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The major averages are comfortably higher on low volume as investors start to head for the exits and start the holidays.
The S&P are up by +0.7%, Nasdaq +0.7% and Dow +0.6%. Ten of 11 S&P sectors are higher, led by Industrials and Materials. Real Estate is the only decliner. All six MEGACAPS are higher, led by Tesla. US stocks rose for the third straight session on Thursday, the S&P gained 0.7% marching towards intraday record high of 4,743 hit on 22 November, the Dow Jones added more than 200 points and the Nasdaq Composite jumped 0.8% as fears that the Omicron variant would derail economic growth receded
Rates are now higher after a big rise in the Fed’s favorite inflation gauge, but a lower-than-expected rise in new home sales.
Jobless claims came in steady for the week at 205K, showing little impact from Omicron. Durable goods orders jumped 2.5% on a 34.1% surge in aircraft orders.
Spending rose more than income in November, while the core PCE index came in at 4.7%, a little hotter than expected.
Year-over-year core PCE inflation rose to 4.7% from 4.2%, hitting a 32-year high, but it will rise further over the next few months. Favorable base effects and – we hope – easing pressure on vehicle prices will then start to bring it down.
Among active stocks, casinos are rallying on bullish news on Macau licenses. US stock indexes headed for a third straight gain and the S&P 500 index was aiming for trade in record-close territory on Thursday, ahead of the long Christmas holiday weekend, amid optimism that global economies won’t be derailed by the omicron variant of COVID.
Traders and investors were also absorbing a fresh batch of US data including inflation, durable goods orders and jobless benefit claims published Thursday.
US stock futures on Thursday do expect a third straight session of gains in what would be a continuation of Wall Street’s rebound from a prior three-session losing streak on concerns about the Covid omicron variant.
Trading is expected to remain relatively thin as the US stock market is closed Friday for Christmas Eve. However, there’s a full slate of economic data Thursday, starting at 8:30 a.m. ET with numbers on jobs, inflation, spending and durable goods orders.
The figures showed a strong economy with improving labor and spending trends, but inflation at uncomfortable levels. At 10 a.m. ET, November new home sales and the University of Michigan’s final December consumer sentiment index are out.
The omicron variant is less likely to result in hospitalization and appears milder than earlier strains of the virus, according to early data released by research teams this week.
On Wednesday, the US Center for Disease Control and Prevention said that omicron accounted for 90% of the cases in some parts of the country. The CDC said the variant made up more than 73% of the cases in the US as of Saturday.
Tesla CEO Elon Musk said Wednesday he’s “almost done” with his stock sales after selling over $15 billion worth for more than one month.
The billionaire had made confusing statements as to whether he might or might not be done with his stated goal of selling 10% of his Tesla shares. “I sold enough stock to get to around 10% plus the option exercise stuff and I tried to be extremely literal here,” he said in an interview with conservative satirical website Babylon Bee released Tuesday. But on Wednesday he suggested he might not be finished.
