(As of 7:10 am PST)
The trading day is off to a good start with US
stocks heading toward a third positive session in a row. The Santa Claus rally
that we have been talking about may be getting the momentum it needs to end the
year on a strong note. It’s a busy economic news day and the data already out
this morning is mixed. On the positive side, consumer spending rose .3% in
November, as expected, while orders for durable goods were flat following a
2.9% increase in October. These numbers would have been negative if the defense
spending numbers were extracted. Personal incomes continued a steady increase
with a .3% growth in November. A report on new home sales showed sales
increased by 4.3% in November, slightly below expectations but the highest gain
in three months. Lastly, consumer sentiment rose to 92.6 in December from 91.8
last month, better than analysts predicted. In corporate news, Nike is making
headlines and helping to strengthen the Dow’s move higher as the sportswear retailer
reported a rise in revenue and profit late Tuesday. The news around the world
was generally upbeat with most European markets ending their trading day in
positive territory. Oil has been the big market mover the past couple of weeks
and it has made a move upward following a report from the American Petroleum
Institute that there was a drawdown on oil supplies. Most of the news today
points toward the possibility that Santa Claus may show up after all.
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