SPX-Investors would seek to be optimistic...
Happy new year!
Summary of the week:
The first week of the year ends with a rally to end with a weekly gain.
$DJIA(.DJI)$ rose 2.1% on the day, with a 1.5% gain for the week.
$S&P 500(.SPX)$ rose 2.3%, and 1.4% on the week.
$NASDAQ(.IXIC)$ rose 2.6%, locking in a 1% gain for the week.
Volatility could therefore continue while technology stocks remain under pressure.
Events:
- NFP
It all started with a well-received monthly employment report...
The rally came after the Labor Department said the US economy added 223,000 jobs in December.
The figure was above economists' expectations but would still show a slowdown from 256,000 jobs in November...
The report mostly showed a decline in the pace of wage growth...perhaps that could dampen the Fed's spring hawkishness...
- ISM
Stocks extended gains after a report from the Institute for Supply Management showed its services industry index fell into contractionary territory.
Market Scenario:
- With this latest NFP report and easing wage pressure, the market would be bullish on the Fed's reaction to be more flexible...
- But this is not the opinion of the decision makers who recently spoke (Bostic, Cook), and declared that inflation remains far too high and very worrying...
Upcoming week:
- Jerome Powell, is due to deliver a speech on Tuesday...we'll find out a bit more about whether or not that optimism might last...
- $JPMorgan Chase(JPM)$ $Citigroup(C)$ $BlackRock(BLK)$ The big banks will kick off the earnings season in earnest next Friday. Analysts expect S&P 500 earnings to fall 4.1% in the fourth quarter, according to FactSet.
It would be the first year-over-year decline since the third quarter of 2020, when S&P 500 earnings fell 5.7%.
Calendar:
- Monday: China will release its latest consumer and producer prices.
- Thursday: publication of US inflation for December.
- Friday: University of Michigan will release its preliminary US consumer confidence index on Friday.
SPX Levels:
Here are the levels selected:
- 3900 - 3925 - 4000: key levels
- 3800-3850: lower area
- 3950-4000 upper zone
Thanks for reading and supporting
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