Stock Rally Stalls in Sleepy Wall Street Session: Markets Wrap

(Bloomberg) — Stocks wavered in a quiet post-holiday session as mixed jobless claims data did little to alter bets on the Federal Reserve outlook.

Equities barely budged after the best Christmas Eve performance for the S&P 500 since 1974, according to data compiled by Bespoke Investment Group. With major European markets closed, volume in the US equity gauge was 45% below the average of the past month.

Wall Street took the latest economic reading in stride. Recurring applications for US unemployment benefits rose to the highest in more than three years, adding to signs that it is taking longer for out-of-work people to find a job. Initial claims, meanwhile, ticked down to 219,000 in the week ended Dec. 21.

“Eco data is a non-event until we move into the new year,” said Kenny Polcari at SlateStone Wealth. “Christmas is behind us, but the New Year is ahead of us. Volumes will remain muted.”

To Jonathan Krinsky at BTIG, the market can continue to make upside progress into year-end, hitting a fresh all-time high for the S&P 500 above 6,100. Looking ahead to January, however, he thinks think volatility will re-emerge.

“If the S&P 500 does make new highs, there are going to be massive divergences in breadth and momentum, which is another red flag as we get into January,” he noted.

The S&P 500 hovered near 6,035. The Nasdaq 100 wavered. The Dow Jones Industrial Average was little changed. Most megacaps fell, though Apple Inc. outperformed after a bullish note from Wedbush. GameStop Corp. rallied after an X post from Keith Gill, the online persona known as Roaring Kitty.

The yield on 10-year Treasuries dropped one basis point to 4.58%. The Bloomberg Dollar Spot Index rose 0.1%. Bitcoin sank as traders reduced their risk exposure after a record-breaking run.

Corporate Highlights:

• Alibaba Group Holding Ltd. agreed to merge its South Korean operations with E-Mart Inc.’s e-commerce platform to better compete in the country’s fast-paced online retail sector.
• Progressive Corp. was upgraded to outperform from market perform at Raymond James, which wrote the company’s “long-term record of growth and value creation makes it a core holding for large cap growth investors.”

Key events this week:

• Japan Tokyo CPI, unemployment, industrial production, retail sales, Friday
• US goods trade, Friday

Some of the main moves in markets:

Stocks

• The S&P 500 was little changed as of 3:33 p.m. New York time
• The Nasdaq 100 was little changed
• The Dow Jones Industrial Average was little changed
• The MSCI World Index was little changed

Currencies

• The Bloomberg Dollar Spot Index rose 0.1%
• The euro rose 0.1% to $1.0418
• The British pound fell 0.3% to $1.2525
• The Japanese yen fell 0.4% to 157.92 per dollar

Cryptocurrencies

• Bitcoin fell 3% to $95,480.4
• Ether fell 4.2% to $3,319.34

Bonds

• The yield on 10-year Treasuries declined one basis point to 4.58%
• Germany’s 10-year yield was unchanged at 2.32%
• Britain’s 10-year yield was unchanged at 4.58%

Commodities

• West Texas Intermediate crude fell 0.8% to $69.53 a barrel
• Spot gold rose 0.7% to $2,635.50 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Omar El Chmouri and Aya Wagatsuma.

©2024 Bloomberg L.P.