It's a simple question – what is common stock? – but it's a good one. It's the first step in getting to know what you're buying in the stock market. And it's important that you as an investor know what you're buying.

Common stock is a type of security that gives you partial ownership in a corporation. As an owner of the corporation, you have certain rights and benefits.

These include a residual claim on future profits, the right to vote on important company matters such as electing board members and approving acquisitions, and receiving dividends from the company's cash flow from operations.

Although the existence of common stock dates back to 2000 BCE with the Assyrian people in Mesopotamia (present-day Middle East), the modern record considers the common stock issued by the Dutch East India Corporation in 1602 to be the first example of an actual printed document indicating proof of ownership.

In 1611, the Amsterdam Stock Exchange was created, the world's first stock exchange.

Here in the U.S., the earliest example of an organized stock exchange was in 1792, when the Buttonwood Agreement was signed by 24 prominent stockbrokers and merchants of the day.

It would eventually become the New York Stock Exchange in March 1817. Today, there are more than 2,200 companies whose common stocks are traded on the NYSE.

How does common stock fit into a company's capital structure?

The two elements of a company's capital structure are debt obligations and total shareholders' equity. This is a company's invested capital, the funds used to finance its operations, purchase assets and grow.

A company's shareholders' equity consists of common and preferred stock and retained earnings. When combined with outstanding debt, you have the entire capital structure of a business, the invested capital.

The mix between debt and equity depends on several factors, including, but not limited to, a company's cost of capital, business strategy, future revenue estimates, investment requirements, bond rating, the valuation of its common stock and many more.

When companies grow quickly, they're more likely to hold higher debt levels on their balance sheet, comfortable knowing that they will generate significant future cash flow, thus enabling them to pay down the debt more quickly.

Companies growing more slowly will be less open to significantly leveraging their balance sheets, knowing cash flows will be insufficient to repay the debt promptly.

These decisions regarding capital structure are part of a company's broader capital allocation strategy, which includes investing in its existing business, making acquisitions, paying dividends, repaying debt and repurchasing its stock.

The decisions regarding a company's capital structure and allocation go hand in hand.

What is common stock vs preferred stock vs retained earnings?

Shareholders' equity represents one of the three main parts of a balance sheet. The others are liabilities and assets. A company's assets are equal to shareholders' equity and liabilities.

Shareholder equity combines common stock, preferred stock and retained earnings.

Preferred stock is considered a "hybrid" security because it has a face value and pays regularly scheduled income to investors in the same manner as fixed-income vehicles such as bonds. However, preferred stocks trade on public exchanges just like common stocks. But they don't come with voting rights.

There are two significant benefits of owning preferred shares.

First, if a company liquidates its business, once the debtholders are paid in full, any funds left over go to the shareholders.

Preferred shareholders, as the name implies, take precedence over the owners of common stock. If there are any funds remaining, the common stockholders get paid.

Second, preferred shareholders must be paid their stated dividend income before any payments are made to owners of common stock.

Unfortunately, like common stock, a company is not required to pay dividends. During the COVID-19 pandemic, many companies paused, cut or eliminated monthly or quarterly dividends to save cash. Both types of stocks were affected.

Retained earnings are a company's cumulative profits not paid out as dividends or used for stock buybacks. This figure changes from quarter to quarter.

For example, as of December 2024, Microsoft (MSFT) had $203.5 billion in retained earnings, up from $188.9 billion as of September 2024, even after the Mag 7 stock spent $4.7 billion on share repurchases and paid $6.2 billion in dividends.

The risks of owning common stock

While investing in common stocks can deliver significant capital appreciation – Apple (AAPL), Nvidia (NVDA) and Adobe (ADBE) are just three examples of impressive long-term gains public companies can return to shareholders – there are also legitimate risks.

Common stocks are volatile. Their prices do not go up in a straight line, routinely exhibiting periods of correction.

Investors uncomfortable with risk are better suited to fixed-income investments, such as Treasury bills, where the principal is guaranteed.

Other potential risks of owning common stocks include lack of diversification, foreign exchange, interest rates and country and company-specific issues.

Many investors buy exchange-traded funds (ETFs) to diversify their common-stock portfolios more easily. By avoiding a concentrated portfolio, investors reduce the company-specific risk from each holding.

An example of country and foreign exchange-specific risk would be investing in the common stock of a Latin American company listed on a U.S. stock exchange.

South American countries often have very precarious political structures. When combined with the region's highly volatile currencies, the investor adds additional risk beyond the business.

When a company's assets are liquidated due to insolvency, the creditors and bondholders are paid first, followed by preferred stockholders.

Common stockholders are the last to receive any proceeds from a liquidation. In bankruptcy proceedings, common stockholders often end up with nothing for their ownership.

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Stocks closed higher Monday, bouncing back after the major benchmarks finished their worst week of 2023 on Friday. 

Amid declining Treasury yields, the rate-sensitive tech sector saw big gains, while a surge in the share price of railroad company Union Pacific (UNP) helped lift industrial stocks.  

The three main indexes notched weekly losses around 3% last week – their biggest of the year so far. "The weakness in equity markets has come amidst a round of economic data that has been stronger than expected while inflation data has suggested the disinflationary process will be a bumpy road," says Michael Reinking, senior market strategist at the New York Stock Exchange. "Last week, yields moved above their December highs which seemed to be the trigger that finally caused some downside momentum in equity markets."

Today's economic data was more mixed. While headline durable goods orders fell by a more-than-expected 4.5% month-over-month in January, the core reading, which excludes the volatile nondefense aircraft category, unexpectedly rose 0.7%. Elsewhere, pending home sales jumped a higher-than-anticipated 8.1% last month.

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Still, bond yields declined, which sparked buying across Wall Street. The tech-heavy Nasdaq Composite climbed 0.6% to 11,466, the broader S&P 500 gained 0.3% to 3,982, and the blue-chip Dow Jones Industrial Average added 0.2% to 32,889.

In single-stock news, Union Pacific jumped 10.1% after the railroad operator said its CEO Larry Fritz will step down from the position later this year. The C-suite shift comes amid pressure from hedge fund Soroban Capital Partners, which owns roughly 4.6 million UNP shares.

Why Nvidia has been one of the best stocks to own

We've talked a lot about stock picking in this space recently. Whether it be the stocks Warren Buffett is buying and selling or the blue chip stocks favored by hedge funds or the top stock picks of billionaires. All of these show us what the smart money – those with deep pockets and access to research and insights typically not available to the average retail investor – are doing with their money. 

But sometimes it's plain old math that reveals where the best investment ideas are. Take Nvidia (NVDA), for instance. Not only has NVDA stock been a recent market-beater, but it's turned in a jaw-dropping return for those who invested $1,000 in the semiconductor stock 20 years ago. And there's reason to believe Nvidia is positioned for more success. NVDA is one of the best AI stocks in the rapidly growing space, and the company's data center and automotive segments are seeing impressive growth.

Is the stock market open on Presidents Day? The answer to this question is no. The stock market will be closed Monday, February 16, for Presidents Day, or Washington's Birthday, as the holiday is also known.

Washington's Birthday became a federal holiday in 1879, and was celebrated on February 22 until 1970, when it was moved to the third Monday in February. The three-day weekend marks the third stock market holiday of 2026.

Bond traders will get the day off, too, with the bond market closed on Monday, February 16, for Presidents Day.

For those wondering what time does the market open for regular trading hours, both the Nasdaq Stock Market and the New York Stock Exchange (NYSE) run from 9:30 am to 4:00 pm Eastern Standard Time, Monday through Friday.

Are banks closed on Presidents Day too? The answer to that question is yes. Monday, February 16, is one of 11 bank holidays in 2026.

Considering it's tax season, it would be prudent to use the three-day weekend to get a head start on your tax preparation. Investors can check out the federal income tax brackets and standard deduction for 2025 versus 2026, and also take a look at the capital gains tax rates.

Below, we feature a full schedule of all stock market and bond market holidays for 2026.

2026 stock market holidays

2026 bond market holidays

The stock and bond market holiday schedules are provided by the NYSE and the Securities Industry and Financial Markets Association (SIFMA). These schedules are subject to change.

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Are the banks open on Martin Luther King Day in 2026? That's a question plenty of folks are asking just ahead of the federal holiday. The answer is no, banks are not open on Monday, January 19, for MLK Day, as the holiday is also known.

Martin Luther King Jr. Day became a federal holiday in 1983, when it was signed into law by then-President Ronald Reagan, and was officially observed three years later. It wasn't until 2000 that all 50 states recognized MLK Day.

The three-day weekend marks the second bank holiday in 2026, with the first occurring on Thursday, January 1, in observance of New Year's Day.

The Rev. Martin Luther King Jr.'s actual birthday falls on January 15. While Martin Luther King Jr. Day is meant to celebrate the birth of Dr. King, the federal holiday is observed on the third Monday in January, regardless of the date on which that day falls.

As for stock market holidays – particularly for those asking "is the stock market open on Martin Luther King Day" – the stock market is typically closed on the federal holiday. Bond traders also get a three-day weekend, with bond markets shuttered on MLK Day, too.

For those wondering what time does the market open for regular trading hours, both the Nasdaq Stock Market and the New York Stock Exchange (NYSE) are open from 9:30 am to 4:00 pm Eastern time Monday through Friday.

If you're looking to take some time over the three-day weekend to get a head start on your tax preparation, have a look at the income tax brackets for 2025 and 2026. Additionally, don't forget to check out the standard deduction amounts and capital gains tax rates for 2025.

Below, we feature a full schedule of all U.S. bank holidays for 2026.

2026 bank holidays

* This is the recommended bank market holiday schedule from the Federal Reserve. This schedule is subject to change.

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Is the stock market open on Martin Luther King Day? The answer to this question is no. The stock market will be closed Monday, January 19, for MLK Day, as the holiday is also known.

Martin Luther King Jr. Day became a federal holiday in 1983, when it was signed into law by then-President Ronald Reagan. The three-day weekend marks the second stock market holiday of 2026, as the equities market was closed on Thursday, January 1, in observance of New Year's Day.

The Rev. Martin Luther King Jr.'s actual birthday falls on January 15. While Martin Luther King Jr. Day is meant to celebrate the birth of Dr. King, the federal holiday is observed on the third Monday in January, regardless of the date on which that day falls.

Bond traders will get the day off, too, with the bond market closed on Monday, January 19, for MLK Day.

For those wondering what time does the market open for regular trading hours, both the Nasdaq Stock Market and the New York Stock Exchange (NYSE) run from 9:30 am to 4:00 pm Eastern Standard Time Monday through Friday.

Are the banks open on Martin Luther King Day? The answer to that question is no. Monday, January 19, is one of 11 bank holidays in 2026.

Below, we feature a full schedule of all stock market and bond market holidays for 2026.

2026 stock market holidays

2026 bond market holidays

These are the recommended stock and bond market holiday schedule from the NYSE and the Securities Industry and Financial Markets Association (SIFMA). These schedules are subject to change.

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Are banks open on New Year's Eve and New Year's Day? This is a question many folks are asking as the turn of the calendar year approaches.

The answer is mixed. Banks are open on New Year's Eve in 2025 because it falls on a Wednesday this year and it is not a federal holiday. However, banks will be closed on Thursday, January 1, in observance of New Year's Day because that is one of several federal holidays in 2026.

As for stock market holidays – particularly for those asking "is the stock market open on New Year's" – the equities market is typically open for regular trading hours on New Year's Eve if it falls on a weekday, as it does this year, while the bond market closes early at 2 pm Eastern Standard Time. Both markets are closed for all of New Year's Day.

For those wondering what time does the market open for regular trading hours, both the Nasdaq Stock Market and the New York Stock Exchange (NYSE) are open from 9:30 am to 4:00 pm Eastern time Monday through Friday.

If you're looking to take some time this holiday season to plan for your financial new year, consider taking some of these steps to make your New Year's resolutions stick.

Meanwhile, with tax season quickly approaching, don't forget to check out the newly released standard deduction amounts you can claim on your 2025 and 2026 tax returns.

Below, we feature a full schedule of all U.S. bank holidays for 2026, which coincide with the federal holiday schedule.

Bank and federal holidays in 2026

* This is the recommended bank market holiday schedule from the Federal Reserve. This schedule is subject to change.

