MW: U.S. stocks attempt to hold record-high territory as Thanksgiving exodus begins
Major U.S. stock indexes could be in for a fight to hang onto record territory on Wednesday, with fewer traders expected to support a push higher as the Thanksgiving Day holiday exodus begins.
Investors will get a last big batch of economic data and minutes of the November Federal Reserve interest-rate policy meeting before the holiday break begins. U.S. markets will be closed Thursday and observe an early close on Friday.
Read: Here’s when markets close on Black Friday
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Dow Jones Industrial Average futures YMZ6, -0.01% eased 11 points to 18,987, while S&P 500 index futures ESZ6, -0.03% slipped 1.5 points to 2,198.75. Nasdaq 100 futures NQZ6, -0.07% fell 3.75 points to 4,870.75.
Major indexes hit record highs simultaneously for the second straight day on Wednesday. The Dow Jones Industrial Average DJIA, +0.35% rose 0.4% to finish at 19,023.87, its first session of moving past and closing above 19,000. The Dow’s climb between 18,000 and 19,000 has taken more than 480 trading days, marking a 5.6% rise.
The S&P 500 index SPX, +0.22% closed up 0.2% at a record 2,202.94, while the Nasdaq Composite Index COMP, +0.33% gained 17.49 points to finish at a record 5,386.35. In addition, the Russell 2000 index RUT, +0.92% hit a new record.
Opinion: Why the Dow at 19,000 is no cause for celebration
Even if the major indexes manage to deepen that record run on Wednesday, it may not be significant for the overall picture.
“The price action will only really become relevant on Monday, when ‘normal service’ resumes. I think we’ll see a bit more of a short squeeze, but it’s not ‘real’ buying per se, just a bit of momentum and a desire to squeeze the bears,” said Chris Beauchamp, chief market analyst at IG, in emailed comments.
A short squeeze refers to when short sellers of a security are being pushed out of their positions, adding upward pressure to the stock or index.
Durable goods, Fed minutes ahead: Inspiration for stocks could stem from a batch of data due for release Wednesday, including weekly jobless claims and durable goods orders and within it, the telling core capital orders for October, at 8:30 a.m. Eastern Time.
The preliminary November Markit manufacturing purchasing managers index is due at 9:45 a.m. Eastern, followed by new-home sales for October and consumer sentiment for November at 10 a.m. Eastern.
At 2 p.m. Eastern, the Federal Open Market Committee minutes from the November 1-2 meeting are due for release. The minutes are “expected to trigger little enthusiasm given that the market already assesses 100% probability for a Federal Reserve interest-rate hike in December,” said Ipek Ozkardeskaya, senior market analyst at London Capital Group.
