Asian stocks and U.S. futures climbed on Monday, buoyed by positive sentiment on regional trade and signs of opposition to a national American lockdown despite surging virus cases.
S&P 500 futures extended last week’s advance after advisers to President-elect Joe Biden said they opposed a nationwide U.S. lockdown.
China remains a bright spot. Data showed the country’s economic recovery strengthened in October, with consumer spending picking up steadily and industrial production and investment rising faster than expected. The nation’s central bank added funds to the financial system to support growth.
Meanwhile, U.S. President Donald Trump plans several new hard-line moves against China in the remaining weeks of his term, according to Axios. Trump showed few signs of conceding the presidential election to Biden, while also hardly acting as if he was preparing for a second term.
Here’s a look at asset classes total returns year to date:
Here’s a look at U.S. equity size and style total returns year to date:
Sean Fenton, chief investment officer at Sage Capital Pty in Sydney, said on Bloomberg TV,
We do see a positive stream of news going forward.
The market looking forward towards eventual reopenings, real yields probably bottoming out, and cyclical and value stocks doing better, I think that’s a momentum that will be carried through at least over the next three to six months if not longer.
Weekly market recap
The S&P 500 closed at a new record high and global equities posted a second week of gains following news of progress in developing a COVID-19 vaccine.
The $Dow Jones Industrial Average(.DJI.US)$ outpaced the other major stock indexes by a wide margin, gaining more than 4% in a week when the $Nasdaq Composite Index(.IXIC.US)$ fell almost 1%. That’s a reversal of recent market leadership trends, as the NASDAQ has frequently outperformed owing to strong results from technology stocks that have a relatively large weighting in that index.
More than a month into the fourth quarter, Wall Street analysts have lifted their earnings expectations for the period.
During October, analysts raised their earnings forecasts for companies in the S&P 500 by 1.8%, on average, according to FactSet. It’s just the third time since 2011 that forecasts have increased over the first month of a quarter.
The week ahead in focus
Here are the most anticipated earnings releases, IPOs and economic events for the week ahead:
- Earnings season continues to pick up this week.
- Notable earnings to expect include: $JD.com Inc(JD.US)$, $Baidu Inc(BIDU.US)$, $KE Holdings Inc.(BEKE.US)$, $NIO Inc.(NIO.US)$, $NVIDIA Corp(NVDA.US)$, $Bilibili(BILI.US)$, $NetEase Inc(NTES.US)$…..
- Shares of Chinese electric vehicle companies continue to make records amid the stock frenzy. NIO was shorted by Citron on Friday after refreshing the record highs.
- (For more: Citron Pulls Plug On Nio, Says Valuation ‘Can Never Be Justified’)
- Important economic data being released this upcoming week including the U.S. retial sales, weekly unemployment claims.