Stocks fall to near record as trade slows: Markets Wrap

On By Littum

(Bloomberg) — Stocks faltered in a quiet post-holiday session, with mixed jobless claims data not changing bets on the Federal Reserve’s interest rate outlook.

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The S&P 500 came off session lows but struggled to gain much traction after its best Christmas Eve performance since 1974, according to data compiled by Bespoke Investment Group. With the major European markets closed, trading volume was light. Bitcoin dipped as traders reduced their risk exposure after a record run.

Recurrent applications for US jobless benefits rose to the highest in more than three years, adding to signs that it is taking longer for the unemployed to find a job. Initial claims, meanwhile, rose to 219,000 in the week ending December 21.

“Hiring claims have too much noise to trigger a move,” said Andrew Brenner at NatAlliance Securities. “Direction for now in bonds is lower and steeper, but that can change on a dime. As for the Fed outlook, they believe they have convinced the markets that the recalibration phase is over. And that the number of rate cuts next year will be minimal .”

The S&P 500 was little changed. The Nasdaq 100 fluctuated. The Dow Jones Industrial Average rose 0.1 percent. Most megacaps retreated, although Apple Inc. outperformed after a bullish note from Wedbush. GameStop Corp. rallied after an X post from Keith Gill, the online persona known as Roaring Kitty.

The yield on 10-year government bonds rose two basis points to 4.61%. The Bloomberg Dollar Spot Index rose 0.1 percent.

Company highlights:

  • 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.

  • Progressive Corp. was upgraded to outperform at Raymond James, which wrote the company’s “long-term track record of growth and value creation makes it a core holding for large capital growth investors.”

Key events this week:

  • Japan Tokyo CPI, Unemployment, Industrial Production, Retail Sales, Friday

  • US Merchandise, Friday

Some of the most important movements in markets:

Shares

  • The S&P 500 was little changed from 11:48 New York time

  • The Nasdaq 100 was little changed

  • The Dow Jones Industrial Average rose 0.1 percent.

  • The MSCI World Index was little changed

Currencies

  • The Bloomberg Dollar Spot index rose 0.1 percent.

  • The euro was little changed at $1.0415

  • The British pound fell 0.4% to $1.2512

  • The Japanese yen fell 0.5% to 158.06 per dollar

Cryptocurrencies

  • Bitcoin fell 2.2% to $96,270.57

  • Ether fell 3.3% to $3,350.77