On Tuesday, the S&P 500, Dow Jones, and Nasdaq 100 all closed down. European stocks rallied, lifting the Euro Stoxx 50 to a 1.5-month high. US economic data was better than expected, with the S&P Case-Shiller home price index rising. The FOMC meeting minutes were slightly hawkish, hinting at possible rate cuts if inflation continues to decline. Seasonal trends indicate a bullish outlook for stocks in the last two weeks of December. Attention this week will focus on US economic news, with unemployment claims and manufacturing PMI data due. Overseas markets closed mixed, with the Euro Stoxx 50 up, Shanghai Composite flat, and Japan’s Nikkei down.

US bond yields rose, with the 10-year T-note yield climbing. European government bond yields also increased. Spain’s CPI rose as expected. Swaps indicate a low chance of an ECB rate hike in February. In stock news, pharmaceutical companies like Insmed Inc and Gilead Sciences were down, while energy companies like Occidental Petroleum and Diamondback Energy saw gains.

Jabil Inc fell on insider selling news, while Citigroup dropped after announcing a loss on its Russian business sale. Ultragenyx Pharmaceutical rebounded, Molina Healthcare rose, and mining stocks like Newmont and Hecla closed higher. Earnings reports are due from CoastalSouth Bancshares Inc, Golden Matrix Group Inc, and Immersion Corp on 12/31.

Read more at Barchart: Stocks Fall Slightly in Thin Holiday Trade