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Is the stock market open on New Year's Eve and New Year's Day? This year, the answer to that question is mixed. New Year's Eve falls on a Wednesday in 2025, which means the stock market is open for regular trading hours. But New Year's Day is one of several federal holidays in 2026 and is always a stock market holiday.

Bond traders, meanwhile, will get a little more time off to celebrate. That's because the bond market will not only be closed on Thursday, January 1, for New Year's Day, but it will also close early on Wednesday, December 31, 2025, at 2 pm Eastern Standard Time.

For those wondering what time does the market open for regular trading hours, both the Nasdaq Stock Market and the New York Stock Exchange (NYSE) run from 9:30 am to 4:00 pm Eastern time Monday through Friday.

Are banks open on New Year's Eve in 2025? The answer to that question is yes. Banks will be open on New Year's Eve because it falls on a Wednesday in 2025 and it is not a federal holiday. However, along with the stock and bond markets, banks will be closed on Wednesday, January 1, in observance of the New Year's Day holiday.

Below, we feature a full schedule of all stock market and bond market holidays for 2026.

Stock market holidays in 2026

Bond market holidays in 2026

* This is the recommended stock and bond market holiday schedule from the New York Stock Exchange (NYSE) and SIFMA, the Securities Industry and Financial Markets Association. This schedule is subject to change.

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Is the stock market open on Christmas Eve and Christmas? The answer to that question is no-ish. That's because Christmas Eve is an early closure day for Wall Street, while both the stock and bond markets are closed for the entirety of Christmas Day.

This year, Christmas Eve falls on Wednesday, December 24, so the stock market closes at 1 pm Eastern Standard Time, and the bond market will close at 2 pm. Christmas Day is on Thursday, December 25.

The stock market has built up impressive gains so far this year, aided in part by the Federal Reserve's rate-cutting efforts and a muted impact on inflation from President Donald Trump's tariff policies. As of this writing, the Nasdaq Composite is up 20% for the year to date, while the S&P 500 is 16% higher and the Dow Jones Industrial Average has added 13%.

While markets have had a mixed start to the final month of the year – the Dow is up 1%, while the S&P 500 and Nasdaq are in the red – they could resume their momentum into year's end.

"There is still time for stocks to stage a Santa Claus rally, which historically comes during the final few trading days of the year," says Alexander Guiliano, chief investment officer at Resonate Wealth Partners. "Even though markets have been choppy for about six weeks, the backdrop remains strong and this contraction in valuations is presenting opportunities for investors who don't have enough stock exposure."

Are banks open on Christmas? The answer to that question is no. Christmas Day is one of several bank holidays in 2025, so banks will not be open.

Below, we feature a full schedule of all stock market holidays and bond market holidays for 2025.

 2025 stock market holidays

2025 bond market holidays

* This is the recommended bond market holiday schedule from the Securities Industry and Financial Markets Association (SIFMA). This schedule is subject to change.

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What are the stock market holidays for 2026? This handy guide to when the stock market and bond market holidays fall throughout the calendar year will help you answer that question.

There is a full slate of holidays for the new year, so it's worth keeping informed on when they are scheduled.

Stock market holiday schedule

The NYSE and Nasdaq typically observe 10 stock market holidays each year. Here's what will be observed in 2026:

• New Year's Day – Thursday, January 1
• Martin Luther King, Jr. Day – Monday, January 19
• Presidents Day – Monday, February 16
• Good Friday – Friday, April 3
• Memorial Day – Monday, May 25
• Juneteenth – Friday, June 19
• Independence Day – Friday, July 3*
• Labor Day – Monday, September 7
• Thanksgiving Day – Thursday, November 26
• Christmas Day – Friday, December 25

* Note: Independence Day, or July 4, falls on a Saturday in 2026, so the stock market will be closed in observance of the holiday on Friday, July 3.** (All times featured here are in Eastern Standard Time unless otherwise indicated.)

And sometimes, the stock market will close early in the days preceding or following market holidays.

For example, the NYSE and Nasdaq close at 1 pm on July 3 (if both it and July 4 fall on a weekday), the day after Thanksgiving, also known as Black Friday, and on Christmas Eve (if the holiday falls on a weekday).

Below is the full stock market holiday schedule for 2026:

2026 stock market holidays

Bond market holiday schedule

The bond markets observe the same 10 holidays as the stock market does, as well as two additional holidays. Here's where they fall in 2026:

• Columbus Day – Monday, October 12
• Veterans Day – Wednesday, November 11

The bond markets also observe several early closings at 2 pm each year. This is when those occur in 2026:

• The Thursday before Good Friday – Thursday, April 2
• The Friday before Memorial Day – Friday, May 22
• The day preceding Independence Day – Thursday, July 2*
• Black Friday, or the day after Thanksgiving – Friday, November 27
• Christmas Eve – Thursday, December 24
• New Year's Eve – Thursday, December 31

* Note: Independence Day, or July 4, falls on a Saturday in 2026, so the bond market will be closed in observance of the holiday on Friday, July 3. It will also close early at 2 pm Eastern Standard Time on Thursday, July 2.

Here is the full bond market holiday schedule for 2026:

2026 bond market holidays

When it comes to the stock and bond markets alike, if a holiday falls on a weekend, market closures are dictated by two rules:

• If the holiday falls on a Saturday, the market will close on the preceding Friday.
• If the holiday falls on a Sunday, the market will close on the following Monday.

What are the stock and bond market trading hours?

For those wanting answers to other questions, like what time does the market open, regular stock market trading hours for the New York Stock Exchange (NYSE) and Nasdaq Stock Market are 9:30 am to 4 pm on weekdays.

Bond markets usually trade between 8 am and 5 pm.

The stock markets close at 1 pm on early closure days. Bond markets close early at 2 pm.

Many folks might wonder why the stock market offers such limited hours when there are certainly people who want to buy and sell at all times of the day.

One of the main reasons for this is "liquidity," or how much buying and selling is going on at a given time.

The more liquidity in a particular security, the likelier you are to get a fair price on it; the less liquidity, the more likely you might have to settle for a less-than-ideal price to finish a transaction.

"For the market to function effectively, you need buyers and sellers," says Charles Sizemore, principal of Sizemore Capital Management. "This is why the stock market has set hours that happen to correspond to the East Coast workday. You want the maximum number of traders buying and selling at the same time."

If you were at an estate auction selling your grandmother's antiques, you'd want a lot of bidders there. It's the same rationale in the stock market.

And there is trading that is done outside of these regular hours. On days with a regular session, for instance, there is "pre-market" trading. This occurs before the market, and while hours vary, they can extend as early as 4 am and run until the opening bell rings at 9:30 am.

There is also "after-hours" trading, which happens after the market closes and typically runs from 4 pm to 8 pm. Meanwhile, the Nasdaq has submitted paperwork to the Securities and Exchange Commission to allow for 24-hour trading, while some online platforms offer "overnight trading," which gives investors the ability to trade around the clock.

But just because you can trade outside of regular stock market trading hours doesn't necessarily mean you should.

Investors should be aware that volume and liquidity tend to be lower in pre-market, after-hours and overnight trading.

Temporary market stoppages

The stock market rarely closes unexpectedly, but so-called circuit breakers do occasionally trigger temporary trading halts.

Circuit breakers were first introduced after the Black Monday crash of October 1987. The Dow dropped almost 23% in a single session, which stands as a record to this day.

The most recent circuit breaker was triggered in March 2020 at the start of the COVID-19 pandemic.

Circuit breakers are intended to curb panic selling. Like calling a timeout in sports, a temporary pause in trading allows market participants to catch their breath, though it doesn't necessarily keep stocks from declining once trading resumes.

There are three levels of circuit breakers tied to how steeply the market declines:

• A Level 1 market-wide circuit breaker is tripped if the S&P 500 falls 7% from its previous close.
• A Level 2 circuit breaker comes into effect when the market plunges 13%.
• A Level 3 circuit breaker kicks in if the market tanks 20%.

A Level 1 or Level 2 breach halts trading for a minimum of 15 minutes. A Level 3 rout halts trading for the remainder of the trading day.

Level 1 and Level 2 circuit breakers can be triggered between 9:30 am and 3:25 pm. A Level 3 breach can be triggered at any time.

Extraordinary stock market closures

The market has also shut down a smattering of times throughout history following catastrophic events.

In 2012, the New York Stock Exchange and Nasdaq closed for two days due to damage caused by Hurricane Sandy.

And the attacks on the World Trade Center and Pentagon prevented the market from opening on September 11, 2001, and the exchanges remained shut until September 17.

Prior to that, you have to go back to World War I for an example of the stock market shutting down. The outbreak of hostilities in Europe led The New York Stock Exchange to close up shop from July 31 to November 28, 1914.

The market went dark only two other times in its history. The NYSE closed for 10 days during the Panic of 1873; and it took a week off trading to mourn the assassination of President Abraham Lincoln in 1865.

Additionally, markets will typically close when a former president dies. They were most recently shuttered in January 2025 for a national day of mourning and a state funeral for former President Jimmy Carter.

Data provided by the NYSE and SIFMA.

**Editor's Note: This article previously stated that the stock market will close early at 1 pm Eastern Standard Time on Thursday, July 2, 2026. That is incorrect and the stock market will be open for regular trading hours that day. We apologize for the confusion.

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Are banks open on Black Friday in 2025? That's a question plenty of folks are wondering just ahead of the biggest shopping day of the year. The answer is yes, banks are open on Friday, November 28.

However, both banks and the stock market will be closed on Thursday, November 27, for the Thanksgiving holiday.

As for those working on Black Friday, the good news is that plenty of stores started early sales this year, including Target and Costco. And Walmart's five-day Black Friday deals run through the weekend.

There are also lots of online opportunities to find great deals on Cyber Monday. The annual online shopping holiday started in 2005 and falls each year on the Monday after Thanksgiving.

A recent survey from Deloitte suggests 60% of consumers will do their shopping online this year, though spending across online and in-store sales is expected to be down 4% compared to 2024.

Those looking to save a few bucks will want to check out the big Amazon deals we're tracking. You can also sign up for a Prime membership to save on shipping costs with some items.

Regardless of when and where you do your holiday shopping, make sure to familiarize yourself with these tips for scoring the best Black Friday and Cyber Monday deals. And be sure to keep an eye out for Black Friday scams. Here's how to spot the most common ones targeting consumers this year.

As for those wondering "Is the stock market open on Black Friday?," the answer to that is yes. Black Friday is not one of this year's stock market holidays, though investors will get an early dismissal at 1 pm Eastern Standard Time. (Bond markets, meanwhile, are open until 2 pm EST on Friday, November 28.)

Anyone curious about what time does the market open for regular trading hours, both the Nasdaq Stock Market and the New York Stock Exchange (NYSE) are open from 9:30 am to 4:00 pm Eastern time Monday through Friday.

Below, we feature a full schedule of all U.S. bank holidays for 2025.

2025 bank holidays

* This is the recommended bank market holiday schedule from the Federal Reserve. This schedule is subject to change.

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Is the stock market open on Black Friday in 2025? The answer to this question is yes. The stock market will be open Friday, November 28, for the annual shopping event.

However, investors will need to watch the clock closely. This is because the stock market will not be open for regular trading hours, which run from 9:30 am to 4:00 pm Eastern Standard Time, Monday through Friday. Rather, both the Nasdaq Stock Market and the New York Stock Exchange (NYSE) will close early, at 1 pm EST, on Black Friday.

Bond traders will have to stick around just a little longer on Friday, November 28, with the bond markets open until 2 pm that day.

The early dismissal on Black Friday will give investors a chance to scoop up some of the hottest shopping deals of the holiday season.

While many stores started early sales this year – including Target, Walmart and Costco – there are still plenty of deals to be found.

Regardless of when and where you do your holiday shopping, make sure to familiarize yourself with these tips for scoring the best Black Friday deals. And be sure to keep an eye out for Black Friday scams. Here's how to spot the most common ones targeting consumers this year.

Are banks open on Black Friday? The answer to that question is yes. While banks will be closed Thursday, November 27, for Thanksgiving, Black Friday is not a bank holiday in 2025, and so banks will be open.

Below, we feature a full schedule of all stock market holidays and bond market holidays for 2025.

 2025 stock market holidays

2025 bond market holidays

* Data is provided by the NYSE and the Securities Industry and Financial Markets Association (SIFMA). This schedule is subject to change.

