Stocks got the week off to a good start, with the Dow Jones Industrials closing above the 38,000 milestone for the first time, and the S&P 500 also reaching a new high. Today, the futures are indicating a mixed start for the major indexes. In overnight trading, markets in Asia closed mostly higher, punctuated by a 2.6% jump in Hong Kong’s Hang Seng Index. Meanwhile, the major European exchanges are hovering around the unchanged mark. Elsewhere, oil prices are lower, with West Texas Intermediate down about 1.0%, to around $74.00 a barrel.
Corporate earnings season continues to roll along, with a number of major companies reporting this week, including AT&T (T) and Tesla (TSLA) tomorrow, Intel (INTC) and Visa (V) on Thursday, and American Express (AXP) and Caterpillar (CAT) on Friday, among others.
Among the key economic reports this week, Thursday brings the Census Bureau’s report for December’s New Home Sales, which are widely expected to come in around 640,000, up from 590,000 the month before. We’ll also get the latest figures for building permits (a more forward-looking indicator), where analysts are looking for an annualized rate of 1.495 million units, up from 1.467 million in November. We’ll also get Durable Goods Orders for December, with a month-over-month increase of about 1.0% expected, down from 5.4% in November. Additionally, the Bureau of Economic Analysis will release its preliminary estimate for fourth-quarter GDP, which is widely expected to show a quarter-to-quarter gain of 2.0%, down from the 4.9% increase posted in the third interim. Lastly, the Department of Labor will release its weekly Initial Jobless Claims report. Wall Street is calling for an increase to 200,000, versus 187,000 the week before.
The week wraps up with the Personal Consumption Expenditures report from the U.S. Department of Commerce. Analysts are calling for the 12-month reading, which is closely monitored by the Federal Reserve, to come in flat with the prior month, at 2.6%. Additionally, the National Association of Realtors will release Pending Home Sales for December, where Wall Street is looking for a month-over-month increase of 1.6%, compared to a flat reading in November.
Summing up Monday’s moves for the major indexes, the Dow Jones Industrials advanced 138 points, or 0.4%, setting an all-time closing high. The S&P 500 climbed 10 points (0.2%), while the tech-focused NASDAQ was up 49 points (0.3%). – Mario Ferro
At the time of this article’s writing, the author did not have positions in any of the companies mentioned.
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