U.S. Stocks Near New Highs as Oil Rises, Bonds Slide

U.S. stocks traded near a record high amid thin trading as oil posted its longest winning streak in four months. Treasuries fell amid soft demand in an auction of two-year notes.

The S&P 500 Index extended its monthly advance, with volume about 50 percent below the 30-day average. The Nasdaq Composite Index rose to its all-time high and the Dow Jones Industrial Average approached 20,000. Treasury yields rose the most in almost two weeks. Crude climbed for a seventh day as the market anticipates that output cuts from OPEC and non-OPEC producers will help speed the elimination of a supply glut.

Volume is expected to be thin in the last week of trading for a volatile year. Investors have powered past shocks from the Brexit vote to Donald Trump’s presidential win, propelling U.S. equities to record highs, while the dollar jumped to a multi-year peak and crude climbed to the highest in 17 months. U.S. consumer confidence rose in December, economists forecast before a release on Tuesday.

In addition to the U.K., financial markets in Australia, New Zealand and Hong Kong remained shut on Tuesday.

Stocks

· The S&P 500 Index rose 0.2 percent to 2,268.88 and the Dow Average added 0.1 percent to 19,945.04.

· The Stoxx Europe 600 Index rose 0.1 percent. While the gauge is heading for its biggest monthly rally in more than a year, it’s been hovering around overbought levels.

· Japan’s Topix index gave up earlier gains to finish lower for the fourth straight day, after data showed the nation’s consumer prices dropped in November. Toshiba Corp. sank the most in a year on reports it may book a loss of as much as 500 billion yen ($4.3 billion) on its U.S. nuclear operations.

· The Shanghai Composite Index, which has been hovering around the same level since mid-December, slid 0.3 percent. China’s economy is closing out the year on a high note as the earliest December indicators give no signs that the expansion is faltering. Data on Tuesday showed industrial-profit gains accelerated in November.

· The Jakarta Composite Index rose 1.5 percent, ending its longest losing streak since 2005.

Commodities

· Crude futures advanced 1.7 percent to $53.90 a barrel in New York. Prices are set to recover next year as production cuts help re-balance an oversupplied market, Saudi Arabia’s Energy Minister Khalid Al-Falih said last week. OPEC and 11 nations from outside the group including Russia have agreed to trim about 1.8 million barrels a day from January.

· Gold futures for February delivery rose 0.5 percent to settle at $1,139.10 at 2:10 p.m. on the Comex in New York; futures earlier climbed as much as 1.6%

Bonds

· The yield on 10-year Treasuries rose two basis points to 2.56 percent after posting its first weekly advance since the U.S. presidential election.

· Bid-to-cover ratio in the two-year auction was the lowest since Dec. 2008.

· Rates on 10-year German and French bonds declined.

Currencies

· The Bloomberg Dollar Spot Index rose 0.1 percent, trading near the highest level in more than a decade.

· The South Korean won fell 0.5 percent against the dollar, after strengthening for the first time in nine sessions on Monday. The South African rand rose 0.5 percent.

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