Stock Market Slides in Light Trading on Last Trading Day of 2016 – Dec. 30, 2016

Daily Stock Market News Dec. 30, 2016:  On the last trading day of the year, the stock market slipped again in light trading, which is not unusual for the week between Christmas and New Years.  Many fund managers have already locked in their profits for the year; many smaller investors are traveling or hosting guests during the holidays.  See the year’s closing numbers and today’s market news.

stock-market-graphic- stock market

U.S. Stock Market Closing Prices Dec. 30, 2016:

Dow Jones Industrial Averages:  19,762.60  -57.18  (0.29 percent)

S & P 500:  2,238.83  -10.43  (-0.46 percent)

NASDAQ:  5,383.12  -48.97  (-0.90 percent)

Crude Oil:  $53.89 a barrel

Current Stock Market Trending Topics:

As 2016 comes to an end in the stock market, stocks slipped a little more on the last trading day of the year.  The Obama administration is ending eight years with 75 straight months of steady job growth, low inflation, increasing sales, rising incomes, strong consumer sentiment and overall positive economic news.  Investors are trying to predict whether or not the Trump administration will perform as well as the Obama administration did, perform even better or cause economic problems in 2017 and the following years.  Despite slightly lower prices today, 2016 was a great year in the stock market, with solid gains even before the election.

For the year, the Dow was up 13 percent, the S&P 500 rose more than 9 percent and the Nasdaq climbed over 7 percent.

In the US, 2016 was an especially good year for the oil and precious metal sectors.

For 2016, oil had its best year since 2009, even though it was officially down slightly today.

It appears that most consumers can expect some inflationary pressure next year.  The minimum wage is going up in a number of states, the price of gasoline will be rising in seven states, and mortgage rates have already started to rise across the nation:

In 2017, there are already a few predicted challenges which could affect the global economy.  Near the top of the list is Brexit and the effect it could have on employment and the overall economy in Great Britain.

Another concern is the number of foreigners who are getting out of the U.S. Treasury bond market.

Before you start putting too much weight on all the various theories and predictions for 2017, however, it is best that all investors remember the words of Warren Buffett:

The Economic Events Which Affected the Stock Market in December:

  • December 2 – Employment Situation Report for Nov., 2016 – The U.S. economy added 178,000 jobs in November and unemployment dropped from 4.9 percent to 4.6 percent.  This is the lowest rates since August 2007.  November was the 74th consecutive month American added jobs. Wages also rose 2.5 percent.
  • December 13 and 14 – Meeting of the Federal Reserve. They raised their benchmark interest rate by .25 percentage points.  This was the second time this year, and only the second time in the past ten years, that interest rates have risen.  The Federal Reserve indicated that consumers should expect interest rates to rise three more times in 2017.
  • December 26 – Stock Market closed because of the Christmas holiday

Resources: / / MSN Money / Market Watch / YahooFinance / Bloomberg / Reuters and other public news sources

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