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Is the stock market open on Thanksgiving in 2025? The answer to this question is no. The stock market will be closed Thursday, November 27, for the Thanksgiving holiday. Bond traders will get the day off too, with bond markets also closed on Thursday.

And unlike some holidays, there are no early hours for bond traders ahead of Thanksgiving, as regular trading hours will be observed on Wednesday, November 26. However, both the stock and bond markets will close early on Black Friday, which falls on Friday, November 28, this year, at 1 pm and 2 pm Eastern time, respectively.

November has been a rough month for investors, sparked by concerns of a too-hot AI trade and a slowing economy. As of this writing, the Dow Jones Industrial Average is down 1.7% since the start of the month, while the S&P 500 is 1.9% lower and the Nasdaq Composite has shed 3.9%.

But David Laut, chief investment officer at Kerux Financial, isn't overly concerned. "Many of November's fears about AI and a cratering job market have ended up not coming to fruition, which suggests that we are seeing a traditional market pullback in recent weeks and not the start of a deeper correction," says Laut. And this pullback "paves the way for a market rebound and rally in December."

Given that valuations remain stretched even with this month's decline, Laut says he's been adding positions to value stocks in recent weeks "to limit valuation risk in the portfolio."

As for those wondering what time does the market open for regular trading hours, both the Nasdaq Stock Market and the New York Stock Exchange (NYSE) run from 9:30 am to 4:00 pm Eastern time Monday through Friday.

Are banks open on Thanksgiving? The answer to that question is no. Thursday, November 27, is one of several bank holidays in 2025, and so banks will be closed.

Below, we feature a full schedule of all stock market holidays and bond market holidays for 2025.

2025 stock market holidays

2025 bond market holidays

* This is the recommended bond market holiday schedule from the Securities Industry and Financial Markets Association (SIFMA). This schedule is subject to change.

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Selling in the stock market picked right back up Monday, and despite a brief mid-morning push into positive territory, the major indexes still ended lower.

"Despite a quiet global economic data front, this weekend and Monday morning have been anything but quiet as global yields are surging to record highs," said Stefanos Bazinas, execution strategist at the New York Stock Exchange. Indeed, both the 2-year Treasury yield (+10.5 basis points to 4.319%) and the 10-year Treasury yield (+20.3 basis points to 3.90%) continued to climb, hitting levels not seen in over a decade.

And this, Bazinas says, comes after the U.K. last week announced the biggest tax cuts in more than 50 years and indicated more were to come. This sent the British pound to an all-time low against the U.S. dollar earlier today. The dollar, for its part, hit its highest level since early 2002.

Most sectors finished lower, led by sharp losses for real estate (-2.7%) and utility (-2.4%) stocks. And while consumer discretionary (-0.2%) also ended in the red, its loss wasn't nearly as deep thanks to strength in Las Vegas Sands (LVS, +11.8%) and Wynn Resorts (WYNN, +12.0%). The casino stocks rallied after Macau, a huge destination for Asian gambling, said it is planning on relaxing COVID-related travel restrictions as soon as November.

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As for the major indexes, the Dow Jones Industrial Average ended the day down 1.1% at 29,260, falling into its first bear market since 2020. The S&P 500 Index (-1.0% at 3,655) and the Nasdaq Composite (-0.6% at 10,802) also finished the day notably lower.

Other news in the stock market today:

• The small-cap Russell 2000 fell 1.4% to 1,655.
• U.S. crude futures slumped 2.6% to end at $76.71 per barrel.
• Gold futures shed 1.3% to settle at $1,633.40 an ounce.
• Bitcoin gained 1.9% to $19,186.36. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
• News that Beijing will extend a tax break on electric vehicles (EVs) through the end of 2023 boosted several U.S.-listed Chinese EV stocks. Li Auto (LI, +5.6%) and Xpeng (XPEV, +4.8) were among the biggest gainers.
• Planet Fitness (PLNT) rose 1.2% after Raymond James analyst Joseph Altobello upgraded the fitness chain to Strong Buy from Market Perform (Neutral). "Our bullish stance on the shares of Planet Fitness reflects the company's highly resilient business model and value gym positioning, ample store growth opportunity (just over halfway toward its current 4,000 stores target in the U.S.), and what we believe is an attractive valuation," Altobello says. The analyst points to PLNT's "recession-resistant business model" and healthy growth opportunity in 2023. "Further, PLNT has no interest rate risk and very little near-term debt maturities, while current valuation is well below its recent historical average," he adds.

The Pros' Favorite Retail Stocks Right Now

There's a lot that to look forward to in October, including an early start to the holiday shopping season. Amazon.com (AMZN) will kick things off by hosting a second Prime Day mid-month, called Amazon Prime Early Access.

It's been a rough year for the retail sector amid several headwinds, including stubbornly high inflation, slowing demand and excess inventory. However, in spite of these hurdles, consumer spending has stayed steady, as evidenced by an unexpected rise in retail sales last month. "August retail sales show consumers' resiliency to spend on household priorities despite persistent inflation and rising interest rates," says Matthew Shay, president and CEO of the National Retail Federation. "As we gear up for the holiday season, consumers are seeking value to make their dollars stretch." In other words, consumers are willing to spend, but will seek out the best deals to get the most bang for their buck.

As for investors, they can find plenty of deals in both the consumer discretionary and consumer staples sectors at the moment. For a short list of the best retail stocks around, consider these five picks, each of which sports top ratings from Wall Street analysts.

It was a choppy start to the short trading week, with stocks spending time in both positive and negative territory Tuesday. Bears gained the upper hand in the afternoon, though, with the three major indexes ending another day in the red.

Although this week's economic calendar is fairly thin, data from the Institute for Supply Management (ISM) this morning showed that activity in the services sector ticked up to 56.9% in August – the highest level since April – from July's 56.7%.

"This is the most recent piece of data to suggest the economy remains resilient and as such the market takeaway is that this gives the Fed more room to continue raising rates," says Michael Reinking, senior market strategist for the New York Stock Exchange. "Futures markets are now pricing in a 75% chance of a 75 basis-point hike later this month from a coin flip late last week." A basis point is one-one hundredth of a percentage point.

In reaction to today's ISM data, the 10-year Treasury yield rose to its loftiest level since mid-June. This, in turn, weighed on shares in the communication services (-1.3%) and technology (-0.6%) sectors, with names such as streaming giant Netflix (NFLX, -3.4%) and chipmaker Intel (INTC, -2.8%) seeing notable declines.

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As for the major indexes, the tech-heavy Nasdaq Composite fell 0.7% to 11,544, its seventh straight loss. The S&P 500 Index shed 0.4% to 3,908, and the Dow Jones Industrial Average gave back 0.6% to 31,145.

Other news in the stock market today:

• The small-cap Russell 2000 shed 1% to land at 1,792.
• U.S. crude futures posted a modest gain to end at $86.88 per barrel.
• Gold futures fell 0.6% to finish at $1,712.90 an ounce.
• Bitcoin spiraled 5.4% to $18,817.97. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
• Bed Bath & Beyond (BBBY) stock slumped 18.4% after Friday's death of the home goods retailer's chief financial officer, Gustavo Arnal, was ruled a suicide by New York City's medical examiner. "The entire Bed Bath & Beyond Inc. organization is profoundly saddened by this shocking loss," the company said in a statement. Laura Crossen, BBBY's chief accounting officer, will take over as finance chief on an interim basis. Bed Bath & Beyond gave a business update last week in which it said it would close underperforming stores and issue a common stock offering.
• ADT (ADT) rose 16.4% after the home security specialist scored $1.65 billion in new investments from State Farm and Alphabet's (GOOGL, -1.0%) Google. The funding will be used to "support product innovation," and "expand access for more customers to smart home innovation and technologies," ADT said in a statement. The cheap stock under $10 is now up more than 35% from its June lows.

Billionaire Investors' Biggest Q2 Stock Buys

It's becoming increasingly clear that the summer rally in stocks was not the start of a new bull market. "The 17% rally off the June lows appears to have been just a typical bear market rally," says Savita Subramanian, head of equity and quantitative strategy at BofA Securities. "Our bull market signposts continue to show no real signs of a bottom, with just 30% being triggered vs. 80%+ triggered in prior bottoms. September has seasonally been a weak month and we expect more pain in the market."

The market's head fake creates a situation in which at least some investors might want to re-evaluate their portfolios. And any assessment of your own holdings stands to benefit from a look at what other successful investors are doing.

Warren Buffett, for example, did plenty of bargain-hunting in the second quarter as the S&P 500 fell into bear-market territory. But Buffett was hardly alone. We recently took a look at the top stock picks of billionaire investors during Q2. The rich get richer for a reason, and studying where they're putting their money – especially during times of market turbulence – can be an instructive exercise for investors.

Karee Venema was long GOOGL as of this writing.

Stocks gained ground Thursday as investors sized up a pair of not-so-bad economic reports ahead of tomorrow's appearance by Fed Chair Jerome Powell at the central bank's annual symposium in Jackson Hole, Wyoming.

This morning, the Labor Department said that weekly jobless claims fell to a one-month low of 243,000 last week, down from the previous week's revised 245,000. A separate report from the Commerce Department showed gross domestic product (GDP) declined 0.6% in the second quarter, an improvement over the 0.9% drop seen in the initial reading that was released last month – a reading that sparked plenty of recession chatter around Wall Street.

But all eyes remain on Jackson Hole. "As we await Chair Powell tomorrow, other officials have started on the media circuit," says Michael Reinking, senior market strategist at the New York Stock Exchange. "The tone of the commentary has been hawkish but has been very much in line with what we've heard post the [July] Federal Open Market Committee meeting. The key themes have centered around remaining committed to taming inflation." Reinking adds that while most central bank officials are holding monetary policy decisions for September's Fed meeting "close to the vest" as they wait for the next round of economic data, they are also hinting that we're not quite at a level where they can stop hiking rates.

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Today's gains were broad-based, with the materials (+2.3%) and the communication services (+2.0%) sectors faring the best. As for the major indexes, the Nasdaq Composite rose 1.7% to 12,639, the S&P 500 Index climbed 1.4% to 4,199, and the Dow Jones Industrial Average tacked on 1.0% to 33,291.

Other news in the stock market today:

• The small-cap Russell 2000 rose 1.5% to 1,964.
• Gold futures rose 0.6% to settle at $1,771.40 an ounce.
• Bitcoin slipped 0.3% to $21,611.45. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
• Peloton Interactive (PTON) stock plunged 18.3% after the at-home exercise equipment maker reported earnings. In its fiscal fourth quarter, PTON recorded a net loss of $3.68 per share, compared to a loss of $1.05 per share one year ago. Revenue slumped 28% to $678.7 million, falling short of analysts' consensus estimate. It was the company's sixth straight quarter of reporting a loss, though it said it is looking to breakeven on a cash-flow basis in the second half of fiscal 2023. Today's sharp selloff comes one day after PTON stock surged more than 20% after announcing a deal with Amazon.com (AMZN).
• Snowflake (SNOW) surged 23.1% after the cloud data platform reported higher-than-expected second-quarter revenue of $497 million. "July quarter results were exceptional and helped remove fears around a more protracted slowdown in data consumption across key customers following a stretch of mixed quarterly reports," says CFRA Research analyst David Holt. "Second-quarter revenues were $497M (+83% Y/Y), clearing consensus of $467M, as strength in financial services led to the beat." However, Holt kept a Hold rating on SNOW. "Following today's gap higher in shares, we prefer to wait and see if the macro/market environment allows for a continuation of improved trends – we note comparables get progressively harder in the back-half of fiscal 2023 in terms of product revenues and remaining performance obligations (RPOs)."

Is it Time to Buy Energy Stocks?

Oil prices had another miserable day, but energy stocks could still have some fuel left in the tank. U.S. crude futures fell 2.5% today to settle at $92.52 per barrel, and are now down more than 24% from their mid-June highs above $122.

Still, Jeff Buchbinder, chief equity strategist at independent broker-dealer LPL Financial, says there are three conditions currently in place for the energy sector that are creating a "potential attractive opportunity" for investors. Specifically, Buchbinder believes some of the best investment opportunities occur when the following circumstances are unfolding: "1) the market is pricing in a pessimistic outlook in the form of lower valuations, 2) earnings estimates are being revised higher and growth is accelerating, and 3) technical analysis indicators suggest an impending rebound." The strategist sees all three conditions present in energy stocks right now.

