MARKETS TODAY Jan 13 (Vica Partners)
DOW (^DJI) 34,302 (+113), S&P 500 (^GSPC) 3,999 (+16), Nasdaq (^IXIC) 11,079 (+78), Russell 2000 (^RUT) 1,886 (+10), NYSE FANG+ (^NYFANG) 4,773 (+30), Brent Crude $85.38/barrel (+$1.35), Gold $1,920/oz (+$22), Bitcoin 19.4k (+$565)
Session Overview
The Dow Jones Industrial Average was up 0.33% today, closing at 34,302.61. The best performing sectors were the Financials and Health Care sectors, up 0.80% and 0.72% respectively. Real Estate and Utilities were the two decliners, down 0.62% and 0.40% respectively.
All key indexes and treasury yields were up on the day. Oil prices continues to rise with Brent and WTI up +5.5% for week as China reopens their economy. Even crypto stocks jumped as Bitcoin reclaimed +19k level.
In economic news, U of Michigan sentiment reports showed U.S. consumers are more confident that price pressures will ease considerably over the next 12 months, with a survey on Friday showing their one-year inflation expectations falling in January to the lowest level since the spring of 2021. Import price index – December’s import price index rose 0.4%, compared to analysts’ anticipated 0.8% drop, marking its first increase in six months.
Notable corporate earnings out today included UnitedHealth Group (UNH) which ended 2022 with a fourth consecutive quarter of double-digit revenue growth, as revenue rose 12% to $82.79 billion, beating analyst expectations. JPMorgan Chase (JPM) and Bank of America (BAC) also both beat on EPS/ Revenue.
Technicals/ Sector Performance/ Yields+
The Nasdaq was up for the week 4.82% while the Dow added 2%. The S&P 500 gained 2.67% on the week and closed at 3999 today, ahead of its 200d moving average of 3,975 with the next important technical level above 4,100.
9 of 11 of S&P 500 Sectors were higher today
The best performing sectors were the Financials and Health Care sectors, up 0.80% and 0.72% respectively. Real Estate and Utilities were the two decliners, down 0.62% and 0.40% respectively.
Yields all rising: US – 2yr to 4.224% +, 5yr to 3.597% +, 10yr to 3.496% +, 30yr to 3.609%+
Greed Index Rating 63/ Greed
U.S Economic News
- Import price index; import prices rose 0.4% in December
- UMich consumer sentiment index (early); The University of Michigan’s consumer sentiment index rose to 64.6 in January, its highest since May, from 59.7 in December, with assessments of both current and future conditions improving on the month.
- UMich 1-year consumer inflation expectations (early); the 12-month expectation for inflation fell to 4.0% from 4.4% a month earlier.
- UMich 5-year consumer inflation expectations (early); The average expectation for inflation over the next five years rose 0.1% to 3.0% from 2.9%, above the Federal Reserve’s 2% target.
Other Asset Classes:
- CBOE Volatility Index (^VIX): -2.15 to 18.35
- USD index: -$0.07 to $102.18
- Oil prices – Brent: +1.61% to $85.38, WTI: +2.02% to $79.97, Nat Gas: -6.14% to 3.47
- Gold: +1.16% to $1,920.20, Silver: +2.02% to $24.29, Copper: +0.52% to $4.22
- Bitcoin: +4.98% to $19.4k
News
- China set for historic demographic turn, accelerated by COVID traumas reuters
- China acquires ‘golden shares’ in two Alibaba units reuters
- Yellen warns of U.S. default risk by June, urges debt limit hike reuters
- Exclusive: Exxon prepares to start up $2 bln Texas oil refinery expansion reuters
Vica Momentum Stock Report
Alibaba Group Holding ADR (BABA) $BABA. (Momentum Grade B+) (Value A) (Growth B) 50 Day Average +77.66%, 100 Day Average +29.97%, 200 Day Average +00.26%. Year-to-Date +32.83%
Alibaba Group Holding is one of the leading e-commerce giants in China. The Alibaba Group is represented by three businesses – Alibaba.com, Taobao, and Tmall. The company’s businesses account for more than half of all online retail sales in China, which is one of the world’s fastest-growing e-commerce.
Market Outlook
Market Outlook and updates posted at vicapartners.com
