Buzz on Business for Friday, December 29^th, 2023

Stocks opened higher on Thursday, traded in a narrow range for most of the day, and sold off into the close, to finish mixed on low volume. Another boring day for all of us here at the Ministry of Truth.

Stock Market Report

We know we have the best job on Earth. We know we shouldn’t complain. But some days, we find ourselves banging on the Giant Quote Machine, begging for something—anything—to happen.

• The Dow Jones Industrial gained 54 points, a minuscule one-tenth of a percent—and it was the big mover of the day. It closed at 37,710.
• The S+P 500 gained two points; you heard me right, two points. It closed at 4,783
• The Nasdaq Composite lost four points and closed at 15,095
• Even the XRT, often a source for some measure of drama but not on Thursday, was down a penny and closed at $73.11  

Bond Markets

Bonds were down—rates were up across the board yesterday.

• The two-year Treasury closed with a yield of 4.279%, that’s up almost four basis points.
• The yield on the twenty-year was up five ticks and closed at 4.15%

Oil and Gold

Crude oil inventories came in well below expectations yesterday. That’s indicative of tight supply or heightened demand, and we expected crude to rally on the numbers, and we were wrong.

• Oil was off $1.84 and closed at $71.94
• Gold retraced much of Wednesday’s gain. It closed at $2,075.90, off $17.10 a troy ounce.

Traders Ignore the News We Got!

The paucity of news continued on Thursday. We did get the Initial Claims for Unemployment, and they did come in above expectations, but the market still seems to be in that place where bad news is good news, lest the economy and the Fed be perceived as overheating. The market shrugged it off. We suspect most of Wall Street has one eye on the ticker tape and one eye on the exit for the holiday weekend.

The New Year Begins With Some Important Data

We do get some interesting news next week that might shake things up.

• The Manufacturing Purchasing Managers’ Index comes out on Tuesday
• As does the Atlanta Fed’s GDP Now.
• Labor Market numbers, including the JOLTS report toward the end of the week.
• Plus, New Year’s Eve marks the end of the fourth quarter, so Earnings Season can’t be far behind!

Ah, so Thursday's market was the financial equivalent of watching paint dry, huh? Don't despair, fellow investors, next week's data dump promises enough twists and turns to leave even the most seasoned trader reaching for their Dramamine. So, lace up your comfy shoes, grab a steaming mug of something festive, and settle in for a week of market fireworks. Remember, even the snooze-fests pave the way for the spectacular, and who knows, maybe that tiny two-point gain in the S&P was a sly wink from the market, foreshadowing a January full of surprises. Stay tuned, stay curious, and most importantly, stay invested in the wild ride that is the financial world. Cheers to a prosperous New Year, everyone!