Coming into the week, everyone’s talking about a Santa Claus Rally, defined as an up period for the stock market that starts with the last week of the year to the end of the second week in the New Year. Without a doubt, market bias is overwhelming to the upside, and there is a great urgency to get in the mix.
More than likely, if we get the Santa Rally, it won’t be reindeer, but those killer whale momentum stocks known as FANG (Facebook, Apple, Netflix, and Google). They led the way last week, lifting the Consumer Discretionary well above all other sectors. Netflix (NFLX) was the bigger winner, followed by Facebook (FB).
S&P 500 Index Five Day Performance | +1.65% | |
Communication Services (XLC) | +2.61% | |
Consumer Discretionary (XLY) | +1.12% | |
Consumer Staples (XLP) | +0.51% | |
Energy (XLE) | +1.74% | |
Financials (XLF) | -0.10% | |
Health Care (XLV) | +1.80% | |
Industrials (XLI) | -0.33% | |
Materials (XLB) | +0.73% | |
Real Estate (XLRE) | +1.73% | |
Technology (XLK) | +1.63% | |
Utilities (XLU) | +1.93% |
Today, we get the latest read on durable goods. More importantly for the market, it will tell us about nondefense capital goods orders, excluding aircraft business investment. The October number beat Wall Street consensus, rebounding off the second lowest read of 2019. The Street is looking for a -0.3% decline for November.
New Home sales results are also being released today, and while this is smaller than existing homes, we should get clues from pricing on the overall housing trend.
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