Market Roundup: Stellar Week For Markets with Major Indices up More Than 2.5%

Economy/Stock Market

The week kicked off with a rally in Financial stocks, which led the S&P 500 index to its best day in two weeks. Also on Monday, the ISM Nonmanufacturing index showed services bounced back in November, rising above consensus and above its six-month average. The rally continued on Tuesday, as economic reports showed productivity growth remained unrevised for the third quarter, the U.S. Trade Deficit widened in October and Factory Orders increased as well. On Wednesday, the major indices logged their biggest one-day rally since the election, which led to new closing records for the Dow Jones Industrial Average and the S&P. The markets were a little shakier on Thursday, shifting between gains and losses for most of the trading session. Investors’ eyes were likely on the European Central Bank, as the bank extended its stimulus program at a reduced volume. Indices closed at session peak levels on Friday, with the Dow, S&P 500 and Nasdaq all hitting record highs. Consumer confidence was up in a preliminary December reading from the University of Michigan. The Consumer Sentiment Index ticked up to 98 from 93.8 in November, well beyond an expected reading of 94.1.

Market Roundup: Week of Mixed Moves on Growing GDP and Cut in Oil Production

Economy/Stock Market

Indices kicked off the week closing in red territory on Monday as investors swept profits off the table in light of recent gains. Stocks stepped up on Tuesday amid a variety of economic news. The second estimate of third-quarter GDP showed the economy grew at a 3.2% pace, which exceeded the preliminary estimate of 2.9% growth. Additionally, consumer confidence ticked up in November. Conference Board data showed sentiment rose to 107.1 from 98.6 in October, exceeding expectations of 101.2. The markets ended trading with mixed results on Wednesday. The Dow Jones Industrial Average closed to the positive side while the S&P 500 Index and NASDAQ shed some points. Energy brands led advancers on news of an Organization of the Petroleum Exporting Countries (OPEC) deal to reduce output. OPEC agreed to cut production by 1.2 million barrels per day, or about 4.5% of current production. Crude oil ticked up on the news. In economic news, the Chicago PMI hit 57.6 in November, well beyond an October reading of 50.6. Also, the Fed’s Beige Book report showed moderate economic growth in most regions of the country. On Thursday, the Dow rose 51 points, marking its biggest monthly gain in November since March while the S&P and NASDAQ were relatively flat. The S&P 500 eked out a slight gain Friday, but posted its first weekly decline since the election. Friday’s jobs report showed unemployment falling to its lowest level in nine years in November; however, this did little to affect overall performance as the Dow fell 0.1% for the day, but held onto a 0.1% gain for the week. The S&P and the NASDAQ posted weekly declines for the first time since the week ended Nov. 4.