U.S. equities are quiet ahead of the next to last trading day of the year. Stock indices remain at or near all-time highs and the ‘Santa Rally’ looks to continue at least through today. Volume is expected to remain light, as it has been for the past week due to the holidays. The CBOE Volatility Index (VIX) broke below the $12 level on Thursday before rebounding as stocks fell into the close on Friday. Consumer confidence is rising as economic conditions improve but the market still feels frothy to many market-watchers. We should see volatility remain at low levels at least through the New Year. The next catalyst for stocks should be the upcoming earnings season, which begins in mid-January. Treasuries are slightly higher this morning with the 10-year yield holding close to the 3.0% level amid thin volume and few catalysts. Rising yields have had no negative effect on U.S. equities as many had predicted. Global bonds were mixed overnight in quiet trading, as were equities. Japan's Nikkei closed out 2013 on a positive note (the markets will be closed for the rest of the week) with a 0.7% gain to leave the index up nearly 57% year over year. U.K. and European markets paid little attention to another strong housing price report. In the U.S., today's calendar is light with just pending home sales for November and the Dallas Fed's manufacturing index for December. Volumes should remain light today but many investors may need to adjust their portfolios heading into the end of the year tomorrow.
Stock Stories: United Parcel Service, FedEx (UPS, FDX) – Still delivering – The two delivery giants shake off the recent snafu causing delayed delivery of items before the Christmas holiday. The stocks of both companies remain at all-time highs but the issues could bring increased competition. JP Morgan Chase (JPM) –Well Connected – The banking giant’s employment practices in China get more press recently as it ramped up its ‘sons and daughters’ hiring program in 2009. More details surfaced about the company losing deals to other banks due to the hiring of Chinese officials relatives and friends. The shares are relatively flat ahead of the opening bell but are up 32% in 2013.
Major Economic Reports: 9:00 am CT – Pending Home Sales
9:30 pm CT – Dallas Fed Mfg. Survey |
发表于 2013-12-30 10:27
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