Looking at Best Monthly Performance of 2024 as November Trading Closes Out on Black Friday

Heading into Black Friday's short session (markets close at 1:00 pm ET), the Dow Jones Industrial Average was on track for its best monthly performance of the year, up 7.08% since October 31, rising from 41,763.46 to Wednesday's close at 44,722.06.

Dow stocks, widely believed to be among the best companies in America, have returned more than 18% this year, but are still playing catch-up against the S&P 500 and NASDAQ, which are up 26.48% and 29.08%, respectively.

Many of the 30 companies that make up the Dow return dividends, though yields are generally well below the 10-year note, which has fluctuated between 3.63% and 4.70%, and has been heading lower through November, currently yielding 4.25%. For example, Goldman Sachs (GS) dividend yield is 1.98%; McDonald's (MCD), 2.40%; IBM (IBM), 2.94%, and Home Depot, 2.11%. American Express (AXP), which is up more than 60% this year, carries a dividend of $2.80, delivering a paltry 0.92% yield.

So, if investors aren't looking for high dividend yield, what the current run-up in Dow stocks suggests is that investors are seeking to reduce risk to some degree, switching out holdings of high-flying tech stocks to more steady performers on the Dow, taking outsized profits before year-end.

The so-called "flight to quality" may indicate some of the bigger funds are expecting a downturn in stocks subject to speculation that may have gotten ahead of themselves. Price/earnings ratios on Dow stocks are generally lower than those of companies like Nvidia (NVDA), Alphabet, parent of Google (GOOG), or Tesla (TSLA).

This late-stage trend bears watching into 2025 and the many changes in economic structure and government policies that are expected.

As the markets await the opening bell for the final trading day of the month, futures are pointing to a somewhat moderate opening, with S&P and NASDAQ futures nearly flat and Dow futures up 58 points at 9:00 am ET.

With U.S. markets closed Thursday for the Thanksgiving holiday, gold and silver were priced higher on the COMEX when it reopened in the evening, sending gold to highs of $2,685 and silver as high as $31.34.

WTI crude continues to test resistance around $70, hitting a low of $68.24 early Friday morning.

At the Close, Wednesday, November 27, 2024:
Dow: 44,722.06, -138.25 (-0.31%)
NASDAQ: 19,060.48, -115.10 (-0.60%)
S&P 500: 5,998.74, -22.89 (-0.38%)
NYSE Composite: 20,209.82, -9.64 (-0.05%)