MARKETS TODAY Jan 4 (Vica Partners)
DOW (^DJI) 33,270 (+133), S&P 500 (^GSPC) 3,853 (+29), Nasdaq (^IXIC) 10,459 (+72), Russell 2000 (^RUT) 1,773 (+11), NYSE FANG+ (^NYFANG) 4,40 (+26), Brent Crude $77.84/barrel (-$4.26), Gold $1,856/oz (+$19), Bitcoin 16.8k (+$177)
Session Overview
The Dow Jones Industrial Average was up 0.40% today, closing at 33,269.77. The best performing sectors were the Consumer Discretionary and Communication Services sectors, up 2.84% and 2.30% respectively. Tesla (+5%) helped the consumer discretionary rally. Value sectors all performed well today with Financials up +2% and Materials, Utilities up +1%.
Info tech ended up 0.65% has underperformed the so far this week. Energy was the only declining sector on the day, down 0.34%
In economic news the Fed Minutes released today from the Fed’s Dec. 13-14 policy meeting showed that central bank officials are willing to slow the pace of monetary-policy tightening and that U.S. construction spending rebounded in November. Jobs data indicated that labor market remains tight and job quits is still historically high.
Technicals/ Sector Performance/ Yields+
10 of 11 of S&P 500 Sectors higher today;
The best performing sectors were the Consumer Discretionary and Communication Services sectors, up 2.84% and 2.30% respectively. Financials was also up 2.20%. Value sectors all performed well. Energy was the only declining sector down 0.34%
Yields declined on the day following a strong month in December: US – 2yr to 4.364%, 5yr to 3.852%, 10yr to 3.694%, 30yr to 3.809%
Greed Index Rating 40/ Fear
Interesting note: Bank of America’s sell-side indicator, which tracks the average recommended allocation to stocks by U.S. sell-side strategists which suggests an expected price return of 16% for the S&P 500 over the next 12 months to around 4,400.
U.S Economic News
- US ISM Manufacturing PMI is at a current level of 48.40, down from 49.00 last month and down from 58.80 one year ago. This is a change of -1.22% from last month and -17.69% from one year ago.
- Construction spending during November 2022 was estimated at a seasonally adjusted annual rate of $1,807.5 billion, 0.2 percent (±0.8 percent)* above the revised October estimate of $1,803.2 billion. The November figure is 8.5 percent (±1.3 percent) above the November 2021 estimate of $1,665.2 billion.
- S. job openings fell less than expected in November as the labor market remains tight. Job openings declined by 54,000 to 10.458 million in November.
- Quits– the number of people quitting their job rose to 4.2 million in November from about 4 million in October. That is below the peak of roughly 4.6 million quits late last year.
- FOMC minutes: Fed Minutes released today from the Fed’s Dec. 13-14 policy meeting showed that central bank officials see progress but would continue to focus on data as they move forward and see “the need to retain flexibility and optionality” regarding policy.
Other Asset Classes:
- CBOE Volatility Index (^VIX): -0.89 to 22.01
- USD index: -$0.29 to $104.23
- Oil prices – Brent: -5.19% to $77.84, WTI: +0.55% to $73.24, Nat Gas: -0.05% to $4.17
- Gold: +1.02% to $1,855.64, Silver: +0.76% to $23.79, Copper: -0.12% to $3.82
- Bitcoin: +1.06% to $16.8k
In world news
- China’s Finance Minister reiterated plan to expand fiscal spending – Bloomberg
- Third of world in recession this year, IMF head warns – BBC
Vica Momentum Stock Report
Broadcom (AVGO) $AVGO. (Momentum Grade B+) (Value B-) (Growth A+) 20 Day Average +5.22%, 50 Day Average 24.16%, 100 Day Average 2.37%
Broadcom is a designer, developer and global supplier of a broad range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor (CMOS) based devices. Broadcom’s semiconductor solutions are used in data center networking, home connectivity, broadband access, telecommunication, smartphones, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays.
Market Outlook
Market Outlook and updates posted at vicapartners.com
