What happened last week…
The three major indices all recorded solid gains for 2024: DJIA (12.88%), S&P 500 (23.31%), NASDAQ (28.64%). According to CNBC, with back-to-back years of more than a 20% gain for the S&P 500 (up 24.2% in 2023), “The two-year gain of 53% is the best since the nearly 66% rally in 1997 and 1998.” The fourth quarter was green across the board: DJIA (0.51%), S&P 500 (2.07%), NASDAQ (6.17%). Both the S&P 500 and NASDAQ were positive for the fifth consecutive quarter, while the DJIA had its fourth positive quarter over the past five quarters.
Although the Santa Claus Rally (final five trading days of December plus the first two trading days in January) saw the S&P 500 finish in the red, the preceding Santa Claus Rally was also negative but saw the S&P 500 have a positive January 2024, a positive Q1 2024, and a double-digit annual gain for 2024. Although the three major indices finished down for the shortened week, gains were solid to close out the week with Friday’s performances as follows: DJIA (0.80%), S&P 500 (1.26%), NASDAQ (1.77%).
Tesla (TSLA) reported fourth quarter vehicle production of 459,445 and vehicle deliveries of 495,570 (below consensus estimates of 504,770). For full-year 2024, total annual production was 1,773,443 vehicles and total annual deliveries was 1,789,226 vehicles. A year ago, the company reported Q4 2023 deliveries of 484,507 and total 2023 annual deliveries of 1,808,581.
The manufacturing PMI for December beat expectations (48.4) as it increased to 49.3 from 48.4, making it the highest reading since March 2024 but the ninth straight contractionary reading (below 50) and the 25th contraction in the past 26 months.
Happening this week…
On Tuesday, the non-manufacturing PMI for December is expected to increase to 53.5 from 52.1, which was the fifth straight month of expansion. The figure has expanded in 51 of the previous 54 months.
On Wednesday, the ADP employment change may decrease to 143,000 from 146,000. On Friday, the unemployment rate is expected to remain at 4.2%, nonfarm payrolls are forecasted to decrease to 150,000 from 227,000, and average hourly earnings month-over-month are expected to decrease to 0.3% from 0.4%.
On Thursday, the stock market will be closed for a National Day of Mourning in honor of former President Jimmy Carter, who died on December 29 at the age of 100.
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- The Rockline Team
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