Stock Market Today: Monday Surge Sparks Santa Claus Rally Hopes
The S&P 500 notched its 69th closing high of 2021, and the Dow and Nasdaq also finished solidly green as traders returned from the long holiday weekend.
For many Christmas celebrators, any expectations for Saint Nicholas's generosity are realized (or not) on Dec. 25. But investors remain on alert for a week or so longer in hopes of a "Santa Claus rally" – and so far for 2021-22, their wishes have been answered.
Despite a holiday season that has been undermined by the omicron variant, disrupting travel plans and canceling get-togethers, stocks got off to a hot start Monday. Following up on earlier data out of South Africa suggesting the omicron variant is less lethal than its predecessors, additional studies from that country, as well as Scotland and England, similarly showed that omicron cases were less likely to result in hospitalization.
Wall Street responded with widespread buying; all 11 S&P 500 sectors finished in the green, pushing the index up 1.4% to a new record close of 4,791. The Dow Jones Industrial Average (+1.0% to 36,302) and Nasdaq Composite (+1.4% to 15,871) also ended the day higher.
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.
It's a promising start to that potential Santa Claus rally – a period of historical outperformance during the final five trading days of December and the first two days of the following January.
It's also a welcome bit of excitement in what should be a lackluster week from a data perspective.
"There is virtually nothing on the calendar," says Michael Reinking, senior market strategist for the New York Stock Exchange. "In the U.S., the only impactful economic data is on Thursday with claims and the Chicago [purchasing managers indexes]. China PMI on Friday could get some attention if there is anyone still watching at that point."
Other news in the stock market today:
- The small-cap Russell 2000 improved by 0.9% to 2,261.
- U.S. crude oil futures rose 2.4% to settle at $75.57 per barrel.
Gold futures slipped 0.2% to settle at $1,808.80 an ounce. - Bitcoin joined in Monday's rally, gaining 0.6% to $51,252.57. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
- GoDaddy (GDDY) was a big mover, jumping 8.4% after The Wall Street Journal said Starboard Value took a large stake in the domain registration firm. According to the report, which cited people familiar with the matter, the activist investor holds a roughly 6.5% position, worth roughly $800 million, and plans to find ways for GDDY to boost its share performance. Even with today's surge, the stock is down about 3% over the last 12 months.
- Cruise stocks got knocked down after reports surfaced over the past few days that several ships were returning to port after discovering omicron outbreaks onboard. Among them were Royal Caribbean's (RCL) Odyssey of the Seas, which last Thursday reported 55 confirmed cases among passengers. RCL stock fell 1.4%, Carnival (CCL) gave back 1.2% and Norwegian Cruise Line (NCLH) dropped 2.6%.
Pros Say to Bank on Banks in 2022
A weakened COVID variant would do much for analysts predicting continued economic recovery in 2022 – and the sectors they see benefiting from it.
Cyclical sectors such as materials and energy are popular calls heading into the new year, but one of the most ballyhooed corners of the market going into 2022 is financials. That's because the sector's banks and insurers are not only poised to benefit from additional economic expansion, but from an increasingly hawkish Federal Reserve that's projecting three increases to its benchmark interest rate in 2022.
"Financials have historically been the biggest beneficiary of higher interest rates as a result of a steeper yield curve and greater willingness to lend," says Global X Chief Investment Officer Jon Maier. "As rates trend upwards, banks tend to benefit from higher lending activity and higher interest rates charged to their consumers."
Like with many slices of the market, investors looking for broad, diversified access to the sector can do so via exchange-traded funds (ETFs), but those who want to make concentrated bets can start with our short list of 2022's top financial picks.
Read on as we explore the 12 highest-rated financial-sector stocks heading into the new year, and discuss why they appear likely to follow up 2021's outperformance with even more gains in 2022.
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.
Kyle was previously the Senior Investing Editor for Kiplinger.com, and the Managing Editor for InvestorPlace.com before that. His work has appeared in several outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe & Mail and the Nasdaq. He also has appeared as a guest on Fox Business Network and Money Radio, among other shows and podcasts, and he has been quoted in several outlets, including MarketWatch, Vice and Univision. He is a proud graduate of The Ohio State University, where he earned a BA in journalism.
You can check out his thoughts on the markets (and more) at @KyleWoodley.
-
Is a Phased Retirement Right for You?
Want to keep working, just not as hard? A phased retirement may just be the answer.
By Kimberly Lankford Published
-
Four Tips to Make Your Sales Presentation a Winner
Being prepared and not being boring can go a long way toward persuading a potential customer to buy into what you’re offering.
By H. Dennis Beaver, Esq. Published
-
Stock Market Today: Markets Rebound Ahead of Big Week for Earnings
Equities rallied on easing geopolitical tensions, upcoming quarterly results.
By Dan Burrows Published
-
Stock Market Today: Nasdaq Spirals as Netflix Nosedives
A big earnings boom for credit card giant American Express helped the Dow notch another win.
By Karee Venema Published
-
Stock Market Today: S&P 500, Nasdaq Extend Losing Streaks
The two indexes have closed lower for five straight sessions.
By Karee Venema Published
-
Stock Market Today: Dow Slips After Travelers' Earnings Miss
The property and casualty insurer posted a bottom-line miss as catastrophe losses spiked.
By Karee Venema Published
-
Stock Market Today: Stocks Stabilize After Powell's Rate-Cut Warning
The main indexes temporarily tumbled after Fed Chair Powell said interest rates could stay higher for longer.
By Karee Venema Published
-
Stock Market Today: Stocks Reverse Lower as Treasury Yields Spike
A good-news-is-bad-news retail sales report lowered rate-cut expectations and caused government bond yields to surge.
By Karee Venema Last updated
-
Stock Market Today: Nasdaq Leads as Magnificent 7 Stocks Rise
Strength in several mega-cap tech and communication services stocks kept the main indexes higher Thursday.
By Karee Venema Published
-
Stock Market Today: Stocks Tumble After a Hot Inflation Print
Equities retreated after inflation data called the Fed's rate-cut plans into question.
By Dan Burrows Published