S&P futures are trading higher ahead of Thanksgiving and Friday’s early close. Equities followed up Monday’s solid gains with some more yesterday. The S&P 500 finished just under 1% higher while regaining the 50 and 20d ma. The equal-weight (+1.4%) and Russell 2000 outperformed (+2%). Several retailers were sharply higher following earnings: KSS +43%, ANF +38%; EAT +7% BBY +5%. Meanwhile a big divergence trade in tech continued as Nvidia fell >2% while Alphabet’s AI-fueled momentum continued. 2y treasury yields fell 4bp with reports that White House Sr. Adviser Kevin Hassett was the front runner to replace Fed Chair Powell, given his alignment with the administration’s policy outlook. That move is reversing this morning as yields moved higher following solid employment data. Regarding that data, Initial Jobless Claims continue to remain at relatively low levels and declined to 216K from 222K and were below estimates. Continuing claims were a bit higher than last week, but that comp was revised lower from 1974K to 1953K. Durable Goods from September were mixed: Headline growth fell vs. August but beat estimates. Ex-Defense was below and missed estimates but non-defense, ex-air was inline with September. Yields moved higher with the 2y up 3bp currently. The US Dollar Index is slightly higher. Crypto is lower with Bitcoin off modestly and Ether down ~1%. Polymarket received CFTC approval to operate as an intermediated trading platform, allowing the prediction marketplace to plug into traditional trading infrastructure. Crude is slightly lower. Precious metals are higher with gold up 1%, silver and palladium +3%. Copper is also higher, having held its 50d ma.

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