Banks Up, Oil Down On Holiday-Shortened Session
The market is getting a very small bounce in early trading. Banks stocks are leading the way, followed by retailers, while energy stocks are lagging.
Its amazing that oil can't even bounce. The new contract started trading this week above $40, and its now back down near $37.50. And oil is down today even thought the dollar is down, which usually props up commodities. This speaks to how weak demand is right now.
In economic news, November durable goods fell -1.0%, which was less than forecast. Personal consumption dropped -0.6% in November, reflecting a continued decline in consumer spending.
In corporate news, CME announced it has passed two regulatory hurdles to begin clearing over-the-counter credit default swaps (CDS).
And in 'bailout nation', property developers recently asked the govt. for financial assistance. Now, the country's largest retail trade association has asked for a series of sales tax-exempt shopping days to be added to the economic stimulus package.
Trading comment: Where's Santa? The market has been weak over the last 5 days since that big post-Fed mtg. spike. If the fabled Santa Claus rally is to emerge, today would be day one. According to the Stock Traders Almanac, the Santa Claus rally occurs over the last 5 trading days of the year and the first 2 trading days of the New Year.
I will be heading out early today, so Happy Holidays to all!