US stocks mixed ahead of early close for Christmas

 

December 25, 2019



Major U.S. stock indexes wavered between small gains and losses Tuesday morning in muted trading ahead of an early close for the Christmas holiday.

Industrial and health care stocks were the biggest decliners. Cintas lost 1.2% and Edwards Lifesciences fell 1.1%.

Those losses outweighed broad gains for retailers , restaurant chains and other companies that rely on consumer spending. Home Depot rose 0.7%, Ross Stores added 0.9% and Yum Brands rose 0.4%.

Homebuilders bounced back Tuesday after falling broadly the day before following a disappointing home sales report. Lennar climbed 1.8% and D.R. Horton rose 0.7%

Several energy stocks notched gains as the price of crude oil headed higher. Diamondback Energy rose 1.9%.

The market's modest slide follows a strong winning streak for stocks that has propelled the major indexes to record highs this month. The benchmark S&P 500 index has finished with a weekly gain in 10 out of the past 11 weeks.

Rising optimism around a "Phase 1" trade deal announced earlier this month between the United States and China helped put investors in a buying mood in recent weeks. Fears about a possible recession have also faded since the summer after the Federal Reserve cut interest rates three times, and the central bank appears set to keep them low for a long time.

Still, as traders turn their attention to 2020, fears about the outlook for the global economy remain as do concerns over unresolved trade issues between Washington and Beijing. Next year also has the added complication of the U.S. presidential election.

KEEPING SCORE: The S&P 500 was down less than 0.1% as of 11:37 a.m. Eastern time. The Dow Jones Industrial Average dropped 26 points, or 0.1%, to 28,524. The Nasdaq composite recovered from an early slide. It was up less than 0.1%.

Markets are scheduled to close at 1:00 pm. Eastern time.

SHARE THIS: Uber rose 1.2% on news that ex-CEO Travis Kalanick will resign from the board next week, effectively severing ties with the ride-hailing company he co-founded a decade ago. Kalanick was ousted as CEO in the summer of 2017 with the company mired in numerous lawsuits.

The departure did not come as a surprise. Kalanick recently sold more than $2.5 billion worth of shares in the company, more than 90% of his holdings.

SOLID GOLD: Shares in mining company Freeport-McMoRan are up 2.2% as the price of gold rose. Gold gained $15.10, or 1%, to $1,503.60 per ounce.

MORTGAGE RATE IMPACT: Homebuilders rose as the 10-year Treasury yield declined. Mortgage rates tend to track the yield, so a lower yield can make a home loan less expensive, giving homebuyers more pricing power. Lennar climbed 1.9%.

YIELDS: The 10-year Treasury yield slipped to 1.91% from 1.93% late Monday.

ENERGY: Benchmark U.S. crude oil gained 51 cents to $61.03 per barrel. Brent crude, the international standard, added 68 cents at $66.10 per barrel.

MARKETS ABROAD: Stock markets in Europe were either closed or were open for limited hours Tuesday. Britain's FTSE 100 index closed 0.1% higher, while the CAC 40 in Paris ended flat. Both markets opened for only half the day, and will remain closed until Friday. Germany's DAX was closed for Christmas Eve and it won't reopen until Friday.

Major stock indexes in Asia finished mixed. Tokyo's Nikkei 225 closed less than 0.1% higher, while Hong Kong's Hang Seng shed 0.2%. Seoul's Kospi declined 0.6%, while Sydney's S&P-ASX inched 0.1% higher. New Zealand and Singapore advanced, while Taiwan and India declined.

 

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