If that's not enough to convince you, Buchbinder says to "Follow Warren." By this he means Warren Buffett, whose Berkshire Hathaway (BRK.B) holding company has been big buyers of oil & gas stocks in 2022. With that in mind, take a look at seven energy stocks that could be among the best ideas for investors for the remainder of this year.

The first session of the holiday-shortened week was a wild one, as a deep Tuesday morning dip evolved into a severely split market featuring pockets of red and green alike.

On one side, you had big dips in economically sensitive sectors. Energy (-4.0%) fared the worst thanks to a drastic decline in U.S. crude oil futures, which plunged 8.2% to $99.50 – the commodity's lowest finish in more than two months.

"This move came on the back of an ever-increasing number of economic indicators (Goldman Sachs US Financial Conditions Index, Citi US Economic Surprise Index, ISM orders) now pointing to sustained weakening of financial conditions as well as Street expectations," says Michael Reinking, senior market strategist for the New York Stock Exchange.

Also weighing on oil was a strengthening U.S. dollar, which closed the session at a 19-year high. (Remember: Oil is priced in U.S. dollars, so a strong dollar will weigh on oil prices, and vice versa.) The aforementioned worries of weakness hampered other sectors, too, including materials (-2.0%) and industrials (-1.5%).

"Shifting to a more near-term view, with commodity prices coming a bit back down to reality, some investors may view this as a welcome sign that inflation is beginning to cool – the main driver of recent volatility," adds Chris Larkin, managing director of trading for E*Trade.

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However, other parts of the market – namely, those pinned to the ground by rising interest rates – came off the mat as recent weakness in Treasury yields continued.

The 10-year T-note yield fell as low as 2.78% on Tuesday, sending communication services (+2.4%) and consumer discretionary (+2.2%) stocks higher. Facebook parent Meta Platforms (META, +5.1%), Google parent Alphabet (GOOGL, +4.2%) and Amazon.com (AMZN, +3.6%) – all members of the "FAANGs" – were among the session's noteworthy winners.

That resulted in markedly divergent results among the major indexes, which all finished well off their morning lows. The Dow Jones Industrial Average, led lower by Chevron (CVX, -2.6%), dipped 0.4% to 30,967, while the S&P 500 finished with a tame 0.2% uptick to 3,831. The Nasdaq Composite, however, popped 1.8% to 11,322.

Other news in the stock market today:

• The small-cap Russell 2000 gained 0.8% to 1,741.
• Gold futures, also weighed down by a strong dollar, closed off 2.1% to $1,763.90 per ounce, marking their lowest settlement of 2022.
• Bitcoin strengthened as the day went on, recovering by 5.4% to $20,397.00. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)

Buy the Dip in Emerging Markets?

Inflationary pressures (and related stock-market pain) are hardly exclusive to investors in U.S. equities. For instance, the iShares MSCI Emerging Markets ETF (EEM) – one of the most popular funds holding emerging markets stocks – entered bear-market territory this year and is currently off 19% year-to-date.

Like with anything that's down, investors might put EMs on their buy-the-dip list. BofA Securities does warn that a comeback isn't necessarily imminent – but emerging markets won't be down forever.

"We stay bearish into the summer but see emerging long-term value. Don't turn bullish before central banks panic about recession more than inflation," say BofA's David Hauner and Claudio Irigoyen. But they add that "2023 is starting to come into focus: it might get better for EM. The EM-US growth differential is one of the more reliable top-down indicators. For 2023, our mid-year forecast update implies the best such number in a decade."

Thus, investors would do well to at least start building their EM wish lists.

But if you find individual names to be a bit too risky, emerging markets mutual funds allow you to enjoy some of this category's explosive upside while decreasing the chances that a single-stock blow-up will torpedo your portfolio. We look at five top emerging market funds.

Monday kicked off a fresh week of Wall Street action with a day of calm tradng that saw the major indexes give up just a skosh of last week's rip-roaring gains.

"For the third time this year, the S&P 500 ended the week up [greater than] 6%," says Michael Reinking, senior market strategist for the New York Stock Exchange. "Unfortunately, on each of those occasions, the gains were just recouping losses in the weeks that had preceded it, and ultimately unwound not long thereafter."

The most noteworthy group move of the day came from the energy sector (+2.9%). Stocks including Marathon Oil (MRO, +4.9%) and Valero Energy (VLO, +8.0%) rocketed higher amid a 1.8% jump in U.S. crude oil futures, to $109.57.

Elsewhere, Robinhood Markets (HOOD) shares were temporarily halted and finished with a 14.0% pop following a Bloomberg report saying crypto exchange FTX was exploring ways to acquire the firm. However, late in the trading day, FTX founder and CEO Samuel Bankman-Fried told CNBC "there are no active M&A conversations with Robinhood."

The Nasdaq Composite fared worst of the major indexes, and even then, it declined just 0.8% to 11,520. The S&P 500 slipped 0.3% to 3,900, and the Dow Jones Industrial Average was off 0.2% to 31,438. Regardless, experts pointed to a couple positive signs on the inflation front that could mean better things for equities a little farther down the road.

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Peter Essele, head of portfolio management for Commonwealth Financial Network, noted that durable goods orders rose 0.7% in May – the strongest such reading since January.

"Of particular note are the increases in inventories and manufacturers' shipments, which continue to outpace new orders on a year-over-year basis," he says. "The recent moves speak to easing supply constraints across various goods channels. If current trends continue, it's likely that inflation will moderate in the coming months, offering relief to consumers and setting up a strong outlook for equities in the second half of the year."

Meanwhile, Jay Hatfield, CEO at Infrastructure Capital Management, pointed to the Federal Reserve's continued reduction of the balance sheet.

"We estimate that the Fed is more than halfway through its quantitative tightening program," he says. "We project that the quantitative tightening already executed will cause inflation to decrease in the fall. Most commodity prices are off over 20% from the highs and these declines should start to be reflected in lower [consumer price index] numbers to be released in August."

Other news in the stock market today:

• The small-cap Russell 2000 bucked the trend, finishing up 0.3% to 1,771.
• U.S. crude futures rose 1.8% to finish at $109.57 per barrel.
• Gold futures edged up 0.3% to settle at $1,824.80 an ounce.
• Bitcoin slid 1.8% to $20,856.59. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
• Coinbase Global (COIN) plunged 10.8% after Goldman Sachs Equity Research analyst Will Nance downgraded the crypto exchange operator to Sell from Neutral and slashed his price target to $45 from $70 – a nearly 20% discount to today's close at $55.96. "We believe current crypto asset levels and trading volumes imply further degradation in COIN's revenue base, which we see falling ~61% year-over-year in 2022, and ~73% in the back half of the year," Nance says. The analyst also believes additional job cuts are necessary in order to stem a "cash burn as retail trading activity dries up," even after COIN's recent announcement that it is reducing its workforce by roughly 18%.
• Etsy (ETSY) stock tumbled 3.6% after Needham analyst Anna Andreeva downgraded the online marketplace to Neutral from Buy. While the analyst says she still believes Etsy is "unique with a big opportunity to drive frequency for both buyers and sellers" over the long term, "the discretionary nature of the ETSY model [is] increasingly at risk" in the near term.

Dividends Are Defending Investors

Very few areas of the market are working in investors' favor this year, but dividend stocks have been a sorely needed bright spot.

Our Kiplinger Dividend 15, for instance, has put up positive returns over the past 12 months while the S&P 500 is sitting in red ink – you can thank a much-higher-than-average income stream that's helping to offset a period of weaker price returns.

Investors in the Dow's best-paying dividend stocks have also enjoyed a relative respite. From our Dan Burrows:

"A cap-weighted index of the five top-rated Dow dividend stocks yielding at least 2% as of Feb. 14 [when we compiled our original list] has generated a total return of 11% in 2022. By comparison, the S&P 500's year-to-date total return stands at negative 17.5%."

As we near the second half of 2022, we're taking a refreshed look at the Dow – and seeking out the industrial average's best-rated dividend-yielding components again. While the list has changed somewhat from the beginning of the year, all five stocks appear to pack the tools investors will need to outperform through the end of 2022.

Americans will commemorate its fallen military personnel, and mark the unofficial start of summer, this Memorial Day, Monday, May 30. And the stock market will indeed be closed for Memorial Day, ensuring that investors can focus on the events of the day rather than watching the stock market continue its roller-coaster ways.

In many ways, 2022's day of commemoration is sure to feel more normal than the past two years. The COVID-19 pandemic largely clamped down on celebrations in 2020 and still cast a pall over 2021. And while the disease is far from contained, Americans clearly plan to travel.

AAA estimates that 39.2 million travelers will fly or drive this Memorial Day weekend ... still down from 2019's 42.8 million people who either booked flights or drove at least 50 miles to a destination, but up from last year's 36.2 million. That's naturally expected to keep upward pressure on gas prices, which have shot 40% higher from the start of 2022 alone.

But one thing that stays the same, year after year? Investors are getting a long weekend. Both the stock market and the bond market will be closed on May 30 in observation of Memorial Day. Also, the bond market will close early May 27, the Friday before Memorial Day.

Regular trading in stocks and bonds resumes on Tuesday, May 31.

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Here, we provide a schedule of stock market holidays and bond market holidays for 2022. Please note that regular trading hours for the New York Stock Exchange (NYSE) and Nasdaq Stock Market are 9:30 a.m. to 4 p.m. Eastern on weekdays. The stock markets close at 1 p.m. on early-closure days; bond markets close early at 2 p.m.

2022 Market Holidays

* This is the recommended bond market holiday schedule from the Securities Industry and Financial Markets Association (SIFMA). This schedule is subject to change.

Market Holiday Observations

When it comes to the stock and bond markets alike, if a holiday falls on a weekend, market closures are dictated by two rules:

• If the holiday falls on a Saturday, the market will close on the preceding Friday.
• If the holiday falls on a Sunday, the market will close on the subsequent Monday.

Stock and Bond Market Hours

The "core trading" stock market hours for the NYSE and Nasdaq are 9:30 a.m. to 4 p.m. on weekdays. However, both exchanges offer premarket trading hours between 4 and 9:30 a.m., as well as late trading hours between 4 and 8 p.m.

Bond markets typically trade between 8 a.m. and 5 p.m.

The stock markets close at 1 p.m. on early-closure days; bond markets close early at 2 p.m.

One of the primary reasons companies undergo stock buybacks is because it can have a salubrious effect on the shares that remain outstanding. Mathematically, this is true. 

A simple example will illustrate the point. If a company has 1 million shares outstanding, earns $2 per share and trades at $30 per share, it has a price-to-earnings (P/E) ratio of 15, i.e., $2 per share times 15 equals $30. But what happens if this company buys half of its shares back? Its earnings per share will become $4. If the market continues to value the company at 15 times earnings, the stock price should trade up to about $60, a big jump. 

Here, we look at some of the most aggressive buyers of their own shares. For instance, Marathon Petroleum (MPC) has bought back about 29% of its shares over the last four quarters according to FactSet. Steel Dynamics (STLD) has bought back about 11%, small by comparison, but still a big number. 

If you remain in a stock where buybacks are high, it's important to assess the overall health of the company, since a decline in earnings will ultimately take the shares down. Also important is to look at the stock buybacks relative to the cash the company is generating from operations.  

Large buybacks relative to cash flow can spell trouble if a company's fortunes change, but even absent trouble, it can also bring the buyback program to a halt. In that case, an investor is simply left with a company that must succeed on its merits and not its metrics. As a result, investors should not buy a stock because of buybacks, but fundamentally superior stocks that buy their own shares aggressively have the wind at their backs. 

Below, we take a closer look at six companies actively involved in stock buybacks.

Data is as of March 29. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price. 

• Market value: $53.4 billion
• Dividend yield: N/A

Internet and cable provider Charter Communications (CHTR, $349.71) has been reducing its share count since 2016, when it reached a high of 270 million shares. This was also the year Charter purchased Time Warner Cable and Bright House Networks for $67 billion.  

Since then, Charter has whittled its share count which now sits at about 153 million shares.  According to the latest 10K filing, the company can purchase about $400 million under its  current authorization, which, at today's prices, could be another 1.2 million shares. 

Merger-related costs took the punch out of 2017 earnings, but since 2016, Charter has grown total earnings at 6.2% annually. Owing to the reduction in share count over the past six years, earnings per share have increased almost twice as quickly, at 12% average annually. 

