CNBC Business News Update - Market Close: Santa Claus Rally Interrupted, Free Speech Groups Argue Against TikTok Ban, Gift Return Rush Set To Start

Episode Date: December 27, 2024

The latest in business, financial, and market news and what it means for your money, reported by CNBC's Peter Schacknow

I'm Peter Schach, now CNBC. Santa Claus and his sleigh hit a mogul on the way to their usual Wall Street rally. The stock market saw a significant sell-off during the Friday session, day three of the so-called Santa Claus rally period. The Dow fell 334 points to close at 42,992. The S&P 500 slid 67 points, or 1.1 percent, and the Nasdaq tumbled 1 and a half percent or 298 points. Ironically, the slide may be because of the bullish year the stock market has had,

according to Jenny Harrington, CEO of Gilman Hill Asset Management. Let's say your stocks are up about 30 percent. Bonds are flat. So if you started the year with a 60-40 equity fixed income split, right now, you've got 66% in equities and 34% in bonds. Those numbers really are huge, right? That's an enormous divide to need to think about peeling off 6% of equities and then bumping up another 6% of bonds just to get back to where you started. Ritholtz Wealth Management CEO Josh Brown is in the don't worry about it camp. It's perfectly natural, perfectly normal.

Activity on desks are light. A lot of shops are closed. I don't really have anybody sitting around executing tons of orders today, for example. So I just think the important thing here for us all to keep in mind is it's one day, it's one week, it's the most meaningless week of the year usually. Let's not extrapolate it beyond that. There is some more momentum in the movement to prevent a TikTok ban. On Friday, free speech advocates urged the Supreme Court to overturn the law that could ban TikTok in the United States. Several free speech groups filed a brief with the high court, arguing that banning the popular social media app violates the First Amendment.

On Monday's watch list, the National Association of Realtors will be out with its November report on pending home sales, a measure of home sale contracts signed but not yet closed. And expect the rush to start for gift returns this coming week, with the National Retail Federation predicting returns of nearly $900 billion this year. Peter Schach now, CNBC. Get tomorrow's big stock stories delivered to your inbox tonight $900 billion this year. Peter Schach now, CNBC.