| | | Nasdaq surpasses 9000, Amazon gains 4.5%
26-Dec-19 16:20 ET
Dow +105.94 at 28621.30, Nasdaq +69.51 at 9022.41, S&P +16.53 at 3239.91
briefing.com
[BRIEFING.COM] It was another record-setting day on Thursday, with the Nasdaq Composite rallying 0.8% to cross the 9000 level for the first time. The S&P 500 (+0.5%) and Dow Jones Industrial Average (+0.4%) also closed at new highs, thanks to some mega-cap leadership and a strong finish into the close. The Russell 2000 finished flat.
Amazon's (AMZN 1868.77, +79.56) 4.5% gain stood out after the company said it had another record-breaking holiday season. A separate report from MasterCard SpendingPulse indicated that total retail sales, excluding autos, increased 3.4% yr/yr from Nov. 1 through Dec. 24 while online sales rose 18.8%.
It was no surprise, then, to see the S&P 500 consumer discretionary sector (+1.4%) as today's sector leader. The communication services (+0.8%) and information technology (+0.7%) sectors followed suit amid solid gains in Apple (AAPL 289.91, +5.64, +2.0%), Alphabet (GOOG 1360.40, +16.84, +1.3%), and Facebook (FB 207.79, +2.67, +1.3%).
Conversely, the health care (-0.1%), energy (unch), and consumer staples (+0.1%) sectors underperformed with little changes.
Trading volume was relatively light on this day after Christmas, but that didn't detract from the positive sentiment in the market. The holiday sales results, after all, showcased the strength of the U.S. consumer, while reports that the U.S. and China are close to signing a Phase One trade deal kept investors at ease.
A tight labor market, as indicated in the latest weekly jobless claims report, may also bode well for continued strength in the consumer. Specifically, initial claims for the week ending Dec. 21 decreased by 13,000 to 222,000, as expected.
U.S. Treasuries held steady throughout the session. The 2-yr yield was unchanged at 1.63%, and the 10-yr yield declined one basis point to 1.91%. The U.S. Dollar Index declined 0.1% to 97.56. WTI crude rose 0.9%, or $0.55, to $61.70/bbl.
Reviewing Thursday's economic data, which included the weekly reports for jobless claims and mortgage applications.
- Initial claims for the week ending December 21 decreased by 13,000 to 222,000, as expected. Continuing claims for the week ending December 14 decreased by 6,000 to 1.719 million.
- The key takeaway from the report is that initial claims have picked up some from the cyclical bottom, but remain at a level that is still indicative of a tight labor market.
- The weekly MBA Mortgage Applications declined 5.3% following a 5.0% decline in the prior week.
Investors will not receive any notable economic data on Friday.
- Nasdaq Composite +36.0% YTD
- S&P 500 +29.2% YTD
- Russell 2000 +24.4% YTD
- Dow Jones Industrial Average +22.7% YTD
Market Snapshot
| Dow | 28621.30 | +105.94 | (0.37%) | | Nasdaq | 9022.41 | +69.51 | (0.78%) | | SP 500 | 3239.91 | +16.53 | (0.51%) | | 10-yr Note | 0/32 | 1.903 |
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| | NYSE | Adv 1757 | Dec 1092 | Vol 542.2 mln | | Nasdaq | Adv 1705 | Dec 1395 | Vol 1.6 bln |
Industry Watch
| Strong: Consumer Discretionary, Information Technology, Communication Services |
| | Weak: Health Care, Energy, Consumer Staples |
Moving the Market
-- Stocks extend record run, Nasdaq Composite crosses 9000 for the first time
-- Amazon (AMZN) shares gain 4.5% after the company said it had another record-breaking holiday season
-- Positive sentiment, bullish bias intact
-- Relatively light trading volume
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WTI crude gains nearly 1%
26-Dec-19 15:30 ET
Dow +47.51 at 28562.87, Nasdaq +52.89 at 9005.79, S&P +9.79 at 3233.17
[BRIEFING.COM] The S&P 500 currently trades higher by 0.3% and is on pace to close at another record high.
One last look inside the S&P 500 shows the consumer discretionary (+1.4%) pulling out ahead as today's outright leader. The communication services sector is up 0.6%, while the health care sector struggles with a 0.3% decline.
WTI crude rose $0.55 (+0.9%) to $61.70/bbl -- its best level since September. |
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