The communication services stock has responded in kind, rising from about $175 to today's $350, a neat double. All of this was a bit more compelling in the summer of 2021, however, when CHTR shares reached a peak of more than $800. Still, a double is a double. 

Buying the buybacks is a strategy that works when you are in the stock for a long time, which begs the question of whether or not Charter is a good long-term hold. This may be more questionable. First, the cable and internet businesses are wracked by fierce competition and rapid technological change. Who knows what's next? Second, sales, earnings and margin growth, while positive, have been tepid at Charter.

The last item that merits a close eye at Charter is the amount of shares bought back in 2022 as a percentage of cash from operations. CHTR operations generated about $15 billion in cash last year, and the company bought back $10.2 billion in stock, a high ratio by some yardsticks.  

With capital expenditures at $9 billion, that means Charter is funding stock buybacks with debt. The company already has more than $97 billion in debt. With interest rates rising across the board, refinancing debt, if not less likely, is definitely more expensive and this could bring the buyback game to an end at CHTR.  

• Market value: $19.0 billion
• Dividend yield: 1.5%

The share count at Steel Dynamics (STLD, $110.04), which makes a variety of steel products, reached a high in 2016 at around 244 million shares. At the end of last year, the figure was approximately 175 million, a reduction of 28%.  

Since that time, earnings per share have grown at about 56% per year on average. Total earnings, i.e., profits before dividing by the number of shares outstanding, grew 47%, indicating that share repurchases drove earnings per share by about nine percentage points each year. 

If you have held onto STLD during this time, you have been richly rewarded, with shares rising from about $18 to the current $113. Shorter term, shares might be choppier. Spending that accompanied the recovery from COVID is abating. Further, 50% of revenues are construction-related, which is interest-rate sensitive, and would be susceptible to a recession, should one occur. And finally, the fortunes of STLD are tied to steel prices which it cannot control.

For now, however, steel prices are a benefit. Using rebar as a proxy for the market at large, prices bottomed out in November of last year at about $3,500 a ton, but have since risen 20% to the current price of roughly $4,200.  

A recession is in the offing, but against this possibility are a construction boom as China reopens and a generation shift in energy infrastructure for green, as well as traditional, power sources. When you look at a wind farm stretching off to the horizon, think steel.

Steel Dynamics is a well-managed company. Since 2016, It has acquired mills, built others and added additional capacity. While earnings and the return on equity have been lumpy during this period, overall, the trajectory is upward, and at intervals spectacularly so. 

Slated for 2024 is a biocarbon facility that will provide some of its mills with a renewable alternative to fossil fuel carbon. In 2025, a $2.5 billion aluminum mill is slated to come on line.

Finally, STLD offers a modest dividend, around 1.5% but has grown it on average about 17% annually since 2016.  

• Market value: $12.9 billion
• Dividend yield: 1.1%

Homebuilding is the kind of business that could easily, and perhaps justifiably give an investor the willies these days. Inflation is driving up the cost of materials, mortgage rates have been on the rise and there's the threat of a looming recession. And though this is the recession that never arrives, its looming prospect is making homebuyers twitchy. 

However, if investors only bought stocks under ideal conditions, they might never buy anything. 

The case for PulteGroup (PHM, $57.15) is the inexorable demand for new homes, a strong balance sheet, a strong market position backed with skilled management and a commitment to buying its shares back that has sent earnings per share soaring.

Pulte has been reducing its share count since 2012. Over the last five years starting in 2017, shares have shrunk from 287 million to about 226 million, a reduction of 21%. During this time, earnings per share have soared, growing from $2.24 in 2017 to last year's $11.01, or 37.5% average annually. Total earnings, i.e., not earnings per share, have grown at about 30% average annually, indicating that stock buybacks have seven and a half percentage points to earnings per share each year.

With such a stellar contribution to earnings per share, the wise investor might ask if PHM's financial performance can support continued buybacks. Maybe.

Pulte bought $1.1 billion of its own shares in 2022, but cash flow from operations was just $668 million. It didn't take out debt to fund these purchases, but largely drew down its cash on hand. In 2021, cash from operations was greater than share repurchases. The change was driven by a big spike in homes in inventory, almost doubling in 2022 to $2.3 billion and hoovering up a lot of PHM's cash in the process.  

The company authorized a fresh $1 billion for share repurchases about a year ago, and has about $383 million in dry powder. Earnings are expected to dip in 2023, so there may be a pause, but since Pulte has been reducing its share count every year for more than a decade, it may be the pause that refreshes.  

• Market value: $114.5 billion
• Dividend yield: 2.2%

In an inflationary environment, consumer spending typically takes a hit and Lowe's (LOW, $191.94), a home improvement retailer, has been hurt by this trend. Unsurprisingly, in its fourth-quarter results, the company reported a drop of 1.5% in its comparable sales versus year-ago figures. Earnings per share also fell to $1.58 for the quarter from $1.78 of the previous year. 

But while the short term looks uncertain for LOW, the stock merits long-term consideration due to its strong commitment to return excess capital to its shareholders. The company has been consistently reducing its share count every year, managing to decrease the number of shares by almost half, from 1.24 billion in 2011 to 670 million in 2021. In 2022, the company bought back 71 million more shares for a total of $14.1 billion. The Dividend Aristocrat also paid its shareholders $2.4 billion in dividends for the year.

Lowe's impressive cash flow generation, thanks to a strong gross margin of 33.2% and an admirable operating margin of 10.5% in 2022, sets the stage for continued stock buybacks. 

That said, the company's buyback activity has been aggressive relative to cash. For the nine months ended Oct. 28, year-to-date stock repurchases were $12.1 billion, while cash flow from operations was $8.1 billion. Lowe's investment-grade rating enables it to raise debt capital relatively easily, and it did during the first nine months of the year to the tune of $9.7 billion, which, de facto, financed some of the repurchases. This can continue, but cannot go on forever. 

While the company's 2023 outlook is muted, LOW remains confident in the medium- and long-term outlook for the discretionary sector, with plans of strengthening its Total Home strategy to establish itself as a one-stop shop for both DIY and Pro customers in the U.S.

The company's decision to divest out of its Canadian retail business, which was finalized last quarter, also indicates that Lowe's is ready to cut underperforming areas and focus on segments of its business with more growth potential.

LOW is now trading about 10% below its value a year ago. For investors who are looking for a stable company that provides a steady stream of passive income, the stock is worth considering.

• Market value: $44.1 billion
• Dividend yield: N/A

AutoZone (AZO, $2,395.37) has been aggressive with its stock buybacks for decades now, making shares very attractive, especially for long-term investors. In fact, the company's share count has gone down to less than a third of what it was 15 years ago – from 66 million shares in 2007 to just 19 million in 2022. It seems as if AZO management is taking the company private drip by drip. 

Fueling its share buyback program is AutoZone's healthy cash flow, maintaining its operating margin above 20% in the past decade, and growing its profit consistently over the same period.

Further, in the current environment where prices of new cars in the U.S. are going through the roof, and with higher interest rates, more consumers are deciding to hang onto their current wheels, even if it's a clunker. 

This is good news for automotive parts and accessories retailers like AutoZone, which saw 5.3% growth in same-store sales last quarter, and an increase of 6.9% in operating profit. In fact, AutoZone's same-store sales growth consistently beats growth in total auto parts sold at retail. 

Nevertheless, the same forces that help buoy AZO's profits could be a double-edged sword. That is, higher fuel costs and smaller wallets may tamp down driving altogether or cause consumers to seek other transportation alternatives altogether. Electric vehicles (EVs), while not immune to the auto parts business, require less maintenance, and for now, are too intimidating for most do-it-yourselfers.

AZO has been a consistent long-term buyer of its stock, but recently, it has been an aggressive buyer too. For instance, in 2020, share repurchases of about $930 million were about a third of cash flow from operations. In 2021, share repurchases were almost equal to cash flow from operations, and in 2022, the $4.44 billion in stock buybacks were $1.2 billion more than cash from operations. This is good for earnings per share, but levers up the company through the issuance of more debt. 

Mixing and stirring, this could mean that AZO eases back on share repurchases. After all, the debt needed to finance share repurchases in excess of cash from operations is going to be more expensive due to interest rate increases and may stay that way due to generally hawkish Fed policies. 

• Market value: $60.3 billion
• Dividend yield: 2.2%

Marathon Petroleum (MPC, $133.94), a crude oil refiner based in Ohio, has slowly but surely been repurchasing its own stock – from a high of 680 million shares in 2018, the company's share count now stands at 442 million. The share count reduction has driven an increase in earnings per share, albeit a lumpy one, but what's really driving MPC earnings are energy prices – making the stock worthy of consideration for investors to buy.

Longer term, stock buybacks will exert their influence, and Marathon is an enthusiastic buyer of its own shares, making nearly $12 billion of purchases during 2022. This was below cash provided from operations, which was $16.3 billion. In 2020, Marathon didn't purchase any stock, and in 2021 it bought nearly $5 billion, suggesting that its appetite may be tied to energy prices. 

Looking at short-term trends, the energy stock has benefited from the geopolitical uncertainties and sanctions imposed against Russia, one of the biggest oil and gas producers in the world. In fact, MPC almost doubled its net income in the most recent fiscal year, from $9.7 billion in 2021 to $14.5 billion in 2022.

With the reopening of China and easing travel restrictions due to COVID, as well as the continued unpredictability of the Russia-Ukraine war, things are looking good for MPC in the medium term. 

Additionally, crude oil prices are expected to firm up soon due to rising demand in spring as the weather improves. Gasoline inventories in the U.S. are currently at the lowest level in 10 years, so refiner stocks like MPC remain very attractive. Marathon is currently trading about 58% higher than its value a year ago.

Still, with the Fed still hiking interest rates, the looming threat of a recession could dampen demand. Regardless, the energy patch remains the oasis for the foreseeable future, and with MPC's strong fundamentals and prospects for the future, the stock is worth considering now. As they say, strike while the iron is hot.  

The markets staged a robust relief rally that saw all but two sectors – energy (-3.1%) and utilities (-0.7%) – finish in the green.

Boosting investor sentiment were headlines indicating that foreign ministers from Ukraine and Russia will meet in Turkey on Thursday – the first cabinet-level talks to be held between the two countries since the conflict began.

This follows reports Ukraine President Volodymyr Zelensky on Monday said he is open to a dialogue with Moscow.

"Within equity markets, all the areas of the market that have been hit the hardest recently are snapping back sharply," says Michael Reinking, senior market strategist for the New York Stock Exchange. This included financials, which rose 3.7% after "a few more European banks overnight provided updates on Russian exposure which were not as bad as some had feared," as Reinking explained.

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However, it was technology (+4.0%) that led the charge, with chip stocks Nvidia (NVDA, +7.0%) and Advanced Micro Devices (AMD, +5.2%) among the biggest gainers.

At the close, all three major benchmarks had snapped their four-day losing streak, with the Nasdaq Composite up 3.6% at 13,255, the S&P 500 Index 2.6% higher at 4,277 and the Dow Jones Industrial Average up 2% to 33,286.

It was the Nasdaq's best day since November 2020 and was enough to pull the tech-heavy index out of a bear market. The S&P 500, meanwhile, had its biggest one-day gain since June 2020, while the Dow's advance moved it out of correction of correction territory.

Other news in the stock market today:

• The small-cap Russell 2000 popped 2.7% to 2,016.
• U.S. crude futures retreated sharply from Tuesday's 13-year high, sinking 12.1% to settle at $108.70 per barrel.
• Gold futures slid 2.7% to end at $1,988.20 an ounce, snapping a four-day winning streak.
• Bumble (BMBL) shot up 41.9% after BMO Research analyst Daniel Salmon upgraded the dating app shares to Outperform. "Catalysts should be driven by the Bumble app and include international expansion milestones and new bundle launches, while new advertising/sponsorship opportunities will be tested over the near term (likely on BFF first) supporting multiple re-expansion," the analyst says. Raymond James analyst Andrew Marok (Outperform) also chimed in on BMBL, saying last night's earnings report came in "better-than-feared." Marok added that while Bumble's decision to pull operations out of Russia will create roughly $20 million in headwinds in fiscal 2022, its full-year guidance is still "ahead of expectations."
• Declining oil prices lit a fire under travel stocks. Carnival (CCL, +8.8%), Royal Caribbean (RCL, +5.5%), American Airlines (AAL, +5.9%) and United Airlines (UAL, +8.3%) were some of the day's biggest winners.

