Today’s Big Picture
Asia-Pacific equity markets ended today’s session mixed. India’s SENSEX gained 0.60% and Hong Kong’s Hang Seng advanced 1.26% led by Electronic Technology and Health Technology. China’s Shanghai Composite declined 0.26%, Australia’s ASX All Ordinaries fell 0.35%, Japan’s Nikkei lost 0.41%, and Taiwan’s TAIEX closed 1.08% lower. South Korea’s KOSPI set the pace, down 2.24% led by technology and chip names.
By mid-day trading, major European equity indices are up slightly, and U.S. futures point to a modestly positive market open later this morning. A dearth of fresh economic or corporate developments will likely lead to a subdued day in what is typically a very quiet time of year for the stock market. In the past, this has translated into lower-than-usual trading volumes for both the market and individual stocks, which could lead to wider-than-usual moves in stock prices. Despite some year-end selling in a few names, we suspect many investors are sitting on the sidelines this week, reflecting on this past year and bracing themselves for the coming year. While there will be some small pockets of volatility, odds are this means the market will be adrift as we close out 2022. Still, some are holding out for the increasingly mythical Santa Claus Rally. What can we say? Bulls will be bullish!
Data Download
International Economy
As we shared yesterday, we have an incredibly quiet set of days this week and today there is no market-moving economic data outside the U.S. Russia’s President Vladimir Putin signed a decree banning sales under contracts that comply with the $60 price ceiling imposed by Ukraine’s western allies.
Domestic Economy
Things are also relatively quiet on the economic data front inside the U.S. today with just the weekly MBA Mortgage Applications Index and the November Pending Home Sales report on deck. The Biden administration is weighing new precautionary measures for travelers entering the U.S. from China.
Markets
Consumer Discretionary (-1.62%) and Energy (1.07%) told the tale of the tape yesterday as Amazon and Tesla combined to contribute to just under 108% of Consumer Discretionary returns and Energy, as tracked by the Energy Select SPDR Fund (XLE) did not have even one holding lose ground yesterday. Once again, the Dow was the only gainer, up a mere 0.11% while the S&P 500 declined 0.40%, the Russell 2000 lost 0.65%, and the Nasdaq Composite fell 1.38%. Overall, big tech and consumer spending worries continue to pressure equities as we close out 2022.
Here’s how the major market indicators stack up year-to-date:
- Dow Jones Industrial Average: -8.52%
- S&P 500: -19.66%
- Nasdaq Composite: -33.82%
- Russell 2000: -22.08%
- Bitcoin (BTC-USD): -64.01%
- Ether (ETH-USD): -67.16%
Stocks to Watch
Before trading kicks off for U.S.-listed equities, no companies are slated to report their latest quarterly results. That said, we would caution readers to be on the watch for earnings pre-announcements during what is typically a very quiet holiday week for equity markets.
BOC Aviation Limited and Boeing (BA) announced that the airplane lessor is growing its 737 MAX portfolio with an order for 40 additional 737-8 jets.
IPOs
As the holiday season continues, the near-term IPO calendar is fairly light and there are no significant IPOs slated to price this week. Readers looking to dig more into the upcoming IPO calendar should visit Nasdaq’s Latest & Upcoming IPOs page.
After Today’s Market Close
Cal-Maine Foods (CALM) is expected to report quarterly results after equities stop trading today. Even though it is expected to be a quiet week owing to the year-end holidays, we suggest readers be on the watch for earnings pre-announcements. Those looking for more on which companies are reporting when, head on over to Nasdaq’s Earnings Calendar.
On the Horizon
Thursday, December 29
- US: Weekly Initial & Continuing Jobless Claims
- US: Weekly EIA Crude Oil Inventories
- US: Weekly EIA Natural Gas Inventories
Friday, December 30
- US: Chicago PMI – December
Thought for the Day
“Life can only be understood backwards; but it must be lived forwards.” ― Søren Kierkegaard
Disclosures
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
