U.S Stocks Close Out Another Strong Year

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Main Content:

1.    Major indexes weekly performance 

2.    U.S stocks weekly wrap 

3.    S&P 500 sector index weekly/month performance 

4.    China/Hong Kong stocks weekly wrap 

5.    Singapore stocks weekly wrap 

6.    Major indexes weekly chart and technical support & resistance levels

U.S.

For the week of Jan 3, major stock indexes were slightly lower during the holiday-shortened week, although broad gains on Friday helped indexes finish off their worst levels. Underperformance at the beginning of the week was partially attributable to some profit-taking heading into the end of the year as Tuesday was the fourth consecutive day of declines for the S&P 500 Index. However, despite the year-end slump for U.S. equities, 2024 marked the second straight annual gain of over 20% for the S&P 500 Index(SPX) and capped off the best two-year stretch in 25 years. The Nasdaq Composite(COMP) also finished the year up over 20% for the sixth time in the past eight years. Refer to below major indexes performance table for the week and major indexes performance for the month of December and year 2024.

Major indexes monthly performance for December and for the whiole year 2024.

Key highlights for the week and next:

1.    U.S GDP. The U.S. economy appears to have grown at a 2.7% pace in 2024 (including Q4 estimates). This is down only marginally from 2023’s 2.9% rate and above the estimated long-term growth rate of around 2%. Consumer spending accounting 70% of GDP, remains supportive. For 2025, it’s believed the U.S. economy will continue to see positive but more moderate economic momentum. 

2.    Fed slows the pace of interest rate cuts to settling in the 3.5%-4% range, two or possibly three rate cuts is expected currently. 

3.    Jobless claims of 211k for the week ended Dec 28. This was a decline from the prior week’s reading of 220k and was the lowest level in eight months. 

SPX sectors in play

Four out of the 11 SPX sectors recorded weekly gain. Energy(XLE) and Utilities( XLU) stocks outperformed while Consumer Discretionary(XLY) and Materials(XLB) lagged. Refer to below SPX sectors ETF weekly performance table.

Indexes technical levels

All the three major indexes closed slightly lower in the holiday-shortened week, although a rally on Friday helped indexes finished off their worst levels. All three major indexes weekly uptrend remain intact, the SPX closed just at its 50dma after Friday’s rebound. Nasdaq Composite(COMP) rebounded Friday from its 50dma, closed in between its 20 and 50 dma. Dow was the weakest among the three, sideways below its 20/50dma. Click below three indexes for their weekly charts.

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

China stocks retreated as weaker-than-expected manufacturing data hurt investor sentiment. The Shanghai Composite Index(SSE) fell 5.55%, while the blue chip CSI 300 lost 5.17%. In Hong Kong, the benchmark Hang Seng Index gave up 1.64% during the holiday-shortened week. (Refer to the above weekly performance table).

Key highlights for the week and outlook for China/HK:

1.    China’s factory activity expanded for the third consecutive month. The official manufacturing PMI slowed to 50.1 in December from 50.3 in November, according to the statistics bureau. Though December’s reading surpassed the 50-mark threshold separating growth from contraction, it missed economists’ forecasts. The nonmanufacturing PMI, which measures construction and services activity, rose to a better-than-expected 52.2 in December from November’s 50 reading. 

2.    Separately, the Caixin China General Manufacturing PMI slowed to 50.5 in December from 51.5 in November. Though December marked the third straight month of expansion for the private survey, it too lagged economists’ forecasts. Taken together, the data pointed to a tentative recovery in the economy after Beijing unleashed a barrage of stimulus measures in September. However, “prominent downward pressures remain, with tepid domestic demand and mounting unfavorable external factors,” Caixin Insight Group noted in a statement accompanying the release. 

3.    December property sales stay unchanged from last year. The value of new home sales by the top 100 developers stayed flat in December from a year earlier compared with November’s 6.9% drop, according to the China Real Estate Information Corp. New home sales rose 24.2% month on month. For the full year, sales from the top 100 developers sank 28.1% versus a 16.5% drop in 2023. The data added to evidence of a possible turnaround in China’s housing market after Beijing unveiled a rescue package to revive the troubled sector in late September. 

Click below SSE and .HSI indexes for their weekly charts. 

SSE weekly chart

.HSI weekly chart

Singapore

The Straits Times Index (STI) added 0.8% this week, closing at 3801.83, recorded 2^nd weekly gains, the index remains in the bullish trend. Top index gainers including Seatrium and REITs, while the banks had mixed performance. Below is the weekly performance of the index stocks.

Click below for STI weekly chart.

STI weekly chart

Source: Some contents and data excerpted from various public market reports.

HAPPY NEW YEAR 2025!

 Dear all readers, Wishing you and loved ones a HAPPY NEW YEAR!