News About Banking Industry

Stocks gain ahead of Thanksgiving break

Seasonal stock market trends are again overcoming geopolitical fears on Wall Street as traders push stock prices higher as they often do in the days leading up to and following Thanksgiving. Despite ongoing angst over the elevated terrorism threat around the globe and fresh uncertainty over the potential fallout following Tuesday’s downing of a Russian fighter jet by Turkey, Wall Street investors are shrugging off those risks and instead focusing on some decent economic data in the U.S., and the hopes for more stimulus from the European Central Bank next week.AP FINANCIAL MARKETS WALL STREET F USA NY

In late morning trading, U.S. stocks are modestly in the black, following the lead of shares in Europe, which rebounded sharply after diving a day earlier on geopolitical fears. The Dow Jones industrial average, which gained nearly 20 points yesterday, is 15 points higher, up 0.1%. The broader Standard & Poor’s 500 stock index is up about a point, while the Nasdaq composite is 0.2% higher.

Wall Street appears to be following historical trends on two fronts. History has shown that terrorism and other geopolitical risks only impact markets for a short period of time, with markets quickly pivoting back to more traditional drivers, such as the health of the economy, corporate earnings and other measurable economic trend.

In addition, the Thanksgiving week has been bullish for stocks, history has shown. The S&P 500, for example, has gained an average of 0.63%, on average, in the holiday-shortened week over the past 50 years, which is better than the 0.14% gain in all weeks over the past five decades. Stocks have also been up 82% of the time on the Wednesday before Thanksgiving in the past 50 years, and were higher 70% of the time on the Friday after Thanksgiving, according to data from Schaeffer’s Investment Research.