Market Momentum Stalls as Jobless Claims Data Fails to Impress
The post-holiday trading session was marked by a lack of direction, as mixed jobless claims data did little to alter market expectations of the Federal Reserve’s rate outlook. The S&P 500, which had enjoyed its best Christmas Eve performance since 1974, snapped a three-day winning streak, falling 0.3%.
Treasuries and Bitcoin Take a Hit
Ahead of a $44 billion seven-year note sale, Treasuries dropped, while Bitcoin sank 2.8% to $95,652.92, despite MicroStrategy Inc.’s plans to issue more shares. The yield on 10-year Treasuries advanced four basis points to 4.63%.
Jobless Claims Data Paints a Mixed Picture
Recurring applications for US unemployment benefits rose to the highest level in over three years, suggesting it’s taking longer for out-of-work individuals to find employment. However, initial claims ticked down to 219,000 in the week ended Dec. 21. According to Andrew Brenner at NatAlliance Securities, “Employment claims has too much noise to spark a move.”
Corporate News and Upgrades
Alibaba Group Holding Ltd. agreed to merge its South Korean operations with E-Mart Inc.’s e-commerce platform to better compete in the country’s fast-paced online retail sector. Apple Inc.’s price target was raised to a Street-high of $325 from $300 at Wedbush, citing the company’s “multi-year AI-driven iPhone upgrade cycle.” Progressive Corp. was upgraded to outperform from market perform at Raymond James, citing the company’s “long-term record of growth and value creation.”
Key Events This Week
Investors will be keeping a close eye on key economic indicators, including Japan’s Tokyo CPI, unemployment, industrial production, and retail sales, as well as the US goods trade data, all due out on Friday.
Market Snapshot
- The Nasdaq 100 fell 0.3%, while the Dow Jones Industrial Average slipped 0.3%.
- The MSCI World Index fell 0.2%.
- The Bloomberg Dollar Spot Index rose 0.1%.
- The euro was little changed at $1.0398, while the British pound fell 0.4% to $1.2516.
- The Japanese yen fell 0.3% to 157.86 per dollar.
- Ether fell 3.2% to $3,354.78.
- Germany’s 10-year yield was unchanged at 2.32%, while Britain’s 10-year yield was unchanged at 4.58%.
- West Texas Intermediate crude rose 0.8% to $70.63 a barrel.
- Spot gold rose 0.3% to $2,625.52 an ounce.
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