U.S. stocks looked set to open little changed in light trading on Thursday as investors gear up for the holiday season. Stocks showed little reaction to data showing that the U.S. economy grew faster than initially thought in the third quarter, notching up its best performance in two years.
Markets surged on Wednesday, with the Dow industrials and S&P 500 hitting fresh records, as equities continued their march upward after the presidential election of Donald Trump and a new high for transportation stocks added to the bullish tone.
Oil futures snapped a four-day rally on Tuesday on signs of higher output while the euro slipped from a three-week high ahead of a Thursday meeting of the European Central Bank. The markets were boosted by financial and telecom stocks while U.S. Treasury yields held in narrow ranges ahead of the ECB meeting. Italian banks rebounded.
If this were baseball, I am batting 500. As of Sunday night, the "No" vote in Italy was well ahead, and by Monday morning the winner, which I anticipated. I was not so certain about OPEC coming to a deal. I’m still skeptical it will remain sustainable. But to give you an idea, the Saudis and Iranians worked out a deal where the Saudis will cut 4.6% of their output per day while the Iranians only 2.3%. Keep in mind the Saudis are producing (round numbers) 10 million barrels a day while the Iranians nearly 4.