|Day's Range||2,593.84 - 2,635.07|
|52 Week Range||2,532.69 - 2,940.91|
Next week is gearing up to be a busy week with events that have potential to move the market as the FOMC meets, government shutdown looms and Nike reports earnings.
SINGAPORE (AP) — World markets were mixed on Monday as British Prime Minister Theresa May prepares to address the House of Commons over a messy exit deal. Most Asian indexes rose on hopes that the Federal Reserve would re-evaluate its hawkish stance at a meeting later this week, following signs of slower global growth.
The U.S. dollar index trades near 18-month high as the Federal Reserve preps for its two-day rate setting meeting that begins Tuesday. China's Xi Jinping will speak Tuesday on the 40th anniversary of the nation's economic reforms amid concerns that the ongoing trade war will clip 2019 growth. Global stocks drifted lower Monday, pushing U.S. equity futures heading into red at the start of what is likely the final full trading week of the year, as investors remain cautious over the health of the world economy and remain focused on two key policy events in the coming days.
Retailers led declines in the Stoxx Europe 600 Index, while contracts on the Dow, S&P and Nasdaq edged lower. With the Federal Reserve seen raising interest rates a fourth time this year, Chairman Jerome Powell’s remarks will be closely studied for hints on their future path. “There’s been a reevaluation of growth and inflation prospects over 2019 with the trade war now looking extremely negative,” Steve Goldman, fund manager at Kapstream Capital, told Bloomberg TV in Sydney.
Investors hoping to avoid the first annual decline for major U.S. stock indexes since 2015 are dreaming of a Santa Claus rally. Since 1969, the S&P 500 has averaged a gain of 1.3% over the seven-day period that encompasses the last five sessions of the year and the first two trading days of the new year, according to Dow Jones Market Data. Such a year-end boost will likely be necessary if the S&P 500 is to avoid finishing in the red. It is down 2.8% this year through Friday.
Recent economic data have reignited worries of economic slowdown around the globe and kept a lid on stock returns. The Dow fell nearly 500 points and the S&P 500 closed down 1.9 percent on Friday to 2,599.95 — its lowest closing level since April — after China reported industrial output and retail sales growth numbers for November that missed expectations. Dow futures were down 17.00 points, implying a loss of 18.51 points at the open on Monday stateside, as of 3:28 a.m. ET.
The financial markets are in doldrums, with the final quarter of the year being particularly unkind for Wall Street participants. The Santa Claus rally is an upward momentum seen in the market during the last week of December that gives a nice lift to the market. "Santa Claus tends to come to Wall Street nearly every year, bringing a short, sweet, respectable rally within the last five days of the year and the first two in January," according to the Stock Trader's Almanac.
A judge sided with Texas late Friday in a lawsuit alleging that Congress’s decision in 2017 to kill a related tax penalty essentially voided the entire Affordable Care Act. U.S. hospital stocks are most at risk from the latest ruling, and could be down materially, according to Jefferies health-care strategist Jared Holz. Health-care investors already were licking their wounds from Johnson & Johnson’s $45 billion plunge on Friday related to a Reuters report about asbestos in baby powder.
DEEP DIVE Brutal price action continued for U.S. stock investors Friday, with all three major indices ending with big declines. Johnson & Johnson (JNJ) led the largest companies lower, with the shares dropping 10%, after Reuters reported that the company knew for decades that its baby powder was contaminated with asbestos.
Investors are eager for a touch of Christmas cheer from the U.S. Federal Reserve next week, hoping for signs the central bank may ease up on interest rate hikes next year and spark a Santa Claus rally. U.S. stocks are having their worst December performance in 16 years with the S&P 500 (.SPX) notching a 5 percent drop so far this month. The Fed's ongoing reversal of easy-money policy is a major overhang, and it is expected to raise rates more at the end of its two-day meeting on Wednesday.
They're all internet-based businesses, but they generate revenue in different ways. And Facebook, Wayfair, and Netflix are producing a lot more of it these days.
Federated Investors' Steve Chiavarone believes there's nothing on the horizon that suggests a recession will hit U.S. stocks.