US stocks hit record prices on Thursday due to speculation that the economic recovery could weather the coronavirus outbreak.
The S&P 500 saw gains even though trading volumes were low ahead of the holiday. Nikola Corp posted strong earnings, thanks to supply optimism. JD.com Inc, on the other hand, reported losses due to Tencent's plan to distribute over $ 16 billion stocks as a one-time dividend. Crocs Inc announced bankruptcy after agreeing to buy Heydude for $ 2.5 billion.
Talking about statistics, US consumer sentiment rose in December, mainly due to households becoming more optimistic about the economy. New home sales also soared to a seven-month high in November, and orders for durable goods exceeded forecasts. Meanwhile, consumer spending stagnated because price increases reduced purchasing power. Jobless claims, on the other hand, were little changed last week.
On a different note, Merck & Co's Covid-19 pill has been approved by US regulators, giving patients at high risk of infection another option for home treatment. The UKHealth Security Agency said that people infected with the omicron variant will be 50-70% less likely to end up in the hospital compared to the delta strain.
"We're still in a pretty good spot for equities," said Anu Gaggar, global investment strategist at Commonwealth. "Real rates remain low and liquidity conditions remain quite easy, household and corporate balance-sheets are healthy and consumer confidence also remains high. It is not time to head for the exits."
Other key events for today are:
- core CPI data in Japan;
- closing of US markets';
- early closing of European markets.
