World Blog by humble servant. Market Close Coverage. 12-18-2019

Cesar Important Indicator                                                                                                                                            The stock market finished mixed and little changed on Wednesday, although the Nasdaq Composite (+0.1%) did close at a record high in another tight-ranged session. The Russell 2000 added 0.3%, while the S&P 500 (-0.04%) and Dow Jones Industrial Average (-0.1%) both snapped a five-session winning streak.

Buying enthusiasm was understandably absent amid a lack of new catalysts, but there remained little interest to sell a market trading at all-time highs. FedEx (FDX 146.86, -16.37, -10.0%), however, did succumb to heavy selling pressure after it issued disappointing earnings results and guidance.

Weakness in FedEx contributed to the declines in the S&P 500 industrials sector (-0.5%) and Dow Jones Transportation Average (-0.9%).

Conversely, the real estate sector (+1.3%) rose more than 1% in an opportunistic trade that pared some of its monthly decline. The utilities (+0.4%), energy (+0.3%), and communication services (+0.3%) sectors followed suit.

In other earnings news, Lennox International (LII 245.37, -13.21, -5.1%) discouraged investors by lowering its FY19 guidance, while Cintas (CTAS 265.88, +5.12, +2.0%) and Steelcase (SCS 22.21, +3.13, +16.4%) pleased investors with results and/or guidance.

Separately, Cigna (CI 198.20, +4.68, +2.4%) agreed to sell its group life and disability insurance business to New York Life for $6.3 billion in cash.

In the U.S. Treasury market, a decline in longer-dated bonds caused some curve-steepening activity. The 2-yr yield declined one basis point to 1.62%, while the 10-yr yield increased four basis points to 1.92%. The U.S. Dollar Index increased 0.2% to 97.39. WTI crude increased 0.1% (+$0.03) to $60.93/bbl.

Economic data was limited to the weekly MBA Mortgage Applications Index, which declined 5.0% after increasing 3.8% in the prior week.

Looking ahead, investors will receive the following reports on Thursday: Existing Home Sales for November, the weekly Initial and Continuing Claims report, the Current Account Balance for the third quarter, the Philadelphia Fed Index for December, and the Conference Board's Leading Economic Index for November.

Nasdaq Composite +33.0% YTDS&P 500 +27.3% YTDRussell 2000 +23.2% YTDDow Jones Industrial Average +21.1% YTD

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