‘Fundamentally driven’: This week’s stock rally, which sent the Dow Jones Industrial Average to new heights today, is more than just good holiday cheer, according to the pros. As USA Today reports, Santa Claus came early for investors by sending the blue-chip stock index above 18,000 for the first time early today, following a new closing high of 17,959.44 reached on Monday. While stock swings are easier to come by during a holiday week when volumes are light, economists say Tuesday’s historic uptick is no Christmas miracle. “This is not valuation driven, this is not psychology driven—it’s fundamentally driven,” says David Darst, senior adviser to Morgan Stanley, of today’s rally. Read the full story.
Feelin’ alright: U.S. consumer sentiment jumped in December to its highest level in nearly eight years on cheaper gasoline and better job and wage prospects, according to a survey released today. As Reuters reports, the Thomson Reuters/University of Michigan’s final December reading on the overall index on consumer sentiment came in at 93.6, its best showing on a final basis since January 2007 and the latest in a string of increases since August. The reading was up from 88.8 the month before but under the preliminary reading of 93.8. It was above the median forecast of 93.5 among economists polled by Reuters. Read the full story.
Upon further review: A House Republican investigation faults senior IRS officials in the mistreatment of conservative groups that applied for tax-exempt status, but could find no link to the White House, a report released today says. The Associated Press reports the probe isn’t over, although investigators have reviewed 1.3 million pages of documents and interviewed 52 officials. The report, however, marks the end of Rep. Darrell Issa’s tenure leading the investigation. Issa, a Republican from California, is stepping down as chairman of the House Oversight Committee because of term limits. Rep. Jason Chaffetz, R-Utah, will take over the committee in January. Read the full story.
