MARKETS TODAY Dec 22 (Vica Partners)
DOW (^DJI) 33,203 (+176), S&P 500 (^GSPC) 3,844 (+22), Nasdaq (^IXIC) 10,498 (+22), Russell 2000 (^RUT) 1,761 (+7), NYSE FANG+ (^NYFANG) 4,453 (+3), Brent Crude $83.92/barrel (+$2.94), Gold $1,799/oz (+$5), Bitcoin 16.8k (+30)
Session/ Week Overview
Stocks held gains Friday as the core inflation rate, the most closely watched by the Federal Reserve declined in November. As for the indexes the S&P 500 closed lower for the third consecutive week ending down while the Dow Jones Industrial Average was up about 1%. Tech and growth stocks lagged with NYSE FANG+ index off by close to 4%. Yields moved slightly higher.
The data out this week supports is has been pretty consistent – a tight labor market, wage pressure, and high services inflation. Expect that the Feds hawkish monetary tightening will impact company earnings as we move into the ‘23.
Technicals/ Sector Performance/ Yields+
The best performing and breakaway sector today was Energy, up 2.66%; while Technolgy, Healthcare and Consumer Discretionary were primarily flat.
All 11 S&P 500 Sectors ended the session higher with Energy and Real Estate leading up 2.66% and 0.89 respectively. Information Technolgy, Healthcare and Consumer Discretionary lagged, all up 0.04% respectively.
Yields rose today: US – 2yr to 4.327%, 5yr to 3.862%, 10yr to 3.751%, 30yr to 3.827%
Greed Index Rating 39/ Fear
U.S Economic News
- Personal Income; Personal income of Americans increased in November by 0.4%, off from the 0.7% from the month before but in line with most of the fourth quarter. Stats: 0.4% vs. 0.3% cons., prior 0.7%
- Personal Spending; Personal Income and Outlays report said disposable income for U.S. residents increased as well while personal consumption expenditures slightly up 0.1%. Stats: 0.1% vs. 0.2% cons., prior revised to 0.9% from 0.8%
- PCE; The Personal Consumption Expenditures price index, rose 5.5% in November from a year earlier. that’s lower than in October, when prices rose 6.1% annually. Stats: 0.1%/5.5% cons., prior revised to 0.4% from 0.34%/6.0%
- Core-PCE; The core personal-consumption expenditures price index, or PCE deflator, was up 0.2% in November and 4.7% from a year ago, in line with what economists had forecast. Stats: 0.2%/4.7% m.m/y.y vs. 0.2%/4.6% cons., prior revised to 0.3% from 0.22%/5.0%
- Durable goods orders/ex transports; US Durable Goods New Orders is at a current level of 270.64B, down from 276.42B last month and up from 270.07B one year ago. This is a change of -2.09% from last month and 0.21% from one year ago. Stats: -2.1%/0.2% vs. -0.65%/0.1% cons., prior revised to 0.7%/0.1% from 1.1%/0.5%
- Capital goods orders; Economists had expected durable goods orders to decrease by 0.6 percent compared to the 1.1 percent jump that had been reported for the previous month. Stats: 0.2% prior 0.61%
- New Home Sales; New home sales in the United States rose 5.8% to a seasonally adjusted annual rate of 640K in November of 2022, the highest in three months and beating market forecasts of 600K.
- Total U.S. Rig; The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 776 for the week ended Dec 16. The figure is lower than the prior week’s count of 780. The current national rig count is higher than the year-ago level of 579.
Other Asset Classes:
- CBOE Volatility Index (^VIX): -1.10 to 20.87
- USD index: -$0.11 to $104.33
- Oil prices – Brent: +3.63% to $83.92, WTI: +2.67% to $79.56, Nat Gas: +1.60% to $5.08
- Gold: +0.28% to $1,798.58, Silver: +0.66% to $23.74, Copper: +1.48% to $3.82
- Bitcoin: +0.18% to $16.8k
In world news
- Russia is warning that it could cut oil output by 5% – 7% in 2023 in response to price caps
- China Estimates Covid Surge Is Infecting 37 Million People a Day
Vica Momentum Stock Report
BHP Group Limited (BHP) $BHP. (Mom Grade B+) (Value A+) 20 Day Average +3.74%, 50 Day Average +23.23%, 100 Day Average +16.26 – w/ a dividend of 11.35%
BHP Group Limited is one of the world’s largest diversified resource companies, which includes energy, metals and fertilizers. With operations across several continents with a market capitalization of around $221 billion.
Market Outlook
Market Outlook and updates posted at vicapartners.com
