Stock Market Today: December 2, 2024 – Futures Slip as Markets Enter Final Month of the Year
As we enter the final month of 2024, the stock market is showing signs of a slight pullback after a robust November performance. Futures for major indexes are edging lower in early morning trading on Monday, December 2, 2024, with Nasdaq 100 futures down 0.15%, Dow Jones Industrial Average futures declining 0.18%, and S&P 500 futures slipping 0.19% as of 3:34 a.m. EST.
November’s Strong Performance
November proved to be an exceptionally strong month for U.S. equities, with both the Dow Jones and the S&P 500 recording their best monthly performances of 2024. The Dow Jones surged 7.5%, while the S&P 500 gained an impressive 5.7%. Not to be outdone, the Nasdaq Composite also posted a solid 6.2% increase for the month.
This positive momentum was primarily driven by a post-election results rally and other favorable economic indicators. As we move into December, investors are closely watching to see if this upward trend can be sustained through the end of the year.
Key Economic Data and Events
Several important economic reports are scheduled for release this week, which could significantly impact market sentiment:
1. S&P final U.S. Manufacturing Purchasing Managers’ Index (PMI)
2. Construction Spending report
3. Factory Orders
4. S&P final U.S. Services PMI
5. U.S. Unemployment Rate
Federal Reserve Chair Jerome Powell is also set to speak later in the week, which could provide insights into the central bank’s monetary policy outlook and potentially move markets.
Corporate Earnings in Focus
The earnings season continues with several notable companies scheduled to report their quarterly results this week. Investors will be paying close attention to reports from:
– Salesforce (CRM)
– Marvell Technology (MRVL)
– ChargePoint (CHPT)
– Chewy (CHWY)
– Foot Locker (FL)
– DocuSign (DOCU)
– Lululemon (LULU)
– Hewlett Packard Enterprise (HPE)
– Ulta Beauty (ULTA)
Cybersecurity firm Zscaler (ZS) is scheduled to release its earnings today, which could provide insights into the rapidly evolving tech sector.
Market Movers and Shakers
While the overall market sentiment appears cautious, certain stocks are garnering attention due to their potential undervaluation. According to recent analysis, some noteworthy stocks estimated to be trading below their intrinsic value include:
1. NBT Bancorp (NBTB): Currently trading at $50.12, with an estimated fair value of $99.93
2. DO & CO (DOC): Trading at €160.00, with an estimated fair value of €317.77
3. Charter Hall Group (CHC): Priced at A$15.50, with an estimated fair value of A$31.22
These stocks show potential discounts ranging from 49.6% to 50.4% based on cash flow estimates, which may present opportunities for value investors.
Global Market Outlook
Asian markets showed strength on Monday, buoyed by positive economic reports. Strong manufacturing data from China and increased capital expenditure by Japanese firms fueled optimism in the region. The Hang Seng Index in Hong Kong gained 0.65%, while China’s Shenzhen Component and Shanghai Composite indices rose by 1.36% and 1.13%, respectively. Japan’s Nikkei and Topix indices also closed higher, up 0.80% and 1.27%, respectively.
Looking Ahead
As we navigate the final month of 2024, market participants will be closely monitoring economic data, corporate earnings, and geopolitical developments. The strong performance in November has set a positive tone, but investors remain cautious as they assess the sustainability of recent gains and potential headwinds.
With key economic reports and Federal Reserve commentary on the horizon, this week could provide crucial insights into the market’s direction as we approach year-end. Investors should stay vigilant and consider both the opportunities and risks presented in this dynamic market environment.
