Stocks Close at All-Time High; Treasuries Decline: Markets Wrap

(Bloomberg) -- Stocks rose to a record on speculation the economic recovery can weather the coronavirus flareup. Bonds fell.

Trading volume was low ahead of the holidays. Electric-vehicle startup Nikola Corp. surged amid optimism about deliveries. U.S.-listed shares of JD.com Inc. sank on Tencent Holdings Ltd.’s plan to distribute over $16 billion of the Chinese e-commerce firm’s stock as a one-time dividend. Crocs Inc., the colorful clog maker, plunged after agreeing to buy casual-shoe brand Heydude for $2.5 billion. Bitcoin climbed above $50,000.

U.S. consumer sentiment increased in December as households grew more upbeat about the economy. Sales of new homes rose in November to a seven-month high, while orders for durable goods beat forecasts. Consumer spending -- adjusted for inflation -- stagnated as the fastest price gains in nearly four decades eroded purchasing power. Jobless claims were little changed last week.

Merck & Co.’s Covid-19 pill was cleared by U.S. regulators, giving high-risk patients another at-home treatment option. New York City is limiting crowds and adding more health and safety measures for revelers at the New Year’s Eve ball drop in Times Square. People infected with omicron are 50% to 70% less likely than those with delta to be admitted to hospitals, the U.K. Health Security Agency said.

“We’re still in a pretty good spot for equities,” said Anu Gaggar, global investment strategist at Commonwealth. “Real rates remain low and liquidity conditions remain quite easy, household and corporate balance-sheets are healthy and consumer confidence also remains high. It is not time to head for the exits.”

What to watch this week:

• Friday: U.S. markets are closed. U.K. markets close earlier

For more market analysis, read our MLIV blog.

Some of the main moves in markets:

Stocks

• The S&P 500 rose 0.6% as of 4 p.m. New York time
• The Nasdaq 100 rose 0.8%
• The Dow Jones Industrial Average rose 0.5%
• The MSCI World index rose 0.8%

Currencies

• The Bloomberg Dollar Spot Index fell 0.1%
• The euro was little changed at $1.1335
• The British pound rose 0.5% to $1.3418
• The Japanese yen fell 0.3% to 114.39 per dollar

Bonds

• The yield on 10-year Treasuries advanced four basis points to 1.49%
• Germany’s 10-year yield advanced four basis points to -0.25%
• Britain’s 10-year yield advanced four basis points to 0.92%

Commodities

• West Texas Intermediate crude rose 1.5% to $73.83 a barrel
• Gold futures rose 0.4% to $1,809.90 an ounce

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