U.S. equity indexes experienced a notable rise as new data revealed an unexpected decrease in weekly jobless claims, coupled with a positive adjustment in the final estimate of the manufacturing index. The S&P 500 saw an increase of 0.3%, closing at 5,896.1, while the Nasdaq was up 0.4%, reaching 19,386.2.
The Dow Jones Industrial Average also marked a modest gain of 0.1%, settling at 42,585.3. Notably, energy and communication services sectors led the day’s gainers, whereas real estate was among the intraday decliners. In the latest economic developments, initial jobless claims in the U.S. for the week ending December 28 fell to 211,000.
This figure reflects a decline from an upwardly revised 220,000 from the previous week, challenging analyst expectations which predicted an increase to 221,000 as per a Bloomberg survey. Additionally, the four-week moving average experienced a decrease of 3,500, bringing it down to 223,250 and interrupting a streak of four consecutive increases.
Another critical piece of data released was the S&P Global U.S. manufacturing index for December, which was revised upwards to 49.4 from an initial reading of 48.3. This modification was unexpected as predictions from a Bloomberg poll of analysts anticipated no revision. Nonetheless, the December index remains below November’s figure of 49.7, suggesting a mild contraction within the manufacturing sector.
In bond market news, U.S. Treasury yields remained stable during the trading day. The 10-year and two-year treasury yields were observed trading around 4.58% and 4.26%, respectively. Earlier in the session, both yields had shown a decline. Turning to company performance, Tesla's Q4 delivery numbers were underwhelming, with approximately 495,600 vehicles delivered.
This total fell short of both Street expectations and whisper numbers, based on insights from Wedbush in a recent note. Consequently, shares of the electric vehicle manufacturer took a hit, dropping 6.2%, making it the most significant decliner within both the S&P 500 and Nasdaq indexes. Furthermore, on the commodities front, West Texas Intermediate crude oil futures saw a notable rise, climbing 2.6% to hit $73.61 per barrel..