Best day-after-Christmas trading day on record
The Dow Jones Industrial Average ended with a gain of 1,086.25 points, or 5%, at 22,878.45. The S&P 500 soared 116.60 points, or 5%, to end at 2,467.70. The Nasdaq Composite rose leapt 361.44 points, or 5.8%, to 6,554.36. On a percentage basis, all three major indexes saw the strongest one-day gains since March 23, 2009. It also marked the best ever day-after-Christmas performance for the gauges.
In a shortened Christmas Eve session Monday, the Dow Jones Industrial Average slid 653.17 points, or 2.9%, to 21,792.20. The S&P 500 index fell 2.7% to 2,351.10. The Nasdaq Composite Index tumbled 2.2% to 6,192.92, its lowest close since July 10, 2017.
Stocks remain down sharply for December, with all three major indexes down more than 10% for the month to date and the Nasdaq in bear-market territory.
Retailers were in rally mode on Wednesday, with a 6.3% rise for consumer-discretionary companies leading S&P 500 sectors to the upside. Shoppers delivered the strongest holiday sales increase for U.S. retailers in six years, according to Mastercard Spending Pulse, which tracks online and in-store spending with all forms of payment. Among consumer-discretionary firms, shares of Amazon.com helped set the tone, rising more than 9% after the company said it logged another record holiday season.
Reviewing Wednesday's economic data, which included the S&P Case-Shiller Home Price Index for October, the S&P Case-Shiller Home Price Index for October (consensus 5.0%) increased 5.0%, down from a revised increase of 5.2% in September (from 5.1%).
Bullion prices ended higher at Comex on Wednesday, 26 December 2018 at Comex. Gold futures clung to gains on Wednesday to end at a six-month high, continuing to find a modicum of haven-related support as the U.S. stock market roared back from a Christmas Eve selloff amid what remains an ugly December for equity markets.
Gold for February delivery on Comex rose $1.20, or 0.1%, to end at $1,273 an ounce. Gold rallied to start the week as U.S. stocks suffered their worst Christmas Eve performance in history, continuing a December selloff. March silver rose 30.3 cents, or 2%, to end at $15.123 an ounce.
Crude-oil futures snapped back by some 8% on Wednesday, 26 December 2018 to break a string of three straight declines, after closing the pre-Christmas session at their lowest since July 2017. Stock-market gains, including a more-than-1,000-point gain for the Dow industrials and comments on improved stability for global supplies by Russia's top energy official, supported prices as markets resumed action.
February West Texas Intermediate gained $4.69, or 8.6%, to $46.22 a barrel on the New York Mercantile Exchange. February Brent the global benchmark, rose $4, or 7.9%, at $54.47 a barrel.
Efforts by Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries, to limit output beginning early next year by 322,000 barrels a day more than a previously announced cut of 250,000 barrels a day for six months starting in January, had not adequately quelled concerns over supply to end 2018. Continued growth in U.S. crude production, notably by shale-oil producers, also has contributed to worries about a growing glut worldwide.
The U.S. Energy Information Administration will release its weekly oil inventory report Friday, rather than Wednesday, due to the Christmas holiday.
Demand for U.S. Treasuries faded as investors flocked to riskier assets. Consequently, the 2-yr yield gained three basis points to 2.60%, and the 10-yr yield gained five basis points to 2.80%. The U.S. Dollar Index rose 0.5% to 97.07.
Looking ahead, investors will receive several economic reports on Thursday: New Home Sales for November, the weekly MBA Mortgage Applications Index, the weekly Initial and Continuing Claims Report, the FHFA Housing Price Index for October, and the Conference Board's Consumer Confidence Index for December.
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