The S&P 500 is Possible to Keep Earning

The S&P 500 is possible to keep earning. The S&P 500 set a new record on Friday. The S&P 500 seems likely to continue with its earnings, Investing.com reports. According to the analysis on the site, the shares are expected to continue to alternate between gains from vaccine developments and the pessimism created by the continuation of the coronavirus epidemic. While it is stated that the coronavirus epidemic suppresses a V-shaped recovery, as previously said, this pressure is expected to continue in 2021. On the other hand, considering the course of the supply and demand balance, it seems possible that the gains of the S&P 500 will continue. Oil dropped on Friday after rising tensions among OPEC+ members prior to the two-day meeting this week, but posted a fourth weekly gain in a row.   Prices Are At Record Level But Volume Is Low US stocks in the S&P 500 broke the record on Friday after low trading volumes recorded during the Thanksgiving holiday. November 2020 has been on record as the best month since 1950 for SPX so far. The Benchmark index, which rose 0.25 percent on the last trading day of the week, increased its value by 11 percent on a monthly basis. On a percentage basis, the S&P 500 had the best November performance since 1928.     For the 30-component Dow Jones Industrial Average Index, November was the best month since January 1987. At the same time, the oldest US stock index broke the 30,000 resistance last week. NASDAQ Composite, which increased by 12 percent on a monthly basis, stands very close to the best November performance since 2001. The technology-weighted index rose 0.9 percent on Friday, and rose 2.75 percent on a weekly basis. Moreover, the index broke a new record at the close of the week. In addition, as investors shifted to value shares and left technology shares, NASDAQ 100 increased 0.87 percent on Friday in early November, but is 1.3 percent behind the closing record it recorded on September 2. The Russell 2000, which broke a new record with its 0.56 percent rise, also closed at the highest level of the seas. However, record-breaking deals on Friday were only 60 percent of the average transaction volume seen in the last year. Also, the stock market closed early due to the holiday. Accordingly, these transactions may not show overall supply and demand. Global stocks rose 13 percent, while valuations reached almost 20-year highs. In this context, November is standing as the best month among non-US stocks. In addition to all of these, the number of coronavirus cases worldwide exceeding 62.3 million and the death of 1.45 million people due to the epidemic causes investors to switch between joining the global risk appetite or avoiding risk. The fact that US elected president Joe Biden warned of "a long and difficult winter" and the number of patients in intensive care in Europe broke the record, proves that the situation remains serious. It is therefore necessary to distinguish between the ever-record-breaking stocks and the fluctuating economic recovery in an effort to overcome the worst recession since the 1930s. Although investors are hopeful with positive news from vaccines, uncertainty in the markets still continues. While concerns about vaccines continue, the removal of another uncertainty is relieving the markets a little. With the positive signals for Biden's transition to management, investors also increased their treasury bond assets.   Treasury bond yields have been on an upward trend since the floor level it saw at the beginning of August, including 10 years. If the uptrend continues, a base will be completed after the 1.00 percent level. As for the dollar, the dollar, which dropped about 0.2 percent on Friday, closed at its lowest since April 27, 2018.  

Gold Fell On Friday

  Although a rise is expected in the long term for gold, the expectation of a decrease in the short and long term has returned. The yellow metal is expected to test the $ 1,700 level again. Similar to gold, although the leading cryptocurrency Bitcoin (BTC) is expected to rise in the long term, it has been warned that a correction will take place after reaching the top of a bullish channel.   As predicted, the price dropped after touching the top of the channel and reversed its direction finding support at the base of the same channel. After experiencing a strong rally in Bitcoin, the price has moved up from the uptrend line and the high MACD and RSI indicators show that the price should fall from the yen. Meanwhile, a warning was given that the last rally was conducted by individual traders. If this is the case, it is possible to get a ceiling signal. Analysts also warned that Bitcoin whales are of the same opinion and have recently begun selling their assets. As for oil, OPEC + has now become the sole superpower of oil as the coronavirus epidemic has weakened shale oil production in the US. However, despite this, rising tensions within the group made it difficult to tackle the biggest risk to oil demand.   Despite all this, optimism about the vaccine continues to give investors hope. Even though crude oil fell on Friday, it rose 1.2 percent on a weekly basis. This is the first time since the end of August, four weeks in a row. Also, oil recorded its highest level since February 17th. The developments expected to be announced this week are as follows: (Turkey is based on time.) Monday 03:00: China - Manufacturing PMI: an increase from 51.4 to 51.5 is expected. 17:00: USA - Home Sales Pending: increase expectation from -2.2% to 1.0%. Tuesday 03:45: China - Caixin Manufacturing PMI: decreased from 53.6 to 53.5. 05:30: Australia - RBA Interest Rate Decision: expected to remain stable at 0.1%. 10:55: Germany - Manufacturing PMI: expected to remain stable at 57.9. 10:55: Germany - Unemployment Change: An increase from -35 thousand to -5 thousand is expected. 11:30: UK - Manufacturing PMI: expected to remain stable at 55.2. 12:00: Euro Zone - CPI: Increase from -0.3% to -0.2% is possible. 15:30: Canada - GDP: month-to-month decrease from 1.2% to 0.9%. 17:00: USA - ISM Manufacturing PMI: decrease from 59.3 to 57.9. Wednesday 02:20: Australia - GDP: Expected to jump from -7.0% quarter-on-quarter to 2.5%. 15:15: USA - ADP Non-Farm Employment Change: It is expected to increase from 365 thousand to 400 thousand. 17:30: USA - Crude Oil Stocks: An increase was seen from -0.754 million barrels to 0.127 million barrels. Thursday 11:30: UK - Service PMI: expected to remain stable at 45.8. 17:00: USA - ISM Non-Manufacturing PMI: a decrease from 56.9 to 56.6 is likely. Friday 02:30: Australia - Retail Sales: expected to rise from -1.1% to 1.6%. 08:15: India - Interest Rate Decision: expected to hold steady at 4.00%. 11:30: UK - Construction PMI: decrease from 53.1 to 52.0. 15:30: USA - Non-Farm Employment: It is expected to decrease from 638 thousand to 500 thousand. 15:30: Canada - Employment Change: There was a decrease from 83.6 thousand to 27.5 thousand.

Source: investing.com