With Christmas 2019 in the rear-view mirror trading floors resumed their relentless hum of activity and stocks continued to move higher. The NASDAQ went over 9,000 for the first time ever and the stodgy old Dow finished the day at 28,621 up 105 points .According to talking heads on CNBC there was a record amount of cash that flowed into equities last week which is the polar opposite of what happened this time last year when stocks sold off on recession fears before a Boxing Day rally started the run which we see today.
Online shopping went well according to estimates from Mastercard which said that e-commerce sales were up 19% from last year and now make up 14.1% of all retail. The biggest winners are Amazon, Walmart and Target but Costco and several other retailers could also be in that group. Shares of Amazon were up over 4% and jumped back over $1,800 per share as a result of the Mastercard report.
Some of the most oversold sectors in equity markets are the oil, gas and material sectors but gurus are now hinting that with the USMCA on the cusp of being signed into law and the phase 1 China trade deal nearing final approval the future looks bright for renewed growth in the global economy and with it higher demand and prices for both energy and materials. WTI crude oil today traded up about 1% to $61.70 which is the same level it hit back a year ago before going into a slump that lasted all of 2019 as it traded in the mid $50’s resulting in energy company stocks trading flatter than a pancake and being severely outperformed by renewable energy stocks. 2020 however could see traditional energy close that gap a bit.