A Big Boom in Bitcoin Prices

Another big winner on Wall Street today: Bitcoin. The cryptocurrency jumped 11.3% to $41,807 (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.) after President Biden signed an executive order aimed at regulating digital-asset transactions.

The administration outlined several objectives as part of an effort to assess digital assets at the federal level, which include financial inclusion and responsible innovation. The goal of the order is to help the U.S. "maintain technological leadership in this rapidly growing space," while "mitigating the risks for consumers, businesses, the broader financial system and the climate."

This regulation could continue to give cryptocurrencies a boost, says Anthony Denier, CEO of trading platform Webull. Digital assets have "definitely been at reputational risk for buying an asset class that is so volatile and derided. Oversight gives them a firmer ground to stand on."

There are plenty of ways for investors to gain exposure to the top cryptocurrencies too. In addition to stocks that are connected to crypto in some way, Wall Street is now flush with Bitcoin ETFs and other cryptocurrency funds. Read on as we highlight 17 funds focused on riding the crypto wave.

The stock market swoon appeared set to continue into a fourth week, with all the major benchmarks notching massive intraday losses.

Negative readings on IHS Markit's Flash Manufacturing Purchasing Managers Index (PMI) and Flash Services PMI – both of which came in well below economists' consensus estimates today (55.0 vs. 56.9 expected; 50.9 vs. 54.9 expected, respectively) – added to the bearish narrative on Wall Street, says Michael Reinking, senior market strategist for the New York Stock Exchange.

Specifically, it has been "dominated by increasing geopolitical risks; the hawkish Fed tone in anticipation of Wednesday's Federal Open Market Committee rate decision; and slim earnings beats combined with lacking earnings guidance," he writes.

"The environment we have been in for the past 13 years or so was created by quantitative easing, zero interest rates, and there is no alternative," says Matthew Tuttle, CEO and chief investment officer at Tuttle Capital Management. " Now that the Fed is going to unwind and raise rates, it is causing a repricing of the entire market." He believes that whatever the Fed is going to say on Wednesday is likely now priced in, and a short-term bounce isn't out of the quesion.

"However, I would expect that [bounce] to be short-lived and expect volatility through at least the end of the quarter until the market fully digests," Tuttle adds.

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And bounce is exactly what the market did today. Bargain hunters swooped in during the final minutes of trading, sending the Dow Jones Industrial Average, which was off more than 1,115 points at its intraday low, up 99 points, or 0.3%, to 34,364.

The S&P 500 Index and Nasdaq Composite also erased their earlier losses to end the day higher (+0.3% at 4,410; +0.6% at 13,855).

Other news in the stock market today:

• The small-cap Russell 2000, which was down 2.8% at its session low, closed up 2.3% at 2,033.
• U.S. crude oil futures slumped 2.2% to finish at $83.31 per barrel.
• Gold futures gained 0.5% to settle at $1,841.70 an ounce.
• Bitcoin sank 3% to $37,175.53. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
• Kohl's (KSS) stock rallied 36% after The Wall Street Journal late Friday said a group of investors backed by hedge fund Starboard Value LP offered to buy the retailer for around $9 billion. The reports are unconfirmed and based on people familiar with the matter. UBS Research analyst Jay Sole reiterated a Sell rating on KSS in the wake of the news. "The key is we believe it could be challenging for the investor group to get financing for two reasons: 1) We doubt Kohl's real estate has enough value to serve as adequate collateral. 2) We don't believe an operational turnaround plan exists which will convince creditors to lend enough capital to make the deal happen," he writes in a note.
• Carvana (CVNA) shares popped 16.4% following a Morgan Stanley note that says the auto retailer might be oversold now that shares have lost more than half their value over the past three months. "We see CVNA at under $140 as a better risk/reward today than when the stock was at $40 two years ago, as we believe it has only solidified its moat/competitive advantage in recent years and remains the apex predator in auto retail," says analyst Adam Jonas, who called the company "the apex predator in auto retail." Jones reiterated his Overweight rating (equivalent of Buy) and set a 12-month price target of $430 per share.

How to Maneuver a Stock Market Correction

For a moment today, it looked as if the S&P 500 was going to join the Nasdaq in correction territory, which is defined as a decline of at least 10% from the most recent peak. Specifically, the index hit an intraday low of 4,222, well below its correction level of 4,316.

When the markets are barreling lower, as they've done thus far in 2022, it's really easy to lose your resolve – even if you consider yourself a buy-and-hold investor. This is the hardest part of the job.

"Investors have grown accustomed to steady, consistent gains over the past couple of years which makes the current bumpy ride feel more uncomfortable," says Jeff Buchbinder, equity strategist for LPL Financial.

But remember, markets don't move in a straight line, and drawbacks are a normal part of the process. So, instead of saying "woe is me," look for opportunities within the stock market – including in high-yield dividend stocks or monthly dividend payers, whose steady stream of income can help protect a portfolio against bouts of volatility.

For some more tips, make sure to check out our guide on how to maneuver through a stock market correction. Scary as they are, pullbacks come with the territory – and having a plan in place can help investors better deal with them.

2024 Update: The New York Stock Exchange (NYSE) no longer plans to launch Natural Asset Class (NAC) tradable assets, according to an SEC filing.

The New York Stock Exchange (NYSE) is launching a new type of asset class that could transform the way investors value nature.

Called natural asset companies (NACs), these securities will be listed and traded on the NYSE, just like traditional stocks. The exchange plans to list these entities starting later this fall. The launch comes just as companies and governments are preparing to make substantial commitments to combating climate change at the next U.N. global climate meeting in November.

Here's the skinny on this new investment class geared toward ESG (environmental, social and governance) investors.

What Are NACs?

Natural asset companies assign value to the services provided by nature (such as storing carbon in a forest), rather than to the extraction of natural resources (such as logging).

NACs will hold the rights to "ecosystem services," or the benefits people receive from nature, such as food, pollination, tourism, or clean water; such global benefits are valued at an estimated $125 trillion annually.

Each NAC will issue an IPO tied to a specific tangible asset, such as a rainforest, a marine ecosystem or farmland. The proceeds will be used to manage the property to enhance ecosystem services – or in the case of farmland, to convert it to sustainable, "regenerative" agriculture. (Regenerative ag actually builds soil, stores carbon, and increases biodiversity.)

How Are They Valued?

The NYSE is working with, and has a minority stake in, the Intrinsic Exchange Group (IEG). The IEG has several years of experience tackling challenges to the NAC model, such as how natural value should be measured, monitored and translated into financial value.

The IEG, with the help of the Inter-American Development Bank (IDB), has developed an accounting framework based on projects conducted throughout Latin America. The NYSE will license the IEG's accounting framework.

"We believe it is absolutely critical to provide investors in Natural Asset Companies with relevant, reliable and understandable information on the flows of the ecosystem services they produce and their stocks of natural capital assets," Robert Herz, former chairman of the Financial Accounting Standards Board (FASB), says in a statement.

Bottom Line

One of the biggest challenges to addressing climate change has been a lack of funding for conservation, biodiversity, and other climate strategies tied to natural value. If natural asset companies are scalable and earn the confidence of investors and stakeholders, they could help ramp up investments in climate solutions.

More comprehensive climate policy in the U.S. and abroad also could make NACs attractive long-term investments. Not to mention, they provide another way investors can diversify their portfolios.

Investors interested in ESG should keep an eye out for natural asset companies in the next few months. You might just be able to help keep a forest standing as you feather your nest.

Penny stocks – those that trade for low prices, often less than a dollar per share – are dangerous. Period. Indeed, with a few exceptions, investors should steer clear of these uber-cheap stocks, which typically trade over-the-counter and not on a major exchange.

Call them penny stocks, microcaps or OTC stocks; by any name, they’re bad news. False promises of quick and painless riches are easier to fall for when an investment can be made with so little money up front. An investor might think, "How risky could it be?"

Plenty. Per the Securities and Exchange Commission: “Academic studies find that OTC stocks tend to be highly illiquid; are frequent targets of alleged market manipulation; generate negative and volatile investment returns on average; and rarely grow into a large company or transition to listing on a stock exchange.”

We’ll break down what all that means below, but suffice to say, the SEC is not a fan.

Why Penny Stocks Are So Dangerous

To be clear, this is not to say that every penny stock or OTC company is a scam. The danger is that the over-the-counter market is where the scam stocks live. Think of it as a bad neighborhood. Just being there can make you a mark for a con.

For some background, the OTC market is different from exchanges like the New York Stock Exchange or Nasdaq, where trading is centralized. There is no one OTC exchange. Instead, the OTC market connects buyers and sellers over a computer- and telephone-based system. Any stock that does not trade on the NYSE, Nasdaq or other established U.S. exchange can trade over-the-counter. These securities also are known as “unlisted stocks.”

Typically, OTC stocks tend to be highly risky microcap stocks (the shares of small companies with market capitalizations of under $300 million). This also includes nanocap stocks (those with market values of under $50 million).

The SEC has long warned investors about the high risks associated with such stocks. The Financial Industry Regulatory Authority (FINRA), the industry’s self-regulatory agency, likewise flies a red flag over the buying and trading of OTC securities.

That’s because companies that list OTC aren’t required to file periodic or audited financial reports as they must do if they are listed on a major exchange, such as the NYSE or the Nasdaq. In other words, there’s no way to know if they’re telling the truth when they claim to have sales and profits. The major exchanges also have listing requirements; OTC stocks don’t. For example, a company must have at least 400 shareholders and a market value of at least $40 million to get a listing on the New York Stock Exchange. The OTC market makes no such requirements.

Put it all together, and it makes it easier for unscrupulous managers to lie about their business prospects or commit securities fraud.

But that’s not all. The shares that change hands on the OTC market tend to be “illiquid,” meaning they often trade in low volumes and have a limited number of buyers and sellers. That can make it difficult or impossible for investors to buy or sell shares at the prices they want.

That lack of liquidity also makes many OTC stocks the perfect vehicles for “pump-and-dump” schemes where stock promoters lure investors to buy shares, increasing the stock price. Once the price gets high enough, the pumper sells his shares, causing the stock to fall and leaving investors with poor returns, or even losses. Anyone here see The Wolf of Wall Street?

To protect investors from falling for these schemes, the SEC suspended trading of more than 800 microcap stocks – more than 8% of the OTC market – between 2012 and 2015. Once a stock has been suspended from trading, it cannot be relisted unless the company provides updated financial information to prove it’s actually operational. Since that rarely happens, trading suspensions can essentially render the shares worthless.

Legitimate "penny" stocks

Be that as it may, there is one segment of the OTC market that investors need not fear.

Amidst the riff-raff, some of the biggest, most respected foreign companies in the world list their U.S. shares over-the-counter instead of on the major U.S. exchanges. Here, you’ll find the American depositary receipts of The Industrial & Commercial Bank of China Ltd. (IDCBY), which happens to be the biggest bank in the world. You also can buy shares of Switzerland’s Nestlé (NSRGY), the largest food company in the world; China’s Tencent (TCEHY), one of the country’s largest internet service providers; and Japanese gaming giant Nintendo (NTDOY).

Why would major, international publicly traded companies rub shoulders with firms that issue highly speculative penny stocks?

The reason has to do with cost and convenience. Foreign firms listing on the NYSE or Nasdaq must adhere to the SEC's stringent reporting requirements. That means they must prepare two sets of reports for all financial disclosures – one to conform with international accounting standards and another that follows the generally accepted accounting principles (GAAP) used in the U.S. Companies trading OTC avoid the burden and expense associated with such compliance.

In sum, the OTC market can give foreign firms cheaper and easier access to the vast pool of U.S. equity investors.

The bottom line is that with the exception of large, established foreign firms, OTC stocks come with too many risks. It’s simply not possible for the average investor to know if every OTC company is on the up and up. And even legitimate tiny companies can fail virtually overnight. The dangers lurking in OTC stocks far outweigh the vanishingly small potential for rewards.

It’s easy enough to lose money trading stocks. Why make it any easier?

Election Day – Tuesday, Nov. 3 – is sure to keep news-watchers plenty occupied. But everyone, and especially investors, should keep an eye on the stock market, which is indeed open for a full day of trading.

Given recent volatility leading up to the election, it could be a wild one.

