Strong Week for Stocks With Fed, G-20 in Focus

FAANG stock Amazon had a stellar week after strong Cyber Monday sales

by Andrea Kramer

Published on Nov 30, 2018 at 1:19 PM

After a dismal Thanksgiving week, stocks bounced back with a vengeance, thanks to some dovish Fed chatter and cautious optimism ahead of the critical meeting between U.S. President Donald Trump and China President Xi Jinping at the G-20 summit this weekend. The Dow Jones Industrial Average (DJI) is pacing for its best week since November 2016, and the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) are eyeing their best weeks since February. Further, the Dow and S&P are set to end the month higher, following a brutal October, with the latter index on track to retake its crucial 80-week moving average -- a very encouraging sign for stock market bulls.

FAANG Stocks Rebound

Amazon (AMZN) helped Wall Street kick off the week on a high note, after the e-commerce giant enjoyed a record Cyber Monday. In fact, AMZN stock is pacing for its best week since April 2015. Meanwhile, Apple (AAPL) is on track to snap an eight-week losing streak, despite Trump's threats of a 10% tariff on iPhones and laptops imported from China. Fellow FAANG names Facebook (FB), Netflix (NFLX), and Google parent Alphabet (GOOGL) are also pacing for their best week in months, though only one emerged on our list of best stocks to own in December

Retail Stocks in the Spotlight

Retail stocks were also in focus, following the busiest shopping period of the year. One analyst said to buy the dip on TJX Incorporated (TJX) stock, and another upgraded American Eagle Outfitters (AEO) ahead of earnings next week. On the other hand, speculators may want to consider dumping this pair of video game stocks, as they tend to struggle in the final month of the year.

Solid Week for Airline Stocks

Oil prices dipped below $50 per barrel ahead of next week's Organization of the Petroleum Countries (OPEC) meeting. As such, several airline stocks benefited. In addition, upbeat guidance from Spirit Airlines (SAVE) and Alaska Air Group (ALK) didn't hurt, helping sector peers like United Continental (UAL) fly to new heights.

Best Stocks to Buy in Historically Bullish December

The outcome of Saturday's Trump-Xi dinner will likely impact stocks on Monday, with Wall Street hoping for progress on U.S.-China trade. In addition, Fed Chair Jerome Powell will speak again next week, and traders will digest November jobs data and a trickle of retail earnings reports. Looking ahead, these 25 stocks could rally in December, which tends to be a bullish month for stocks.

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