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Holiday-shortened week kicks off on positive note

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November 25, 2024

TLDR: Discusses market movements in Dow, S&P, and Nasdaq; J.P. Morgan's top biotech picks and analyst focus list; potential pause of gold rally.

1Ask AI

On Monday, November 25th, the markets welcomed the holiday-shortened trading week with optimism. The main indices, including the Dow, S&P 500, and Nasdaq, exhibited positive movements:

  • Dow: Up by 0.9%
  • S&P 500: Gained 0.2%
  • Nasdaq: Increased by 0.1%

Eight out of the eleven sectors in the S&P 500 saw gains, highlighted by strong performances in consumer discretionary and real estate. However, energy remained the underperforming sector, reflecting ongoing market fluctuations.

Treasury Yields and Bitcoin Movements

Investors noticed a decline in U.S. Treasury yields at the start of the week:

  • The 2-year Treasury yield decreased by 10 basis points to 4.27%
  • The 10-year Treasury yield fell by 13 basis points to 4.26%

In the cryptocurrency realm, Bitcoin's value hovered near the $100,000 mark. MicroStrategy made headlines by purchasing approximately 55,500 additional bitcoins, raising its total holdings to 5.4 billion, marking a 17% increase during the week prior.

Economic Insights on New Appointments

Market sentiments shifted positively following President-elect Donald Trump's nomination of a hedge fund manager to lead the Treasury Department. Paul Donovan from UBS emphasized that investors tend to favor "orthodoxy, predictability, and coherence" in economic policy, which contributed to the market's positive start.

JP Morgan’s Biotech Picks for 2025

JP Morgan revealed its top biotech stock picks for 2025, showcasing:

  • Vertex
  • Spring Works
  • Edgewise Therapeutics
  • Blueprint

Listeners are encouraged to check out the Seeking Alpha Investing Experts Podcast featuring Jonathan Faisan, who discusses his favorite biotech stocks, including Spring Works.

Sentiment Survey Findings on Alternative Energy Sources

Seeking Alpha conducted a sentiment survey, asking subscribers to identify the most viable alternative energy source in the U.S. from options including wind, solar, nuclear, geothermal, and hydropower. The results overwhelmingly favored:

  • Nuclear Energy: Garnered nearly 73% of the votes, reflecting its growing investment and relevance amid increasing technology demands.

Upcoming Earnings and Analyst Focus List Updates

Retail giant Macy's is set to release its Q3 earnings results on November 26th, with a solid track record of exceeding EPS estimates 100% of the time over the past two years.

In addition, JP Morgan updated its analyst focus list, making notable additions and removals to target specific growth and income opportunities. New entries include:

  • Tapestry
  • Alarm.com
  • Regency Centers
    Removed: ABV, Vera Therapeutics, Carmax, Bank of America, and Entergy.

Gold and Silver Market Movements

In the commodities market, gold prices rose about 6% last week due to heightened safe-haven demand amidst geopolitical uncertainties, notably related to the war in Ukraine. Although gold gained 31% this year, it saw a 1.8% dip on Monday following profit-taking, settling at around $2,666.80 an ounce.
Silver also mirrored gold's upward trend, trading almost 30% higher than the beginning of 2024.

Economic Indicators

On the economic front, the Chicago Fed National Activity Index dipped deeper into the red for October, indicating potential slowing economic conditions, which traders are keeping a close eye on.

Conclusion

As the holiday season approaches, market participants remain vigilant, reacting to new economic policies, stock forecasts, and global issues. Investors are advised to remain informed, take note of potential market shifts, and capitalize on opportunities in evolving sectors such as biotech and alternative energy. With earnings announcements on the horizon, particularly from major retailers, the upcoming trading sessions promise to be eventful.

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