DAILY MARKET RECAP – December 13, 2018
• S&P 500 down 0.02% to 2,650.54
• DJIA up 0.29% to 24,597.38
• NASDAQ down 0.39% to 7,070.33
• Russell 2000 down 1.55% to 1,432.70
• U.S. 10-yr flat at 2.913%
• WTI Oil up 3.81% to $53.10
It was an up and down day for U.S. equities, as the DJIA climbed as much as 200 points in early trading, yet ended the day with a narrow gain of 70 points, while the S&P 500 remained relatively flat, and the Nasdaq had a slight loss of 27 points. Apple’s stock closed out Thursday nearly 2 percent higher following the news that the tech giant plans to invest $1 billion building a new corporate campus in Austin, Texas, which would add as many as 15,000 jobs to the surrounding area. On a smaller scale, Apple also announced that it would build new offices in three cities including San Diego, Seattle and Culver City, which would create an additional 1,000 jobs at each site. On the bond front, the 10-year Treasury yield rose remained flat at 2.913%. Oil prices gain 3.81% to settle at $53.10.
Jobless Claims – 206k vs 228k Expected
Claims fell sharply by 27k to 206k which is well below the consensus range for the best showing since the report hit historic lows back in September. For the first time in five weeks, the 4-week average is down 3,750 to 225k, but still remains 10k higher than early November. Continuing claims, which lag initial claims by a week, rose by 25k, but the 4-week average remains basically unchanged. The unemployment rate for insured workers is up 0.1% back to 1.2%.
General Electric – JPMorgan Chase upgraded GE to “neutral” from “underweight,” but kept its price target at $6 per share, citing they are less negative on GE as the number of unknown factors abates. Separately, GE announced the creation of a new $1.2 billion “Internet of Things” software company, and the sale of a majority stake in cloud-software maker ServiceMax to Silver Lake Partners. GE’s stock ended the day up just over 7 percent.
• Retail Sales
• Industrial Production
• Business Inventories
All estimates come from Econoday’s survey of economists/analysts. Earnings per share estimates are from Factset, are set against year ago results, and represent adjusted earnings.