U.S. futures are slightly up before a shortened trading day, with investors closely monitoring the impact of Black Friday sales on consumer spending. Retail companies warn that inflation-squeezed consumers may be more careful about spending big this holiday season. Economic data fueled optimism that the Federal Reserve's interest rate hikes may have peaked. Retailers are trying to persuade customers to spend on Black Friday, but inflation and borrowing costs may deter consumers. The preliminary figure for economic activity in the U.S. is expected to show contraction. Amazon workers and activists plan protests across Europe on Black Friday. Core consumer inflation in Japan accelerated in October. Oil prices are on track for the first positive week in five ahead of the OPEC+ meeting.
Shoppers packed malls on Black Friday as retailers offered discounts to attract customers. German Chancellor Olaf Scholz promises quick action to fix a budget crisis. Nissan will invest $1.4 billion to update its factory in northeast England to make electric cars. Inflation in Russia is affecting consumers' purchasing power. Russian President Vladimir Putin endorses a national strategy for the development of artificial intelligence. Stocks end the week with a mixed finish. Federal inspectors find defects in Union Pacific's locomotives and railcars. Argentina's unions and social organizations vow pushback against the president-elect's plans to slash the size of the state and privatize companies. The Miami Dolphins and New York Jets game on Black Friday is a big event for Amazon. The holiday shopping season is here, with Black Friday still attracting millions of consumers.
The absence of major macroeconomic data during Thanksgiving resulted in relatively quiet markets. However, the return to business is underway, and Black Friday sales will be closely watched. Weakness in the US consumer could raise concerns about a slowdown in the leading economy. The Leading Index published by the Conference Board came in slightly below expectations, pointing to a recession in the coming months. Consumer pessimism about economic conditions could dampen buying during Black Friday and Cyber Monday. The US 10-year yield is attempting to rebound from its 2022 peak, while the German Bund has stabilized above its 200-day moving average. Sales volumes and resistance levels will be key factors to monitor.
Black Friday and Cyber Monday have significant implications for retailers, consumers, and the U.S. economy. Consumers are showing signs of pulling back on spending, raising concerns about the impact on retailers' Christmas sales and the overall economy. The Federal Reserve is closely monitoring retail data to inform its interest rate policy next year. Retailers are facing a competitive landscape, with discounts being offered prior to the actual day. Social media platforms like TikTok are being used to drive sales. The DealBook Summit, featuring an interview with Taiwan's president on U.S.-China relations and other topics, is highlighted. Other news mentioned includes the release of hostages in Afghanistan, the cancellation of the Global Summit for Democracy, the underperformance of Disney's movie "Wish," a Supreme Court case on the S.E.C.'s in-house enforcement arm, and a major antitrust case against the National Association of Realtors. Economic indicators to watch include the Fed's "beige book" report, Germany's consumer prices data, and oil production cuts. [a4930b60]
Black Friday and Cyber Monday sales events are closely monitored by the White House and economists as indicators of the U.S. economy. Black Friday sales in the U.S. increased by 2.5 percent compared to last year, with online sales rising by 7.5 percent to $9.8 billion. Retailers started offering deals earlier this year, and Amazon aired the N.F.L.'s first-ever Black Friday game on its Prime streaming service to promote deals. Social commerce, a trend gaining traction in Asia, is being introduced to the U.S. through platforms like TikTok. [112c5fd8]