Santa Claus rally, FTX fallout, and Keystone reboot in week one
The chief US strategist at research firm Ned Davis examines the stock market’s holiday response on the theme of “making money”.
Investors are preparing this week to see if Christmas miracles really do happen as hopes for Santa Claus rise. So far, the Nasdaq is down 8.7% over the past month, while the S&P 500 and Dow are down 4.5% and 3.3%, respectively.
While Sam Bankman-Fred’s next court date won’t be until January 3, 2023, investors will focus on FTX this week after both co-founder Gary Wang and former Alameda Research CEO Caroline Ellison entered guilty pleas in federal court. Both are said to be cooperating with the authorities.
IPOs this week may include Coya Therapeutics, health technology Nava Health MD, wealth and asset manager Prestige Wealth and marine bunkering facilities provider CBL International.
Sam Bankman Fried leaves federal court in New York City on Thursday, December 22, 2022. The former CEO of FTX and Alameda has been released on $250 million bail. (Charles Guerin/Abaca for Fox News Digital/Fox News)
Bernie Madoff’s lawyer says toxic bank fryers should ‘shut up’
| tape | protection | the last | changes | changes % |
|---|---|---|---|---|
| Me: COMP | Nasdaq Composite Index | 10497.862896 | +21.74 | +0.21% |
| SP500 | Standard & Poor’s 500 | 3844.82 | +22.43 | +0.59% |
| Me: DJI | Dow Jones averages | 33,203.93 | +176.44 | +0.53% |
Monday, December 26th
Markets are closed on Mondays in observance of Christmas. Here are some financial moves to make before the end of the year.
Tuesday 27 December
Tuesday brings economic data, including the Federal Housing Finance Agency’s monthly home price index, which is expected to have fallen 0.30% since last month but is still expected to rise 9.1% year over year.
Last month, William Doerner, supervising economist in the FHFA’s Division of Research and Statistics, commented: “The rate of home price growth in the United States has slowed dramatically. This slowdown is widespread with about a third of all states and metropolitan statistical areas reporting annual growth of less than 10 percent.”
Tuesday will also see the Case-Shiller Home Price Index. Observers expect the metric to decline by 1.2% on a monthly basis. Home prices fall as high mortgage rates deter buyers from entering the market. Mortgage rates are still twice as high as they were a year ago, although they have been down for six straight weeks.
Mortgage rates continue their downward trend, falling for the sixth week
To counter rising inflation and rising costs, UPS will raise delivery fees on Tuesday. Investors will be watching this closely to see how resilient freight demand is.
Tuesday also marks the deadline for certification of new versions of the Boeing 737 MAX, -10 and -7 aircraft, and modification of existing aircraft; However, as part of the spending bill passed by the Senate last week, Boeing was granted an exemption and will no longer have to make safety changes.
Congress includes waiving Boeing’s new 737 MAX aircraft in the public spending bill
The 737-10, the largest member of the 737 MAX family, will provide operators with greater capacity, greater fuel efficiency and the best economics per seat of any single-aisle aircraft. (Boeing)
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There are no scheduled earnings calls of note.
Wed 28 Dec
TC Energy on Wednesday hopes to restart the Keystone pipeline after it shut down in early December after 14,000 barrels of oil spilled in a creek in Kansas.
A remediation company posts a surge on the surface of an oil spill after a Keystone pipeline ruptured in Mill Creek in Washington County, Kansas, on December 8, 2022. Dump trucks, booms and an emergency dam were built on the creek to intercept (Kyle Power Radio/KCLY/KFRM via AP/AP Newsroom)
The Energy Department’s deadline to bid to refill the Strategic Petroleum Reserve (SPR) expires on Wednesday. President Joe Biden announced the release of 15 million barrels in October.
SpaceX is expected to launch two rockets on Wednesday. Both missions will use SpaceX Falcon 9 rockets. The first rocket will launch another batch of Starlink internet satellites destined for polar orbit, while the second rocket, which may launch as soon as Thursday instead, will launch the EROS C3 high-resolution Earth imaging satellite for ImageSat International.
Egg prices are at an all time high
Egg producer Cal-Maine Foods will release its financial earnings for the second quarter after the market closes. Egg prices have skyrocketed due to inflation.
| tape | protection | the last | changes | changes % |
|---|---|---|---|---|
| calm | CAL-MAINE FOODS INC. | 64.63 | +1.55 | +2.46% |
Thursday 29 December
No notable earnings are scheduled for Thursday.
Economic data will include weekly jobless claims. Initial claims are expected to rise to 220,000, while continuing unemployment claims are expected to remain around 1.67 million. The Energy Information Administration issues its weekly report on the state of petroleum.
Friday 30th December
Friday will see the announcement of the bidding results for the sale of Alaska oil and gas leases to the Cook Inlet region.
The last day of trading for 2022 will see the release of the Chicago PMI but without a headline earnings report
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Keith FitzGerald, President of The FitzGerald Group and Leuthold Group CIO Doug Ramsey discuss how far the stock market will drop in 2023 as volatility ramps up, in “Countdown to Claman.”
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