Stocks suffered steep losses to start Christmas week, but a three-day recovery put one of the major benchmarks in record-high territory ahead of the long holiday weekend. (As a reminder, Christmas Eve is a full-day stock market holiday this year.)
Volume was lighter than usual Thursday, with many on Wall Street logging off to start their holiday celebrations early. However, there was still plenty of economic data to mull over for those who did stick around, including the latest reading on inflation.
The personal-consumption expenditures index – also known as the Federal Reserve's preferred price gauge – rose 5.7% year-over-year in November, the fastest pace since 1982. Excluding the volatile food and energy sectors, the index increased 4.7% on an annualized basis, the highest reading in 32 years.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Also seen amid the onslaught of economic data released today was the latest update on consumer spending, which rose 0.6% month-over-month in November, slower than the 1.4% increase seen in October.
The major indexes all notched solid wins, with the S&P 500 Index's 0.6% gain to 4,725 enough for a new record high. The Dow Jones Industrial Average ended the day up 0.6% at 35,950, while the Nasdaq Composite rose 0.9% to 15,653.
Other news in the stock market today:
- The small-cap Russell 2000 jumped 0.9% to 2,241.
- U.S. crude oil futures rose 1.4% to settle at $73.79 per barrel.
- Gold futures gained 0.5% to finish at $1,811.70 an ounce.
- Bitcoin spiked 4% to $50,959.36. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
- Nikola (NKLA) soared 18.0% after the electric-truck maker made a post on Twitter late Wednesday. The tweet included pictures of a customer receiving a Tre battery-electric vehicle, with the caption "Our first customer delivery done, and more to come." NKLA stock has had a rough go of it in 2021, down more than 60% from its late-January record high above $30.
- Crocs (CROX) was a big decliner in today's trading, shedding 11.6%. The footwear maker said it would buy privately held rival Heydude in a cash-and-stock deal valued at $2.5 billion. "Heydude has experienced incredible growth in revenue and profits over the past few years," said Anne Mehlman, chief financial officer at Crocs. "Heydude is expected to be immediately accretive to our high revenue growth, industry-leading operating margins and earnings. We expect the combined business to generate significant free cash flow, enabling us to quickly deleverage while investing to support future growth. We are excited about the combination and are confident in our ability to deliver long-term shareholder value." The acquisiton is expected to close in the first quarter of 2022.
Ho! Ho! Ho!
Are we seeing the start of the Santa Claus rally? The S&P 500 ended the week up 2.3% – and the momentum could just be getting started, if history is any guide.
The "Santa Claus Rally is the final five trading days of the year and first two trading days of the following year," says Ryan Detrick, chief market strategist at LPL Financial. Going back to 1950, the S&P 500 has been higher 78.9% of the time over this seven-day stretch, averaging a 1.3% return, according to Detrick.
Why are these seven days so strong? "Whether optimism over a coming new year, holiday spending, traders on vacation, institutions squaring up their books – or the holiday spirit – the bottom line is that bulls tend to believe in Santa," he adds.
Seasonal tendencies such as these are great for investors looking to make short-term tweaks or aggressive bets, but investors looking for buy-and-hold solutions may want to be more tactical in their approaches. One way to do this is to follow what the so-called "smart money" is doing.
Recently, hedge funds and other billionaire investors like Warren Buffett released information about their latest trades. Read on as we uncover the highest-conviction stock picks smart-money investors made in the third quarter.
-
Get Netflix, Hulu and Apple TV Plus for Free by Joining T-MobileT-Mobile customers save up to $35/month on streaming services thanks to this Netflix, Hulu and Apple TV Plus bundle. Here’s how to get it.
-
Missed Tax Day? Nearly One Million Taxpayers Still Can File and Claim Valuable Tax RefundsTax Refunds Some folks don’t file taxes simply because they don’t earn enough, but they could be missing out on a significant tax refund.
-
Stock Market Today: No 'Powell Put'? No ProblemInvestors, traders and speculators look beyond both another Trump post and more signs of slowing economic activity.
-
Stock Market Today: Dow Drops 699 Points After Powell SpeechFed Chair Powell warned of a slowing economy and higher inflation but said the central bank isn't ready to cut rates just yet.
-
Stock Market Today: Stocks Struggle Amid Tariff UncertaintyBoeing dropped after China suspended new aircraft orders, while Bank of America and Citi climbed on earnings beats.
-
Stock Market Today: Stocks Gain on Tech, Auto Tariff TalkThe Trump administration said late Friday that it will temporarily halt tariffs on some Chinese tech imports.
-
Stock Market Today: Stocks Surge to Close a Volatile WeekIt was another day with a week's worth of both news and price action, but it ended on a strongly positive note.
-
Stock Market Today: Uncertainty Proliferates: Dow Loses 1,014 PointsWeaker-than-expected consumer inflation data wasn't enough to stabilize sentiment during another volatile day for financial markets.
-
Stock Market Today: Tariff Pause Triggers 3,000-Point Dow RallyThe bond market is sending concerning signals as the Trump administration executes its rapid reordering of global trade relationships.
-
Stock Market Today: Tariff Talks Drive Another Up-and-Down DayTrade war negotiations are happening, but the "fear gauge" is gyrating, and investors, traders and speculators are still searching for signs of a bottom.
