Smattering of Data Ahead in Holiday-Shortened Week
Schwab Market Update Audio
Deep Dive
What key economic data is expected during the holiday-shortened week?
The week includes the December ISM Manufacturing Index, November pending home sales, and Tesla's quarterly vehicle delivery results. Pending home sales are expected to show a 0.7% monthly increase, down from 2% the prior month.
Why is China's manufacturing PMI data significant for investors?
China's official NBS manufacturing PMI is expected to read 50.3, indicating expansion above the 50 threshold. This follows a November reading of 50.1, the highest since April, with growth in output and new orders, suggesting a potential trend.
What impact did Treasury yields have on the stock market?
Rising Treasury yields, with the 10-year note climbing above 4.6%, weighed on stocks by increasing borrowing costs, slowing economic growth, and diverting investor funds from equities to fixed income.
What are the expectations for Tesla's December vehicle deliveries?
Analysts expect Tesla to report December vehicle deliveries of 510,000, reflecting its position as part of the Magnificent Seven mega-cap stocks.
How did the S&P 500 perform on Friday, and what were the key drivers?
The S&P 500 dropped 1.11% to 5,970.84, driven by late-year profit-taking, tax-loss harvesting, and light trading volume that exacerbated the downward move.
What is the significance of the 50-day moving average for the S&P 500?
The 50-day moving average near 59.40 acted as technical support during Friday's sell-off, with buyers stepping in at that level, similar to the stabilization after the Fed-related sell-off two weeks prior.
What are the current expectations for Federal Reserve rate cuts in 2025?
The CME FedWatch tool indicates a 90% chance of a January Fed pause and only two rate cuts in 2025, down from four previously, with a 50-50 chance of at least one cut in the first quarter.
How did major U.S. stock indexes perform for the week?
The S&P 500 rose 0.67%, the Dow Jones Industrial Average gained 0.35%, and the Nasdaq Composite increased 0.76% for the week, despite Friday's losses.
- December ISM Manufacturing Index, insight on sluggish U.S. manufacturing sector
- November pending home sales (10 a.m. Eastern time), expected 0.7% monthly increase
- Tesla's quarterly vehicle delivery results
- China's official NBS manufacturing PMI, analysts expect a reading of 50.3
Shownotes Transcript