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Stock futures rise slightly ahead of the first trading week of the new year

Stock futures rise slightly ahead of the first trading week of the new year
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Traders on the floor of the New York Stock Exchange, October 20, 2019. 21, 2022.

Source: NYSE

Stock futures rose Monday night as traders braced for a flurry of economic data and the minutes from the latest Federal Reserve meeting this week to kick off the new year.

Futures linked to the Dow Jones Industrial Average rose 80 points, or 2%. S&P 500 futures rose 0.2% and Nasdaq 100 futures rose 0.2%.

All the major averages closed out 2022 with their worst losses since 2008, each snapping a three-year winning streak. The Dow ended the year down about 8.8% to 33,147.25 and 10.3% below its 52-week high. The S&P 500 lost 19.4% on the year and now stands at 3,839.50, more than 20% below its all-time high. The tech-heavy Nasdaq fell 33.1% last year. He is starting 2023 at almost 34% of his record, at 10,466.88.

Inflation triggering “the worst rout for both stocks and bonds in decades” was the biggest investor narrative for 2022, according to Greg Bassuk, chief executive of AXS Investments. The new year begins with a cloud of concern that a “harder-than-desired landing” by the Federal Reserve and its inflation-fighting measures could push the economy into recession.

“2022 was characterized by a market crash that blinded inflation, in part because the year began with Wall Street and Main Street anticipating price containment and a Federal Reserve that would keep rates lower,” he said. “But a fiercely opposite reality lingered as inflation soared.”

“Moving into 2023, as prices remain substantially elevated, investors would be prudent to consider inflation-sensitive assets, as well as cyclical and other stocks that tend to do well in rising price environments,” he added.

Investors are receiving a set of data in the first trading week of the year and investors will be watching closely, looking for opportunities to adjust their portfolios to recover from the carnage of 2022. Wednesday is a big day with the Survey of Job Offers and Job Rotation, better known as JOLTS, which will be released in the morning and the minutes of the last Fed policy meeting will be released in the afternoon.

They are also looking forward to Friday’s December jobs report, the final jobs report the Fed will have to consider before its next meeting on February 1. 1. There are also several speeches from the Fed chairs scheduled for Thursday and Friday.

First up, though, are the S&P Global PMI manufacturing and construction spending, due at 9:45 am and 10:00 am ET on Tuesday.

Walgreens Boots Alliance and Constellation Brands will also report their quarterly financial results on Thursday, though it’s otherwise a quiet week for earnings reports.

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