U.S. stocks Hit Record High Again Peak Sales Season Leading to Retail Sector

US stocks closed slightly higher on November 26. The three major stock indexes again set a record high in history and closing history. Thanksgiving sales season is approaching and the retail sector led the gains. On November 26, the Dow closed up 55.21 points at 2821.168 points; the S & P 500 index rose 6.88 points to 3104.52 points; the Nasdaq rose 15.44 points to 8467.93 points. During the session, the Dow rose as high as 28146.02 points, the S & P 500 index rose as high as 3142.69 points, and the Nasdaq rose as high as 8,659.73 points, all refreshing the intraday record high. As of the close of November 26, both the S & P 500 and the Nasdaq have refreshed their closing highs 10 times, the highest number since January 2018. The retail sector led the gains. The SPDR S & P retail sector ETF (XRT) rose 0.6%. Amazon (AMZN) closed 1.3% higher. The strong performance of the retail sector was due to the traditional peak sales season after Thanksgiving. The National Retailers Association estimates that holiday retail sales will increase by about 4% after Thanksgiving in 2019. Best Buy's stock price rose 9.9%, becoming the leader in the retail sector. The company previously announced that its third-quarter sales revenue and profit were beyond expectations, and raised its guidance for full-year results and same-store sales revenue growth.

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It is worth noting that JP Morgan Chase strategists pointed out that despite the strong stock market performance in 2019, retail investors are still reluctant to participate in the stock market rally. In fact, so far in 2019, retail investors have been a drag on the stock market, and the outflow of funds from stock investors has exceeded the worst level since the 2008 financial crisis. Faxing Bank believes that in the past few years, the Federal Reserve has injected too much liquidity into the stock market, and it is now almost impossible to withdraw. This also means that the market's slight decline may cause a butterfly effect and even destroy the entire real economy.

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The Federal Deposit Insurance Corporation (FDIC) released a report on November 26 that the overall profit of the U.S. banking industry in the third quarter of 2019 decreased by 4.5 billion U.S. dollars to 57.4 billion U.S. dollars, as "non-recurring events" of three large financial institutions pushed banks Industry growth.

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According to Reuters reports on November 26, if these events did not occur, the profitability of the banking industry would have increased slightly from the record high of US $ 62.6 billion in the second quarter, continuing to set a record. The FDIC previously stated that the incident referred to the impairment of assets of Bank of America, Wells Fargo and Mitsubishi UFJ. The banking industry's third-quarter profit fell by 7.3% compared with the same period of the previous year, but the FDIC said that 62% of the banks announced an annual profit increase, and only 4% of the banks did not realize a profit. "Overall, the results reported by the banking industry are positive," FDIC Chairman Jelena McWilliams said in a statement. However, net interest income increased by only 1.2% year-on-year, the slowest growth rate since the end of 2014. The number of troubled banks fell to 55 in the third quarter, the lowest since early 2007. The new bank increased by four and 46 banks were acquired.