On a holiday-shortened week, US equity indexes exhibited a mixed performance around midday on Monday. The S&P 500 saw a slight increase of 0.2%, reaching 5,944.8, while the Nasdaq surged by 0.6% to clock in at 19,687.9. Conversely, the Dow Jones Industrial Average experienced a dip of 0.3%, landing at 42,725.7.
The sectors of communication services and technology led the market's gainers, reflecting strong investor interest in these areas, while the consumer staples sector saw the most significant declines, indicating a shift in consumer spending patterns. In the realm of economic indicators, the Chicago Federal Reserve Bank's monthly National Activity Index showed a rise to a reading of minus 0.12 for November, as predicted in a survey compiled by Bloomberg, bouncing back from a minus 0.50 reading in October.
However, it is important to note that the three-month moving average fell to minus 0.31 from minus 0.27, signaling ongoing economic concerns. On a brighter note, new-home sales in the US accelerated to an annual rate of 664,000 in November, an increase from the upwardly revised 627,000 rate in October, although it fell short of the 670,000 rate that analysts had anticipated according to the Bloomberg survey.
Notably, home sales showed a robust increase of 8.7% compared to November of the previous year. Nancy Vanden Houten, lead economist at Oxford Economics, offered insights into the nuances of the housing market. Vanden Houten stated that the less-than-expected increase in new-home sales was largely attributed to a rebound in sales in the South, where the impact of hurricanes during October weighed heavily on performance.
Looking ahead, Vanden Houten projected cautious optimism for 2025, anticipating a small uptick in new home sales. This improvement is expected to be driven by a modest decline in mortgage rates and consistent economic momentum, alongside a robust labor market. In corporate news, significant developments unfolded with Honda Motor and Nissan Motor announcing their intention to discuss a potential merger and develop a joint holding company.
This strategic move could mark a pivotal moment in the automotive sector, with Honda and Nissan also exploring Mitsubishi Motors' involvement and synergy sharing related to business integration. Honda's shares experienced a notable gain of 11% around midday, signaling positive market sentiment. Additionally, Xerox Holdings revealed plans to acquire Lexmark International from Ninestar, PAG Asia Capital, and Shanghai Shouda Investment Center for $1.5 billion, liabilities included.
Following this announcement, Xerox's shares rose by 7.2%, reflecting investor confidence in the company's strategic growth objectives. This acquisition is anticipated to complete in the second half of 2025. As for market indicators, the US 10-year Treasury yield increased by 5 basis points to reach 4.57%, while the two-year rate saw a rise of 2.8 basis points, settling at 4.34%.
Meanwhile, the US Dollar Index strengthened by 0.5%, marking a return to 108.1. In commodities, West Texas Intermediate crude oil dipped by 0.9%, trading at $68.83 per barrel, while gold dropped 0.6% to $2,629.70 per ounce, with silver gaining 1% to $30.27 per ounce..