(ABM FN-Dow Jones) Wall Street closed higher on Tuesday, continuing its Christmas rally following takeover reports and some economic data.
The broad S&P 500 index closed 0.4 percent higher at 4,774.75 points and the Nasdaq technology index rose 0.5 percent to 15,074.57 points. The Dow Jones index ended 0.4 percent higher at 37,545.33 points.
It was the eighth straight week of gains for the S&P500 index.
A pair of takeover announcements from AstraZeneca and Bristol-Myers Squibb revived the merger mood among investors after Christmas.
The stock exchanges in Europe remained closed on Boxing Day, but there was trading in Asia. Japan’s Nikkei index gained 0.2 percent, but in Shanghai the stock market fell by 0.7 percent.
In China, technology shares and real estate were again under pressure on Tuesday. Despite the recent price falls, ING investment manager Simon Wiersma thinks that 2024 will be a good year for Chinese shares. He pointed to the low valuations and the expectation that Beijing and the Chinese central bank will provide additional stimulus. Kansrijk Wiersma mentioned stocks such as Alibaba, Tencent and JD.com.
There was economic news on Tuesday about the Chicago Fed index, which rose to a plus of +0.03 in November, from -0.66 in October. Home prices in the US rose for the ninth month in a row in October.
It also turned out that money was still spent during the holidays. U.S. retail sales between Nov. 1 and Dec. 25 were up 3.1 percent from a year earlier, data from MasterCard SpendingPulse showed.
According to Erik Mauritz of Trade Republic, 2024 could well be the year of American small caps, after 2023 was the year of large caps. Small caps are cheap in absolute terms and are much more interest rate sensitive than large shares. According to Mauritz, they have more debt and are also more variable in financing. Anyone who believes in falling interest rates in 2024 and thinks that the recession will not be very severe could look at American small caps, according to Mauritz.
The S&P 500 index has already risen almost 25 percent this year. The Dow Jones index has a price gain of almost 13 percent and the Nasdaq even rose approximately 44 percent. The Russell 2000 index gained just over 16 percent this year, while the index for American small caps was still at a low point at the end of October and the index seemed to be heading for a loss year.
Oil futures rose amid unrest over attacks on ships by Yemeni rebels. Brent oil became 3 percent more expensive at $81.16.
Risers and fallers
Intel rose 5.2 percent after the company announced plans for a wafer factory in southern Israel. Israel’s government is providing a $3.2 billion subsidy for a new $25 billion chip factory in Kiryat Gat, south of Tel Aviv. The factory should reduce problems in global supply chains for the chip giant. New factories are also being built in Germany and Ohio.
Caterpillar gained 1.8 percent and Chevron also contributed positively, while healthcare companies Merck, UnitedHealth and Amgen provided downward pressure.
Tesla rose 1.6 percent. More cars were sold in China last week and Tesla may be heading for its best quarter in the country in terms of the number of cars sold.
Gracell Biotechnologies shares closed 60 percent higher after it was announced that the company was being bought by AstraZeneca.
Bristol-Myers Squibb is acquiring RayzeBio for $4.1 billion, it further emerged. RayzeBio became worth twice as much. Bristol-Myers lost 1.6 percent in value.
Nio closed 10 percent higher. The Chinese car manufacturer presented a new car with four seats, which can be delivered from the first quarter of next year. Investors seem happy with the investor day.
Manchester United closed 3.5 percent higher in New York. Billionaire Jim Ratcliffe takes a minority stake in the British football club.
Bron: ABM Financial News
ABM Financial News is a supplier of stock market news, video and data, both for real-time trading platforms and dealing rooms and for online and offline media publications. The information in this article is not intended as professional investment advice or as a recommendation to make certain investments.
2023-12-26 21:14:19
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