Stock market today: Dow stretches records as Santa rally continues
Stocks were mostly up on Tuesday as the momentum that saw stocks rally to the new year continued.
In the middle of the morning, the
Dow Jones Industrial Average
rose 294 points, or 0.8%, after the index closed at a record high 36,585 on Monday. the
gained 0.2% after closing too much at an all time high in the last session. the
was down 0.7%.
The good economic news outside the United States hasn’t hurt. China’s latest economic data was better than expected, keeping markets confident in global economic output. China’s manufacturing purchasing managers index stood at 50.9, beating expectations of 50 for December.
The latest report on manufacturing results in the United States was not so rosy. The Institute for Supply Management’s manufacturing index slipped to 58.7 in December, missing expectations of 60 and down from the previous reading of 61.1.
As markets want to see the strength of the manufacturing sector, the good news is that the weaker-than-expected result does nothing to encourage the Federal Reserve to act faster by raising interest rates to fight inflation due to a hot economy. âInvestors will be looking for more good data, but not so good that expectations for rate hikes are advanced,â wrote Tom Essaye, founder of Sevens Report Research.
In addition, job postings for November were 10.6 million, lower than estimates of 11.1 million and lower than the previous result of 11.1 million, after a record 4.5 million Americans quit their jobs. Fewer openings mean that companies are not looking for as many workers as expected, which could slow the pace of wage increases and therefore slow inflation.
Overall, the stock market has been in a good mood lately. The Santa Claus rally, when the market rises in late December as people fund their retirement accounts and others position themselves to own more stocks at the end of the year, continued into the New Year. In two trading days to start 2022, the S&P 500 is up about 1%.
As for the poor performance of tech stocks on Tuesday, rising bond yields are one of the culprits. The 10-year Treasury yield hit 1.68% after rising on Monday after a close of 1.51% on Friday. The yield level is at its highest since late November and is approaching its pandemic-era high of 1.75%. The higher yield reflects higher expectations for long-term inflation, which is bad for tech stocks that rely on long-term earnings.
While tech stocks lagged, most were up. the
Equal Weight Invesco S&P 500
The exchange-traded fund (RSP), which weights each stock in the index equally and therefore shows the movement of the average stock, gained 0.7%.
Abroad, in London
jumped 1.7% as UK traders began their first session of 2022 after a bank holiday Monday. In Tokyo, the
outperformed its Asian peers with an increase of 1.8%.
that of Hong Kong
index barely finished on the flat top and the
âThe declines in China came amid the further expansion of lockdowns, with the city of Zhengzhou (the capital of Henan province) starting a partial lockdown,â said Jim Reid, strategist at Deutsche Bank.
In addition to pressures from Covid-19, the Chinese central bank has decided to drain liquidity. The People’s Bank of China slashed its short-term cash injections on Tuesday, leading to the largest cash drain since October, Bloomberg reported.
West Texas Intermediate crude futures gained 1.9% to over $ 77 a barrel, even after OPEC said it would increase production as the global economic recovery remains on track.
Here are six actions in motion on Tuesday:
After briefly hitting a market cap of $ 3 trillion on Monday – the first public company in the world to achieve that market value –
Apple (ticker: AAPL) was down 0.1% on Tuesday.
Carnival Corp. (CCL) rose 2.6% after jumping 6.4% on Monday. Inventories of cruise ships have generally increased despite Omicron’s impact on their operations, including an increase in cases among passengers in their fleets.
Although he has agreed to delay the rollout of a new 5G service for two weeks due to aviation safety concerns,
AT&T (T) and
Verizon Equities (VZ) held up well, rising 0.9% and 0.7%, respectively.
SunPower (SPWR) stock rose 1.7% after being upgraded to Outperform from Market Perform at Raymond James.
Under protection The stock (UAA) gained 0.8% after being upgraded to Outperform Neutral at Baird.