MARKET SNAPSHOT: Dow Poised To Take Out 24,000, As Techs Rev Up For A Rebound
Tech stocks look ready to crawl back from prior day's slump
The Dow Jones Industrial Average was poised to open at fresh highs on Thursday, inching closer to 24,000, as investors grew more optimistic about the prospects for a tax overhaul out of Washington.
Meanwhile, major tech stocks, which took a battering in the prior session, showed signs of trying to recuperate from that selloff.
What are the main benchmarks doing?
Dow Jones Industrial Average futures jumped 90 points, or 0.4%, to 24,005, while S&P 500 futures rose 7.15 points, or 0.3%, to 2,632. Nasdaq-100 futures added 16.25 points, or 0.3%, to 6,321.75.
On Wednesday, the Dow industrials closed at a new high, up 0.4% to 23,940.68. The S&P 500 index edged down 0.97 point to 2,626.07.
But the Nasdaq Composite slumped 1.3% to 6,824.39, for its worst session in three months (http://www.marketwatch.com/story/dow-industrials-poised-to-climb-closer-to-24000-milestone-2017-11-29), as investor sold big-cap tech shares such as Apple Inc. (AAPL)
In another sign of tech woes, the closely watched Philly Semiconductor Index suffered a 4.4% tumble, for its biggest daily percentage slide since Dec. 1.
Read:Highflying tech stocks fall back toward earth (http://www.marketwatch.com/story/chipmaker-tech-selloff-drags-on-broader-market-2017-11-29)
What are the moves for the month?
For trading in November, which closes Thursday, the Dow industrials are looking at a gain of around 2.4%. That would be the eighth-straight monthly win, the longest such streak since July 1995.
The S&P 500 is eyeing a monthly rise of roughly 1%. It also looks set to nail an eight-month winning streak, the longest such run since January 2007.
As for the tech-heavy Nasdaq, it is poised for 1.4% advance. That would be its fifth month of rises in a row and the longest such winning streak since May 2017.
The year itself has been a blockbuster for stocks, with the three indexes gaining between 17% and 27% for the year, driven by economic expansion, upbeat corporate profits, lack of competition from other assets and hopes that the administration of U.S. President Donald Trump administration will deliver on tax cuts.
Read: Goldman says highest valuations since 1900 leave investors in for a world of hurt (http://www.marketwatch.com/story/goldman-says-highest-valuations-since-1900-leave-investors-in-for-a-world-of-hurt-2017-11-29)
What could help drive the market?
Optimism was building ahead of a final vote on the Republicans' tax bill, which could take place by Thursday evening. On Wednesday, the Senate voted to open a formal debate on the proposed tax changes (http://www.marketwatch.com/story/senate-votes-to-open-debate-on-tax-bill-as-corporate-rate-still-up-in-the-air-2017-11-29).
The economic data docket includes readings on weekly jobless claims, consumer spending, personal spending and core inflation for October, all scheduled for release at 8:30 a.m. Eastern Time. Then, at 9:45 a.m. Eastern Time, the Chicago purchasing managers index for November is expected to be released.
Dallas Federal Reserve President Rob Kaplan will discuss real estate in a question-and-answer session at the Real Estate Council Speaking Series at 1 p.m. Eastern.
What are strategists saying?
"As we approach the end of 2017, investors are likely to reassess their portfolios. Few may disagree that stocks are very expensive, but expectations of tax reforms, synchronized economic growth, accommodative monetary policies and robust earnings, were all factors that helped shares surge this year," said Hussein Sayed, chief market strategist at FXTM, in a note to clients.
"Given that the tax bill passed the Senate Budget Committee on Wednesday, it looks like we are getting closer to a deal, but this does not necessarily mean that bulls will get overly excited. I think much of the premium for tax reforms has already been priced in, and I won't be surprised to see the scenario of 'buy the rumors and sell the news' when we get the deal done," added Sayed.
Which stocks look like key movers?
The so-called FAANG stocks, hard hit on Wednesday, showed signs of a rebound. Facebook (FB) , Amazon.com (AMZN) and Netflix Inc. (NFLX) were up about 0.6% in premarket. Meanwhile, Apple (AAPL) was 0.5% higher, and Google parent Alphabet Inc.(GOOGL) inched up 0.3%.
Shares of Juniper Networks Inc.(JNPR) fell 6.3% in premarket trading after Nokia Corp.(NOK) (NOK) denied it was interested in acquiring the networking company (http://www.marketwatch.com/story/nokia-denies-juniper-acquisition-interest-2017-11-29).
Kroger Co.(KR) and Barnes & Noble Inc.(BKS) are scheduled to report earnings ahead of the market open.
What are other assets doing?
European stocks advanced (http://www.marketwatch.com/story/european-stocks-climb-for-3rd-day-as-credit-suisse-propels-bank-rally-2017-11-30), thanks to gains for bank stocks. But Asian markets had a largely weaker day, as a U.S. tech selloff hit related shares in Asia hard (http://www.marketwatch.com/story/chip-stock-malaise-spreads-to-asia-dragging-down-markets-2017-11-29).
Oil futures (http://www.marketwatch.com/story/oil-prices-inch-higher-with-opec-meeting-in-focus-2017-11-30) were rising, with Brent oil seeing the bulk of the gains. Investors were watching for news from a meeting of the Organization of the Petroleum Exporting Countries and other major oil producers in Vienna, on a possible extension to output curbs.
Read: Russia riles OPEC plans for a longer oil production-cut extension (http://www.marketwatch.com/story/russia-riles-opec-plans-for-a-longer-production-cut-extension-2017-11-29)
(http://www.marketwatch.com/story/russia-riles-opec-plans-for-a-longer-production-cut-extension-2017-11-29)A key U.S. dollar index was trading higher, largely due to gains for the greenback against the Japanese yen . But the index was set for its worst monthly loss since July (http://www.marketwatch.com/story/pound-rallies-on-brexit-hopes-as-dollar-looks-at-biggest-monthly-drop-since-july-2017-11-30). Meanwhile, the British pound continued to move higher amid rising optimism over Brexit negotiations.
Read:FTSE 100 slides to 2-month low as pound rallies on Brexit hopes (http://www.marketwatch.com/story/ftse-100-slides-to-2-month-low-as-pound-rallies-on-brexit-hopes-2017-11-30)
Gold futures were modestly off.
(END) Dow Jones Newswires
November 30, 2017 06:43 ET (11:43 GMT)