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Pharmaceutical industry

US Stocks Hit New Highs Ahead of New Year's, Consumer Confidence and Home Prices Beat Expectations

Strategic Insights

— 1 min read

US stocks closed at record highs on Tuesday, with the Dow Jones Industrial Average and S&P 500 posting their best annual gains since 1995 and 1997, respectively. Ahead of the New Year's Day holiday, consumer confidence and home prices also showed positive signs, beating expectations. The University of Michigan's consumer confidence index rose to 78.1 in December, exceeding forecasts, while home prices in the 20 largest cities within the US increased at a 13.61% annual rate in November.

Key Takeaways:

  • The Dow Jones Industrial Average rose 0.44% to close at 16,576.66, with a 26.5% year-over-year gain, the best since 1995.
  • The S&P 500 finished 0.40% higher at 1,848.36, with a 29.6% year-over-year gain, the best since 1997.
  • The University of Michigan's consumer confidence index rose to 78.1 in December, ahead of the consensus forecast of 76.
  • Home prices in the 20 largest cities within the US increased at a 13.61% annual rate in November, slightly ahead of the 13.5% gain expected.
  • H-P announced plans to lay off 34,000 employees by the end of its financial year, an increase from its previous estimate of 29,000.
  • Revlon announced plans to exit China and cut 1,100 jobs, saving the company approximately $11m per year.
  • Phillips 66 rose on the news that Berkshire Hathaway is to buy Phillips Specialty Products for $1.4bn.
  • Marathon Petroleum Corporation (MPC) saw a 3.65% increase, followed by Valero Energy Corp. (VLO) at 3.62% and Tesoro Corp. (TSO) at 3.45%.

Statistics:

  • Dow Jones Industrial Average: 16,576.66, up 0.44% for the day.
  • S&P 500: 1,848.36, up 0.40% for the day.
  • University of Michigan's consumer confidence index: 78.1.
  • Home prices in the 20 largest cities within the US: 13.61% annual rate, in November.
  • H-P job layoffs: 34,000 by the end of the financial year.
  • Revlon job cuts: 1,100 jobs saved approximately $11m per year.

Sources:

  • EnPublishing - "Coutts-US CLOSE: DOW, S&P 500 HIT NEW HIGHS AHEAD OF NEW YEAR'S" (January 2, 2014)
  • M2 Communications - "Coutts-US CLOSE: DOW, S&P 500 HIT NEW HIGHS AHEAD OF NEW YEAR'S" (January 2, 2014)

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