Stock Market News For Nov 28, 2017

Benchmarks turned in mixed performances on Monday as the rally in retail stocks earlier in the session petered out. Moreover, energy shares declined after oil prices fell as investors speculated that the production-cut deal would be extended by OPEC in the meeting slated for this week. Nevertheless, investors remained hopeful of a likely cut in corporate taxes and this boosted the investor sentiment. Lastly, Robert Kaplan expressed his support for a quarter – point interest rate hike in December.

The Dow Jones Industrial Average (DJIA) increased 0.1%, to close at 23,580.78. The S&P 500 Index (INX) declined 0.04% to close at 2,601.42. The tech-laden Nasdaq Composite Index (IXIC) closed at 6,878.52, declining 0.2%. A total of 5.7 billion shares were traded on Monday, lower than the last 20-session average of 6.4 billion shares. Decliners outnumbered advancers on the NYSE by a 1.68-to-1 ratio. On Nasdaq, a 1.43-to-1 ratio favored declining issues. The CBOE VIX decreased 0.1% to close at 9.87.

Black Friday Sales Push Retailers Higher

Holiday shopping continued even after Black Friday, eventually boosting gains for the retailers. Per the report from Adobe, Black Friday sales of online retailers totaled a whopping $5.03 billion. Online retail giant Amazon (NASDAQ:AMZN) edged up 0.8% and posted its fourth consecutive record finish in as many trading sessions. The stock has soared 58% so far this year compared to a 16% increase in the S&P 500.

Meanwhile, retailers like American Eagle Outfitters (NYSE:AEO) , Dillard’s Inc (NYSE:DDS) and Gap Inc (NYSE:GPS) all increased 1.8%, 4.7% and 1.21%, respectively. On the other hand, fast food retailer Chipotle Mexican Grill Inc (NYSE:CMG) lost 1.8% and toy makers like Hasbro (NASDAQ:HAS) and Mattel (NASDAQ:MAT) declined 1% and 1.5%, respectively. Such losses pared gains made by retailers earlier in the session. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

How Did The Benchmarks Perform?

The Dow amassed 22.8 points to end in the green on Monday. Gains for the blue-chip index were supported by prospects of a likely cut in corporate tax rates as well as rally in retail stocks. Earlier in the session, the Dow hit an intraday high of 23,638.92.

Meanwhile, the S&P 500 lost one point to end in the negative territory. Of the 11 major segments of the S&P 500, five ended in the negative territory, with energy shares leading the decliners.

The Energy Select Sector SPDR ETF (NYSE:XLE) declined 1%. Oil prices closed lower for the first time in the last four sessions. Such a decline came after investors speculated a possible extension of a production curtail deal at the OPEC meeting scheduled later this week. Moreover, the Nasdaq gave up 10.6 points to end in the red.

Robert Kaplan Supported December Rate Hike

On Monday, Dallas Fed President Robert Kaplan announced that he supported a quarter-point rate hike in December. Kaplan had earlier expressed his doubtfulness over the need to hike the interest rate in December. He also commented that it would be an appropriate move to work toward the ‘process of removing monetary accommodation.’

Meanwhile, the Federal Open Market Committee is scheduled to discuss the future of a rate hike when the body meets on Dec. 12-13. Interestingly, of the two rate hikes that were implemented this year, Kaplan had voted in favor of both the instances.

Stocks That Made Headlines

Petrobras Starts Production in Libra Field of Santos Basin

Petróleo Brasileiro S.A. or Petrobras (NYSE:PBR) and its partners have initiated oil production in the Libra block of Santos Basin. (Read More)

Statoil (OL:STL) Acquires Stakes in Two Fields From Total

Statoil ASA (NYSE:STO) has entered into an agreement with Total SA (NYSE:TOT) to acquire equity interests in two fields — Martin Linge and the Garantiana— from the latter. (Read More)

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