Stocks Climb as Santa Brings Upbeat Economic Data

December 25, 2013

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Stocks continued their routine of reaching new record highs after Tuesday’s economic reports beat expectations.

Stocks climbed higher on Tuesday as Santa brought more upbeat economic news. The Commerce Department’s Census Bureau reported that Stocks, ETF, Daily Market Wrap, SPX, SPX Chart, NYSEARCA:DIA, NYSEARCA:SPY, NASDAQ:QQQ, NYSEARCA:IWM, NYSEARCA:USO New Home Sales in November were at a seasonally-adjusted annual rate (SAAR) of 464,000. Economists were expecting a SAAR of 450,000. Although the number represented a decline from October’s SAAR of 474,000, the November reading is slightly more than 16 percent above the November 2012 SAAR of 398,000.

The Census Bureau also reported the new orders for durable goods increased 3.5 percent during November to $241.6 billion. Economists were expecting a less-significant. 2.0 percent advance. So-called “core capital goods” which exclude defense spending and aircraft purchases, rose 4.5 percent, for the most significant advance since January. Core capital goods expenditures are seen as a forward-looking economic indicator, which signal whether businesses plan to expand in the near future.

The Dow Jones Industrial Average (NYSEARCA:DIA) picked up 62 points to finish Tuesday’s trading session at a new, record-high close of 16,357.55 for a 0.39 percent advance, after hitting a record intraday high of 16,360.60. The S&P 500 (NYSEARCA:SPY) climbed 0.29 percent to close at an all-time high of 1,833.32.

The Nasdaq 100 (NASDAQ:QQQ) advanced 0.10 percent to finish at 3,572. The Russell 2000 (NYSEARCA:IWM) climbed 0.40 percent to end the day with a record-high close at 1,161.80.

In other major markets, oil (NYSEARCA:USO) advanced 0.37 percent to close at $35.49.

On London’s ICE Futures Europe Exchange, February futures for Brent crude oil advanced 44 cents (0.39 percent) to $112.00/bbl. (NYSEARCA:BNO).

February gold futures advanced $7.40 (0.62 percent) to $1,204.40 per ounce (NYSEARCA:GLD).

Transports had to dodge Santa’s sleigh as they continued to fly higher on Tuesday, while the Dow Jones Transportation Average (NYSEARCA:IYT) climbed 0.36 percent.

In Japan, the exchange rate for the yen continued to be the dominant factor in stock market activity. Japanese stocks advanced as the yen weakened to 104.22 per dollar. A weaker yen causes Japanese exports to be more competitively priced in foreign markets (NYSEARCA:FXY). The Nikkei 225 Stock Average advanced 0.10 percent to 15,889 (NYSEARCA:EWJ).

Stocks continued to regain strength in mainland China after the People’s Bank of China injected 29 billion yuan into the system by way of short-term liquidity operations, The Shanghai Composite Index advanced 0.20 percent to 2,092 (NYSEARCA:FXI). Hong Kong’s Hang Seng Index jumped 1.10 percent to end the day at 23,179 (NYSEARCA:EWH).

In Europe, stocks managed to continue their advance for a fifth consecutive session (which was shortened for Christmas Eve) despite disappointing news from INSEE that French GDP contracted by 0.1 percent during the third quarter after a strong second quarter, which brought 0.6 percent expansion. INSEE is the French National Institute of Statistics and Economic Studies.

The Euro STOXX 50 Index finished Tuesday’s session with a 0.06 percent advance to 3,072 – climbing further above its 50-day moving average of 3,029. Its Relative Strength Index is 60.05 (NYSEARCA:FEZ).

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