Trading volumes will be thin in today's abbreviated session,
but they aren't expected to improve much in the few trading
sessions after the Christmas holiday either. Lack of volume
notwithstanding, stocks will likely continue to build on the
positive momentum following the Fed announcement and finish the
year in style. This morning's strong reading on corporate
spending, thus far a weak spot in the economic picture, should
help sentiment as well.
The Durable Goods orders report for November came in better than
expected both on the 'headline' as well as on the internals,
offsetting the very weak reading from the preceding month.
Business spending has been a persistent 'no show' in this
recovery and it is perhaps to premature to declare an end to that
trend on the basis of this reading. Instead of making capital
investments, companies have been investing record sums into share
Buybacks totaled $128.2 billion in Q3, the highest quarterly
level since the fourth quarter of 2007, according to a story in
today's Wall Street Journal, with
) as the biggest buyers of their shares in the quarter. Given the
stock market's strong run this year that has pushed the broad
indexes into record territories, one is justified to wonder
whether the companies are making the most optimal use of their
But if today's Durable Goods report is a sign of things to
come, then it would be representative of a material improvement
in the economic outlook.
To read this article on Zacks.com click here.
Merry Christmas to all.