Stocks Extend Winning Streak – Monday Morning Market Memo – December 30, 2019

Good morning,

The stock market kept its winning streak going last week. The Dow Jones Industrial Average rose .67%, the NASDAQ Composite added .91%, and the Standard & Poor’s 500 Index gained .58%, its fifth consecutive weekly gain. The indices all hit record highs last week, with the S&P closing at all-time high of 3,240. The major stock market averages are enjoying their best year since 2013, and depending on how the next couple days go, it may be the best year since 1997. During the year, the market overcame things such as an inverted yield curve, an “earnings recession”, and various trade conflicts.

The market is being lifted by big picture items including low interest rates, a strong US consumer, an easing of those global trade tensions, and positive market momentum. To some specific micro news last week, market optimism was supported by reports of strong retail sales over the holidays, along with a healthy report on Chinese Industrial production. This gave hope to some investors that the slowdown in China, which is the world’s second biggest economy, will not be as bad as originally thought.

We have another holiday-shortened week ahead, as the markets are closed Wednesday in observance of New Year’s Day. Unlike last week however, there is no shortage of economic data. The week gets going with reports including the Chicago PMI, Pending Home Sales, S&P/Case-Shiller Home Price Index, and Consumer Confidence. We will then start the New Year and close the week with a batch of data including Initial Claims on unemployment, ISM Manufacturing Index, and Construction Spending. The totality of these reports will likely set the tone for how the market views the state of the economy as we kick of 2020.

As always, don’t hesitate to contact us with any questions you have or if you would like to set up a meeting with us. We wish you a Happy, Healthy, and Prosperous New Year!

All the best – Southport Station Financial Management, LLC