US Stocks Fight Hard To Sustain Upward Momentum In Friday's Truncated Session — Bond Yields, Tesla, Energy Stocks In Focus

Zinger Key Points
  • Volume could be anemic as most traders are likely to stay away from their desks due to the Thanksgiving weekend.
  • With the Fed toning down its hawkish rhetoric, the year-end could see buyers returning to take advantage of attractive valuations.
US Stocks Fight Hard To Sustain Upward Momentum In Friday's Truncated Session — Bond Yields, Tesla, Energy Stocks In Focus

U.S. stocks may return to their defensive ways after a dovish Federal Open Market Committee meeting sparked a rally in the previous session. The index futures are pointing to a modestly higher opening on Friday. The yield on the benchmark Treasury note has pulled back sharply to a seven-week low on Friday in reaction to the dovish message relayed by the minutes.

The major averages advanced on Wednesday as investors construed the FOMC minutes as hinting at a slowdown in the pace of fed funds rate hikes. The Dow Industrials and the S&P 500 Index closed at their highest levels in about three months. Wall Street remained closed on Thursday in observance of the Thanksgiving holiday.

U.S. Indices' Performance On Wednesday
Index Performance (+/-)   Value
Nasdaq Composite +0.99%   11,285.32
S&P 500 Index +0.59%   4,027.26
Dow Industrials +0.28%   34,194.06

Here’s a peek into index futures trading:

U.S. Futures' Performance On Friday During Premarket Session
Index Performance (+/-)  
Nasdaq 100 Futures +0.05%  
S&P 500 Futures +0.16%  
Dow Futures +0.19%  
R2K Futures +0.12%  

In premarket trading on Friday, the SPDR S&P 500 ETF Trust SPY was adding 0.13% to $402.94 and the Invesco QQQ Trust QQQ moved up 0.03% to $288.91, according to Benzinga Pro data.

The economic calendar for the day is empty. Although Black Friday is not a federal holiday, several state governments observe it as a public holiday. The stock market close early at 1 p.m. EST on Friday.

See also: $1,000 Invested In SPY Just Before Thanksgiving Will Fetch This Much By Year-End If Returns Match 10-Year Average

Stocks In Focus:

  • Tesla, Inc. TSLA stock was advancing over 2.75% in premarket despite the company’s China unit filing with the local regulators for the recall of over 80,000 vehicles.
  • Apple, Inc. AAPL could be in focus as reports suggest the company could be looking to buy soccer team Manchester United.
  • Shares of video game developer Activision Blizzard, Inc. ATVI fell over 3% on the news that the Federal Trade Commission is looking to block its impending merger with Microsoft Corp. MSFT.
  • China stocks JD.com, Inc. JD and Alibaba Group Holding Limited BABA were also pulling back.
  • Energy stocks advanced on oil’s rebound.

Commodities, Other Global Markets:

Crude oil futures are rebounding strongly following the 4.66% plunge on Wednesday. A barrel of WTI-grade crude oil traded at $79.69, up 2.25%.

The spike comes amid the meeting between energy ministers of Saudi Arabia and Iraq on Thursday, in which they discussed the need to adhere to the OPEC+ output cut that lasts until the end of 2023, Reuters reported.

Asia-Pacific stocks closed a lackluster session on Friday on a mixed note amid a lack of cues from Wall Street overnight.

After the markets closed, the People’s Bank of China announced a cut in the reserve requirement for banks by 25 basis points, effective Dec. 5, Reuters said. The reserve requirement was cut by a similar magnitude in April. This will likely help boost liquidity in the system as the country struggles with a renewed spike in COVID-19 cases.

The European markets traded mixed in early trading on Friday, awaiting direction.

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