Stock Market Analysis: Will the US indexes continue to rise as we get closer to year-end?

Daily Market Analysis

Stock Market Analysis: Will the US indexes continue to rise as we get closer to year-end?

Major US stock markets returned in the green territory in the current week after a brief period of moving lower in the previous. Even though the general trend for the major US indexes had been a rollercoaster in 2020, some of the latest economic and political updates may be adding further fuel to the markets.

Investors seem eager to push prices higher, even if we are in the last two weeks of the current year. 

Today’s analysis will focus on some of the most remarkable stock market movers in the past days that could provide some important information to potential investors. 

The top winner for the Dow Jones Industrial on Tuesday was Walt Disney that gained +2.74% on the normal trading session and closed at $173.94 per share. 

The company came under tremendous pressure in the past and latest months, as the covid-19 outbreak had left its theme parks empty. The lockdown measures and the fear over the spread of the virus made people less confident of getting out of their house let alone visit Disney’s dreamlike parks. 

However, Disney’s plans for expansion in the live streaming business during the pre-covid period may have been the most important decision and action taken by the company in decades. Not only it has managed to attract a rather large subscriber base, but the quality of the content offered on the platform has lifted Disney plus to a serious level of competition to other streaming services. 

According to Disney, they have so far managed to provide Disney plus services to 86 a million subscribers, and in March 2021, it will impose its first price increase for its streaming by $1. 

Disney plus has also set out forecasts to reach hundreds of millions of subscribers in the next years. These forecasts are based on the content offered, which is also expected to keep the attraction flowing through its quality.

New movies and series have already been announced thus, investors should be on the lookout for opportunities Disney’s share price could yield. Today’.

Another big winner for the Dow Jones on Tuesday was Nike Inc. that moved higher by +2.28% and closed the session at $139.39. Please note the highest price reached in the past 52 weeks is $140.57, and the lowest is $60.00. On a year to date basis, Nike’s share price is up +37.59%. Nike displayed good results during the past September’s quarterly releases and has managed to reinvent its way of doing business.

In the near past, Nike has shifted to digital shopping. The negative impact of the virus outbreak, which kept consumers away from shops forced Nike to improve efficiency and set up a digital ecosystem. 

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Customers seem to enjoy placing orders through Nike’s online site as a digital sales growth has been confirmed in the past months. On the hand, it should be noted that Nike’s physical selling stores may have incurred losses, offsetting online profits somewhat, according to media. 

Nike is scheduled to release second-quarter fiscal 2021 results on Dec 18. At the moment, Reuters expects the EPS figure to be at $0.62. Nike’s share price could come under strong volatility after the release of the figures; thus, caution is advised. 

Finally, McDonald’s Corp was also a top winner for the Dow Jones on Tuesday at it surged by +1.39% and closed the session at $214.86. On a year to date basis, McDonald’s is up +8.73%. Even though in the past months, ‘ many restaurants were forced to shut down due to lockdown measures, McDonald’s was able to keep its business going through the McDonald’s App. 

Allowing customers to place orders through the App and pick them up in the restaurant’s parking lot or by delivery keeps both the consumer and the business happy. The customers could enjoy their favourite meals while McDonald’s offered safe services minimizing virus exposure along with keeping its sales going. Even though McDonald’s performance in 2020 was not amazing, its management made swift and decisive decisions that helped them easily overcome the difficult circumstances around the world.

 Moreover, McDonald’s has set a new strategic growth plan consisting of the “Three D’s.” The plan relates to Digitization, Delivery, and Drive-Thru, which have supported the business during the past tough year but can be improved even further.

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