The equity futures were mixed this morning, indicating the market may be off to an uneven start during this truncated trading week. (The market will close on 1 p.m. on December 24th through December 25th.)
The major market indexes gained ground on Friday, but the Dow Jones Industrial Average was down 2.3% for the week, the Nasdaq fell 1.8%, and the S&P 500 shed 2.0%.
Last week, the major market indexes gained ground on Friday, but the Dow Jones Industrial Average was down 2.3% for the week, the Nasdaq fell 1.8%, and the S&P 500 shed 2%. We received a few notable reports over the past few days, the PCE (Personal Consumption Expenditures) Price Index, the Federal Reserve’s preferred measure of inflation, was released on Friday. According to the report, prices rose 2.4% during the month of November, on a year-over-year basis. This figure was a bit better than analysts had expected. In addition, interest rates were reduced by 25 basis points, to 4.25%-4.50%, at the December meeting of the Federal Open Market Committee (FOMC). At the gathering, Chairman Jerome Powell made it clear that further rate cuts might not be as forthcoming, due to concerns about stubborn inflation. Wall Street, in turn, seems to be sour on the news about the high interest-rate environment.
The U.S. government narrowly avoided a shutdown last week. But, eyes will likely remain on Washington D.C., and to the proposed changes of the incoming Presidential Administration.
Looking ahead to this week, there are no notable earnings over the next few days. However, stocks may see a bump due to the “Santa Claus rally,” as investors try to take advantage of capital gains or losses in the final trading weeks of the year.
As to economic news, Consumer Confidence for December will be released today. On Tuesday, we will receive building permits, durable goods orders, and new homes sales, all for November. Initial jobless claims are out on Thursday, and Friday will see wholesale inventories for November (month over month). – Orly Seidman
At the time of this article’s writing, the author did not hold any positions in the companies mentioned.
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