MARKET SNAPSHOT
U.S. main stock indexes closed higher on thin, holiday-week trade. Treasury yields advanced on Monday, with the key 10-year rate approaching 4.6% after data showed U.S. consumer confidence pulled back in December. Oil prices continued lower amid demand concerns. Gold prices were pressured by a strengthening dollar.
MARKET WRAPS
EQUITIES
All three major indexes climbed, buoyed by rising tech stocks.
Tech stocks gained in the thinner pre-Christmas market as the sector has helped drive stocks to double-digit gains in 2024 for what could be the second year in a row.
Traders were taking advantage of a dip in prices after the Fed disappointed investors last week by signaling a lower pace of rate cuts, said Tom Hainlin, national investment strategist at U.S. Bank.
"I think that drop on Wednesday and Thursday just created an opportunity for bargain hunters to come in and own those high quality names," he said.
The Nasdaq Composite gained 1%, the S&P 500 climbed 0.7% and the Dow Jones Industrial Average edged up 0.2% after hovering around the flatline most of the day.
Earlier Monday, Chinese shares closed mostly lower, dragged by semiconductor and tech stocks. Investors are watching for clues to additional stimulus measures before the end of the year, but chances are low.
The benchmark Shanghai Composite Index closed 0.5% lower. The Shenzhen Composite Index shed 2.3% and ChiNext Price Index was down 1.0%. Hong Kong's Hang Seng Index, however, added 0.8%.
Japan's Nikkei Stock Average climbed 1.2% on growing anticipation of the Fed's rate cuts due to eased concerns about U.S. inflation.
Australia's S&P/ASX 200 Benchmark Index gained 1.7%, snapping a three-day losing streak.
New Zealand's NZX-50 rose for a second day, adding 0.7% with real-estate and utilities among the best performers.
COMMODITIES
Oil futures ended modestly lower, extending a decline seen the previous week in response to a surging U.S. dollar and worries about the outlook for demand - particularly from China, the world's largest crude importer.
West Texas Intermediate crude for February delivery fell 0.3% to end at $69.24 a barrel on the New York Mercantile Exchange. February Brent crude settled at $72.63 a barrel on ICE Futures Europe, down 0.4%.
"The ongoing narrative of weak - and weakening - global demand and ample global supply should maintain oil prices in the bearish consolidation zone for now, with, however, a limited downside potential near the $67 [per barrel] level," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Gold futures were pressured by a stronger dollar and higher Treasury yields amid uncertainties over next year's interest-rate outlook.
Front month Comex gold for December delivery lost 0.6% to settle at $2612.30 per troy ounce.
TODAY'S TOP HEADLINES
Two-year U.S. manufacturing slump shows little sign of ending
The numbers: American manufacturers might be more optimistic about ending a two-year slump after a business-friendly administration under President-elect Donald Trump takes over in January, but they are ending the current year on a sour note.
Orders at U.S. factories fell 1.1% in November to mark the third decline in the past four months.
Economists polled by the Wall Street Journal had forecast a 0.3% increase.
U.S. Consumers Feel Less Confident as Economy Concerns Mount
Confidence among American consumers dropped unexpectedly this month, with expectations growing bleaker for the economic situation in the new year.
An index of sentiment published by research group the Conference Board dropped 8.1 points to 104.7, defying hopes for an increase, according to a consensus of economists compiled by The Wall Street Journal. The expectations index-measuring consumers' near-term confidence in income, business and the jobs market-fell 12.6 points to 81.1, taking it close to the level that often signals recession, the Conference Board said.
"The recent rebound in consumer confidence was not sustained in December, as the index dropped back to the middle of the range that has prevailed over the past two years," said Dana M. Peterson, chief economist at The Conference Board.
Honda, Nissan Plan to Create World's No. 3 Automaker in 2026 Merger
TOKYO-Honda and Nissan said they planned to merge in 2026, a move Honda's chief executive said wasn't a rescue of troubled Nissan but a recognition that developing new technologies was too hard to do alone.
The companies said they intended to create an automaker that, combined with Nissan partner Mitsubishi Motors, would be the third-largest carmaker in the world, after Toyota and Volkswagen, with more than eight million vehicles sold annually.
The announcement came at the end of a year in which Nissan's profit has tumbled in part because of a dated model lineup in the U.S. Both companies have cratered in China, where electric vehicles and plug-in hybrids are growing quickly. Last year, China surpassed Japan as the world's leading auto exporter by number of vehicles.
CFPB Sues Rocket Homes Over Alleged Kickback Scheme
The Consumer Financial Protection Bureau has filed suit against Rocket Homes, alleging the real-estate company provides incentives to brokers and agents to steer home buyers to its parent company's mortgage-lending wing, Rocket Mortgage.
The agency on Monday also sued Jason Mitchell; his real-estate brokerage firm, JMG Holding Partners LLC, which does business as The Jason Mitchell Group; and the individual real-estate brokerage companies in the states where they do business for their roles in the alleged kickback scheme.
Rocket Homes pressured real-estate brokers and agents not to share information with clients about products not offered by Rocket Mortgage, such as the availability of down-payment assistance programs, which often save home buyers thousands of dollars, the CFPB said.
CFPB Sues Walmart, Branch Messenger for Pay Practices for 'Last-Mile' Drivers
The Consumer Financial Protection Bureau said it sued Walmart and payment platform Branch Messenger for practices concerning delivery drivers' pay and reimbursement.
CFPB's lawsuit alleges that Walmart and Branch opened Branch accounts for Spark drivers, and Walmart then deposited drivers' pay into said accounts without the drivers' consent.
The lawsuit also alleges that Walmart told Spark drivers they were required to use Branch to get paid and that it would terminate workers who did not want to use these accounts, and that both companies misled workers about the availability of same-day access to their earnings. Drivers were made to follow a complex process to access their funds that led to further delays or fees if they needed to transfer the money, resulting in workers paying more than $10 million in fees to transfer their earnings to an account of their choice, the CFPB added.
Expected Major Events for Tuesday
04:01/MAL: Nov PPI
05:00/JPN: Nov Supermarket sales
05:30/JPN: Nov Tokyo area department store sales
05:30/JPN: Nov Nationwide department store sales
10:59/THA: Nov Trade data
23:50/JPN: Nov Services Producer Price Index
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
December 23, 2024 16:54 ET (21:54 GMT)
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