As the year came to a close, profit-taking and positioning ahead of the New Year shaped market activity. While markets edged higher on Friday, major U.S. stock indices finished the holiday-shortened week mixed. One notable bright spot was emerging markets, which posted a substantial gain.
The Federal Reserve released the minutes from its December meeting, offering additional insight into policymakers’ thinking. Although the final vote to cut rates was 9–3, the discussion revealed that the decision was closer than the vote count suggested. Several members expressed ongoing concern that inflation remains above the Fed’s long-term target, reinforcing the data-dependent approach going forward.
Treasury Yields (higher on the week)
- 30-year Treasury: 4.856%
- 10-year Treasury: 4.172%
Mortgage Rates
- Average 30-year fixed (Freddie Mac): 6.15% (lower)
Commodities & Currency
- Crude oil: $56.75 per barrel (lower)
- Natural gas: $3.069 (lower)
- U.S. dollar index: 98.32 (higher)
- Gold: $4,350.30 per ounce (lower)
S&P Global Manufacturing Purchasing Manager’s Indices (PMI) (Above 50=expansion, Below 50=contraction)
- U.S. 51.8, (lower)
- Canada 48.6 (higher)
- Eurozone 48.8 (lower)
- China 50.1 (higher)
Labor Department
Jobless Claims (Week Ending Dec 27th)
- Initial claims: 199,000 (-16,000)
- Four-week average: 218,750 (+1750)
- Total unemployed: 1,866,000 (-47,000)
Energy & Industry Data
Energy Information Administration
- Weekly Oil Production 13.827MM Barrels. (increase)
- Natural Gas Storage fell 38BN CuFt and is above the average level for this time of year.
Baker Hughes Rig Count
- Oil rigs: +6 to 412
- Gas rigs: Unchanged at -2 to 125
If you have questions about the markets or your financial plan, we’re always here to help.
Loren Rex – Emeritus
Erik A Smith, AIF® – President & C.E.O.
Nicholas Acri, CFP® – Partner & Wealth Advisor
Dylan Thomas, CFP® – Partner & Wealth Advisor
Jack Zeeb – Wealth Advisor
These are the opinions of Loren Rex and Erik Smith and are not necessarily those of Cambridge, are for informational purposes only, and should not be construed or acted upon as individualized investment advice. The Indices mentioned are unmanaged and cannot be invested into directly. The Dow Jones Industrial Average, Dow Jones, or simply the Dow, is a stock market index of 30 prominent companies listed on stock exchanges in the United States. The DJIA is one of the oldest and most commonly followed equity indexes. The Nasdaq Composite is a stock market index that includes almost all stocks listed on the Nasdaq stock exchange (more than 2500 stocks).
Sources:
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WCRFPUS2&f=W
https://ir.eia.gov/ngs/ngs.html
https://www.freddiemac.com/pmms
https://www.wsj.com/market-data?mod=nav_top_subsection
https://bakerhughesrigcount.gcs-web.com/na-rig-count
