|Day's Range||1,620.92 - 1,637.90|
|52 Week Range||1,266.92 - 1,637.90|
Yahoo Finance's Brian Sozzi, Alexis Christoforous and Jared Blikre discuss the latest market action with Diamond Hill Capital Management’s John McClain and Whittier Trust's CIO Sandip Bhagat on The First Trade.
Some market participants are starting to contemplate the notion that stellar employment figures could help embolden U.S. trade negotiators in a protracted tariff dispute between the U.S. and China—possibly resulting in a delay if not outright scuttling of a long-sought-after resolution. Indeed, a key report of the week from the Labor Department report showed that the U.S. economy created 266,000 new jobs in November, according to the Labor Department, the biggest gain since January and the unemployment rate slipped to 3.5%, a 50-year low. “This positive number could delay any US/China trade agreement, as signs of a stronger US economy will embolden US negotiators,” wrote Chris Gaffney, president of World Markets at TIAA Bank, in a research note after the nonfarm-payrolls report on Friday.
The stock market shot upward Friday, following an unexpectedly strong surge in November job growth and the decline in unemployment to record lows.
The S&P; 500 appears to be at fair value, which makes us wary of buying into a market when more insiders are selling.
Our call of the day comes from a stock bear who says he needs to see one clear signal before he starts jumping back into stocks.
U.S. stocks are set for another day of gains on Thursday, as investors keep up a positive read of the trade-deal tea leaves and watch out for an OPEC meeting.
Momentum has been the sweet spot for much of this bull market. Since the start of 2014, momentum stocks in the Russell 1000 index (RUI) are up 187% compared to 166% for the index, according to T. Rowe Price chief investment officer John Linehan.
Major stock indices are on pace to post their biggest yearly gains since 2013 after November’s impressive performance, but there’s still plenty to plough through before the clock strikes midnight on Jan. 1. This week brings retail results from Cyber Monday after early signs of an impressive Black Friday. Time to push aside those Thanksgiving leftovers and get back to work.
Here, we'll look at measured targets for the major indexes, as well as some indicators from last week's last full trading day, and see why a pullback or pause is likely to come.
After trailing the big-cap benchmarks, the Russell 2000 finally hits a 52-week high—usually a very good sign for shares of little companies. Also, where the bargains are in the closed-end fund universe.
With a new round of U.S. duties on Chinese goods scheduled to go into effect in mid-December, worries have ratcheted up after President Trump signed legislation supporting the Hong Kong protesters, angering Beijing. Despite the lowered optimism, sentiment doesn’t appear to be severely damaged. A Wall Street Journal report said both sides were confident they can still get a partial deal done soon as Beijing and Washington have been trying to keep political issues separate from trade talks.
Stocks edged up for a fourth straight day to close at new records Wednesday, supported by rosier U.S. economic data and ongoing hopes for a U.S. - China trade deal, but Wall Street trading volumes were thinner than usual ahead of the Thanksgiving Day holiday Thursday.
Small-cap stocks have been a missing piece of the puzzle as the stock market roared back in 2019 from a fourth-quarter drop last year that saw the S&P 500 (SPX) come within a whisker of a 20% pullback, the widely used definition of a bear market. This week, the small-cap Russell 2000 (RUT) which did fall into a bear market during last year’s rout, posted a potential breakout, hitting its first 52-week high in 15 months on Monday and extending gains so far this week. “The inability for the Russell 2000 to break out was one of the concerning signs present over the past couple of weeks (notice small-caps hadn’t been doing much for most of November), but now that has resolved itself and should be bullish for the broad market,” said Andrew Adams, analyst at Saut Strategy, in a Wednesday note.
The stock market rebounded late, leaving the major indexes near session highs at the closing bell and at record highs again.
The question is whether trade talks put that in peril or lend another boost in the weeks heading into 2020. Strong earnings results in late November from some of the more closely watched retailers, including Nordstrom, Inc. (NYSE: JWN), Walmart Inc (NYSE: WMT), and Foot Locker, Inc. (NYSE: FL), certainly helped bring a holiday glow. As the month gets underway, investors face a Fed meeting, the steady pulse of trade headlines, political intrigue in Washington, and a scattering of key earnings reports even though earnings season is well behind us.
Today’s menu includes Best Buy Co Inc (NYSE: BBY), Dick’s Sporting Goods (NYSE: DKS), and Dollar Tree Inc. (NASDAQ: DLTR). History has taught investors not to put too much hope into any quick resolution, but both sides might be feeling pressure to get something done ahead of the new year. The Fed also stepped into the news cycle overnight after Fed Chairman Jerome Powell said in a speech that the Fed is “strongly committed” to maintaining 2% inflation.
The Russell 2000 futures contract has been the laggard for much of the past year, underperforming the other three major equity indexes. This relative lack of participation among the small-caps, when coupled with macro factors such as the Trade War and slowing global economic data, raised some questions about the legitimacy of the rally. At the same time, the pessimism surrounding the Trade War and global growth seems to be moderating, which seems to have caught bears flat-footed as the market continues to make new highs.