The Santa Rally continued today with solid economic data reports
Stocks powered higher with the Dow Jones Industrial Average (NYSEARECA:DIA) gaining +.05%, the Nasdaq 100 (NYSEARCA:QQQ) adding +0.8% and the S&P 500 (NYSEARCA:IVV) climbing +0.8%.
Rocket fuel for Santa’s sleigh came from December Consumer Sentiment rising to 69.9 from 67.7, and unemployment claims declining to 364,000 versus last week’s 368,000 the best reading since 2008 which should add strength to the all important consumer sector (NYSEARCA:XLY) during the important holiday shopping season.
But Rudolph ran into a speed bump with 3Q GDP being revised downward to 1.8% from previously estimated 2.0%, indicating that conditions in the U.S. economy still aren’t that merry.
But the big news was that Congressional Republicans reportedly have agreed to a 2 month extension to the payroll tax holiday rather than sticking to their demands for a one year extension which apparently defused a year-end confrontation and potential tax hike for the New Year.
Bottom line: Santa and his sleigh have launched for the holiday flight of the Santa Rally.
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