Overnight Summary: The S&P 500 closed Wednesday higher by 0.14% at 4781.58 from Tuesday higher by 0.42% at 4774.75. The overnight high was hit at 4841.50 at 10:05 p.m. EST while the low was hit at 4831.50 at 7:20 a.m. EST. The range overnight was 10 points as of 7:30 a.m. EST. The 10-day average of…
Executive Summary: Two trading days left in the year. News is slow into year end.
Earnings Out After The Close:
Capital Raises:
Capital Raise Summary From The TradeXchange, bringing traders and investors real time news and Squawk Box, and other sources.
News After The Close and Over the Weekend:
What’s Happening This Morning: Futures value reflects the change with fair value.
Sector Action – (1/3/6/12/YTD Updated Daily this week):
The S&P 500 closed just shy of an all-time high Wednesday, a sign of the optimism that has sent stocks rallying this year after a punishing 2022. The benchmark index crept up 0.1% Wednesday, leaving it 0.3% shy of its January 2022 record close. The tech-heavy Nasdaq Composite added 0.2%. The blue-chip Dow Jones Industrial Average rose 0.3%, or about 111 points, its sixth record high this month.
It has taken the S&P 500 almost two years to come back to its previous highs and notch a new record. Sticky inflation, aggressive interest-rate increases and Russia’s war in Ukraine robbed stocks of upward momentum last year. Investors entered 2023 worried that a recession loomed. Much the concern calmed this year. The Federal Reserve’s interest-rate rises helped tame inflation without igniting a recession. The Fed signaled earlier this month that it could cut interest rates next year, sending investors to their “buy” buttons. The Dow hit new records for five days in a row after the Fed news.
The sharp December rally could set investors up for disappointment in 2024. Investors are watching to see whether inflation continues to trend down next year and whether the Fed actually eases rates. Fed Chair Jerome Powell has left the door open to further rate increases if needed. A sharp stock market rally and a strong economy could make it harder for the central bank to ease.
What’s more, the S&P 500’s gains have been driven by a handful of big tech companies with outsize influence on the index. When just a few stocks are responsible for most of the market’s gains, it becomes more vulnerable to downturns too. “Markets have celebrated the Fed’s mission accomplishment of inflation. We’re going through this bit of party mode,” said Peter Essele, head of portfolio management at Commonwealth Financial Network. For now, though, it practically feels like the pre-rate-hike days of 2021, when the markets seemed to always go up. The S&P 500 is up more than 24% for the year. Last year, it fell 19%. Stocks are also on track for a so-called Santa Claus rally—the bump stocks often get in the period spanning the last five trading days of the year and first two of the next.
“Markets have celebrated the Fed’s mission accomplishment of inflation. We’re going through this bit of party mode,” said Peter Essele, head of portfolio management at Commonwealth Financial Network. For now, though, it practically feels like the pre-rate-hike days of 2021, when the markets seemed to always go up. The S&P 500 is up more than 24% for the year. Last year, it fell 19%. Stocks are also on track for a so-called Santa Claus rally—the bump stocks often get in the period spanning the last five trading days of the year and first two of the next.
(WSJ – edited by QPI)
Upcoming Earnings Of Note: (From Chartroom Software – sorted by market cap, highest to lowest with most visible names)
Earnings of Note This Morning:
Company Earnings Guidance:
Erlanger Research Advance/Decline Chart:
Gap Ups & Down In Early Pre-Market:
Insider Action: Several stocks sees Insider buying with dumb short selling (rating of 4 or 5). SYRS VRCA see Insider buying with smart short sellers (rating of 1 to 3).
Rags & Mags.: Repeated stories from prior days never listed, i.e. “rehashed news”. Sorted by Global, U.S. and stock specific.
Moving Average Update:
Geopolitical:
Economic:
Federal Reserve / Treasury Speakers: None of note.
M&A Activity and News:
Meeting & Conferences of Note:
Top Tier Sell-side Upgrades & Downgrades:
The recommendations listed below in this “Upgrade/Downgrade” section are compiled from what we believe are Tier I, II and III firms. Recommendations posted are taken from a variety of sources each day and we only post upgrades or significant initiations as well as downgrades to underweight or sell. The purpose of this posting is to make the reader aware of market-moving recommendations. None of these recommendations should be interpreted as actual recommendations from CAPIS or its employees.
Today’s Upgrades and Downgrades:
Previous Day’s Upgrades and Downgrades:
