Stocks closed the week in the green, with technology stocks leading the rally. Industrials were down on news that the Biden administration was blocking the sale of United States Steel Corp. (NYSE: X) to Japan’s Nippon Steel. Alcohol stocks were also lower on news that booze may soon need a warning label advising about the risk of cancer due to alcohol consumption.
Lighter holiday volume makes it too early to tell if this is the start of a longer rally. Investors will get a better sense of the market when institutional investors return next week.
The general sentiment among analysts is that earnings growth will remain strong as many of the catalysts that have been in place for the last two years are still in place. However, that thesis may be tested when the December Jobs report is released on Friday. Investors will want evidence that consumer spending will remain steady, and a healthy jobs market is a key component to that confidence.
