POWERFUL INVESTMENT THEMES

To start this first weekend of the new year, this latest episode of WealthTrack features a discussion with one of Wall Street's leading experts on the macro factors that are impacting the market.  Enjoy the weekend.  

Wall St rallies as jobs, services data calm rate hike worries

Whoosh! What a day! In what is being called a “win-win,” a strong payrolls report coupled with easing wages and a contracting services sector signaled decreasing inflation and once again sparked optimism that the Fed’s tightening may be nearing an end, thus also relieving recession anxieties. Thus, the first week of the year ended with a bang with all the indexes ending more than 2% up.  Another big clue comes next week when the big banks start Q4 and then we begin finding out whether earnings estimates have been overstated (bad news) or where they are where they should be and already discounted (good news.)  Volume was a tad above average at just over 11.1 billion. 

Wall St drops more than 1% with jobs data feeding fears of more Fed tightening

Yesterday’s very slight hint from the Fed minutes generated optimism about rate cuts but today’s very strong jobs report quashed that optimism and sent the markets straight down all day, the Dow losing 339.  Two Fed governors this morning stressed that policy tightening would continue while Bullard of St. Louis said there could be some relief this year. The more detailed non-farm payrolls report is due Friday. Volume was a bit below average at 10.2 billion. 

S&P closes higher after Fed minutes confirm inflation focus

It was a volatile day with the Dow swinging back and forth in a 400 point range between red and black several times before closing 133 in the black, as did the other indexes.  Today the parsing of the December Fed minutes brought a ray of hope in the sentiment that, though there was certainly a commitment to further rate increases, the hopes of future rate cuts were at least hinted at.  As today’s expert put it, “The market still thinks it’s going to get ice cream, just not as soon as they thought before.”  Today’s jobs data showed a continuing strong labor market but there was also the positive of shrinking manufacturing. A little hope is all it takes these days to create a buying spree.  Volume was above average at 11.3 billion. 

Wall St starts the year with a dip; Apple, Tesla shares drag

After very briefly opening in the black, the Dow up about 240 points at 9:40, all the indexes began to dive almost immediately, the Dow sinking over 500 points by noon.  Then began a steady rise all afternoon for the Dow to close down just 10 as well as modest losses across the board. As today’s expert put it, “2022 was a terrible year for equity markets. Some of the reasons for that haven’t dissipated. There’s still elevated anxiety, uncertainty about the Fed and inflation. Until there’s clarity, it’s going to be tough to make any upside headway.”  

7 S&P 500 Stocks With the Biggest Stock Buybacks

To close this holiday season, a final tip as we head into a brand new trading year tomorrow.  

A Brief Commentary on the S&P in 2022

I rarely editorialize on this blog but there’s been something going on in the market the last six months that I finally do have to comment on.  With Friday having been the final trading day for 2022, we learned the dire news that the market had seen its biggest declines in 2022 since the financial crisis of 2008.  The S&P is down 19.4% for the year, 33.1% for the Nasdaq, the Dow 8.9%.  But I have been following the S&P with particular interest in the last two quarters specifically because of the hullabaloo the financial wizards were making at the end of June.  You may recall the end of June.  The S&P had suffered consecutive losses in the first two quarters.  And do you recall what all the wizards were saying at that time about those losses?