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 Equities have been trending to the upside, buoyed by strong economic
data and the U.S. Federal Reserve's commitment to be "patient" about
raising interest rates. After the S&P 500 gained nearly 6 percent
over the prior eight sessions, it notched its 53rd record close of
the year on Monday, while the Dow just missed extending its streak
of positive sessions to eight.
The speed and scale of the rally could cap further upside,
especially in a holiday week, when many traders are out. Volume was
expected to remain light, which could exacerbate volatility. The
stock market will be closed on Thursday for the New Year's holiday.
A pair of data reports could drive trading. A measure of consumer
confidence, which will be released at 10 a.m. EST (1500 GMT), is
seen rising to 93 in December from the previous reading of 88.7.
Investors will also pay attention to CaseShiller data on home
prices, released at 9 a.m. EST. Prices are seen up 0.4 percent in
October.
While overall trading has been light, there has been heavy
volatility in both the biotechnology and energy sectors. The trend
could continue on Tuesday, with Gilead Sciences Inc one of the most
active names premarket. The stock was down 0.3 percent at $97.05.
Crude oil fell 0.8 percent, building on losses of about 2 percent in
each of the three previous sessions. While the decline is viewed as
positive for consumers, it has sharply pressured the energy sector.
Civeo Corp, which provides temporary housing for oilfield workers
and miners, said late Monday it slashed its workforce and forecast
revenue could fall by one-third as slumping crude prices force oil
producers to cut costs. Civeo stock fell 37 percent to $5.24 in
heavy premarket trading.
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For the month, the Dow is up 1.2 percent, the S&P is up 1.1 percent
and the Nasdaq is up 0.3 percent. For the fourth quarter, the Dow
has gained 5.8 percent, the S&P has added 6 percent and the Nasdaq
has jumped 7 percent.
Both the S&P and Nasdaq were on track for their eighth straight
quarterly gain, the longest for the S&P since 1998 and the longest
for the Nasdaq since 1996.
For 2014, the S&P is up 13 percent and the Nasdaq is up 15 percent,
on track for their third straight annual gain. The Dow is up 8.8
percent and aiming for its sixth straight positive year. Utilities
are the strongest sector of the year, up almost 30 percent, while
the energy sector is the weakest, down 8.7 percent.
(Editing by W Simon and J Benkoe)
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