[Good Morning Stock Market] US Stocks Slightly Down on Profit-Taking... KOSPI Expected to Start with Mild Gains

The U.S. stock market, which had shown an upward trend for four consecutive weeks, closed slightly lower due to profit-taking. On the 28th, the KOSPI is expected to start with a slight rise.

On the previous day (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 35,333.47, down 56.68 points (0.16%) from the previous trading day. The Standard & Poor's (S&P) 500 index fell 8.91 points (0.20%) to 4,550.43, and the Nasdaq index dropped 9.83 points (0.07%) to 14,241.02. Despite expectations of strong consumer spending on the U.S.'s biggest shopping event, 'Cyber Monday,' the market closed lower.

Thanksgiving Parade Held in Manhattan, New York, USA
[Image Source=Yonhap News]

Cyber Monday refers to the Monday following Black Friday, which is the day after Thanksgiving (the fourth Thursday of November) in the U.S. Since this year’s Black Friday online sales hit a record high, Cyber Monday sales are also expected to reach an all-time high. Strong consumer spending is easing concerns about an economic slowdown at the end of the year. Relatedly, e-commerce companies such as Amazon (0.67%), Shopify (4.89%), and Etsy (2.97%) saw their stock prices rise.

However, U.S. housing indicators showed a weak performance. According to the U.S. Department of Commerce, seasonally adjusted new home sales in October decreased by 5.6% month-over-month to an annual rate of 679,000 units. This decline was larger than the 4.5% decrease forecasted by experts surveyed by The Wall Street Journal (WSJ). The median price of new homes sold was $409,300, slightly down from $418,800 the previous month. Analysts attribute this to high mortgage rates affecting housing demand.

Domestic stock markets are expected to start with a firm rise of 0.2% to 0.4%. Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, "The KOSPI has fluctuated around the 2,500 level for the past five trading days," adding, "This reflects technical resistance and a cautious stance due to the lack of additional momentum." He continued, "Although the environment for foreign capital inflow has improved due to falling U.S. Treasury yields and a weaker dollar, regional issues such as China’s real estate distress and the sharp rise in short-term funding rates in Hong Kong warrant caution. However, expectations for strong global year-end consumer spending are likely to provide downside support."