November is a month that many analysts believe will be a buying opportunity on Wall Street. A lot will depend on how deep the pullback in the first fortnight of November unfolds. To maintain its bullish posture the market will have to maintain over cited support during the two expected tests of support. A pullback is expected this trading week.
Wall Street started the trading week in a subdued fashion, falling 24.28 points to 17,366.24. The S&P 500 .SPX shed 0.24 points to 2,017.81 while the Nasdaq bucked the trend to gain 8.17 points to end the first day of the trading week at 4,638.91 as semiconductors boosted the tech heavy index. The markets remained mixed as the price of crude oil dipped to over two-year lows following Saudi Arabia’s announcement to cut the selling price of oil to the U.S. and at the same time raise prices for other locations.
All eyes are on Alibaba Group Holding Ltd (NYSE: BABA) as the Chinese e-commerce giant is scheduled to announce its first-ever quarterly earnings report as a public company. Several analysts expect the company to earn 0.45 per share on revenues of $2.64 billion. As expected, shares of Alibaba were up 4 percent on Monday in anticipation of a strong earnings report. The final result will be an indicator of whether its current valuation is overvalued or undervalued. 14 of 15 investment banks involved with Alibaba’s IPO have given the company a bullish rating except for analysts from Goldman Sachs, which gave it a neutral rating.
Shares of Sapient Corp (SAPE.O) rose sharply by 42 percent to $24.60 following the announcement by Publicis (PUBP.PA) to purchase the digital ad company for $3.7 billion in cash. Following Laboratory Corp of America Holdings (LH.N) announcement to buy Covance Inc (CVD.N) for $6.1 billion, share of the latter were up 25.9 percent to $100.57.
The U.S dollar continued to gain strength and was at its strongest point in almost seven years, topping 114 yen on Monday, before settling at 113.75, and of the ones that wish to trade on short term could trade in binary options on the USD. The greenback’s gains were boosted by the Bank of Japan’s decision to boost its bond-buying stimulus package. The euro dropped to a near two-year low against the dollar as investors await the outcome of the European Central Bank’s meeting this week. The dollar touched a four-year high against a basket of major currencies with the .DXY last up 0.42 percent at 87.285.