Zhitong Financial APP learned that the three major indexes closed higher on Monday, and the Dow and Nasdaq both recorded their eighth consecutive trading day gains. The three major stock indexes had previously risen for seven consecutive weeks. The index edged up less than 1 point on Monday, but still had an all-time high. Today, the index rose as high as 37,393.45 points, a new intraday all-time high.
As of the close, the Dow rose 0.86 points to 37,306.02; The Nasdaq rose 90.89 points, or 0.61%, to 14,904.81; The S&P 500 rose 21.37 points, or 0.45%, to 4,740.56.
European stocks closed mostly in the red, with Germany's DAX down 0.6%, Britain's FTSE 100 up 0.5%, France's CAC 40 down 0.37%, and Euro Stoxx 50 down 0.62%.
The Nikkei 225 index fell 0.64%, South Korea's KOSPI index rose 0.13%, Indonesia's Jakarta Composite Index fell 0.99%, and Vietnam's VN30 index fell 1.16%.
The DXY, a basket of six major currencies, fell 0.04% to 102.51.
Cryptocurrencies were up more than 3% at $42,669.7 and Ethereum was up 0.86% at $2,213.12.
COMEX gold futures for February delivery settled up 0.24% at $2,040.5 an ounce.
WTI crude oil futures for January delivery closed up $1.04, or 1.46%, at $72.47 a barrel, while Brent crude futures for February delivery closed up $1.40, or 1.83%, at $77.95 a barrel
London metals were mixed, with London copper down 0.94%, London nickel down nearly 4%, London zinc up 0.2%, London aluminum up more than 1.5%.
【Macro News】
The U.S. homebuilder confidence index rose for the first time in five months. U.S. homebuilder confidence improved in December for the first time in five months, as falling mortgage rates pushed up potential buyer flow and sales expectations. The National Association of Home Builders (NAHB)/Wells Fargo Homebuilder Confidence Index rose 3 points to 37, data released on Monday showed. This figure is in line with economists' median expectations. With mortgage rates falling to their lowest level since August, the likelihood that housing demand will at least stabilize next year is starting to grow. However, despite falling interest rates, mortgage rates are still more than double at the end of 2021, and home prices remain high.
Fed official Goolsbee: The market is betting on a higher rate cut than the FOMC predicted. Chicago Fed President Austan Goolsbee said in an interview on Monday that he was baffled by the market's reaction to Fed officials' quarterly forecasts, adding that the central bank should not act based on its expected market reaction. He said the market is currently pricing in more rate cuts than the Fed's quarterly economic projections. Goolsbee said inflation had improved "significantly" but had not yet fallen back to target. He said that driven by continued improvement on the supply side, officials can believe that inflation is coming down without the need for an economic downturn.
Goldman Sachs raised its S&P 500 forecast to 5,100. Goldman Sachs strategist Kostin expects the S&P 500 to reach 5,100 by the end of next year — the Goldman Sachs strategist raised his forecast by nearly 9% from 4,700 in mid-November. Goldman Sachs, like Wall Street peers such as Bank of America and Oppenheimer, expects the index to hit new highs in 2024. Goldman Sachs strategists said: "Equities have already priced in positive economic activity, but now reflect a stronger outlook. ”
BlackRock: It's too early to expect the Fed to cut rates in March. Rick Rieder, chief investment officer of global fixed income at BlackRock, said the market's expectation that the Fed will start cutting interest rates in March may be too early. With the sell-off in Treasuries across the board, Rieder said, "I think today's contraction is justified to some extent." The market movement reflects that Powell does not intend to "start cutting rates so quickly and aggressively." Rieder said he was surprised by Powell's dovish tone at the FOMC meeting. Rieder said he underweight the short end of the yield curve and is bullish on the middle of the curve when the Fed does start to pivot. The sharp drop in longer-maturity Treasury yields has been surprising, with Reider saying, "The need for the long end of the curve has been one of the strangest things I've seen." Historically, the yield on a 30-year Treasury note just above 4% has been "less attractive" and includes "duration risk" at a time when short-end yields are higher.
OpenAI's new guidelines for dealing with AI risks: The board of directors has the right to block the release of AI models. OpenAI released guidance on Monday explaining how to deal with the extreme risks that its most powerful AI systems can pose. OpenAI said its board of directors has the option to block the release of AI models even if the company's leadership deems them safe. This is another sign that the company has authorized its directors to strengthen safeguards for cutting-edge technology development. OpenAI said, "We are building a cross-functional security advisory group to review all reports and submit them to both leadership and the board of directors." While leadership is the decision-maker, the board has the power to reverse the decision. "The previous recall turmoil has brought the balance of power between the company's directors and executives into the spotlight.
【Stock News】
Apple (AAPL. US) will stop selling the flagship Apple Watch model in the United States. Apple announced in a statement that it will soon stop selling its flagship Apple Watch model in the United States. Starting later this week, the Apple Watch Series 9 and Apple Watch Ultra 2 will no longer be available for sale at Apple. Previously, the U.S. International Trade Commission (ITC) ruled on a long-running patent dispute between Apple and medical technology company Masimo over Apple Watch blood oxygen sensor technology. It is reported that after 3 p.m. ET on Thursday, December 21, the Apple Watch Ultra 2 and Apple Watch Series 9 will no longer be able to be ordered on Apple's website. After December 24, in-store inventory will no longer be available in Apple retail stores. Apple said the ITC's ban only affects sales of Apple's Apple Watch Series 9 and Apple Watch Ultra 2 because these devices offer blood oxygen monitoring. The low-end Apple Watch SE without this sensor will not be affected and will continue to be sold. The ITC's decision is simply to ban Apple from selling the affected Apple models. For now, this means that these devices can still be purchased from other stores such as Amazon. However, the order does prohibit all Apple Watch Series 9 and Apple Watch Ultra 2 imports into the U.S. after December 25. At this point, Apple will also be banned from selling these devices to dealers. Therefore, if this ruling is upheld, it may also subsequently affect the sales of the Apple Watch at other retailers.
U.S. Steel (X.US) closed up more than 26% and Nippon Steel plans to buy it at a 40% premium. U.S. Steel closed up more than 26%, with Japan Steel Corporation (NSC), Japan's largest steelmaker and a leading steelmaker in the steel industry with competitive advantages such as low-cost iron ore, short-process steelmaking and best-in-class finishing capabilities. Today, they announced that they have reached a definitive agreement whereby Nippon Steel will acquire U.S. Steel in an all-cash transaction of $55.00 per share, equivalent to an equity value of approximately $14.1 billion, for a total value of $14.9 billion in debt. The purchase price of $55.00 per share represents a 40% premium to U.S. Steel's closing price on December 15, 2023. The transaction has been unanimously approved by the boards of directors of Nippon Steel and U.S. Steel.
Southwest Airlines (LUV. US) was fined $140 million for a 2022 holiday operational failure. The U.S. Department of Transportation said that Southwest Airlines (LUV. N) was fined $140 million. U.S. Transportation Secretary Pete Buttigieg said in a press release that the civil fine for the airline was higher than any previous fine for any airline.
【Big Bank Rating】
Morgan Stanley: Netflix (NFLX. US) raised its price target to $550 from $475