Stocks fell Monday ahead of another batch of retail earnings to kick off a shortened week for the Thanksgiving holiday.
The S&P 500 slid 0.26%. The Dow Jones Industrial Average rose 67 points, or 0.27%. The Nasdaq fell 0.36%.
Disney bucked the negative trend, however, rising more than 8% after the media giant announced that Bob Iger would return as CEO, effective immediately.
Investors have been reflecting on the strength of a recent bear market rally, which kicked off earlier in the month with the October consumer price index reading and gained some steam with last week's reading on wholesale prices.
Traders last week were hung up on messaging from Federal Reserve officials, who were less impressed with the figures and reassessed their optimism around the possibility of slowing inflation. The market will get more Fedspeak to digest when Cleveland Fed President Loretta Mester and St. Louis Fed President James Bullard speak Tuesday.
Ed Yardeni of Yardeni Research said that in his view, the Oct. 12 low was the bottom and the S&P 500 could rise to near 4,300 by the end of the year, he told CNBC on "Closing Bell: Overtime" Friday night. The benchmark index currently sits at 3,965.34.
"What's making the big difference in the market is the resilience of the economy, it's been spectacular," he said. "Everyone's been debating whether we're going to have a soft landing or a hard landing – meanwhile, there's no landing whatsoever. The consumer didn't get the recession memo and they keep spending."
Retail sales increased in October, but at the corporate level Target reported slowing demand and Amazon announced it will lay off 10,000 employees — although Home Depot and Walmart have reported strong results.
"Despite what holiday season spending may suggest, retail stocks tend to be in the top three for November, but in the bottom three for December, and somewhere middle-of-the-pack in January," Liz Young, SoFi's chief investment strategist, said in a note this weekend.
"Seasonality has a place in market analysis and has some predictive power. But the power of the economic cycle is stronger, no matter the time of year," she added. "With 375 basis points of Fed rate hikes so far, an inverted yield curve, spikes in inflation, and commodity prices still a part of the narrative, we can all but conclude that we are late in the economic cycle."
This week, a short one due to the Thanksgiving holiday, investors will be busy with another group of retail earnings. Best Buy, Nordstrom, Dick's Sporting Goods and Dollar Tree are among the companies on deck.
U.S. dollar on pace for weakest month since summer 2020
The U.S. dollar index is down 3.36% so far in November, on pace for the worst month since July 2020, hen the index slumped 4.15%.
Meanwhile, December gold contracts are ahead 6.3% month-to-date, on pace for its first up month in eight, and its best month since May 2021.
The VanEck Gold Miners ETF is almost 12.5% higher in November, on course for the best single month since last February.
Meanwhile, Dr. Copper's having a good month too. December copper contracts are ahead 6.6% in November, also its first monthly gain in eight months. One big copper producer, Freeport-McMoRan, is higher by almost 15% in November.
— Scott Schnipper, Gina Francolla
Amazon is JPMorgan’s best idea this holiday shopping season
Amazon is well-positioned into the holiday shopping season, said JPMorgan analyst Doug Anmuth, who named the online retailer his best idea.
He's estimating the e-commerce penetration of adjusted retail sales this holiday season at 22.5%, above last year's 22%.
"AMZN maintains ~40% share of US e-comm & looks well-positioned after doubling its fulfillment network & workforce since the pandemic began, while faster delivery speeds, higher in-stock levels, & earlier timing of holiday promotions should spur demand," Anmuth wrote in a note Sunday.
Amazon shares are down 43% year to date.
— Michelle Fox
Berkshire Hathaway ups stakes in Japan’s five leading trading houses to over 6%
Warren Buffett's Berkshire Hathaway has raised its stakes in Japan's five leading trading houses by at least 1 percentage point to more than 6%, regulatory filings showed on Monday.
The companies — Itochu Corp., Marubeni Corp., Mitsubishi Corp., Mitsui & Co., and Sumitomo Corp —involve in a wide range of products and services, including energy, machinery, chemicals, food, finance and banking.
Buffett first acquired these stocks on his 90th birthday in August 2020 through regular purchases on the Tokyo Stock Exchange. The legendary investor previously said he intends to hold the investments for the long term, and that it may increase its holdings in any of the companies up to a maximum of 9.9%, depending on price.
Marubeni and Mitsubishi shares jumped more than 2% after the news on Monday. Sumitomo and Itochu shares rose about 1%. These stocks have all rallied double digits this year, outperforming the Japanese broader market.
— Yun Li
Coinbase shares slide 4% premarket
Shares of crypto exchange Coinbase dropped more than 4% in premarket trading Monday in the wake of rival FTX's bankruptcy. The stock is down more than 30% this month alone.
