Thanksgiving marks the start of the holiday season, an immensely important period for retail businesses. An impressive fourth-quarter earnings report can turn an alright year into a very successful one. All of this starts with Thanksgiving and the subsequent retail frenzy that is Black Friday and Cyber Monday.
With Thanksgiving just around the corner, we decided to take a look at some of the most common investor questions associated with this time of year.
Is the Stock Market Open on Thanksgiving?
No, both the NASDAQ and the NYSE will be closed on Thursday, 25th November for Thanksgiving.
What about Black Friday?
Both the NASDAQ and the NYSE will reopen on Friday, but both will close early at 1 p.m. EST.
How does the market normally respond to Thanksgiving?
Thanksgiving and Black Friday hold a strong link to the fortunes of the stock market. Big consumer spending over Thanksgiving weekend is a strong indicator that the holiday season as a whole will be profitable. This is often reflected in the rising stock of companies posting solid sales.
Many analysts, however, are not sold on the idea that Thanksgiving weekend truly affects the stock market and even question just how reliable a Q4 predictor it can be. As such, investors should be wary about making any decisions based on holiday-related volatility. We’d remind you to stick to MyWallSt’s six golden rules of investing to avoid any costly mistakes.
Are there any Thanksgiving-related stocks I could invest in?
Grocery-related stocks typically receive a boost around Thanksgiving and the resulting holiday season, so maybe look to companies like Kroger and Costco.
Large retail stores also benefit from the spending spree associated with Black Friday, so companies such as Target and Walmart will expect to see a boost.
High-quality retailers in certain industries such as electronics or apparel will also hope to see a revenue boost across the Thanksgiving weekend as people look to purchase gifts for loved ones, so companies such as Apple and Nike could be set to benefit.
The most important thing to remember, however, is to only invest in stocks you truly believe in long-term. Don’t just buy a stock based on the time of the year, make sure whatever you invest in is something you’re happy to hold at any time of the year.
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Financial Writer at MyWallSt
Pádraig’s favorite stock is Nike. Growing up as a sports fanatic, seeing Nike collaborate with athletes like Jordan, Lebron, and Ronaldo inspired him and cemented the brand in his mind. Now, despite having failed miserably in his attempts to earn a fabled Nike sponsorship, he still believes in the innovation and creativity behind Nike and is convinced they will only grow stronger as the world's leading sports brand.