U.S. stock indexes turned negative on Tuesday while European stock indexes were closed due to Boxing Day (St. Stephan’s Day) on the final trading week of 2017.
Retail stocks performed well on Tuesday following a MasterCard Spending Pulse report showing holiday sales increased 4.9 percent, setting a new record for dollars spent, and marking the largest year over year increase since 2011 and a further indication of consumer confidence.
Tomorrow a consumer confidence report for December will be reported that will show how confident consumers are in the overall U.S. economy.
The Spending Pulse report from Master card showed that electronics and appliances increased 7.5 percent, the strongest growth of the past 10 years.
Specialty apparel and department stores saw moderate gains.
Retailers’ heavy early season promotions paid off with the first 3 weeks of November seeing significant jumps.
Shares of Apple slid -2.54 percent on Tuesday following a Bloomberg report that cited a report from Sinolink Securities indicating lackluster demand for the iPhone X in the first quarter of next year with handset shipments 10 million less than previously reported.
Bull Market in 2017
Despite 3 rate hikes in 2017 from the U.S. Federal Reserve, 2017 has been extremely strong for stock indexes which surged this year with the Dow Jones up 24 percent YTD, the S&P 500 up 20 percent YTD, and the Nasdaq jumping 29 percent YTD.
Lower federal regulations and new tax cuts beginning in 2018 account for some of the investor optimism alongside strong corporate profits and a low U.S. unemployment level that is below 5 percent.
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