Cowen noted that Coinbase's average daily spot trading volumes remain above pre-FTX turmoil levels. Bank of America said Coinbase is different from FTX, but faces headwinds amid overall skepticism about the cryptocurrency market.
— Yun Li
CNBC Pro: Goldman Sachs upgrades this new shoe stock, predicts 65% upside
Goldman Sachs upgraded shares of this Swiss footwear company to buy from neutral, saying investors can expect "rapid growth" from the stock on the strength of its brand.
According to the investment firm, the stock can surge more than 65% from here.
CNBC Pro subscribers can read about the call here.
— Sarah Min
Disney, Carvana and Coinbase: stocks making the biggest moves premarket
Disney continued to lead premarket moves Monday after the entertainment company announced that Bob Iger would return as CEO, replacing Bob Chapek.
Carvana slumped after a downgrade, and shares of Coinbase slipped as crypto prices continue to fall after FTX fallout. Earnings season also continues, with shares of J.M. Smucker rising after a solid report Monday before the bell.
—Carmen Reinicke, Peter Schacknow
Bitcoin hovers near 1-week low
Cryptocurrency prices continued to slide amid pressure on the entire industry stemming from the FTX fallout. Bitcoin slumped 3.6% to trade below $16,000, near its one-week low, on Monday.
Ether fell as well, slipping as much as 7%.
Since Nov. 6, when Binance CEO Changpeng Zhao said his company would sell all of their FTX tokens, the crypo market has undergone a major route. The market has shed roughly $260 billion of value.
—Carmen Reinicke, Arjun Kharpal
Bank stock Comerica has upside, Raymond James says
Raymond James analyst Michael Rose upgraded Comerica to outperform from market perform, saying the stock can pop more than 20%.
"We are upgrading CMA shares to Outperform and establishing an $85 price target following the recent selloff in the stock post earnings juxtaposed with its relatively solid fundamental positioning heading into a potential recession," Rose wrote in a Monday note.
— Sarah Min
Disney shares up 9% in premarket trade on Bob Iger return
European markets slightly lower as investors gauge economic outlook
European markets were marginally lower on Monday as investors continued to assess inflationary pressures and the possible trajectory of central bank interest rates.
The pan-European Stoxx 600 slid 0.2% in early trade, with basic resources dropping 2.1% to lead losses as most sectors traded in the red. Utilities bucked the trend to add 0.6%.
- Elliot Smith
Disney names Bob Iger as CEO again, effective immediately
Disney has re-appointed Bob Iger as its CEO, effective immediately, after previous CEO Bob Chapek was criticized for his management of the company, which included plans for cost cutting.
The company announced in a late Sunday statement that Chapek is stepping down, and Disney's board chair Susan Arnold thanked him for his service.
Shares of Disney have dropped more than 40% so far this year, as of Friday's close. The stock hit a 52-week low on Nov. 9.
Read the full story here.
— Mike Calia, Alex Sherman
CNBC Pro: Morgan Stanley's Mike Wilson predicts the S&P 500's bottom, calls it a 'terrific buying opportunity'
Morgan Stanley's Chief U.S. Equity Strategist Mike Wilson says we're in the "final stages" of the bear market, but the situation will remain challenging for a while longer.
He predicts when — and at what level — the S&P 500 will hit a "new low."
— Weizhen Tan
Markets are watching for more clues on Fed hikes and the economy in the week ahead
Investors may be a bit more cautious in the week ahead, with stocks seeking direction in quiet trading and the bond market's warnings about recession getting louder.
The Thanksgiving holiday on Thursday should mean markets will likely be quiet Wednesday and Friday. Traders will be monitoring reports on Black Friday holiday shopping for feedback on the consumer.
"It's really a week where data dependence is the key phrase," said Julian Emanuel, senior managing director at Evercore ISI. "The bias [for stocks] is higher unless data continues to deteriorate and the Fed stays on its hawkish slant... which has clearly been reinforced in the last 48 hours."
Check out our full deep dive on what to expect in the week ahead here.
— Patti Domm, Tanaya Macheel
Stock futures open little changed Sunday night
Stock futures opened little changed Sunday evening ahead of another batch of retail earnings to kick off a shortened week for the Thanksgiving holiday.
Futures tied to the Dow Jones Industrial Average rose 41 points, or 0.1%. S&P 500 futures inched up by 0.03% and Nasdaq 100 futures added 0.2%.
The major averages each posted an up day but a down week in the previous trading session. The Dow rose nearly 200 points, or 0.6%. The S&P climbed 0.5% and the Nasdaq Composite finished just 0.01% above the flat line.
— Tanaya Macheel