US business will be short due to Thanksgiving holiday

Last week the dynamics in the US stock exchange market didn’t change. The stock indices and US dollar index continued rising. No important economic data came out on Monday. The stock indices retreated after their record weekly increase for the past 5 years. Let us recall, that the Dow Jones industrial average then surged up to 5.1% due to the victory of Donald Trump. The profit taking in stock market didn’t affect the US currency which continued strengthening on Monday. US dollar index managed to end in the black each day of last week.

On Tuesday, the rise in US retail sales for October exceeded preliminary forecast while the September reading was revised up. As a result, the 8-week rise of the retail sales turned out to be the record high since the beginning of 2014. After that, Atlanta Fed revised up its forecast of US GDP growth in the 4th quarter to 3.3%. Both US dollar index and US stocks advanced on such positive news.

On Wednesday, the stock indices were in the red on disappointing industrial production and producer price indices for October which fell short of expectations. The chances for the December rate hike fell from 91% to 81% but US dollar continued advancing.

On Thursday, all US markets edged up in the aftermath of the speech of Fed President Janet Yellen. She said once again the Fed is determined to raise the rates which pushed up banking stocks. Strong housing data for October were additional positive. The forecast of US growth in 4th quarter of 2016 was revised up to 3.6% after 2.9% in the 3rd quarter.

On Friday, no significant economic data came out in US. Stock indices decreased, which cut their overall weekly growth. US dollar continued strengthening. Investors are sure the Fed is to hike the rate on December meeting which will raise the credit burden on US companies. Market participants do not rush to purchase stocks awaiting the official economic program of the newly-elected US President Donald Trump who promised to reduce corporate taxes in course of his election campaign.

This Thursday, on November 24, Thanksgiving holiday will be celebrated in the US. Significant economic data will come out this Wednesday and Friday. Durable goods orders, housing market data, the Michigan University consumer confidence index and the Fed November meeting minutes will come out on Wednesday. The US trade balance for October and the wholesale inventories will come out in US on Friday.