LIVE MARKETS-Cold blast

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COLD BLAST

The main U.S. stock indexes are sharply lower early on Monday, as sparse trading volumes and the specter of rising Treasury yields cast a cloud over the traditionally strong year-end rally for equities.

That said, after hitting 4.6410% last week, or its highest level since May 2, the U.S. 10-Year Treasury yield US10YT=RR is pulling back to the 4.55% area on Monday.

This after December Chicago PMI came in well below the estimate, while November pending home sales were above consensus.

All S&P 500 .SPX sectors are lower with consumer discretionary .SPLRCD, off more than 2%, taking the biggest hit. Energy .SPNY is off the least as NYMEX crude futures CLc1 rise, and NYMEX natural gas futures NGc1 surge more than 20%.

Natural gas firms have been rising recently amid forecasts for much colder weather in coming weeks, combined with an increasing amount of gas flowing to liquefied natural gas export plants.

Of note, the S&P 500 index is now off around 1.5% during the Santa Claus Rally period which runs the last five trading days of December through the first two trading days of January.

The SPX on average has gained 1.3% during this period, according to data from the Stock Trader's Almanac going back to 1969.

Here is an early trade snapshot:

(Terence Gabriel)

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FOR MONDAY'S EARLIER LIVE MARKETS POSTS:

DOWN THE STRETCH, GROWTH IS MAKING A RUN FOR THE ROSES - CLICK HERE

ELECTIONS, RATE CUTS AND ECONOMIC DIVERGENCE: A LOOK BACK AT 2024 - CLICK HERE

WILL THE WHITE HOUSE IMPOSE A UNIVERSAL TARIFF? - CLICK HERE

STOXX SUBDUED, TECH AND HEALTHCARE WEIGH - CLICK HERE

EUROPE BEFORE THE BELL: SET TO FALL ON FINAL FULL TRADING DAY OF 2024 - CLICK HERE

(Terence Gabriel is a Reuters market analyst. The views expressed are his own)