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Wall Street ends week on high note
20-Dec-19 16:10 ET
Dow +78.13 at 28455.00, Nasdaq +37.74 at 8924.97, S&P +15.85 at 3221.22

https://www.briefing.com/stock-market-update

[BRIEFING.COM] The S&P 500 rose 0.5% on this quadruple-witching expiration Friday in another record-setting advance. The Dow Jones Industrial Average (+0.3%) and Nasdaq Composite (+0.4%) also closed at record highs. The Russell 2000 increased 0.3%.

Economic data continued to depict an improving macro environment, with U.S. personal income and spending rising more than expected in November. With few negative developments to alter the market's positive outlook, then, the bullish trend remained intact heading into the holidays. For good measure, President Trump said he had a good talk with President Xi about their trade deal.

All 11 S&P 500 sectors finished higher, led by the energy (+0.9%), utilities (+0.8%), and health care (+0.8%) sectors. The financials (+0.1%) and consumer discretionary (+0.1%) sectors underperformed.

Boeing (BA 328.00, -5.50, -1.7%) continued to struggle amid negative news: United Airlines (UAL 89.28, +0.06, +0.1%) extended its 737 MAX cancellations through June 4, and Boeing's Starliner spacecraft failed a NASA mission.

In pre-holiday earnings news, Nike (NKE 99.96, -1.19, -1.2%) and CarMax (KMX 92.71, -6.08, -6.2%) underwhelmed investors with results, while Carnival (CCL 50.21, +3.56, +7.6%), Blackberry (BB 6.53, +0.72, +12.4%), and Winnebago (WGO 51.91, +3.77, +7.8%) pleased investors.

U.S. Steel (X 11.92, -1.44, -10.8%) didn't report earnings, but it did issue downside quarterly guidance and cut its dividend to $0.01/share from $0.05/share.

U.S. Treasuries finished the session on a lower note, pushing yields modestly higher. The 2-yr yield increased three basis points to 1.63%, and the 10-yr yield increased one basis point to 1.92%. The U.S. Dollar Index advanced 0.3% to 97.70. WTI crude declined 1.5%, or $0.92, to $60.38/bbl.

Reviewing Friday's economic data:

Personal income increased 0.5% m/m in November (Briefing.com consensus 0.3%) following an upwardly revised 0.1% increase (from 0.0%) in October. Personal spending rose 0.4% on the heels of an unrevised 0.3% increase in October. The PCE Price Index increased 0.2%, as expected, and the core PCE Price Index, which excludes food and energy, jumped 0.1% (Briefing.com consensus 0.2%).
The key takeaway from the report is that it continues to present an encouraging backdrop for consumer spending growth, as incomes are rising amidst relatively muted aggregate inflation pressures.
The third estimate for Q3 GDP was right in-line with the second estimate and consensus estimates, with real GDP up 2.1% and the GDP Price Deflator up 1.8%.
The key takeaway from the report, other than that there were no surprises and that the data are extremely dated, is that third quarter growth and inflation were in that market-friendly zone of being neither too hot nor too cold.
The final reading for the University of Michigan Index of Consumer Sentiment was 99.3 (Briefing.com consensus 99.1) versus the preliminary reading of 99.2. The final reading for November was 96.8.
The key takeaway from the report, and something sure to catch the Fed's eye, is that inflation expectations declined. Over the next five years, consumers expect an annual inflation rate of just 2.2%, which is the lowest level since the question was first asked in the survey in the late 1970s.

Looking ahead, investors will receive New Home Sales for November on Monday.

Nasdaq Composite +34.5% YTD
S&P 500 +28.5% YTD
Russell 2000 +24.0% YTD
Dow Jones Industrial Average +22.0% YTD

Market Snapshot
Dow 28455.00 +78.13 (0.28%)
Nasdaq 8924.97 +37.74 (0.42%)
SP 500 3221.22 +15.85 (0.49%)
10-yr Note 0/32 1.921
NYSE Adv 1708 Dec 1174 Vol 2.8 bln
Nasdaq Adv 1811 Dec 1320 Vol 3.5 bln

Industry Watch
Strong: Energy, Utilities, Health Care
Weak: Consumer Discretionary, Financials

Moving the Market

-- Stock market closes at new record highs in broad-based advance

-- Personal income and spending increase more than expected in November

-- Nike (NKE) slips on gross margin miss

-- House passes USMCA deal, British Parliament backs Brexit deal, President Trump says he had good call with President Xi

WTI crude pulls back 1.5%
20-Dec-19 15:25 ET
Dow +121.65 at 28498.52, Nasdaq +38.13 at 8925.36, S&P +18.07 at 3223.44

[BRIEFING.COM] The S&P 500 continues to trade higher by 0.6%, while the Russell 2000 trades higher by 0.3%.

One last look inside the S&P 500 shows a defensive tilt, with the utilities (+1.1%), consumer staples (+1.0%), and health care (+0.9%) sectors outperforming the broader market. Conversely, the financials sector (+0.1%) trails the pack.

WTI crude settled down $0.92 (-1.5%) to $60.38/bbl.