U.S. stocks closed mixed on Tuesday as only the Nasdaq managed to post a record-high close in what ended up a subdued trading session on Christmas Eve (in sharp contrast to a year ago today).
Equity markets finished trading for Tuesday’s session at 1 p.m. Eastern time, while the bond market is set to finish an hour later, at 2 p.m., with many global markets closed on Wednesday.
How are benchmarks performing?
The Dow Jones Industrial Average DJIA, -0.13% retreated 36 points, or 0.1%, to end at around 28,515.45. The S&P 500 SPX, -0.02% shed 1 point to finish around 3,223.38. The Nasdaq Composite index COMP, +0.08% rose 7 points, or 0.1%, to end at 8,952.88 — its ninth consecutive record close.
The Nasdaq Composite had also hit a fresh intraday record on Tuesday morning. The S&P 500 and Dow snapped three-day winning streaks.
On Monday, the Dow rose 96 points, or 0.3%, at 28,551.53 to book its third consecutive record finish, with gains from Boeing Co. delivering the biggest fillip to the index. The S&P 500 index advanced 3 points, or 0.1%, at 3,224.01, booking its third straight record close. The Nasdaq Composite Index climbed 21 points, or 0.2%, at 8,945.65, recording its ninth uninterrupted record close, its longest such streak since 1998.
What’s driving the market?
Reflecting progress toward a January trade agreement between the U.S. and China, Beijing said Monday that it would cut tariffs on some 850 products and markets remained hopeful a deal will be signed in January. President Donald Trump said he and China’s leader, Xi Jinping, would hold a signing ceremony for the so-called Phase 1 deal when they met.
But a potential holiday flashpoint for markets could be North Korea’s promise earlier this month to deliver a “Christmas gift” unless Washington abides by an end-of-year deadline set by Pyongyang for concessions in exchange for a possible deal to curb its nuclear-weapons program.
Trump is working to persuade North Korea to return to denuclearization talks, but North Korea’s Kim Jong Un has shown few signs of willingness to return to the negotiating table, according to Politico.
However, China, Japan and South Korea have agreed to work together to promote dialogue between the United States and North Korea, South Korean President Moon Jae-in said on Tuesday following a summit among the three countries in China, according to Reuters.
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Boeing remained in the spotlight for investors after the resignation of Dennis Muilenburg as CEO and president on Monday on the heels of 737 Maz jetliner grounding earlier this year.
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“Markets officially entered [the] holiday as trading volumes remain very thin and as Wall Street prepares to take the rest of the week off,” wrote Edward Moya, senior market analyst at Oanda, in a Tuesday research note.
Which stocks are in focus?
Shares of Boeing BA, -1.35% were down 1.2% Tuesday after the aviation and defense contractor tapped Chairman David Calhoun as its chief executive and president, replacing Dennis Muilenburg, who has resigned.
Uber Inc. shares UBER, +0.36% rose 0.8% after co-founder and former CEO Travis Kalanick announced he would leave the ride-hailing company’s board effective Dec. 31.
How did other markets trade?
The yield on the 10-year U.S. Treasury note TMUBMUSD10Y, -1.40% fell 2 basis points to 1.91% after a well-received auction for government paper in the morning.
In commodities, West Texas Intermediate Crude for February delivery CLG20, +1.02% gained 48 cents, or 0.8%, to $61.00 a barrel on the New York Mercantile Exchange. Gold prices GCG20, +1.05% also rose, with the price of an ounce of gold rising $15.20, or 1%, to trade at $1,503.90.
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The U.S. dollar edged higher relative to a basket of its rivals, with the ICE Dollar index DXY, -0.02% , a measure of the buck against six rival currencies, up less than 0.1%.
In Asia overnight, stocks finished higher; the China CSI 300 000300, -0.05% closed 0.7% higher, and Japan’s Nikkei 225 NIK, -0.20% gained less than 0.1% as Hong Kong’s Hang Seng index HSI, -0.15% retreated by 0.2%.
European stocks moved up on Monday, with the Stoxx Europe 600 SXXP, +0.14% closed up 0.1% to 418.86, a new record. The U.K.’s FTSE 100 UKX, +0.11% also gained 0.1% to mark 10 straight gains, its longest such streak since July 27, 2009.
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