Updated at 4:37 PM EST, December 28, 2023
Table Content:
Stocks presented a mixed performance on Thursday, with the Dow Jones Industrial Average barely managing to close in positive territory as investors took a breather following the initial surge of the Santa Claus rally. The Dow edged up a mere 0.07%, or 28.77 points, to conclude the session at 43,325.80, marking its fifth consecutive winning day. However, the S&P 500 experienced a slight dip, closing 0.04% lower at 6,037.59, while the tech-heavy Nasdaq Composite also saw a marginal decline of 0.05%, finishing the day at 20,020.36.
Apple Nears $4 Trillion Valuation Following Analyst Upgrade
Updated at 11:07 AM EST, December 28, 2023
Apple (AAPL) inched closer to a remarkable $4 trillion valuation during early trading hours on Thursday, fueled by a price target increase from Wedbush analyst Dan Ives. Ives, in a note to investors, boosted his price target on Apple stock by $25 to $325 per share. He expressed confidence in Apple’s trajectory, stating, “We believe Apple is heading into a multi-year AI driven iPhone upgrade cycle that is still being underestimated by the Street.”
Apple shares experienced a modest 0.1% increase in early Thursday trading, reaching $258.50. At this price, the company’s market capitalization stood slightly above $3.91 trillion.
Market Opens in the Red Amidst Holiday Trading
Updated at 9:37 AM EST, December 28, 2023
The stock market commenced Thursday’s session with a decline, as the S&P 500 dipped 0.25%, or 16 points, in the opening minutes of trading. The Nasdaq Composite followed suit, falling 0.22%, or 44 points. The Dow Jones Industrial Average retreated 140 points, while the mid-cap Russell 2000 index experienced a more significant drop of 0.65%, or 15 points.
Jobless Claims Decline, Treasury Yields Remain Elevated
Updated at 8:44 AM EST, December 28, 2023
Data released by the Labor Department on Thursday revealed a slight decrease in jobless claims for the week ending December 21st. Approximately 219,000 Americans filed for first-time unemployment benefits, bringing the four-week average to 226,500 and the continuing claims total to 1.91 million. Following the release of this data, Treasury yields remained elevated, with 10-year notes at 4.635% and 2-year notes at 4.361%.
Stock Market Navigates Holiday Week Gains and Rising Treasury Yields
Stocks have generally enjoyed solid gains during the holiday period thus far, with the S&P 500 advancing 1.1% during the abbreviated Christmas Eve session. Strong performance by megacap tech stocks and Apple’s pursuit of a $4 trillion valuation have helped to counterbalance a rise in Treasury yields, a factor that could significantly influence market dynamics in the coming year. Overnight trading saw benchmark 10-year notes reach 4.613%, representing a gain of approximately 42 basis points this month and roughly 3.5 times the S&P 500 dividend yield of 1.32%.
Short-term yields have also been on an upward trajectory, with 2-year notes currently at 4.347%, marking an increase of around 20 basis points since late November. Traders are now anticipating fewer Federal Reserve interest rate reductions in 2025 and are adjusting their growth and inflation projections for the US economy. Wall Street is exhibiting a tendency to moderate some of its early-week gains as the current session progresses. Trading volumes remain characteristically low due to the confluence of the Christmas holidays and the eight-day Hanukkah observance, which commenced on Wednesday evening.
Futures contracts linked to the S&P 500 indicate a potential opening-bell decline of 32 points, while those tied to the Dow Jones Industrial Average suggest a more substantial pullback of 238 points. The tech-focused Nasdaq is projected to open 133 points lower, with pre-market trading activity observed in Tesla (TSLA), Nvidia (NVDA), and Palantir (PLTR).
European markets experienced limited activity as several major exchanges remained closed for post-Christmas holidays, including Boxing Day in Great Britain. The Stoxx 600 index in Frankfurt managed a 0.32% increase. In Asian markets, Japan’s Nikkei 225 climbed 1.12% following dovish remarks on interest rate hikes from Bank of Japan Governor Kazuo Ueda. The regional MSCI ex-Japan benchmark, however, concluded trading with a marginal decline of 0.08%.
