TheChek News Flow

Markets lulled into holiday mode on a shortened Christmas Eve trading day and ended flat, with no discernible sign of a Santa Claus rally. Jobless claims came in largely in line with estimates Thursday morning, and the dollar weakened against most major pairs. EIA natural gas inventories fell more than expected, sending prices higher briefly, but couldn't catch the same momentum as crude prices, which gained for the third straight day. In equity news, Omega's Leon Cooperman disclosed an increased stake in REXI, sending its shares up +28%, and Fiat Chrysler announced a recall of 350K SUVs in the US due to a vanity mirror wiring issue.

For the week, the markets shook off anxieties about rising Fed rates and problems developing in the high yield market, as well as concerns about the inconclusive Spanish election on Sunday, and equity markets lifted on light volume. For the week, the DJIA gained 2.5%, the S&P500 rose 2.8%, and the Nasdaq added 2.5%.

The third and final reading of third-quarter GDP showed the US economy grew at a 2% pace in the quarter. Expectations were for the reading to show the economy growing at a 1.9% pace in the third quarter, down slightly from the preliminary reading of 2.1% reported last month. The slight downgrade was triggered by a larger trade deficit and a smaller buildup in inventories. The November existing home sales report was somewhat concerning, as the annualized sales rate plunged more than 10% from October levels and undershot expectations by approximately the same percentage. The NAR cited a range of possible reasons for the surprisingly weak report, including new regulations that came on line last month, the lead-up to Fed rate hikes and a big rise in median home prices on a y/y basis.