Thanksgiving Day (Nov 23) that marks the beginning of the month-long holiday season is just a few days away. Most Americans wait for the fourth Thursday of November every year to begin shopping for the festive season. Hence, higher consumer consumption boosts the overall economy, which is reflected in the movement of the stock market.
Per CNBC, since 1945, the S&P 500 has risen 75% during the Thanksgiving week with an average gain of 0.6%.
Consumer Confidence Up
Consumer Confidence — a key determinant of the economy’s health — reached its highest level in almost 17 years. Per the Conference Board data, the Consumer Confidence Index surged to 125.9 last month from September’s revised reading of 120.6.
Analysts believe that a buoyant stock market, gradual wage acceleration, fall in unemployment rate to a 16-year low, and rising economic activity post-hurricanes were enough to boost consumer sentiment.
We can therefore anticipate a surge in consumer spending in the upcoming holiday season.
Technology Momentum Continues
The technology sector is benefiting from increasing demand for cloud-based platforms as well as growing adoption of Artificial Intelligence (AI) solutions, Augmented/Virtual reality devices, autonomous cars, advanced driver assisted systems (ADAS), Big Data and expanding usage of Internet of Things (IoT) related software.
The rise in consumer confidence bodes well for the technology sector, which has been one of the hot sectors for investors this year. The optimism surrounding the technology sector is well reflected in its year-to-date performance.
Notably, the Technology Select Sector SPDR ETF (XLK – Free Report) has gained 31.5% on a year-to-date basis, compared with the S&P 500’s gain of 15.7%.
Let’s now focus on four technology stocks that are poised well ahead of the Thanksgiving week.
Apple Inc. (AAPL – Free Report)
Apple is launching its latest smartphone, iPhone X, in 14 countries during the Thanksgiving period (Nov 23-24). Buoyed by anticipation of strong performance of the device, the company has given a very encouraging outlook for the current quarter, which includes the holiday season.
