Closing Comment — December 26, 2019
DJIA: 28,621.39, up 105.94
S&P 500: 3,239.91, up 16.53
Nasdaq Composite: 9,022.39, up 69.51
Stocks End at Fresh Record Highs
U.S. stocks advanced on Thursday, with all three major averages finishing at fresh record highs. The Dow climbed 105 points, while the S&P 500 added 0.5%. The Nasdaq Composite rallied another 0.8% as the Tech-heavy benchmark eclipsed 9,000 for the first time and extended its recent winning streak to 11 sessions. With just three trading days left in 2019, the S&P 500 is up 29.2% for the year, on track for its best annual return since 2013 when the index rallied 29.6%.
Ten of 11 S&P 500 sectors traded higher on the session. Consumer Discretionary stocks paced the gains, with Amazon gaining more than 4% after the e-commerce giant posted record sales over the holiday period.
Despite six less shopping days in the 2019 holiday season, total U.S. retail sales rose 3.4% from the same period last year, according to MasterCard SpendingPulse. The Communications sector also outperformed, with Facebook climbing 0.9% and Google parent Alphabet adding more than 1%. Health Care shares were the lone laggard, with Medtronic finishing 0.6% lower.
On the data front, a report showed that mortgage applications fell 5.3% in the most recent week. Another release showed that initial jobless claims fell to 222,000, below the previous week's 235,000 reading. Treasuries were mixed along the curve, with the yield on the 10-year off two basis points to 1.89%. In commodities, WTI crude rose another 0.9% to $61.68/barrel, leaving oil prices headed for their best monthly performance since January. COMEX gold ended 0.7% higher at $1,509.30/ounce.
Midday Comment — December 26, 2019
DJIA: 28,572.37, up 56.92
S&P 500: 3,233.45, up 10.07
Nasdaq Composite: 9,000.95, up 48.06
Stocks Near Record Highs near Midday
The major averages are trading higher near mid-session Thursday as U.S. stocks look to finish the year with another "Santa Claus" rally. The Dow is adding 56 points, while the S&P 500 is up 0.3%. The Nasdaq Composite is advancing 0.5%, and is poised to extend its recent winning streak to 11 sessions.
With just four trading sessions left in 2019, the S&P 500 is up nearly 29% for the year, on track for its best annual return since 2013 when the index rallied 29.6%. News earlier this week that China's imports of U.S. soybeans rose to the highest in 20 months in November is helping bolster risk assets. On the data front, a report showed that mortgage applications fell 5.3% in the most recent week. Another release showed that initial jobless claims fell to 222,000 last week, below the previous week's 234,000 reading. Treasuries are weakening, with the yield on the 10-year note up one basis point to 1.92%.
Nine of 11 S&P 500 sectors are in positive territory near midday. The Consumer Discretionary group is pacing the gains, with Amazon up 1.3% after the e-commerce giant posted record sales over the holiday period. Overall holiday retail sales rose 3.4%, despite a late Thanksgiving leaving six less shopping days than the prior year. Breadth is positive by 3:2 on the NYSE and roughly even on the Nasdaq. NYSE composite volume is less than 1 billion shares.
In commodities, WTI crude is adding 0.9% to $61.67/barrel, while COMEX gold is advancing 0.8% to $1,511.60/ounce.
Opening Comment — December 26, 2019
DJIA: 28,515.45
S&P 500: 3,223.38
Nasdaq Composite: 8,952.88
Stock Futures Inching Higher After Holiday Break
Equity futures are slightly higher Thursday morning as U.S. stocks look to finish the year with another “Santa Claus” rally. The Dow, S&P 500, and Nasdaq 100 are all adding roughly 0.1% in pre-market action after a mixed performance in the holiday-shortened session on Tuesday.
With just four trading sessions left in 2019 the S&P 500 is up 28.5% for the year, on track for its best annual return since 2013 when the index rallied 29.6%. Easing trade tensions between the U.S. and China have bolstered risk assets for most of the fourth quarter, including news this week that China’s imports of U.S. soybeans rose to the highest in 20 months in November. In corporate news, Amazon shares are up 0.5% in premarket action after the company posted record sales over the holiday period. Overall holiday retail sales rose 3.4%, despite a late Thanksgiving leaving six less shopping days than the prior year.
On the data front, a report this morning showed that MBA Mortgage applications fell 5.3% in the most recent week. Another release showed that initial jobless claims fell to 222,000 last week, below the previous week’s 234,000 reading. Treasuries prices are slightly lower, sending yields higher on Thursday, although the benchmark 10-year yield is relatively unchanged at 1.91%. In commodities, WTI crude is adding 0.2% to $61.21/barrel and on pace for its best monthly performance since January. COMEX Gold is 1.1% higher at $1499.10/ounce as the yellow metal looks to cap its best annual advance since 2010.