S&P 500 and Nasdaq Composite Rally Five Consecutive Weeks

Barry Adams
01 Dec, 2023
New York City

Stock market indexes traded mixed in early trading on Friday as investors await comments from Fed  Chair Powell. 

Benchmark indexes are set to extend the market rally to the fifth week in a row as investors support the view that the Federal Reserve is more likely to hold rates and may even lay the groundwork for cutting interest rates as early as the second quarter of 2024.

Two popular indexes jumped sharply and registered their best monthly gains in November since July 2022 as investors bid up high-growth stocks on interest rate hopes.

The S&P 500 index jumped 8.9%, and the Nasdaq Composite index advanced 11% in November.

Federal Reserve Chair Jerome Powell is set to deliver his comments at 11:00 a.m. ET at Spelman College later today.

Investors are looking forward to Powell's comments on the inner workings of the economy, job market health, and the future direction of interest rates.

 

U.S. Indexes and Yields

The S&P 500 index declined 0.2% to 4,565.03, and the Nasdaq Composite decreased 0.3% to 14,240.12.

The yield on 2-year Treasury notes increased to 4.70%, 10-year Treasury notes inched higher to 4.33%, and 30-year Treasury bonds were unchanged at 4.51%.

Crude oil decreased $0.25 to $75.20 a barrel, and natural gas prices fell 3 cents to $2.77 a thermal unit.

Gold decreased $1.75 to $2,037.45 an ounce after the U.S. dollar eased.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.43.

 

U.S. Stock Movers

Walt Disney increased 0.2% to $92.92 after the theme park and movie studio operator reinstated its 30 cents per share dividend.

The company is battling a proxy fight challenge from activist investor Nelson Peltz, and his fund is seeking multiple board seats.

Ulta Beauty soared 11.4% to $474.48 after the company reported strong third-quarter results and tightened its full-year revenue outlook.

Revenue in the third quarter ending in October increased to $2.5 billion from $2.3 billion, comparable store sales growth plunged to 4.5% from 14.6%, and the company opened a net of 12 new stores compared to 18 a year ago.

Net income decreased to $249.5 million from $274.5 million, and diluted earnings per share fell to $5.07 from $5.34 a year ago.

The company estimated a full-year revenue range between $11.10 billion and $11.15 billion, up from the previous estimate between $11.05 billion and $11.15 billion.

The company reiterated its net new store opening estimate between 25 and 30, and its diluted earnings per share estimate was revised to a new range between $25.20 and $25.60 from the previous estimate between $25.10 and $25.60.

Comparable sales are estimated to fall between 5.0% and 5.5% from the previous estimate between 4.5% and 5.5%.