12 DEC 2024 Market Close & Major Financial Headlines: The Dow Has Trended Lower For The Past 6 Sessions Closing In The Red Today Along With The Nasdaq And The S&P 500
Summary Of the Markets Today:
- The Dow closed down 234 points or 0.53%,
- Nasdaq closed down 132 points or 0.66%,
- S&P 500 closed down 33 points or 0.54%,
- Gold $2,705 down $52.50 or 1.89%,
- WTI crude oil settled at $70 down $0.14 or 0.020,
- 10-year U.S. Treasury 4.332 up 0.061 points or 1.475%,
- USD index $107.03 up $0.32 or 0.30%,
- Bitcoin $100,036 down $1,250 or 1.25%, (24 Hours),
*Stock data, cryptocurrency, and commodity prices at the market closing
Today’s Highlights
President-elect Donald Trump rang the opening bell at the New York Stock Exchange on Thursday, but the event failed to spark a continuation of the recent market rally that followed his election victory. Instead, Wall Street experienced a downturn as investors grappled with new inflation data and its potential impact on future interest rate decisions. The major stock indices closed lower Apple (AAPL) was a notable exception, with its shares rallying slightly to close at a record high. The 10-year Treasury yield (^TNX) increased by 5 basis points, reaching 4.32%, its highest closing level since November 22. Producer Price Index (PPI) showed a 0.4% increase from the previous month, higher than the expected 0.2%. The conflicting inflation data has created uncertainty regarding the Federal Reserve’s next moves. The hotter PPI data has put focus on the chances of the Fed holding rates steady in January but the market pundits believe there will be a ¼ point reduction in December. Adobe (ADBE) shares fell nearly 14% following a downbeat revenue forecast, highlighting challenges in monetizing AI investments. Labor Market Weekly jobless claims rose to 242,000, above expectations of 220,000. However, economists caution against drawing conclusions from a single data point, especially during the volatile holiday season.
Click here to read our current Economic Forecast – December 2024 Economic Forecast: Insignificant Improvement And Still Indicating a Weak Economy
Today’s Economic Releases Compiled by Steven Hansen, Publisher:
The Producer Price Index for final demand rose from 2.6% to 3.0% for the 12 months ended in November, the largest rise since moving up 4.7% for the 12 months ended February 2023. The Producer Price Index (PPI) is a family of indexes that measures the average change over time in selling prices received by domestic producers of goods and services. It tracks inflation from the perspective of sellers and producers, rather than consumers. The PPI less food and energy advanced from 3.4% to 3.5% year-over-year. The services component of the PPI rose from 3.8% to 3.9% year-over-year whilst the goods component rose from 0.2% to 1.1% year-over-year. Like a broken record, I continue to advise inflation is far from under control.
In the week ending December 7, the advance figure for seasonally adjusted initial unemployment claims 4-week moving average was 224,250, an increase of 5,750 from the previous week’s revised average. The previous week’s average was revised up by 250 from 218,250 to 218,500. It’s important to note that despite this increase, the number of claims remains relatively low by historical standards. However, here is my speculation of what this rise could be indicative of:
- The timing of the rise, occurring around the end-of-year holidays, suggests that seasonal volatility may have played a role. Claims data is often unpredictable during this period. Some experts attribute the jump to seasonal fluctuations related to the timing of Thanksgiving.
- The increase in jobless claims could be indicative of a broader trend of a cooling labor market such as: Employers have been pulling back on job openings in recent months; and Hiring has slowed as businesses grapple with high borrowing costs due to elevated interest rates; This rise in claims might be one of several indicators pointing towards a job market slowdown.
- While the labor market has remained relatively robust despite rising interest rates, recent data suggests some weakening caused by the Federal Reserve’s interest rate hikes aimed at tackling inflation may be having a delayed impact on employment. Businesses might be adjusting their workforce in response to economic uncertainties and high borrowing costs.
Here is a summary of headlines we are reading today:
- Policy Shifts and Supply Chain Disruptions Drive Copper Bull Run
- Cracks Emerge in NATO Alliance as Ukraine’s Fate Hangs in the Balance
- European Energy Majors Shift Back to Oil and Gas
- China’s Drone Restrictions Deal Blow to Ukraine’s War Effort
- US Solar Industry’s Pitch to Trump Plays on President-Elect’s Key Pledges
- Dow falls more than 200 points after warm inflation report, Nasdaq retreats from record: Live updates
- Warner Bros. Discovery shares surge 15% after company announces linear, streaming restructuring
- Charts signal that an Nvidia breakdown could be imminent
- Trump reaffirms crypto commitment at New York Stock Exchange visit: CNBC Crypto World
- Gen Z to the rescue? How malls are winning over a generation of in-person shoppers
- Understanding The Anger Over Healthcare In One Picture
- “Moderate Jihad”: Syrians ‘Excited’ Over Public Executions
- Satellite Footage Reveals Iranian “Mothership” Drone Carriers Exist, Just Not Near New Jersey
10-year Treasury yield ends at nearly 3-week high after hotter-than-expected producer prices
Click on the “Read More” below to access these, other headlines, and the associated news summaries moving the markets today.