MARKETS TODAY Dec 22 (Vica Partners)
DOW (^DJI) 33,027 (-349), S&P 500 (^GSPC) 3,822 (-56), Nasdaq (^IXIC) 10,476 (-233), Russell 2000 (^RUT) 1,751 (-26), NYSE FANG+ (^NYFANG) 4,454 (-173), Brent Crude $81.63/barrel (-$0.57), Gold $1,792/oz (-$23), Bitcoin 16.8k (-20)
Session Overview
Inflationary economic news was the primarily setback to the markets today with U.S. GDP unexpectedly rising, along with Claims data stressing an already tight labor market. While Conference Board’s Leading Economic Index fell for its ninth consecutive month raising recessionary concerns.
All major US indices closed lower Thursday with the NYSE FANG+ index down close to 4%. Healthcare and Consumer Staples outperformed all other sectors whereas Energy fell 1.8%, as oil prices reversed early session gains. Information Technolgy led sector decliners down 2.39% as Micron (MU) missed estimates and lowered guidance which sent semiconductor stocks sharply lower. US shorter term yields rose, long term remained flat.
Technicals/ Sector Performance/ Yields+
Yesterday, the S&P 500 waivered on its 50d moving average and today fell below its 3800 retracement low and sure to shortly test 3700. The S&P 500 consumer discretionary sector was hitting new lows inter-day with Tesla falling 9% today. Yield oriented sectors were off today falling as a subset of Energy.
All 11 S&P 500 Sectors lower with Information Technology and Consumer Discretionary lead decliners, down 2.39% and 1.69 respectively. Healthcare, Consumer Staples and Real Estate were best on the day, down 0.15%, 0.42% and 0.53% respectively
US shorter term yields rose, long term flat today: US – 2yr to 4.276%, 5yr to 3.806%, 10yr to 3.684%, 30yr to 3.747%
Greed Index Rating 35/ Fear+
US Economic News
- Initial claims decreased by 16,000 to 225,000 in the week; stats: 216k vs. 223.5k cons., prior revised to 214k from 211k
- Continuing claims drop 6,000 to 1.672 million; report stats: 1.672ml vs. 1.685ml cons., prior revised to 1.678ml from 1.671ml
- Q3 GDP rose in third quarter was upwardly revised to 3.2 percent from the previously reported 2.9 percent; report stats: (final): 3.2% prior 2.9%
- Leading indicators decreased by 1.0 percent in November The labor market, manufacturing, and housing indicators all weakened; report stats: -1% vs. -0.5% cons., prior -0.8%
- KC Fed Manufacturing Index contracted slightly faster in December compared with November, minus 9 in December from minus 6 in November and minus 7 in October; report stats: -9 vs. -8 cons., prior -6
PCE price index release on Friday should have the biggest impact on the markets.
Other Asset Classes:
- CBOE Volatility Index (^VIX): +1.90 to 21.97
- USD index: +$0.25 to $104.41
- Oil prices – Brent: -0.69% to $81.63, WTI: +0.13% to $78.19, Nat Gas: -5.03% to $5.06
- Gold: -1.26% to $1,792.11, Silver: -1.63% to $23.57, Copper: +0.29% to $3.81
- Bitcoin: -0.06% to $16.8k
In world news this Thursday
- FTX founder appears in US court on fraud charges as Federal prosecutors in New York accuse him of unlawfully using customer deposits made at FTX to fund his other crypto firm Alameda Research, and other.
Vica Momentum Stock Report
Deere & Company (DE) $DE. (Mom Grade B+) (Value B+) 50 Day Average +20.29%, 100 Day Average +30.40%, 200 Day Average +17.80%, Year-to-Date +26.72%
Illinois-based Deere is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837. It is the 62nd-largest company in the S&P 500 Index with a market capitalization of around $134 billion.
Market Outlook
Market Outlook and updates posted at vicapartners.com