The continuing decrease in oil prices due to output cuts have resulted in S&P 500 ratings having no progress. Due to the damage that lower oil prices have brought to energy stocks, progress in the sectors of finance and healthcare are now put on hold.
According to Nicholas Colas, Brokerage Convergex’s Chief Market Strategist in New York, investors are still anticipating President-elect Donald Trump’s inauguration on January 20. People are still waiting on what the first 100-day agenda of the president will contain that can affect the investment market. They are hopeful that the president-elect will fulfill promises during his campaign regarding more lenient regulations and lower tax rates.
The S&P Energy Sector (.SPNY) declines by 2 percent, ending the day with 0.95 percent. Meanwhile, the Dow Jones Industrial 20,000 milestone still continues to be evasive as declines in stock values of IBM (IBM.N), Merck & Co (MRK.N), Proctor & Gamble (PG.N) and Exxon Mobil (XOM.N) continue to burden them.
S&P 500 ratings (.SPX) remains the same at 2,268.9, while The Dow (.DJI) ends at 0.16 percent or 31.85 points at 19,855.53, and Nasdaq Composite (.IXIC) increased by 20 more points at 0.36 percent, at 5,551.82, which marks another record high for them.
Art Hogan, the Chief Market Strategist at Wunderlich Equity Capital Markets states that investors are still monitoring the earnings season just to make a justification to the current records. He believes that the earnings may just be the push they need in order to push things higher.
The earnings of S&P 500 companies are estimated to have increased by up to 5.8 percent in the fourth quarter. This is said to be their strongest quarterly growth for the last three years. On the other hand, the S&P financial sector (.SPSY) ends with 0.4 percent, and it has moved higher by 17.4 percent following the election. JP Morgan (JPM.N), Wells Fargo (WFC.N) and Bank of America have also increased with 0.3, 0.7 and 1.7 percent respectively.
Of the 11 major sectors of S&P, six sectors ended with a high. S&P Healthcare Stocks (.SPXHC), Nasdaq Biotech Index both increased by 0.33 and 0.8 percent respectively. This week, the S&P 500 posted 52-week highs and no lows, while Nasdaq reported 93 highs and 18 lows.
Aside from that Illumina (ILMN.O) rose to a high of 16.6 percent after the company launched a new product and announced a sturdy quarterly forecast.
There is a great deal of change in U.S exchanges as more than 6.7 billion shares changed hands as opposed to the 6.6 billion average for the past 20 sessions.