MARKETS TODAY Dec 19 (Vica Partners): DOW (^DJI) 32,757 (-162), S&P 500 (^GSPC) 3,818 (-35), Nasdaq (^IXIC) 10,546 (-159), Russell 2000 (^RUT) 1,739 (-25), NYSE FANG+ (^NYFANG) 4,539 (-94), Brent Crude $80.25/barrel (+$1.21), Gold $1,787/oz (-$3.79), Bitcoin 16.6k (-126)
Hawkish central bank commentary and current market expectations set market tone
Stocks continued their decline late last week following the Feds meeting, as the market had anticipated rate cuts for late next year. For the week the S&P finished down 2% and trending below its 50 day moving average. Last Friday was also a liquidity day, the 6th largest in history on the NYSE of the year, with heavy S&P/Russell quarterly rebalances.
Macro themes continue grabbing headlines
Expect extended China reopening delays as Covid cases surge. Also in the news, Russia is preparing for more winter attacks in the Ukraine.
Yields moved slightly higher in session today supporting recent central bank commentary
US – 2yr up to 4.262%, 5yr up to 3.718%, 10yr +up to 3.59, 30yr up to 3.634%
8 of 11 S&P 500 Sectors ended lower today. Defensives outperform and tech/growth underperform
Cyclical value sectors financials, industrials and energy mostly unchanged whereas Communications, tech and growth declined. Consumer Staples, Financials and Energy lead advancers up 0.17%, 0.12% and 0.08% respectively. Communication Services and Information Technology led decliners, -1.40%, -1.24%
In economic news today, U.S. home builder rating fell for a record 12th straight month in December.
According to the National Association of Home Builders Market Index, builder sentiment in the single-family housing market dropped 2 points to 31 in December (below 50 is a negative rating) and a record 12th straight month decline.
The NAHB continues to blame high mortgage rates, which despite the recent drop are still about twice what they were a year ago. However it’s important to note that it is the smallest drop in the index over the past six months, indicating that we are possibly nearing the bottom of the cycle for builder sentiment.
Other Key Market Statistics
- Greed Index today was 39 (fear)
- CBOE Volatility Index (^VIX) -0.20% to 22.42
- S. Dollar Index (DXY) declining 0.02% to $104.68
- Oil prices rise, Brent crude to $80.25, up 1.53% and US West Texas Intermediate to $75.73, up 1.94%
Vica Momentum Stock Report
Texas Pacific Land (TPL) $TPL. (Grade B+) 50 Day Average +27.54%, 100 Day Average +38.06%, 200 Day Average +94.52, Year-to-Date +102.35%.
Texas Pacific Land Corporation is landowners principally in the State of Texas. The Company also generates revenue from pipeline, power line and utility easements, commercial leases, material sales and seismic and temporary permits related to land uses including hydrocarbon processing facilities.
Market Outlook
Market Outlook and updates posted at vicapartners.com
