(CercleFinance.com) – The ‘4 witches’ session put an end in style to this anthological ‘December’ deadline, characterized by an exploit never recorded to date: no consolidation of more than 0.55% in 19 sessions.
The algorithmic precision received a deserved ovation with a closing equal – to the nearest thousandth of a % – to that of the day before (4.720) after a small surge towards 4.725 5 minutes from the final bell.
The S&P500 thus posted a 7th week of increase (+2.4%) following a 7th session of increase in a row.
Note that the annual gain stands at +22% including +15% -exactly- since its bottom of 4.104 on October 27… a linear rally within which we observe no consolidation greater than 0.8% ( again, a new scenario).
This session of the ‘4 witches’ constituted in a way the symmetry of the day before: financial stocks which had propelled the S&P500 and the Dow Jones found themselves in the red lantern this Friday: Beazer Homes -4.9%, Zions -4 %, Lennar -3.7%, Keycorp -3.1%…
However, rates continued to relax, the 10-year ended at around 3.9200%, evening -110Pts below its zenith in mid-October, and -30Pts lower than last Friday.
New records were also broken on the Dow Jones (+0.2% to 37.3005 points) thanks to Boeing +3.1% and Microsoft +1.3%.
The Nasdaq set a new annual record in the wake of ‘SOX’ which further climbed +1% to a new record of 4,161Pts (+61% annual).
Broadcom was one of the main supporters of the Nasdaq, as well as Amazon with +1.7%, Palo Alto +2.3% and First Solar which stood out with +6.6%.
Wall Street closes the month at the zenith of confidence, boosted by the words of Jerome Powell who revealed the FED’s expectations: it is a ‘Goldilocks’ scenario, that is to say robust growth and inflation almost under control… a real fairy tale.
The latest US indicators published this Friday are rather mixed but they do not call into question the scenario of a soft landing for growth.
The Empire State index – which measures manufacturing activity in New York State – however fell 24 points in December to settle at -14.5.
But this is offset by the increase in private sector growth: S&P Global publishes a composite PMI index which comes out at 51 flash estimate, compared to 50.7 ultimately for the previous month.
‘The acceleration in production is supported by a faster increase in new orders since July’, points out S&P Global, adding however that cost pressures are increasing.
US industrial production also rebounded by 0.2% in November, after a drop of 0.9% the previous month (revised from an initial estimate of -0.6%), driven in particular by an automotive sector which saw its growth by 7.1%.
Excluding this strong increase, which reflects the end of strike movements in this sector, manufacturing production itself on the contrary fell by 0.2% from one month to the next, according to the Federal Reserve which publishes this numbers.
The capacity utilization rate in American industry improved by 0.1 percentage point to 78.8% in November, a level 0.9 point lower than its long-term average (1972-2022). ).
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