2020: Day 1 on Wall Street, Stocks Extend the Bull Run to New Record Highs

2020: Day 1 on Wall Street, Stocks Extend the Bull Run to New Record Highs

$DIA, $SPY, $QQQ, $RUTX, $VXX, $AAPL

Thursday, Wall Street’s major stock market indexes market record highs to open Y 2020,as fresh economic stimulus from China added to optimism fueled by easing trade tensions and an improving global outlook.

China’s central bank said Wednesday it would cut the amount of cash that all banks must hold as reserves (RRR), the 8th such cut since early Y 2018. The move to inject fresh stimulus into the Chinese economy boosted equity markets around the globe.

The benchmark S&P 500 hit its 11th record high in 14 sessions and posted its largest daily percentage gainer in 3 wks. DJIA marked its biggest gainer 4 wks, and the NAS Comp its greatest in 3 months.

Economic stimulus in China, along with the easing of trade tensions between Washington and Beijing, has bolstered optimism that the global economy will accelerate in Y 2020.

The market’s been up all day because of the news that China is out there with monetary easing,” said the chief investment strategist at Inverness Counsel in New York. “With the trade deal as a backdrop, it’s a positive factor.”

Among the S&P 500’s sectors, technology and industrials, both have high exposure to the Chinese economy, rose more than 1% and led in percentage gains.

Shares of Apple Inc, (NASDAQ:AAPL) which have been a bellwether of trade sentiment, ended 2.3% higher and surpassed 300.

The longest rally on Wall Street has prompted some concerns that US stocks are vulnerable to a pullback, especially if economic growth does not pick up as much as expected or if US-China trade tensions reignite.

“Large-cap equities are priced for perfection,” said the global chief market strategist at Cantor Fitz in New York. “It feels like we’re wildly overbought given the risks that we see.”

Adding to positive economic sentiment, data from the US Labor Department showed the number of Americans filing claims for jobless benefits edged lower last week.

Other data from Greater China showing that gross gaming revenue in Macau fell less than expected in December boosted shares of US casino operators.

Shares of Wynn Resorts Ltd , Las Vegas Sands Corp and Melco Resorts & Entertainment Ltd rose between 2% and 4%.

Thursday, the major US stock market indexes finished at: DJIA +330.36 at 28868.71, NAS Comp +119.58 at 9092.21, S&P 500 +27.07 at 3257.85

Volume: Trade on the NYSE came in at 863-M/shares exchanged

  • NAS Comp +1.3% YTD
  • DJIA+1.2% YTD
  • S&P 500 +0.8% YTD
  • Russell 2000 -0.1% YTD

Advancing issues outnumbered decliners on the NYSE by a 1.74-to-1 ratio, on the NAS, a 1.41-to-1 ratio favored advancers.

The S&P 500 posted 59 new 52-wk highs and 1 new low, the NAS Comp recorded 115 new highs and 15 new lows.

Volume on US exchanges was 7.61-B shares, compared to the 6.85-B/-share average for the full session over the last 20 trading days.

HeffX-LTN overall technical analysis for the US major stock market indexes is Bullish to Very Bullish in here.

Having a terrific New Year Holiday week!

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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