The Nasdaq and S&P 500 indices rebounded on Friday, ending a dismal pre-holiday week. The Dow Jones Industrial Average, however, capped its longest daily decline since 1974, marking a 10-day slide.
Key indicators, including the Investors’ Business Daily (IBD) Leaderboard, indicate an uptrend under pressure. The IBD has downgraded its Stock Market Exposure guide to the 60-80% range, citing underperformance from key stocks.
Despite recent weakness, several stocks are showing buy signals, such as Alphabet (GOOGL), ACV Auctions (ACVA), CyberArk Software (CYBR), and Doximity (DOCS). These companies have rebounded above key support levels or are setting up for potential buying opportunities.
The economic calendar is light in the upcoming holiday weeks, with only a few reports scheduled. The Institute of Supply Management manufacturing survey index and monthly employment report will be released on January 3 and 10, respectively.
In earnings news, analysts project a 9.5% gain in S&P 500 companies’ earnings for 2024, with combined growth expected from top performers like Nvidia (NVDA), Amazon.com (AMZN), Alphabet, and Meta Platforms (META).
Source: https://www.investors.com/research/investing-action-plan/investing-action-plan-navigating-a-tricky-holiday-market