"Overall, we believe it is highly likely for volatility to remain with us up to and past the election this coming Tuesday, as multiple macro triggers remain overhead," writes Dan Wantrobski, technical strategist and associate director of research at Janney Montgomery Scott.

But perhaps, if there's a clean result, we'll be through the worst of the market roller coaster.

"We found that elections had their greatest impact on equity markets when Election Day was imminent – in the final two to four weeks," writes Chao Ma, global portfolio and investment strategist with the Wells Fargo Investment Institute.

And, of course, don't forget to vote. You can check out Ballotpedia to find your state's poll opening and closing times.

The following is a schedule of all stock market and bond market holidays for 2020.

2020 Market Holidays

Stock Market Holiday Observations

When it comes to the stock and bond markets alike, if a holiday falls on a weekend, market closures are dictated by two rules:

• If the holiday falls on a Saturday, the market will close on the preceding Friday.
• If the holiday falls on a Sunday, the market will close on the subsequent Monday.

Stock and Bond Market Hours

The "core trading" stock market hours for the NYSE and Nasdaq are 9:30 a.m. to 4 p.m. on weekdays. However, both exchanges offer premarket trading hours between 4 and 9:30 a.m., as well as late trading hours between 4 and 8 p.m.

Bond markets typically trade between 8 a.m. and 5 p.m.

The stock markets close at 1 p.m. on early-closure days; bond markets close early at 2 p.m.

Wall Street will be at work on Columbus Day, even if you aren't.

The stock market will indeed be open on Columbus Day (which is increasingly being known as Indigenous Peoples' Day). While it's technically a federal holiday in 2020, stock trading will take place at its normal hours on Oct. 12.

However, the bond market will be closed on Columbus Day. Bond trading resumes, as usual, on Tuesday, Oct. 13, which is also when the corporate earnings calendar will start hopping with third-quarter reports.

The following is a schedule of all stock market and bond market holidays for 2020.

2020 Market Holidays

Stock Market Holiday Observations

When it comes to the stock and bond markets alike, if a holiday falls on a weekend, market closures are dictated by two rules:

• If the holiday falls on a Saturday, the market will close on the preceding Friday.
• If the holiday falls on a Sunday, the market will close on the subsequent Monday.

Stock and Bond Market Hours

The "core trading" stock market hours for the NYSE and Nasdaq are 9:30 a.m. to 4 p.m. on weekdays. However, both exchanges offer premarket trading hours between 4 and 9:30 a.m., as well as late trading hours between 4 and 8 p.m.

Bond markets typically trade between 8 a.m. and 5 p.m.

The stock markets close at 1 p.m. on early-closure days; bond markets close early at 2 p.m.

While stocks can supercharge a portfolio, getting income out of an all-stock portfolio is difficult. Withdrawing at the wrong time can cause an investor to sell at a significant loss, hurting long-term returns. Then there is the tax issue: With long-term capital gains taxes of up to 20%, many retirees will find themselves being squeezed by the IRS as they try to live off their life savings.

There is a solution to these problems: municipal bonds, and municipal bond funds.

"Munis" have been favorites of American retirees for generations. That's not only because they provide tax-free income, but because their low volatility and high yields mean selling at a loss is very hard to do.

"Muni bonds are a good way to provide consistent income, and the tax angle can also provide additional value," says Ben Barzideh, Wealth Advisor with Piershale Financial Group. "Also, bonds tend to fluctuate much less than stocks, so it brings a level of diversification and safety for the overall portfolio."

But how do you buy municipal bonds? After all, they're not easily traded on exchanges such as the NYSE or Nasdaq. And most new muni bond issues are reserved for the largest municipal bond buyers – firms like BlackRock (BLK), whose $7 trillion in assets under management puts it in the front of the line, miles ahead of retail investors, when a municipality wants to sell a bond. Because the big guys have already swallowed up the lowest-risk, highest-yielding bonds on their own, individual investors just can't get their hands on them …

… unless they buy municipal bonds through the big guys. You can do this via municipal bond funds, which are issued by the major bond buyers, who in turn use your cash to go and buy more muni bonds.

If you're going to buy municipal bond funds, consider buying closed-end funds (CEFs). For one, because of how they're constructed, CEFs can trade at a discount, allowing you to buy their net assets for less than if you bought those bonds outright. According to CEF Insider data, the average muni bond CEF has a discount of about 7% right now. That also means CEFs can afford to pay higher dividends. A discounted fund's yield on market price will be higher than on its actual net assets; for instance, a fund with a 7% discount that earns a 4.5% yield from a muni bond portfolio can pay out a yield on market price of 4.8%.

The payouts are even bigger when you consider they're tax-advantaged. If you consider just federal taxes alone, at the highest tax bracket, you'd need a roughly 7.6% yield on a normally taxed bond to bring home the same amount of income as a 4.8% yielding munibond. That number is even higher if state or local tax breaks come into play.

Read on as we look at three of the best municipal bond funds on the market right now.

Data is as of July 1. Distributions can be a combination of dividends, interest income, realized capital gains and return of capital. Distribution rate is an annualized reflection of the most recent payout and is a standard measure for CEFs. Fund expenses include interest expenses and are provided by Morningstar. Discount data provided by Nuveen's CEF Connect.

• Assets under management: $121.0 million
• Distribution rate: 3.3%
• Expenses: 1.76%

Let's start with the Western Asset Intermediate Muni Fund (SBI, $8.59), which trades at an unusually large 14.1% discount to NAV right now. The fund's average discount over the past five years has hovered around the 8% level.

That high discount also makes SBI's reasonable 3.3% distribution rate incredibly sustainable. That's because SBI really only needs to yield a roughly 2.9% yield from its investments to afford its current payout. In fact, given that the average coupon of SBI's portfolio is 4.9%, it's entirely plausible that SBI could increase payouts in the future, which in turn would bring in more buyers.

But even if that doesn't happen, you're still getting a tax-equivalent yield of 5.2%, which is nothing to sneeze at.

As for the portfolio itself, Western Asset Intermediate Muni typically invests at least 80% of its assets in investment-grade municipal bonds with maturities of between three and 10 years. Right now, SBI's 211-bond portfolio is of very high quality, with 92% of the portfolio at an investment-grade BBB or higher. Holdings include municipal bonds tethered to things such as transportation, industrial revenue, power, and water and sewer.

Like many closed-end funds, SBI uses debt leverage in an attempt to enhance returns; at the moment, it has a 25% leverage ratio, according to Morningstar. That means for every dollar of investible capital it has, 25 cents of that comes from debt leverage.

As you'll see in a moment, you can certainly get better yields out of municipal bond CEFs. But if you want a pretty reliable payout that's better than the 1.3% on offer from an index fund such as the iShares National Muni Bond ETF (MUB), SBI is worth checking out. Just note that because of leverage, its price often will be more volatile than the likes of MUB.

Learn more about SBI at the Legg Mason provider site.

• Assets under management: $252.4 million
• Distribution rate: 4.8%
• Expenses: 2.61%

If you're looking for more yield than SBI, you can consider the Pioneer Municipal High Income Advantage Trust (MAV, $10.56) – another broad-based municipal bond fund whose 4.8% yield can be chalked up to a number of factors.

One is fairly high leverage of 36% at the moment. Another is a somewhat lower-quality portfolio of bonds; 70% are investment-grade, and only about two-thirds are rated A or higher.

That might sound alarm bells for risk-averse investors. But understand that, based on Moody's data from 1970 to 2008, muni bonds have a very low default rate of less than 0.1%. Moreover, the Federal Reserve is lending a hand by buying up municipal bonds. Spreading out assets across roughly 150 holdings helps tamp down risk somewhat, too.

Another factor helping out the yield – and reducing risk for new money – is a deep 12.5% discount to NAV that's four times its five-year average.

None of this means you can completely escape the potential risk of greater muni-bond defaults should the economy's turnaround take much longer than hoped for. But if you're really looking for minimal risk, you're better off avoiding munis altogether and seeking out Treasuries or money-market funds.

Learn more about MAV at the Amundi Pioneer provider site.

• Assets under management: $551.2 million
• Distribution rate: 5.0%
• Expenses: 2.07%

Finally, the Nuveen New Jersey Quality Municipal Income Fund (NXJ, $13.28) is a great example of a fund's income benefitting from a massive discount to NAV. Specifically, its roughly 5% yield is propped up by a nearly 17% discount. That makes it one of the most heavily mispriced municipal bond funds on the market.

Part of the reason behind NXJ's big discount is its focus on a single state: New Jersey. This lowers the appeal of many bond investors in other states who feel uncomfortable with or alienated by a bond from another part of the country. Moreover, unless you're a New Jersey resident, you don't get the additional state tax break on NXJ's income.

But investors nationwide should still consider taking advantage of this market inefficiency.

The vast majority (94%) of the portfolio is rated investment-grade. In fact, 18% of NXJ's holdings have an AAA rating – the highest grade Standard & Poor's doles out. And New Jersey has had fewer defaults than the market average of less than 0.1%, so the risks in Nuveen New Jersey Quality Municipal Income don't appear significantly higher than in other muni bond funds.

That makes NXJ's yield all the more compelling.

Learn more about NXJ at the Nuveen provider site.

For more great income ideas check out Michael's latest free special report, "Indestructible Income: 5 Bargain Funds with Safe 8.7% Dividends."

Cannabis is a hugely exciting market right now. Marijuana stocks are surging following multiple positive regulatory movements: Utah and Missouri voters both just passed resolutions to legalize medical cannabis, Michigan voted to green-light recreational marijuana and outspoken anti-cannabis Attorney General Jeff Sessions has now resigned.

Meanwhile, Canada recently became the first major world economy to legalize cannabis for both medical and recreational use. It’s not clear whether the U.S. will follow in our neighbor’s footsteps. What is clear is that pro-marijuana legislation is spreading, and marijuana-friendly policies at least feel a little more likely with a Democratic majority in the U.S. House of Representatives. Bear in mind, 70% of Democrats support marijuana legalization vs just 45% of Republicans.

Here are the top marijuana stocks to buy if you want to take advantage of these latest developments. We use TipRanks’ market data to pinpoint four of the most promising marijuana stocks out there. As you will see, all four of these stocks have a consensus “Buy” rating from Wall Street’s best minds.

Data is as of Nov. 14, 2018.

• TipRanks consensus price target: $63.62 (85% upside potential)TipRanks consensus rating: Strong Buy

CGC – the first publicly traded cannabis company in North America, and the first one to be listed on the NYSE – provides both medical and recreational cannabis through several different brands, including Tweed, Spectrum Cannabis and DNA Genetics. With these brands, CGC can span the full range of offerings from adult use, beauty and nutraceuticals to pharmaceuticals and over-the-counter pain and sleep.

“We believe that all four of these verticals represent large market opportunities, and CPG veterans are beginning to embrace the broad market potential for cannabis as a global, multidimensional category given the talent migration to cannabis,” top Cowen & Co analyst Vivien Azer wrote in a recent note. With the recent legalization of cannabis in Canada, Azer believes we are moving toward “the establishment of cannabis as a key functional ingredient touching multiple consumer categories.”

But would-be investors of CGC and any other marijuana stocks should know that this is an unpredictable market. “In the fast-evolving cannabis sector, dynamics can change quickly,” Azer writes. “The most recent example is beverage companies taking stakes in cannabis companies. While that dynamic was not completely unexpected, the timing of it perhaps was, and served as a fresh catalyst for the stocks.”

Overall, this “Strong Buy” stock has received three recent buy ratings from analysts. Those interested in Canopy Growth can get a free CGC Research Report from TipRanks.

• TipRanks consensus price target: $248.80 (26% upside potential)TipRanks consensus rating: Moderate Buy

To be precise: Constellation brands poured $4 billion into Canopy Growth for a massive 38% stake in August, up from 9.9% previously. And that’s not all: the deal also includes further warrants enabling CGC to boost its stake to over 50% if it so chooses.

The move was applauded by the Street. Pivotal Research’s Timothy Ramey is particularly enthusiastic. He writes: “We are convinced that CGC is the best way to play the rapidly growing Cannabis market and investors should begin to fully reflect that value and CGC’s prospects, rather than penalizing STZ for the cash carrying costs of the investment.”

Canopy Growth aside, STZ is delivering powerful growth, including a 16% bump in earnings per share in a “beautiful” fiscal second quarter. With a leading position in the high-end beer market, STZ saw beer sales rise 10.1% and wine sales rise 9.3% in the quarter.

