4 ETFs & Stocks For Meaty Returns In Thanksgiving Week

The Thanksgiving week is a feast for stock investors even with low volumes and a holiday-shortened week. And this year, Wall Street is riding high ahead of this major U.S. holiday. In fact, the S&P 500 breached the 3,100 level for the first time ever a week before while the Dow Jones topped the 28,000 milestone. Notably, tech stocks have been the biggest contributor to the market’s rally this year.

Per Schaeffer's Investment Research, the S&P 500 returned an average of 0.67% during Thanksgiving week over the past 50 years and the week is positive 70% of the time. The outperformance generally comes the day before Thanksgiving and the day after. The Wednesday before Thanksgiving has been positive 78% of the time, averaging a gain of 0.30% while the day after Thanksgiving has averaged 0.26% return over the past 50 years, being positive 70% of the time.

According to data from Bespoke Investment Group, the index has gained 0.64%, on average, during this holiday-shortened week since 1945. In fact, in 2017, the Thanksgiving week was even better with the index gaining 0.76%.

Given the historical trends, this Thanksgiving week is expected to shower gains. Additionally, trade deal optimism and cheap money flow will continue to drive the bulls this week. Added to the strength is a steadily improving economy with growing wages, increasing consumer confidence and rising spending.

Food, Beverage & Transportation: Hot Spots

While many corners of the stock world will see a rally, food, and beverage, and transportation stocks will likely take charge. According to the latest data from the American Farm Bureau Federation, the average cost of serving 10 people for Thanksgiving is expected to increase a cent from last year to $48.91 (or under $5 bucks per person) after three years of decline since 2015. The shopping list includes a 16-pound turkey, stuffing, sweet potatoes, rolls and butter, green peas, fresh cranberries, a vegetable tray, a homemade pumpkin pie, whipped cream, and coffee with milk.

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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