Stocks Advance On Economic Data

Stocks continued to advance on Wednesday after three economic reports beat expectations.
 
Stocks continued to climb higher on Wednesday, with the Dow Jones Industrial Average, the S&P 500 and the Russell 2000 hitting new record-high closing levels. The Nasdaq 100 closed at its highest level since August of 2000. Three upbeat economic reports fed the bulls. The Department of Labor reported that initial unemployment claims declined to 316,000 for the week ending November 23, despite expectations for an increase to 330,000. The final Thompson Reuters/University of Michigan Consumer Sentiment Index for November rose to 75.1 from October’s 73.2, beating the preliminary November reading of 72.0. Economists were expecting a reading of 73.3. The Conference Board’s Leading Economic Index for October increased by 0.2 percent to 97.5, beating economists’ expectations of a 0.1 percent increase.
 
The Dow Jones Industrial Average (DIA) picked up 24 points to finish Wednesday’s trading session at a new record-high closing level of 16,097.33 for a 0.15 percent advance. The S&P 500 (SPY) climbed 0.25 percent to a new record-high close at 1,807.23. The S&P failed to beat Tuesday’s record intraday high of 1,808.42 after getting only as close as 1,808.27, which was a tad better than Monday’s high of 1,808.10.
 
The Nasdaq 100 (QQQ) surged 0.72 percent to finish at 3,470. The Russell 2000 (IWM) climbed 0.60 percent to a record-high close at 1,141.33 after hitting a new record intraday high of 1,141.50.
 
In other major markets, oil (USO) sank 1.48 percent to close at $33.19.
 
On London’s ICE Futures Europe Exchange, January futures for Brent crude oil advanced 59 cents (0.53 percent) to $111.47/bbl. (BNO).
 
February gold futures declined $4.10 (0.33 percent) to $1,237.40 per ounce (GLD).
Transports passed right by the Space Station on Wednesday, with the Dow Jones Transportation Average (IYT) climbing 0.71 percent to $129.94 after reaching an all-time high of $130.
 
In Japan, profit-taking was the dominant factor in stock market activity. Japanese investors saw Monday’s advance by the Nikkei 225 to its highest level since May 21 as the trigger. The yen weakened slightly to 101.55 per dollar just before the closing bell in Tokyo (FXY). The Nikkei 225 Stock Average declined 0.42 percent to 15,449 (EWJ).
 
In China, brokerage firm shares led the stock market advance, as enthusiasm that the nation’s financial reforms will boost capital markets fed enthusiasm about the financial sector. The Shanghai Composite Index surged 0.82 percent to 2,201 (FXI). Hong Kong’s Hang Seng Index advanced 0.53 percent to end the day at 23,806 (EWH).
 
Stocks advanced in Europe after GfK AG released an upbeat German Consumer Climate Report. The consumer climate index is expected to reach 7.4 in December from November’s 7.1. The economic expectations index for November jumped to 20.3 from October’s 11.3. The Euro STOXX 50 Index finished Wednesday’s session with a 0.65 percent surge to 3,082 – climbing further above its 50-day moving average of 3,001. Its Relative Strength Index is 60.82 (FEZ).
 
Technical indicators revealed that the S&P 500 climbed further above its 50-day moving average of 1,740 after advancing 0.25 percent to finish Wednesday’s session at a record-high close of 1,807.23. Its Relative Strength Index rose from 65.37 to 66.78. The MACD is on a level trajectory, just above the signal line, which would suggest that the S&P will remain near 1,807 in the immediate future.

On Wednesday, six sectors finished in positive territory and three sectors finished in the red.
 
Consumer Discretionary (XLY):  +0.38%
 
Technology:  (XLK):  +0.79%
 
Industrials (XLI):  +0.40%
 
Materials: (XLB):  +0.07%
 
Energy (XLE):  -0.68%
 
Financials: (XLF):  +0.28%
 
Utilities (XLU):  -0.21%
 
Health Care: (XLV):  -0.04%
 
Consumer Staples (XLP):  +0.07%
 
Bottom line:  Three better-than-expected economic reports boosted investor enthusiasm on Wednesday, sending stocks to new record highs. 

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