MARKETS IGNORE PARIS ATTACKS. POST BEST WEEK OF THE YEAR.

Believe it or not, the S&P 500 quietly posted the best week of 2015 as the index jumped 3.3%. The Dow Jones Industrial Average posted stronger results with a 3.4% gain led by better than anticipated earnings from Nike. Nevertheless, Dow Jones returns are flat for the year while S&P 500 has returned 1.5%. After shrugging off the horrifying terrorist attacks in Paris, investors seem to finally be embracing a potential interest rate hike from the Federal Reserve in December as it appears the growth of US economy could be getting stronger. Previously, any signs of ending the zero-interest rate “party” was taken as bad news as there was nervousness that higher interest rates could derail the slow economic recovery.

Looking to the week ahead, the markets will be focusing on several economic reports that will provide a further reading on the US economy as Thanksgiving approaches. Like the rest of us, Wall Street traders will be enjoying their turkeys on Thursday with the markets closed for the holiday. They will also reap the benefits of an early weekend with a shorter trading day on Friday (US markets will have the normal 9:30 AM open, but will close at 1:00 PM on 11/27).

Monday morning will provide insight into the housing market as Existing Home Sales results are released for the month of October. Wall Street estimates a seasonally adjusted rate of 5.4 million existing homes were sold last month, up 3.8% from 5.2 million in October of last year.

Eyes will also be on the Purchasing Managers’ Index (PMI) that will give a gauge of economic conditions in the private company sector. The survey follows product output, new orders, and prices for the construction, service, and retail industries. A reading of over 50 implies that there was growth in the previous month. Estimates are for a reading of 54.5.

All reports will influence the Federal Reserve’s decision on interest rates at their December 16^th meeting. Until then, Have a Happy Thanksgiving!