Oil and gold both finished with annual losses, their first since 2015
On the final trading day of a wild 2018, stocks finished a low-volume session higher with little fanfare. The Dow held on to its gains all day, finishing up more than 260 points. China trade optimism helped push the S&P and Nasdaq into the black, too. However, all three benchmarks finished with steep monthly and quarterly deficits -- their worst in years. What's more, it was the Dow, S&P, and Nasdaq's worst annual decline since 2008. Emblematic of a volatility-laden 2018, Wall Street's "fear gauge," the VIX, logged its best year ever.
Continue reading for more on today's market, including:
- Look back at the biggest stock market stories of 2018.
- A short seller is circling this weed stock.
- Plus, the FAANG stock flashing a January "buy" signal; more trouble ahead for General Electric; and the best stocks to own next month.
The Dow Jones Industrial Average (DJI - 23,327.46) closed the day up 265.1 points, or 1.2%. All 30 Dow of the components finished higher, led by a gain of 2.5% for Goldman Sachs (GS). Exxon Mobil (XOM) had the smallest gain, with a less than 0.1% bump. The Dow shed 8.7% for the month, 11.8% for the quarter, and 5.6% on the year. It was the Dow's worst month since February 2009 and worst quarter since December 2008. On the year, the Dow shed 5.6%.
The S&P 500 Index (SPX - 2,506.85) added 21.1 points, or 0.9%. It shed 9.2% in December, its worst month since February 2009. For the quarter, it lost 14%, its worst since September 2011. The S&P ended 2018 down 6.2%. The Nasdaq Composite (IXIC - 6,635.28) advanced 50.8 points, or 0.8%. Its 9.5% monthly loss was its worst since November 2008, and its 17.5% quarterly drop was its worst since December 2008. On the year, the Nasdaq fell 3.9%.
The Cboe Volatility Index (VIX - 25.42) ended the day lower, down 2.9 points, or 10.3%. It boasted a 40.7% win in December and 109.7% gain for the quarter, its best quarter since September 2011. In 2018, the VIX gained 130.3% overall.
5 Items on our Radar Today
- Earlier today, Massachusetts Senator Elizabeth Warren launched an exploratory committee to prepare for a 2020 presidential run. Warren, a Democrat, produced a video message to supporters detailing her platform. She is the first of what will likely be a lengthy list of politicians hoping to challenge President Donald Trump in 2020. (CNN)
- On the last day of the year, Treasury yields fell to 10-month lows. The 10-year yield dipped below 2.7% earlier today, its lowest since February. The yield has been in a steady decline since early November, coinciding with the sharp sell-off from U.S. equities. (Bloomberg)
- Netflix stock is flashing a historical "buy" signal for next month.
- General Electric stock could keep sinking next year.
- These are the best stocks and sectors for January.
There are no earnings to report.
Data courtesy of Trade-Alert
Oil, Gold Finish 2018 in the Red
Oil futures logged a marginal gain today, with February-dated crude futures up 8 cents, or 0.2%, at $45.41 per barrel. Black gold finished with a 10.8% loss in December, and a 38% dive for the quarter. For the year, it gave back nearly 25%, its first annual loss since 2015.
Gold futures cooled off today to end lower, despite hitting a six-month peak earlier in the day. February-dated gold futures ended down $1.70, or 0.1%, to settle at $1,281.30 an ounce. Gold finished with a 4.6% gain in December and a 7.2% win for the quarter. Overall, though, it ended 2018 down 2%, marking its first year-over-year loss since 2015.