Stock Market News For Nov 27, 2017

The S&P 500 closed above the 2,600 level for the first time on Friday. Markets’ gains were buoyed by a surge in tech and retail stocks. Retailers gained primarily from shopping on Black Friday. Meanwhile, investors remained hopeful about a likely cut in corporate tax rates. Major benchmarks posted weekly gains in the Thanksgiving holiday shortened four day trading week.

The Dow Jones Industrial Average (DJIA) increased 0.1%, to close at 23,557.99. The S&P 500 Index (INX) gained 0.2% to close at 2,602.42. However, the tech-laden Nasdaq Composite Index (IXIC) closed at 6,889.16, gaining 0.3%. A total of 2.78 billion shares were traded on Friday, lower than the last 20-session average of 6.48 billion shares. Advancers outnumbered decliners on the NYSE by a 1.61-to-1 ratio. On Nasdaq, a 1.31-to-1 ratio favored advancing issues. The CBOE VIX increased 1.2% to close at 10.00.

S&P 500 Breaks Above 2,600

The S&P 500 breached a new record on Friday after the benchmark closed above the 2,600 psychological milestone for the very first time. The S&P 500’s rally was supported by a surge in tech shares which gained traction on prospects of corporate tax cuts.

Moreover, S&P 500 was also boosted following holiday shopping on Black Friday. Major retailers offered impressive discounts and gifts to lure the customers. However, the buyers chose the online route and spent almost $2.87 billion on online shopping. Shares of retailers such as Macy’s M, Kohl’s KSS, Gap GPS, Amazon AMZN and Wal-Mart WMT all gained 2.1%, 1%, 1.6%, 2.6% and 0.2%, respectively. The S&P retail index .SPXRT surged 0.8% on Friday. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Of the 11 major segments of the S&P 500, nine ended in the green, with technology leading the advancers. The Technology Select Sector SPDR ETF (XLK) gained 0.6%.

How Did The Benchmarks Perform?

The Dow amassed 31.8 points on Friday to end half a percentage point below its record close of 23,590.83. Shares of Visa Inc. V gained 1% and provided the biggest boost to the Dow. Meanwhile, Nasdaq surged 21.8 points to register a record closing high of 6,889.16. The tech-heavy index was boosted by shares of Amazon. Further, the Russell 2000 index added 2.4 points to close at a record high of 1,519.16.

Meanwhile, IHS Markit stated that U.S. industry expanded at its slowest pace in the last four months. The flash manufacturing PMI dropped to 53.8 in November from 54.6 in the previous month. Also, the flash services PMI declined 54.3 in November from 54.6 in the previous month.

Weekly Roundup

For the week, the Dow, the S&P 500 and the Nasdaq gained 0.9%, 0.9% and 1.6%, respectively. Investors kept a close eye on tax cut prospects as the year nears its end. All the three U.S. benchmarks reached all-time highs on Tuesday, with the S&P 500 moving above the 2,600 level in intra-day trade. The Federal Open Market Committee (FOMC) minutes released on Wednesday indicated that a rate hike is almost certain in December, but stated that only one or two rate hikes were likely in 2018. Prospects of a slower pace of rate hikes next year weighed on investor sentiment. U.S. markets were closed on Thursday for the Thanksgiving holiday.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Gap, Inc. (The) (GPS) : Free Stock Analysis Report
 
Wal-Mart Stores, Inc. (WMT) : Free Stock Analysis Report
 
Macy's Inc (M) : Free Stock Analysis Report
 
Kohl's Corporation (KSS) : Free Stock Analysis Report
 
Visa Inc. (V) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research