October may not have served as a seasonally strong month for the stock market, but November certainly did! The Dow, S&P 500 and NASDAQ rallied 8.8%, 8.9% and 10.7%, respectively in November.
Not only did we have the typical seasonal strength and positive mood ahead of Thanksgiving, but we also benefitted from a truly stunning third-quarter earnings announcement season.
The stock market kicked December off on a positive note, with the major indices closing higher on Friday. Although the broader market was weak yesterday and mixed today, there’s no need for concern. The reality is that after the market’s stunning performance in November, it needs to take a breather and consolidate its recent gains.
Looking ahead to this week, the only major wild cards I see impacting the market are the jobs reports. On Wednesday, the ADP jobs report will be released. And on Friday, we’ll receive the latest employment data and unemployment rate. Wall Street wants weak data, as this indicates that the jobs market is cooling down. If the U.S. jobs market is cooling, then the Federal Reserve will not need to raise key interest rates.
I do think the jobs market is cooling. The Labor Department reported last Thursday that continuing jobless claims rose to 1.927 million in the latest week, up from a revised 1.841 million in the previous week. Continuing jobless claims are now running at the highest pace in two years, which means that the unemployment rate may meander a bit higher.
So, let’s hope for “Goldilocks” reports, where the numbers are neither too hot nor too cold. If the data is a little weak, we could experience another market rally.
This Week’s Ratings Changes
After taking a closer look at the latest institutional buying pressure and each company’s financial health, I decided to revise my Portfolio Grader for 65 big blue chips. Of these 65 stocks, 15 were downgraded from a B-rating (Buy) to a C-rating (Hold), and 12 stocks were downgraded from a C-rating to a D-rating (Sell).
I’ve listed the first 10 stocks to sell below, but you can find the full list – including the stocks’ Fundamental and Quantitative Grades – here.
Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and adjust accordingly.
|Alibaba Group Holding Limited Sponsored ADR
|BioMarin Pharmaceutical Inc.
|Walt Disney Company
|Gilead Sciences, Inc.
|Philip Morris International Inc.
|Prudential plc Sponsored ADR
|Sea Limited Sponsored ADR Class A
While this list helps you this week, the reality is it won’t set you up for next year. After all, this list changes week to week. So, to help you prepare your money for 2024, I’m sitting down with my InvestorPlace colleagues, Ery Fry and Luke Lango, for a special Early Warning Summit 2024 event. We’ll discuss where you should – and where you shouldn’t – invest your money in the coming year. We’ll also share three free stock recommendations we expect could soar in 2024 – regardless of where the market turns next.
The Early Warning Summit 2024 will take place on December 12, at 7 p.m. Eastern time. If you want to learn how to not only survive but thrive financially in 2024, then you definitely want to join us and hear what we have to say.