Market Perspective for December 27, 2019

The Santa Claus rally did not disappoint, lifting stocks to new all-time highs. The Nasdaq closed above the 9000 level for the first time in history. It was also the best performing major index on the week, gaining 0.95 percent. The Dow Jones Industrial Average increased 0.68 percent and the S&P 500 Index 0.60 percent.

Consumer discretionary was the best performing sector this week propelled by the 4.63 percent return from Amazon (AMZN). SPDR Consumer Discretionary (XLY) gained 1.22percent. SPDR Technology (XLK) rose 1.11 percent.

November new home sales hit an annualized pace of 719,000, up from 710,000 in October. Still, iShares U.S. Home Construction (ITB) slipped 0.67 percent.

The U.S. Dollar Index declined 0.64 percent on the week. The weaker dollar helped iShares MSCI Emerging Markets (EEM) rally 1.08 percent and iShares MSCI EAFE (EFA) 0.69 percent. iShares MSCI United Kingdom (EWU) extended its post-election run with an increase of 1.43 percent. iShares China Large-Cap (FXI) added to its post-trade deal advance with a return of 1.37 percent.

Commodities continued their winning ways in the wake of the recent trade deal and strong economic data. Global X Copper Miners (COPX) climbed 2.54 percent, Global X Silver Miners (SIL) 8.18 percent, VanEck Gold Miners (GDX) 7.09 percent, SPDR S&P Oil & Gas Equipment & Services (XES) 2.40 percent and VanEck Agribusiness (MOO) 1.01 percent.

The 10-year Treasury yield fell to 1.87 percent this week. The dip in yields boosted bonds across the board. Fidelity Corporate Bond (FCOR) climbed 0.35 percent, iShares iBoxx High Yield Corporate Bond (HYG) 0.26 percent and Invesco Senior Loan (BKLN) 0.03 percent.

 

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