Ahead of today’s trading start on Wall Street, futures indices are in the red as investors are cautious about the beginning of the pre-holiday shopping season, which could be one of the worst in recent decades.
The Dow Jones futures index was down 50 points around 2:30 PM, while the Nasdaq index was down 14 points. The S&P futures index was down 8 points and below fair value, a mathematical formula that determines prices taking into account interest rates, dividends, and the expiration date of the futures contract. After yesterday’s holiday, Wall Street will only be open for four hours today, as many Americans are extending Thanksgiving into the weekend. Therefore, analysts do not expect a large trading volume. Especially since there are no scheduled macroeconomic reports or earnings results from major companies. Investors are nervously awaiting any hint of how ‘Black Friday’, the day after Thanksgiving, which is considered the start of the pre-holiday shopping season, might unfold.
This shopping season lasts until Christmas and brings stores up to 40 percent of their total annual revenue. Consumption during the upcoming weekend will provide the first indications of whether Americans, fearing recession and unemployment, have ‘tightened their belts’ or will disregard everyday problems during this festive time of year, analysts say. Since the beginning of the week, stock prices on Wall Street have risen significantly, but since the beginning of the month, the Dow Jones index is down more than 6 percent, the Nasdaq index more than 8 percent, and the S&P index 10 percent. European exchanges are also trading very cautiously today. Around 2:30 PM, the London FTSE index was down about 0.4 percent, while the Frankfurt DAX and Paris CAC indices were down more than 1 percent. (H)
