(Bloomberg) — Stocks rose toward a record on speculation the economic recovery can weather the coronavirus flareup. Bonds fell.
Industrial and commodity companies led gains in the S&P 500. 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 more than $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.
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. People with the omicron variant are 50% to 70% less likely to be admitted to hospital, compared with the delta strain, the U.K. Health Security Agency said Thursday.
“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 0.7% as of 12:30 p.m. New York time
- The Nasdaq 100 rose 0.8%
- The Dow Jones Industrial Average rose 0.6%
- The MSCI World index rose 0.8%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $1.1332
- The British pound rose 0.4% to $1.3412
- The Japanese yen fell 0.3% to 114.43 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 1.3% to $73.70 a barrel
- Gold futures rose 0.4% to $1,808.70 an ounce
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