DOW above 29,000 for the first time ever!

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Stock Market Update Sunday, January 12th, 2020

Stocks cruised to record highs this week. But a week ago, it didn’t look like this would be the case.

Heading into the open on Monday, traders were worried about tensions in the Middle East. And how Iran might retaliate in response to the Iranian general that was targeted and killed by a U.S. drone strike.

But after a rough open on Monday, stocks finished the day in positive territory.

Tuesday with rather quiet, and stocks ended with a small loss.

On Wednesday, there was a lot of movement overnight after Iran fired missiles at targets housing U.S. troops in Iraq. But stocks rallied after President Trump addressed the nation saying there were no U.S. casualties and Iran appeared to be “standing down.”

Stocks were on the move again on Thursday. And the S&P, DOW, and NASDAQ all finished the day with new records.

On Friday, stocks opened at record highs and the DOW pushed past 29,000 for the first time ever. But after a strong start, stocks retreated.

Although the major indices suffered a loss on Friday, it was a another record breaking week, and stocks finished the week with gains.

Here’s what traders were focused on:

  • U.S. and Iran – The world has been watching ever since the U.S. killed Iranian General Qasem Soleimani in Iraq with a drone strike. But aside from some volatility in Crude Oil, traders have mostly shrugged off the tensions in the Middle East. Since the airstrike, the major indices have rallied to record highs and Crude Oil is actually down 3.4%.
  • Jobs – The closely watched Jobs Report was released on Friday. And it was underwhelming. The report showed that 145,000 Non-Farm Jobs were added in December (vs. a 162,000 forecast), Average Hourly Earnings increased by just 0.1% (vs. a 0.3% forecast) and the Unemployment Rate stayed the same at 3.5%.

Here’s where the major indices ended the week:

  • The S&P finished with a 0.9% gain. Up 31 points, the S&P ended at 3,265.
  • The DOW ended higher by 0.7%. Up 189 points, the DOW closed at 28,824.
  • The NASDAQ was up 1.7%. With a 154 point gain, the NASDAQ finished at 9,179.

Crude Oil (CL) had a wild week. After starting the week near the $64 mark, Crude Oil plunged and finished with its biggest weekly drop since July. Down 6.2%, CL ended the week at $59.06 a barrel.

Boeing (BA) led the DOW lower on Friday with a 1.5% loss. The drop was tied to employee emails and text messages that questioned the safety of their 737 Max planes.

Of course tragic nonetheless, Boeing might have caught a small break over the weekend when Iran admitted to “unintentionally” shooting down the Ukrainian 737-800 airliner that crashed in Iran. The original explanation for the crash was “mechanical failure” on take-off.

This week the Phase One trade deal between the U.S. and China will be in the spotlight. A Chinese delegation should arrive in Washington on Monday. The two countries are expected to sign the deal on January 15th.

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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