MARKETS TODAY Jan 12 (Vica Partners)
DOW (^DJI) 34,190 (+217), S&P 500 (^GSPC) 3,983 (+14), Nasdaq (^IXIC) 11,001 (+69), Russell 2000 (^RUT) 1,875 (+31), NYSE FANG+ (^NYFANG) 4,743 (+59), Brent Crude $83.87/barrel (+$1.20), Gold $1,899/oz (-$22), Bitcoin 18.8k (+$893)
Session Overview
The Dow Jones Industrial Average was up 0.64% today, closing at 34,189.97. The best performing sectors were the Energy and Real Estate sectors, up 1.91% and 1.43% respectively. Defensive sectors, Healthcare and Consumer Staples declined, down 0.06% and 0.05% respectively.
All key indexes advancing on the day as yields declined for a second consecutive day. Defensive sectors – healthcare, staples and utilities underperforming. Energy rallied today as oil prices continue to rise with Brent and WTI up more than 4.5% in the past 48 hours.
In economic news, the annual inflation rate was the slowest since October 2021, as gas prices dropped. The Consumer Price Index rose to 6.5% in the year through last month, down from 7.1% in the November. Core inflation rose to 5.7% in December from a year earlier, with 6% last month previously and in line with economist’s forecasts.
Initial jobless claims for U.S. unemployment benefits unexpectedly came in lower in the week ended January 7th, a decrease of 1,000 from the previous week’s 206,000 while Continuing claims, a reading on the number of people receiving ongoing unemployment assistance, also dropped by 63,000 to 1.634 million in the week ended December 31st.
TOP line message is that the Federal Reserve is nearing the end of its tightening and raising investor confidence for a soft landing.
On Friday the fourth-quarter corporate earnings season kicks-off with big Banks JPMorgan Chase (JPM), Citigroup (C), Bank of America (BAC) and healthcare giant, United Health Care (UNH) all reporting.
Technicals/ Sector Performance/ Yields+
The S&P 500 closed today up +0.34% at 3983, just 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
Energy/Tech lead/ Defensives underperform. The best performing sectors were the Energy and Real Estate sectors, up 1.91% and 1.43% respectively. Defensive sectors, Healthcare and Consumer Staples declined, down 0.06% and 0.05% respectively.
Yields all declining: US – 2yr to 4.134% -, 5yr to 3.529% -, 10yr to 3.435% -, 30yr to 3.563% –
Greed Index Rating 57/ Greed
U.S Economic News
- Consumer price index; Consumer prices fall 0.1% in December
- Core CPI; Core CPI rises 0.3%; up 5.7% year-on-year
- CPI (year-over-year); The Consumer Price Index rose to 6.5% in the year through last month, down from 7.1% in the November. Prices declined on a monthly basis. The annual inflation rate was the slowest since October 2021, as gas prices dropped.
- Core CPI (year-over-year); core inflation rose to 5.7% in December from a year earlier, with 6% last month previously and in line with economist’s forecasts. Core inflation measure removes food and fuel prices.
- Initial jobless claims; fell by 1,000 to a seasonally adjusted 205,000 last week, Claims had trended higher since touching near record lows early in 2022, but continue to hover near pre-pandemic levels.
- Continuing jobless claims; a reading on the number of people receiving ongoing unemployment assistance dropped by 63,000 to 1.634 million in the week ended December 31st.
- Fed message today; Federal Reserve Bank of Richmond President Thomas Barkin said, “inflation has been slowing down and the central bank doesn’t need to raise interest rates as aggressively as it did last year”.
Watch for key Bank earnings tomorrow
Other Asset Classes:
- CBOE Volatility Index (^VIX): +2.18 to 18.91
- USD index: -$0.97 to $102.22
- Oil prices – Brent: +1.45% to $83.87, WTI: +1.09% to $78.25, Nat Gas: +0.79% to $3.70
- Gold: +1.18% to $1,899.21, Silver: +1.56% to $23.80, Copper: +0.19% to $4.17
- Bitcoin: +4.98% to $18.8k
News
- Fed policymakers signal rate-hike slowdown coming, but no easing Reuters
- Bitcoin rises 6% to $19,005 Reuters
- U.S. House passes bill banning exports of reserve oil to China Reuters
- Mainland Chinese head to Hong Kong for mRNA COVID vaccines Reuters
Vica Momentum Stock Report
Hess (HES) $HES. (Momentum Grade B) (Value B) (Growth A) 50 Day Average +7.69%, 100 Day Average +30.26%, 200 Day Average +41.43%. Year-to-Date +7.13%
Hess Corporation is a global integrated energy company. The company engages in exploration, production, development, transportation, purchase and sale of crude oil, natural gas liquids, and natural gas.
Market Outlook
Market Outlook and updates posted at vicapartners.com
