Dow went up 122, decliners above advancers about 2-1 & NAZ fell 72.  The MLP index  slid lower to the 215s & the REIT index was flattish in the 372s.  Junk bond funds saw a little selling & Treasuries were sold, raising yields (more below).  Oil rose above 80 & gold gained 20 to 1824.

AMJ (Alerian MLP index tracking fund)

Retail sales jumped 7.6% during the critical Holiday season that runs from Nov 1 - Christmas Eve, according to Mastercard SpendingPulse, which tracks sales across all payment types.  Americans chose to eat out during the holidays, with restaurant spending up 15.1% over the same time frame in 2021.  Clothing rose 4.4%, while in-store sales rose 6.8% & online sales rose 10.6%.  Electronic & jewelry fell 5.3% & 5.4% respectively.  "This holiday retail season looked different than years past," Steve Sadove, a senior adviser at Mastercard & former CEO of Saks (SKS), said.  "Retailers discounted heavily but consumers diversified their holiday spending to accommodate rising prices and an appetite for experiences and festive gatherings post-pandemic."  The 7.6% increase marked a slower pace than the 8.5% increase in 2021, but it was higher than MasterCard's expected 7.1% rate.  Mastercard SpendingPulse measures online & in-store sales across all payments excluding the automotive industry & is not adjusted for inflation, which has weighed on consumers this year.  Inflation hit 7.1% last month, down from the high for the year of 9.1% in Jun but still 3 times higher than the pre-pandemic average.  "Inflation altered the way U.S. consumers approached their holiday shopping – from hunting for the best deals to making trade-offs that stretched gift-giving budgets," Michelle Meyer, North America chief economist for the Mastercard Economics Institute, said.

Retail sector gets good news during critical holiday season

Treasury yields climbed as markets reopened after Mon's Christmas holiday & investors awaited data that could provide fresh clues about the state of the US economy.  The yield on the 10-year Treasury  note was up by around 3 basis points & was last trading at around 3.7789%.  Meanwhile, the 2-year Treasury  yield was last up by over 2 basis points to 4.3464%.  An auction of 2-year Treasury notes worth a total of $42B is scheduled to take place today.  Investors are looking to the final pieces of economic data this year for clues about a looming recession & developments regarding inflation.  The Fed has been hiking interest rates in 2022 in an effort to fight persistently high inflation.  The central bank increased rates by a further 50 basis points earlier this month after implementing 75 basis point rate hikes at each of its previous 4 meetings.  Concerns about these rate hikes dragging the US economy into a recession have spread among investors in recent weeks.

Treasury yields rise as investors consider U.S. economic outlook

Russia’s gas production, exports reportedly shrink from sanctions pressure

Some traders are still on holiday & many bulls are in hiding.  In the meantime retail sales include inflation price hikes, making it difficult to understand what higher sales really mean.  Barring any major news events, this could be a quiet week in the stock market.

Dow Jones Industrials