As November ticks down to its final few sessions, the market sits on a merry little rebound. What is in store for December’s stock market may be partly revealed this week, in crucial November payrolls and the personal consumer expenditures index. Corporate discussion of a pending recession has cooled somewhat. A looming OPEC vote and Russia oil embargo have the potential to rattle or stir energy markets. China’s November EV sales reports may provide glimpses into the country’s rebound in Covid lockdown worries. And as the earnings season winds toward its finish, Dollar General (DG), Salesforce.com (CRM) and Ulta Beauty (ULTA) are among the companies to report.
Stocks To Watch: Five Stocks Near Buy Points
The stock market is consolidating, with the S&P 500 moving toward the key 200-day moving average. Investors should be building up their watchlists with stocks setting up or flashing buy signals. Dexcom (DXCM), RBC Bearings (RBC), Chubb (CB), EQT Corp. (EQT) and Regeneron Pharmaceuticals (REGN) are showing strong action. Dexcom is consolidating again after strong gains, forging what could be seen as a handle to a long base. Chubb and RBC Bearings are also near cup-with-handle buy points. EQT stock has already flashed an early entry. Regeneron is trading tightly near highs and key moving averages.
Economy: November Payrolls
Next Friday’s November jobs report, if it’s as weak as current estimates suggest, could be the beginning of the end of Fed tightening. According to FXStreet, economists expect employer payrolls to shrink by 30,000, a sharp comedown from October’s 261,000 gain, which was the weakest since December 2020, before vaccines became widely available. The employment report will wrap up a huge week of data. On Wednesday, we’ll get a second estimate of Q3 GDP at 8:30 a.m. ET, followed by the Job Openings and Labor Turnover survey at 10 a.m. On Thursday at 8:30, we’ll get the October update of the Fed’s favored inflation report, the PCE price index, along with the latest week of jobless claims. At 10 a.m., the Institute for Supply Management’s manufacturing survey index could show a drop below the 50 neutral level.