What Happened Last Week

The S&P 500 Index gained 0.67 percent, the Nasdaq Composite Index gained 0.76 percent and the Dow Jones Industrial Average gained 0.35 percent.^1,2

Consumer Confidence Down

Stocks rallied during the first half of a shortened holiday trading week. Holiday cheer won out despite news of declining consumer confidence in December, a drop in durable goods, and new home sales reporting below expectations.^3,4

The “Santa rally” lost its momentum after the midweek holiday. Megacap technology stocks led markets down on Friday, giving back most of the gains from the first half of the week.^4,5

Holiday Spending Up

While Santa got the headlines, the consumer drove the holiday shopping sleigh this year.

Holiday spending—defined by the period from November 1 through December 24—rose 3.8 percent in 2024, compared with 3.1 percent in 2023. Economists closely follow consumer activity since consumer spending makes up roughly two-thirds of total gross domestic product. Market watchers attributed the strong job market and growth in household wealth as the primary drivers of consumer strength.⁶

Economic Data To Watch

Monday: Pending Home Sales. 3-Month Treasury Bill Auction.

Tuesday: Case-Shiller Home Price Index.

Wednesday: Stock market closed.

Thursday: Jobless Claims. EIA Petroleum Status Report. Fed Balance Sheet. 30-Year Treasury Bond Announcement.

Friday: Motor Vehicle Sales. ISM Manufacturing Index. Federal Reserve Officials Thomas Barkin and Mary Daly speak.

^{Source: Investors Business Daily - Econoday economic calendar; December 27, 2024
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

Upcoming Earnings Reports

Friday: The Greenbrier Companies, Inc. (GBX)

^{Source: Zacks,December 27, 2024. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

Footnotes and Sources

^{1. The Wall Street Journal, December 27, 2024}

^{2. Investing.com, December 27, 2024}

^{3. MarketWatch.com, December 23, 2024}

^{4. CNBC.com, December 26, 2024}

^{5. The Wall Street Journal, December 27, 2024}

^{6. MarketWatch.com, December 26, 2024}

^{Source: YCharts.com, December 28, 2024. Weekly performance is measured from Friday, December 20, to Friday, December 27. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.}