Nasdaq Eases On Final Trading Day Of Year; Amazon Pressure On Trump Tweet | Stock News & Stock Market Analysis
The final trading day of 2017 saw modest losses for the Dow Jones industrial average, S&P 500 and Nasdaq composite in the afternoon as fourth quarter drew to a close.
Options abound about what’s in store for the stock market in 2018, but the bull case still holds plenty of water. Leaders are generally acting well, big corporate tax cuts should continue to power earnings in 2018, while low interest rates could spur more M&A activity and a healthy IPO market.
But it’s important not to be too complacent, especially amid plenty of bullish sentiment in the market. When Wall Street comes back after the three-day weekend, continue to watch price and volume in the S&P 500 and Nasdaq. The bulls want to see higher volume gains and lower-volume declines. The bears want to see more more signs of institutional selling, higher-volume declines in the indexes known as distributions days.
The major stock indexes were down anywhere from 0.1% to 0.2%, with volume on the NYSE and Nasdaq tracking just above Thursday’s light levels.
In the stock market today, small cap chip name Ultra Clean Holdings (UCTT) gapped up 2.03 to 23.18 on news it’s joining the S&P SmallCap 600. It’s replacing Scientific Games (SGMS), which is joining the S&P MidCap 400.
Among FAANG names, Amazon.com (AMZN) was under pressure after President Trump tweeted that the online retailer should be paying higher fees to the U.S. Postal Service, which has been bleeding red ink for years. Shares of Amazon lost 0.8% to 1,176.66. Fellow FAANG name Apple (AAPL) is threatening a break below the 50-day moving average. Shares eased 0.5% to 170.14.
Inside the IBD 50, China Lodging (HTHT) cleared a cup-shaped base with a 142.90 entry. Shares jumped 3% to 145.35. But it’s a late-stage base after a huge run already. Other China names in the IBD 50 outperformed, including TAL Education (TAL), up 1.5% and New Oriential Education (EDU), up 1.4%.
The 10-year Treasury yield was down 2 basis points to 2.41%, while February U.S. crude oil futures were up 1% to $60.41 a barrel.