Markets reopen today after the U.S. Thanksgiving holidays. The nearly 4% increase in online sales may give e-commerce stocks a lift in Friday morning trade. Amazon (AMZN) will thrive when consumers shop online.
Watch for beat-up stores like Best Buy (BBY), Kohl’s (KSS), and Macy’s (M) bouncing back. However, Costco (COST), Walmart (WMT), Gap (GAP), and Abercrombie & Fitch are the most attractive retail investments. They have strong buying momentum as the holiday shopping season starts.
Overseas in Asia, be wary of China’s stock market. On Wednesday, the Chinese Yuan weakened to 7.26 before recovering, trading at around 7.23 Yuan per U.S. dollar. Trade tensions will only worsen at an accelerated pace. The country needs to counter the U.S. plans to add at least 10% more tariffs on Chinese imports.
Analysts have an average target of 7.51 yuan per dollar by the end of 2025. That suggests China’s currency falling to lows not seen since 2004.
Underperformance in China may spread to Asian markets. Japan’s Yen may strengthen as inflation increases. In South Korea, the central bank unexpectedly cut interest rates. Industrial production increased 2.3% Y/Y in October, reversing the 1.3% drop in September.
Investors may want to buy India’s ETF (NDIA), betting on the downtrend ending. The country is investigating Google’s (GOOG) app policy. Gaming platform WinZO complained about Google’s policies, calling it discriminatory.