No News Is Great News: All-Time Highs on Slow Data Week

Zacks

Friday, December 27, 2019

To say the market at the end of calendar 2019 is sailing into the new year would be something of an understatement. We’re not only seeing indexes remaining buoyant on positive sentiment, we’re seeing new all-time highs on a daily basis, at least on the Nasdaq. The tech heavy index is currently riding a 10-day winning streak, and hurtling past 9000 for the first time ever.

The Dow and S&P 500 are also in the green in today’s pre-market, looking to set new all-time highs themselves. Accommodative Fed policy keeping interest rates low, optimism on the pending U.S.-China trade deal, or at least a “phase one” agreement, and better-than-expected jobs numbers in the monthly surveys are signaling that the sky remains the limit.

What economic data we have seen this week — including Durable Goods, Capex Orders and New Home Sales — have generally been weaker than expected, but these are minor in the face of these “big picture” issues aforementioned. And with no new data this morning, on Tuesday (Christmas Eve) or Wednesday (Christmas Day), the lack of headwinds are apparently no match for trader positivity.

Next week, even though it too will be holiday-shortened with the observance of New Year’s Day closing trading doors on Wednesday (New Year’s Eve will be a full day for market participants), will bring us some important new data, including Advance Trade in Goods and Pending Home Sales for November, the Case-Shiller Home Price Index from October and Consumer Confidence in December — key as it falls within holiday shopping season. Both big Manufacturing surveys — PMI and ISM, also for December — are also expected next week.

Until then, we will continue to enjoy the ride. Nothing looks to threaten the bounce in our step this Friday.

Mark Vickery
Senior Editor

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