CNBC Daily Open: The stock market had a November to remember – CNBC

This report is from today's international market newsletter CNBC Daily Open. The CNBC Daily Open provides investors with everything they need to know, no matter where they are. Is it what you see? You can subscribe here.

Stock Market November Reign
Major US indices It rose on Friday when trading hours were shortened, ending the week and month even higher. of S&P500 and Dow Jones Industrial Average A new high was reached. Asia-Pacific markets rose on Monday. China's CSI300 index rose about 0.7% as data showed an expansion in China's factory activity.

Chinese factory activity picks up in November
Factory activity among China's small and medium-sized enterprises expanded in November, according to the Caixin/S&P Global Manufacturing Purchasing Managers Index released on Monday. formal PMI dataStatistics measuring large and state-owned enterprises also showed growth in manufacturing activity in November. These are some signs that China's economy is recovering.

Aftershocks of Adani indictment
The aftershocks of the Adani Group indictment continue to be felt. Shares in GQG Partners, the group's main investor, fell by 15.74% on Monday. UBS GQG downgraded the stock from “buy” to “neutral” on Friday. GQG told CNBC that more than 90% of client assets are invested in issuers unrelated to Adani.

Mr. Musk sues OpenAI
Lawyers representing Elon Musk filed for a preliminary injunction against OpenAI on Friday. The injunction prevents OpenAI from converting into a fully commercial business and prevents OpenAI from requiring investors to refrain from funding competitors such as Musk's AI startup xAI. It turns out.

[PRO] Pay attention to the November employment statistics
This week's key indicator is the November jobs report, which will be released on Friday. This will be the last major analysis of the labor market by the Federal Reserve before its December meeting. If that number is high (although October's 12,000-job gain due to the hurricanes was considered an anomaly), the Fed could move to cut interest rates.

November was a memorable month for stocks.

of S&P500 Increased by 5.73%, Dow Jones Industrial Average It rose 7.54% in November, marking its best monthly performance this year. of Nasdaq Composite It ended 6.21% higher, making it the most positive month since May.

The US economy grew at an annual rate of 2.8% in the third quarter. Even though fourth-quarter gross domestic product is projected to be 1.31%. St. Louis Fed Nowcastthat still shows expansion, in stark contrast to persistent fears that a recession will hit the economy.

There is even a silver lining to the slowdown in growth. That would give the Federal Reserve more incentive to cut interest rates for the second time this year at its December meeting, stimulating economic activity.

November's seasonal stock rally also gave investors a positive feeling.

“Now that we're in December and everything is going well, it's very difficult to turn off this bull market,” said Ross Mayfield, investment strategist at Baird Private Wealth Management.

In fact, U.S. stocks are “in the midst of a strong year-end rally,” according to Evercore ISI Certified Market Technologist Rich Ross. Short sellers who had been betting against the market are now being forced to buy stocks to cover their positions as the year ends.

Ross added that a series of purchases could push the S&P 500 index up to 6,300. This represents a 5% gain in December and a 32.1% gain for all of 2024, outpacing the 24.2% gain recorded by the S&P in 2023.

With any luck, it will be 2024 and not just November that investors remember fondly.

— CNBC's Alex Harring and Scott Schnipper contributed to this report.