“The core business is growing faster than anyone believed, and the Canopy Growth investment is very likely a masterstroke,” Ramey writes. As a result, Ramey – who personally owns CGC shares – ramped up his price target on Constellation’s shares from $265 to $300. That implies 52% upside from current levels.

However, the top-ranked analyst concludes with a note of caution for any over-eager investors: Clearly this is a bet on the widespread federal legalization of cannabis in the U.S., which may never happen. Get the STZ Research Report from TipRanks.

• TipRanks consensus price target: $200.00 (55% upside potential)TipRanks consensus rating: Strong Buy

This is the first drug derived from marijuana to be approved by the U.S. Food and Drug Administration (FDA). Unlike marijuana, CBD doesn’t contain tetrahydrocannabinol, or THC, so it has no psychoactive effect. However, CBD is enjoying rapidly rising attention for its reported benefits for everything from anxiety to chronic pain.

Furthermore, the drug now boasts a stronger safety profile. Following the FDA approval of Epidiolex in June, the Drug Enforcement Administration had up to 90 days to make a final ruling on the drug’s classification. Epidiolex previously was a Schedule I and has now been rescheduled to Schedule V. Schedule V drugs are the lowest-ranked class, with “a low potential for abuse.”

“We believe the rescheduling classification is the best possible outcome for the company,” Cantor Fitzgerald’s Elemer Piros writes. He has a $211 price target on GWPH (63% upside potential), but adds, “There is significant upside to our valuation, given additional opportunities embedded in the platform, and in additional markets.” Get the GWPH Research Report from TipRanks.

Last but by no means least, consider a little-known, outside-the-box marijuana stock called Innovative Industrial Properties (IIPR, $46.78). IIPR is an odd play on marijuana because it’s not a grower or a medical company, but rather a real estate investment trust (REIT). Specifically, it’s a leading provider of specialized industrial and greenhouse facilities for the medical cannabis industry.

Currently IIPR holds nine properties, leased to state-licensed medical cannabis growers, including a 358,000-square-foot property dubbed “The Pharm” in Arizona. Encouragingly, all nine properties are in states with favorable medical-use regulatory environments.

Shares have exploded by 143% in the past 52 weeks. “We believe this industry is poised for significant growth in coming years,” IIPR says. Ladenburg’s John Massocca concurs. Beneficial regulatory catalysts – including the resignation of Jeff Sessions – have left him increasingly optimistic on IIPR’s expansion potential. He sees shares reaching $49.50, a small premium to today’s prices.

Shareholders receive an added advantage. As a REIT, Innovative Industrial Properties must distribute at least 90% of its taxable income as a dividend to stockholders. So in addition to its strong growth prospects, IIPR offers a 3% yield at the moment. Moreover, the 35-cent quarterly payout has more than doubled from the initial 15-cent payout initiated in 2017. Get the IIPR Research Report from TipRanks.

Harriet Lefton is head of content at TipRanks, a comprehensive investing tool that tracks more than 4,700 Wall Street analysts as well as hedge funds and insiders. You can find more of their stock insights here.

Harriet Lefton is head of content at TipRanks, a comprehensive investing tool that tracks more than 4,700 Wall Street analysts as well as hedge funds and insiders. You can find more of their stock insights here.

It’s no secret that the current bull market and economic expansion are getting long in the tooth. Eventually, the market will turn bearish, and history tells us that we’re likely to see a recesssion six to nine months after the bull market’s peak.

These five indicators can help you spot market tops and recessions on the horizon. Think of them as alarm bells. None is ringing loudly at the moment, but if several go off in unison, consider paring back risk in your portfolio.

• The indicator: The Conference Board’s Consumer Confidence Index, released monthly, tracks consumers’ attitudes about business and economic conditions.
• Why watch it: Consumer spending drives nearly 70% of U.S. economic activity. “A sharp drop in confidence implies that a recession is imminent,” says Ed Clissold, chief strategist at investment research firm Ned Davis Research. On average, recessions have occurred when the index dips to a level of 63 or below, he says.
• What it says now: At 133.4, the Conference Board index is far from recession territory, says Clissold.

• The indicator: The advance-decline line represents the cumulative number of NYSE stocks with advancing share prices minus those that are declining, plotted over time.
• Why watch it: The A-D line tells you how many stocks are participating in a trend. If the generals are charging while the troops are in retreat, a bear market may be on the horizon, says James Stack, publisher of InvesTech Research.
• What it says now: Although tech titans make headlines, the market’s gains remain broad-based, says Clissold. The A-D line has stayed positive this year as U.S. indexes have climbed.

• The indicator: The number of stocks hitting new 52-week highs or lows on the New York Stock Exchange.
• Why watch it: The number of stocks hitting new highs or lows can signal whether bulls or bears are driving market sentiment—whether the overall market is trending up or down. In a healthy market, fewer than 50 stocks per day on the NYSE sink to new lows, says Stack. One hundred in a day could be a temporary blip. But if you see 100 per day over several weeks, it’s a sign that bearish leadership is building.
• What it says now: Aside from a spike in February, new lows have hovered between 20 and 40 in 2018. But note that new highs typically peak one year, on average, prior to market tops. The peak for new highs in the current market was in December 2016.

QUIZ: Test Your Bear Market Knowledge

• The indicator: The monthly report from the U.S. Census Bureau that tallies housing starts—the number of new homes breaking ground—compared with the same month a year ago.
• Why watch it: Housing starts indicate economic strength. “Who is going to buy a house if they’re not certain they’ll keep their job?” says Sam Stovall, chief strategist at investment research firm CFRA. Within three months of every recession since 1960, housing starts have logged a double-digit decline compared with the same month in the previous year. Average prerecession drop: 25%.
• What it says now: June figures show a 1.4% dip year-over-year, on top of a 5.5% decline a month earlier.

• The indicators: The Consumer Price Index, a measure of inflation, and the federal funds rate—the interest rate, set by the Federal Reserve, at which banks lend each other money overnight.
• Why watch them: Historically, bear markets have begun when the fed funds rate far exceeds inflation, says Stovall. Since 1959, the market has entered bear territory when the fed funds rate exceeds inflation by 2.7 percentage points, on average.
• What they say now: At a current annual rate of 2.7%, inflation exceeds the fed funds rate by less than a percentage point. But Stovall expects inflation to fall below the fed funds rate by the third quarter of 2019, as the Fed continues to hike rates.

The Dow Jones industrial average index (DJIA) opened 2018 just shy of 25,000 on Jan. 2, and a little over two weeks later it already had topped 26,000. I was recently asked when I thought the Dow would reach 30,000. Since stocks are the long-term piece of an investor’s portfolio I think this question misses the mark. The better question is, when will the Dow double to hit 50,000?

First a comment about the index. This DJIA is made up of 30 large-company U.S. stocks. In general, it gives investors a rough idea of how the U.S. stock market is doing. However, since it is composed of only large-company U.S. stocks, it’s really only a good barometer for how large-company U.S. stocks are doing, not all stock categories (small & mid-cap stocks, international stocks, etc.). Because most people are familiar with the index, we often use it to put us in the ballpark when gauging the stock market’s performance.

A ballpark answer: Seven to 10 years

The DJIA needs to rise by 20% to hit 30,000. Another year like 2017 would get us to 30,000. In 2017 the DJIA rose 4,957 points, or 25%. Even if the market’s rise slows, I believe the DJIA will hit 30,000 in the next one to three years, and 50,000 in the next seven to 10 years. If capitalism works, as I believe it does, it wouldn’t be much of a stretch to see this occur. Let's dig deeper.

For a moment let's ignore the economy, the geopolitical landscape and fiscal policy and just focus on the simple math at hand. Let's review the “Rule of 72.” The Rule of 72 is a way to determine how long it will take for an investment to double in value. Here is how it works. Simply take an investment’s growth rate and divide it into the number 72. The result equals the length of time it will take your money, or in our case, the index, to double.

For example, the DJIA has enjoyed an annualized increase of 7.33% since 1950, based on Yahoo Finance historical data. If we divide 72 by the number 7.33 (our historic annual rate of return) we get 9.82. So, at a 7.33% annualized increase the DJIA will double every 10 years (9.82 years, to be exact). If we continue at our 1950-2017 pace, the DJIA index will double, or hit 50,000, in 10 years.

Your investments could grow even faster than Dow

Although the DJIA may take 10 years to double, the money you invest in DJIA stocks should double faster than that. Remember, the DJIA measures stock price changes. It does not also include the dividends DJIA stocks pay. Currently, the DJIA stocks pay about a 2% dividend, according to Yahoo Finance. For example, if you bought into the DJIA by investing $10,000 into the SPDR Dow Jones Industrial Average Index ETF (Symbol: DIA) from 2008-2017 it would have grown to $23,967 if you had dividends reinvested, and only $18,670 without reinvested dividends.*

What are the chances the DJIA will double in the next 10 years? To answer this question I looked back and measured each 10-year period from post-World War II until now.** Out of 64 10-year periods, the index doubled in 31 of them, or about half of the time (48%). The best 10-year period ended in 1998, providing a 10-year annualized return of 15.5%, while the worst 10-year period ended in 1974, producing a negative 3.4% annualized return. Of course, past average performance (7.33%) is no guarantee of future results. There has been a major variation depending on the time period you measure. The longer you have to invest, the more likely you are to have a better average return.

The bottom line for investors

I like to look at stocks as my long-term money (money I don’t plan on spending for 10 or more years.) Consequently, I am not really concerned about where the DJIA Index is in two to three years, or when it may hit 30,000, but rather where it will be in 10 years or beyond. Because I believe capitalism will continue to work, I believe companies will continue to make money and stocks will continue to rise. If the DJIA index continues at its average 1950-2017 rate, it will reach the 50,000 mark sometime around 2027-28.

*Morningstar Office

**The first rolling 10-year period measured was from 1945-1954

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

This isn’t your father’s stock index. But it probably is your grandfather’s. We’re talking, of course, about the Dow Jones industrial average, which has been tracking the performance of the U.S. stock market since 1896, when the average included only 12 stocks.

Some call the Dow archaic, and for good reason. For one thing, it holds only 30 stocks selected by a committee that consists of three representatives of S&P Dow Jones Indices and two representatives of The Wall Street Journal. Stocks are chosen subjectively, with factors such as industry leadership, company reputation and investor interest playing into whether a stock is included in the portfolio.

Compare that with the more quantitative Standard & Poor’s 500-stock index, which holds 500 large publicly traded companies, selected because of factors such as trading liquidity and financial viability. Unlike the S&P — which ranks stocks in the index by float-adjusted market value, or share price multiplied by the number of shares available for public trading — the Dow weights constituents by share price, so that higher-priced stocks count for more of the index.

This practice is a “relic from the 19th century,” says Alex Bryan, head of research for passive strategies at Morningstar, dating from a time before computers made it easy to calculate market capitalization and other data in real time. The practice not only distorts the Dow’s representation of the broad market, he says, but it also leaves out companies, such as Alphabet (symbol GOOGL), whose stock prices are deemed too high for inclusion.

But hold your horses (as Grandpa might say) before abandoning the Dow. Despite its concentrated holdings, it does just about as well tracking the market as does the S&P. Over the past 25 years, the two indexes have sported a 94% degree of correlation (a measure of how similarly assets move), meaning that they largely rise and fall in lockstep. What difference there is has worked in favor of the Dow. Over the 25-year period, the Dow returned an average 10.3% per year, 0.8 percentage point per year better than the S&P. On a $10,000 investment, that amounts to a difference of nearly $20,000. Recent performance has helped boost that number. Over the past year, while bargain-priced stocks outperformed faster-growing names, the value- and quality-oriented Dow returned 20.2%, compared with 17.4% for the S&P 500’s more blended approach.

And because the Dow focuses on cash-rich industry titans, says Bryan, it can hold up better during down markets. From October 2007 through March 2009, for example, the Dow lost a cumulative 51.8%, compared with a 55.3% slide for the S&P. The highly profitable firms on the Dow’s roster also boast a higher dividend yield than those in the S&P: 2.4% on average, compared with 2.0%.

It still makes sense for index investors to hold funds that track the broad market. But you may want to add a stake in the granddaddy of all stock indexes, too.

For four ETFs that will let you to tap into the promise of the Dow, see 4 Best Ways to Invest in the Dow.