Market Perspective for November 25, 2019

Equities rallied to new all-time highs on merger news. Schwab (SCHW) formally announced its offer for TD Ameritrade (AMTD) and LMVH Moet Hennessy Louis Vuitton (LMVUY) made an offer for Tiffany’s (TIF). Shares of Ameritrade and Tiffany’s climbed 7.65 percent and 6.20 percent respectively. Normally the stock of acquiring companies drops, but investors like both moves. Shares of Schwab and LMVH gained 2.30 percent and 2.27 percent.

Buyout news continued after the bell when Palo Alto Networks (PANW) announced it would buy privately held Aporeto for $150 million.

The Nasdaq rallied 1.32 percent. Technology and healthcare were the best performing sectors. SPDR Technology (XLK) advanced 1.43 percent, while SPDR Healthcare (XLV) climbed 1.15 percent. Financials also performed well to start the week. SPDR S&P Regional Banking (KRE) returned 1.00 percent.

This will be a light week for economic data. October new home sales will be announced Tuesday. Wednesday brings the second estimate of third quarter GDP. Economists expect it will match the initial estimate of 1.9 percent growth.

Earnings reporting will be light over the coming days. Among the firms delivering results are VMware (VMW), Dollar Tree (DLTR), Analog Devices (ADI), Keysight Technologies (KEYS), Dick’s Sporting Goods (DKS), Chicos FAS (CHS), Guess (GES), Abercrombie & Fitch (ANF), Hormel Foods (HML), Autodesk (ADSK), Deere (DE) and Frontline (FRO).

Note: The stock market will be open a full day on Wednesday. It will close for the Thanksgiving Day holiday and at 1 PM on Friday.

 

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