Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Stocks Drop on New Years Eve


Today's financial recap and tomorrow's financial outlook.

It was a rough day for US markets on New Years Eve. After opening up a few points, the S&P 500 (SPX) began its slow selloff lower that accelerated after the 2 o'clock hour. The benchmark index left a sour taste in investors mouth's to wrap up the year with a 1.03% decline after yesterday's -0.49% performance. Utilities was the worst performing sector for a second straight day, losing 1.84% and extending the losses to 3.85% over the two-day period. Most European markets were closed for the holiday and US bond markets closed early.

Chinese stocks were up strongly overnight. The People's Bank of China (PBoC) said in a report that it will conduct "appropriately elastic" monetary policy in the next year and it would continue be prudent. Investors took this to mean that it would continue to pursue very accommodative policies in an effort to help transition the Chinese economy to one that is driven by consumption. The Shanghai Composite
(SHCOMP) gained 2.18% overnight.

Crude oil was lower in early trading. Brent crude oil futures were down as much as 3.5% in the early morning. Yesterday's API oil inventory data showed another substantial increase in supply for the past week. However, the Department of Energy's report showed a draw on oil inventories, which caused a reversal. Crude oil ended up 2014 down 45.35% and had its worst annual performance since 2008. 

The first major regional manufacturing index for December showed a moderation of growth. The Chicago purchasing manager index fell to 58.3 from 60.8 in the prior month, below the 60 expected. November pending home sales rose 0.8% compared to the 0.5% expected by economists with gains in the Southern region the driver of strength.

Tomorrow's Financial Outlook

Most global markets, including in the US, will be closed for the New Years Day holiday tomorrow. When markets re-open on Friday there is a spate of US economic data on the schedule. The national ISM manufacturing index for December will be released with a moderating of growth expected down to 57.5 from 58.7 in the month prior. Tonight, China will release its official manufacturing PMI. The private HSBC survey, which has already been reported, saw a small decline to 49.6 from 50.0 in the prior month.

There will be no earnings reports on Friday in the US.

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos