📈S&P 500 Near Record, 5 Investment Picks for 2024

The S&P 500 closed higher, standing 0.6% away from its all-time closing high of 4,796.56, with the Dow Jones Industrial Average reaching a fifth-straight record high.

The rally extended to various sectors, with materials and energy leading the market higher. Companies like The Mosaic Company, FMC Corporation, and Freeport-McMoran Copper & Gold Inc experienced gains on the back of rising commodities.

Federal Reserve policymakers' comments aimed to temper enthusiasm for potential interest rate cuts in the coming year, impacting U.S. stock futures.

Positioning momentum, particularly in Nasdaq 100 and S&P 500 futures, reflected a strong bullish trend, but strategists noted potential profit-taking risks due to one-sided positioning and high profit margins.

Bullish flows were observed for Germany's DAX and the Euro Stoxx 50, with extended long positions and elevated profit-taking risks.

The FTSE China A50 exhibited one-sided bearish and extended positioning due to recent weakness, while Japan's positioning remained mildly bullish.

Google, a subsidiary of Alphabet, agreed to settle a lawsuit by paying $700 million over alleged anticompetitive practices in its Play app store on Android devices.

This comes as Microsoft gained crucial support from Oppenheimer, being dubbed a "top large cap pick" for 2024.

Tesla reported a 10% or greater pay increase for many set-rate hourly employees at its gigafactory in Sparks, Nevada to help combat the formation of a union amongst its workers.

Kenvue Inc, a Johnson & Johnson spinoff, saw a 2% increase after winning a legal victory in a Tylenol-related class-action lawsuit.

Affirm Holdings Inc announced an expansion of its "buy now, pay later" partnership with Walmart, resulting in a 15% surge in its share price.

The Japanese Yen weakened against the U.S. dollar after the Bank of Japan maintained its ultra-dovish stance, providing little indication of a policy pivot in 2024.

The BOJ cited the major uncertainties in Japanese markets and economies around the globe as the cause for its monetary easing.

The crude market reacted to Russia's decision to deepen oil export cuts in December, reflecting efforts by major exporters to curb supply and support oil prices.

U.S. crude futures settled 1.3% higher at $73.44 a barrel, and the Brent contract climbed 2% to $79.48 a barrel.

Concerns over oversupplied markets and the latest snapshot of U.S. supplies, including a draw of 2.35 million barrels reported by the American Petroleum Institute, influenced market sentiment.

Ongoing attacks in the Red Sea prompted the U.S. to lead a multinational task force to safeguard commerce, including key allies like the UK, France, Italy, Norway, and Spain.

Major shipping firms announced plans to avoid the region, and oil giant BP suspended all Red Sea shipments due to the escalating security situation.

The fear of trade disruptions and potential oil supply interruptions contributed to the rise in oil prices.