Yes Indeed! Wall Street Closes Mostly Higher
Wall Street recovered from a modestly lower premarket Tuesday to close slightly higher. Investors were cautious ahead of Wednesday earnings from financial giants J.P. Morgan Chase & Co. (JPM) and Goldman Sachs Group Inc. (GS). I think the market will experience a wait and see from the sidelines in regards to these earnings before allocating new capital. There is no need to push markets higher this week following the strong run we have seen. The Dow Jones Industrial Average rose 27.57
points, or 0.2%, to 13,534.89. The S&P 500 Index gained 1.66 points, or 0.1%, to 1,472.34, with telecommunications the biggest laggard and consumer discretionary faring best among its 10 major sectors. Apple Inc’s (AAPL) 3.2% decline hit the tech heavy Nasdaq composite in which AAPL has a 10% weight. The Nasdaq Composite Index shed 6.72 points, or 0.2%, to 3,110.78. Helping offset AAPL was Dell Inc. (DELL), who has been in talks to take the PC maker private.
Crude oil for February delivery lost 86 cents, or 0.9%, to settle at $93.28 a barrel on the New York Mercantile Exchange. Gold settled at $1,683.90 an ounce, up $14.50 or 0.9%.
The producer price index dipped 0.2 percent in December, following a 0.8 percent drop in in November. The December figure posted lower than the consensus forecast for a 0.1 percent decrease. The core rate, which excludes both food and energy, rose 0.1 percent, following a rebound of 0.1 percent in November. The consensus was for a 0.2 percent gain. For the overall PPI, the year-ago rate in December posted at 1.3 percent versus 1.4 percent the month before, while the core rate was up 2.0 percent, compared to 2.2 percent in November.
Retail sales for the month of December, the heart of the holiday shopping season, beat consensus expectations. Retail sales gained 0.5 percent after a 0.4 percent rebound the month before. Market expectations were for a 0.2 percent rise. Excluding autos, retail sales advanced 0.3 percent, matching expectations.