By Markus Heitkoetter
Is there such thing as a Santa Claus Rally?
After last week’s slide, it looked like a Santa Claus Rally of any significance would be hard to come by. But 3 consecutive winning days later, stocks are up nicely during a short trading week.
In just 3 trading sessions the S&P has rallied almost 3%. But more importantly, today’s move put the S&P back into positive territory for the year.
Here’s where the indices wrapped up the day:
The S&P closed 1.2% higher. Up 25 points, the S&P ended at 2064.29.
The DOW finished with a 1.1% gain. Adding 185 points, the DOW closed at 17602.61.
The NASDAQ was up 0.9%. With a 45 point gain, the NASDAQ ended at 5045.93.
Crude Oil (CL) had a great day after finishing 3.8% higher. Today’s move was fueled by a big drop in U.S. oil inventories (down 5.9 million barrels vs. the 1.4 million increase that were expected). The rally is a nice change of pace, but we still have a way to go call this downtrend officially over.
So where do we stand for the year?
The NASDAQ continues to outperform the major indices with a 6.5% YTD gain. The S&P is now up 0.3% YTD after today. The DOW might still be down 1.2%, but the DOW is just 222 points away from positive territory. With a 257 point Average Daily Range (ADR), a 222 point move is definitely within reach.
Looking at the rest of the week we have Unemployment Claims scheduled for tomorrow at 8:30am ET. But not a whole lot is expected from the markets since major exchanges will be closing early tomorrow for the holiday. Markets will remain closed on Friday in observance of Christmas.
We want to let our loyal readers know that our next newsletter will be sent out on Sunday.