Portfolio Strategy
By: Michael Gibbs, Director of Equity Portfolio & Technical Strategy
Joey Madere, CFA
Richard Sewell, CFA
Mitch Clayton, CMT, Senior Technical Analyst
December 24, 2019
The S&P 500 futures trade three points, or 0.1%, above fair value on this Christmas Eve. It's been a tight-ranged session, with many other equity markets closed or closing early for the Christmas holiday.
The U.S. stock market will close at 1:00 p.m. ET today, but many market participants have likely already checked out for the holiday. Trading conditions may be thin, which could lead to some noticeable price swings in the shortened session.
The prevailing bias is positive, though, as investors have shown little interest to sell a market trading at all-time highs. Although not a certainty, the market does tend to rise in the last five trading days of December and into early January in a calendar effect known as the Santa Claus rally.
Elsewhere, the U.S. Treasury market will close early at 2:00 p.m. ET. Currently, the 2-yr yield is up one basis point to 1.66%, and the 10-yr yield is down one basis point to 1.93%. The U.S. Dollar Index is up 0.1% to 97.73. WTI crude is up 0.4%, or $0.26, to $60.78/bbl.
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