Markets are mixed with the S&P 500 on track for a record close. The Dow Jones is being dragged down by Amgen (AMGN) and the Russell 2000 is seeing some profit taking.

The Ten-Year Treasury Yield (TNX) is gaining back some ground, up nearly 5 basis points to 4.312%.

The best performing sector by a wide margin is Utilities (XLU), driven by NRG Energy, Inc. (NRG) after it received an upgrade from Jefferies. The worst performing sector is Materials (XLB), followed by Energy (XLE).

A slew of economic data – the net observation is not too good.

Confidence is in line with estimates and well above levels associated with the recession. Both the present situation and expectations are higher, while job availability eased to 33.4 from 34.1.

New home sales were a disaster with the 610,000 annualized rate being the lowest level since November 2022.

The 17.3% decline is the sharpest year-over-year decline in over a decade, however; the recent hurricanes were a major contributor to the decline. They had a large impact on the Southern region, which fell 27.7% from the prior month.

The Richmond Fed Manufacturing Activity report came in at -14 against the consensus of -11. It has been mired in contraction since 2022.

Other notable points:

• Shipments decreased from −8 to −12
• New orders edged down from −17 to −19
• Employment increased from −17 to −10
• Local business conditions index edged down from −13 to −14
• Future local business conditions increased from 21 to 31
• The average growth rate of prices paid decreased slightly in November, while the average growth rate of prices received increased slightly

The probability of a rate cut at the next meeting edged up to 59.9% from 52.3% after these reports.