- European stocks are on the rise despite fears of containment due to Covid-19.
- US stocks should gain ahead of Black Friday buying.
- Best Buy shares are expected to continue climbing above $ 136 as it releases its earnings report.
European stocks tend to rise especially on Monday as the week begins positively after Friday’s slide for the FTSE 100 and Stoxx 600. This comes as the market seeks to overcome early nervousness of a surge in infections in the Covid-19 and therefore new containment problems.
The FTSE 100 is up + 0.23%, while the pan-European Stoxx 600 is up 0.17%, the latter supported by Telecom Italia’s rally of more than 20% in early trading. The company’s shares began to soar after a $ 12 billion acquisition deal between Italian telecommunications and US fund KKR.
U.S. stock futures are also up ahead of Wall Street’s opening on Monday, with pre-market gains for S&P 500 futures, Nasdaq futures and Dow futures.
The rise seen that day also comes at the start of a week when investors will want to watch for new inflation data and an expected increase in spending on Black Friday as the holiday season kicks off properly.
Best buy among stocks to watch this week
Stocks have historically performed well during Thanksgiving week and several companies could see their stocks rise. In addition to increasing consumer activity, investors will be watching for signs of growth in key companies releasing their earnings reports this week.
Best Buy (BBY) will release its third quarter earnings report on Tuesday, as investors are likely to be alert to sales expectations ahead of Black Friday shopping. Consensus estimates for BBY put earnings at $ 1.94 per share, with $ 11.62 billion in revenue. If Best Buy follows other retailers in posting better-than-expected results, another advantage for the stock could push it higher than the $ 136.13 hit at Friday’s close.
Zoom Communications (ZM), whose earnings report is due today, is another action investors might appreciate this week. ZM has traded lower for much of the past year, although year-over-year gains are around 360%. Deere and Co. (DE), which is due to release its earnings report on Wednesday, is also on the list of stocks to watch this holiday season.
Other reports released on Tuesday are from Dick’s Sporting Goods (DKS), American Eagle Outfitters (AEO), Dell Technologies (DELL), HP Inc (HPQ) and VMWare (VMW).
The US stock market will remain closed on Thursday, with Friday sessions ending at 1 p.m.