It’s another short trading week – Here’s what traders are focusing on right now…

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Stock Market Update Sunday, December 29th, 2019

Will the Santa Claus rally continue?

With stocks rallying to record levels during the short holiday week, the Santa Claus rally is off to a great start!

On Monday, stocks finished higher. Then on Tuesday, stocks were mixed as exchanges closed early ahead of the Christmas holiday.

Then markets were closed on Wednesday for Christmas.

But it was business as usual on Thursday, with stocks rallying to new records. 

On Friday, stocks made new record highs again, but finished the day mixed.

With a small loss on Friday, the NASDAQ managed to stay above the 9,000 mark, but closed with a loss for the first time in 12 trading sessions.

But it was a great week overall, with stocks finishing higher for the 5th week in a row.

Here’s what traders are focused on:

  • Santa – Traders are keeping a close eye on Santa this year. A “Santa Claus Rally” is typically considered a bullish move during the last 5 days of the year and first 2 trading days of the New Year. According to the Stock Trader’s Almanac, the S&P has averaged 1.3% during this period going back to 1950. And so far the rally is looking pretty good!
  • Sales – Holiday sales were strong this year. And e-commerce sales hit record numbers, up 18.8% this holiday season. The news helped drive Thursday’s push to new record highs. 

Here’s where the major indices ended the week:

  • The S&P finished with a 0.6% gain. Up 19 points, the S&P ended at 3,240.
  • The DOW ended higher by 0.7%. Adding 190 points, the DOW closed at 28,645.
  • The NASDAQ was up 0.9%. With an 82 point gain, the NASDAQ finished at 9,007.

Crude Oil (CL) finished higher every day last week. Up 2.1%, CL ended the day at $61.69. 

Amazon (AMZN) was up nicely after record-breaking holiday sales news.

The company’s one-day and same-day delivery purchases quadrupled versus the previous year. And in just 1 week there were 5 million new Prime customers (or trials) worldwide. The stock finished the week higher by 4.6% and even topped 1,900 on Friday before pulling back to end the day slightly positive.

Gold (GC) was a big mover last week. The shiny metal was up 2.5% with its biggest weekly move since August. Silver (SI) was also up nicely with a 4.2% weekly gain.

Remember Nio Inc. (NIO)? The Chinese car company that was rumored to be the next Tesla?

Well while Tesla has been making record highs NIO has lost more than 75% of its value since March. Its drop started to accelerate after falling below the $5 mark (as a rule we don’t like to trade stocks below $5). The stock lost another 10% last week and will report earnings on Monday.

This upcoming week is another short holiday trading week. U.S. exchanges are closed Wednesday for New Year’s Day.

Here is the economic calendar for the week:

Real Time Economic Calendar provided by Investing.com.

This Stock Market Update was provided by Rockwell Trading Services LLC.


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