Having gained more than 2500 points since November 5, it's apparent that investors are queueing up to buy dividend-yielding stocks on the Dow Jones Industrial Average in anticipation of lower interest rates on treasuries and other fixed-income products.
The Dow has out-performed the S&P, NYSE Composite, and NASDAQ, gaining nearly six percent over the period. The S&P has added 3.51%, NASDAQ, 3.32%, and the Composite, 3.87%.
Most of the money moving into stocks is coming from fund managers, as inflows have been outstanding since the election of Donald J. Trump as president. Wall Street has fond memories of Trump's policy framework from his first term, from 2017-2020, discounting the pandemic disruptions. Monday's gains were also largely tied to Trump's choice of Scott Bessent as the nominee for Treasury Secretary. He's a seasoned Wall Street professional with plenty of solid connections in the business and financial communities.
Throwing some shade on the euphoric mood is the geo-political situation. With the Biden administration still in charge of policy for the time being, their actions of late - especially green-lighting Ukraine to employ long-range missiles against Russia - have left many with the impression that they're escalating the situation rather than calming it, as Trump has promised to do.
Beyond the end-of-the-world theatrics, however, the stock market rally is now more than 13 months long, with indications that a year-end rally is a likely event.
Companies reporting prior to the open on Tuesday are offering a mixed bag, sending Dow futures lower and NASDAQ futures higher.
Shares of Burlington (BURL) are down two percent as the company's same-store sales projections failed to materialize.
Macy's (M) was supposed to report this morning, but has delayed their announcement pending an investigation of an employee hiding more than a suspected $150 in expenses over a series of quarters.
Dick's Sports Goods (DKS) reported an exceptional third quarter, citing back-to-school sales above expectations. Revenue for the quarter was $3.06 billion, beating analyst estimates of $3.03 billion. Adjusted EPS of $2.75 topped estimates for $2.69. Shares are soaring, up nearly 10 percent in pre-market trading.
Abercrombie & Fitch (ANF) had a solid quarter, with sales up 14.4% year on year to $1.21 billion. Non-GAAP EPS of $2.50 topped analyst estimates of $2.35.
On the downside, Kohl's (KSS) saw same-store sales disappoint, with net sales down 8.8% year-over-year to $3.507 billion, missing the consensus of $3.638 billion. Comparable sales for the quarter decreased 9.3%. Earnings per share w=of 20 cents was far below estimates for 28 cents. The stock is down nearly 20% prior to the opening bell.
Best Buy (BBY) reported earnings of $273 million, or $1.26 per share, for the quarter ended Nov. 2, a slight improvement from $263 million and $1.21 per share in the year-ago period. Sales fell to $9.45 billion from $9.76 billion in the year-ago quarter. EPS missed expectations for $1.30 per share. The stock is down marginally prior to the open.
After the close, Dell (DELL), HP Inc. (HPQ), Autodesk (ADSK), Workday (WDAY), Crowdstrike (CRWD), Nordstrom (JWN), and Urban Outfitters (URBN) release quarterly results.
On Monday, precious metals were once again hit with profit-taking, sending gold lower by more than $100. After closing at $2,743 per ounce on Friday, COMEX traders sent gold down to as low as $2,634 when trading opened Tuesday morning in the Pacific region after a mammoth drop during the open session in the U.S.
Silver was also sent lower, from $31.85 to $30.55. Both metals are recovering this morning, with gold at $2,656 and silver at $31.00.
Crude oil also took a beating on Monday, with WTI hitting a low of $68.64. Oil continues to suffer around $70/barrel. Between the supply glut and Trump's expectations for more drilling, price declines await.
Bitcoin, which recently ran up above $99,000, was hammered down on Monday with losses added overnight. The crypto king hit $91,583 this morning.
The message is becoming quite clear. Buy stocks. Sell everything else.
At the Close, Monday, November 25, 2024:
Dow:44,736.57, +440.06 (+0.99%)
NASDAQ: 19,054.84, +51.19 (+0.27%)
S&P 500: 5,987.37, +18.03 (+0.30%)
NYSE Composite: 20,220.36, +96.91 (+0.48%)
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