The Dow Jones, other stock market averages and crude oil prices plunged and boomed in a holiday-shortened week. The S&P 500 index entered a bear market on Christmas Eve, but then rebounded powerfully after Christmas. Holiday retail sales were the best in six years, with Amazon.com (AMZN) touting another "record-breaking" season. Tesla (TSLA) named two independent directors, including Oracle (ORCL) Chairman Larry Ellison.
XStock Market Dives, Rebounds
The major stock market averages closed with strong weekly gains after another wild week. Stocks plunged on Christmas Eve, with the S&P 500 index slipping into a bear market, joining the Nasdaq composite. On Wednesday, the major averages all rose at least 5%, their best gains since March 2009. A stock market bounce wasn't a surprise given the huge losses in recent weeks and months. On Thursday, the major averages erased steep intraday losses to close higher. Shares were mixed Friday. The Nasdaq rose 4% for the week, the S&P 500 index 2.9% and the Dow Jones 2.7%.
Holiday Retail Sales Growth Best In Six Years
Holiday retail sales rose 5.1% from Nov. 1-Dec. 24, just topping 2017's 4.9% pace and the fastest growth in six years, according to Mastercard SpendingPulse. Online sales shot up 19.1%. Department store sales fell, reflecting store closures, but their online sales climbed 10.2%. Apparel sales jumped 7.9%, the best in eight years. Amazon touted a record-breaking year, which isn't a surprise.
Crude Oil Prices Crash, Rebound
U.S. crude oil prices rebounded after plunging 6.7% on Christmas Eve, paring the weekly loss to 0.6%, at $45.33 a barrel. U.S. crude oil inventories fell by 46,000 barrels last week, according to the Energy Information Administration, vs. the 1.4 million barrel decline analysts polled by S&P Global Platts expected. Domestic oil production rose to 11.7 million barrels a day. Russia's energy minister rejected a formalized partnership with OPEC amid President Donald Trump's criticism of OPEC and possible U.S. sanctions. But Moscow didn't rule out continued cooperation with the cartel.
Americans Less Confident
The Consumer Confidence Index fell 8.3 points in December to 128.1, the lowest point since July. Americans were less upbeat about the economic and jobs outlook. The Richmond Fed manufacturing index tumbled 22 points to -8 in December, surprising analysts who were expecting no change. Jobless claims held near long-term lows. The Case-Shiller home price index for October showed a 5% gain in 20 major cities, the smallest annual gain in two years. Pending-home sales edged lower. The Commerce Department did not release November new-home sales data due to the government shutdown.
News In Brief
Private equity firm Vista Equity Partners acquired Mindbody (MB), which sells cloud-based business management tools for the wellness industry, for $1.95 billion in cash. Vista Equity agreed to pay $36.50 per share for Mindbody, a 68% premium to its closing price on Dec. 21. In the September quarter, Mindbody lost 5 cents a share on sales of $63.8 million, up 37% from a year earlier.
Tesla (TSLA) named Larry Ellison, chairman and founder of Oracle (ORCL), and Kathleen Wilson-Thompson, global head of human resources at Walgreens Boots Alliance (WBA), to its board to comply with the SEC settlement to add two new independent directors. However, Ellison recently disclosed a big Tesla stake and has defended CEO Elon Musk's behavior. Tesla stock rose 5.6% on Friday.
Ohio-based cannabis producer Green Growth Brands signaled a $2.1 billion hostile bid for NYSE-listed Aphria (APHA). Canadian marijuana firm Aphria, which has fallen sharply since its early November listing amid short-seller accusations, said the offer "significantly undervalues" the stock. Aphria shares jumped 12% Friday.
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The post Stocks, Crude Oil Prices Roar Back; Holiday Retail Sales Strong: Weekly Review appeared first on Investor's Business Daily.
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