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By Brian
Hershberg | Wednesday, December 23 Bah
Humbug. U.S. stocks ended
mixed today as investors largely shrugged off President Donald Trump's hints
that he might not sign the $900 billion-plus coronavirus stimulus package if
Congress didn't make a number of last-minute changes. The Dow
Jones Industrial Average ended the day up 0.4%, the S&P
500 inched up 0.1%, and the small-cap Russell
2000 rose 0.9% in notching its 13th
record close of the year. The Nasdaq
Composite, however, lost
0.3%. While Trump
in a tweeted video urged Congress to bump up the "ridiculously
low $600" payments to Americans and demanded the removal of
"wasteful and unnecessary items," investors appeared to be looking
ahead to the Christmas break and the end of 2020. U.S. stock markets close at
1 p.m. Eastern time tomorrow and are closed Friday. On the
economic front, jobless
claims retreated after hitting a three-month high the week prior
and durable
goods orders climbed more than expected, but U.S. household
spending fell in November for the first time since April as incomes also
fell. It's that
household spending and income data that is of particular concern looking
forward. Both had rebounded considerably since the pandemic depths in March
and April, underpinning the consumer-driven recovery, and their joint turn
lower in November is cause for pause. "A
rapidly worsening health situation, weakening income, depleted savings for
lower income families, and cooler weather led consumers to slam their wallets
shut in November," wrote Gregory
Daco, chief U.S. economist at Oxford
Economics. "Personal income
and spending fell for the first time in this recovery cycle, and real time
data points to ongoing weakness in December." The
coronavirus relief bill should help -- all the more so if Trump gets his wish
and payments are increased to $2,000 for individuals and $4,000 for couples.
But Daco warns that aid can't come soon enough: "Without it, consumer
spending growth could flirt with zero in Q1." And that
wouldn't make for a very happy new year. |
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DJIA: +0.38% to 30,129.83 The Hot
Stock: Diamondback
Energy +8.5% Best Sector:
Energy +2.2% |
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