Stocks hinted at a possible recovery early on Monday, but hopes of a recovery from last week’s Fed selloff faded as the session progressed. This week may see lower than normal trading volumes leading up to the Christmas holidays.
Market participants today were hit with another sign of an economic slowdown thanks to the latest housing data, which only heightened concerns about the potential. recession Year 2023. Major market indices reacted on top of December’s already significant declines.
of National Association of Home Builders (NAHB) (opens in new tab) This morning, the monthly housing market index, which measures confidence in home builders, fell from 33 in November to 31 in December. This marked his 12th straight month of decline in the index, and his lowest since 2012 outside of the pandemic.
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“The U.S. housing market is the most rate-sensitive sector in the economy, reflecting the significant rise in interest rates engineered by the Federal Reserve,” said Giampiero Fuentes, economist at Raymond James. Today’s NAHB data confirms that “the U.S. housing market is already in recession and is expected to remain so until interest rates begin to fall.”
energy is the only sector that ended higher and US Crude Oil Futures It rose 1.2% to $75.19 per barrel.On the other hand, rate-sensitive Communication service (-2.3%) and information technology (-1.3%) Stocks suffered heavy losses.Therefore, focus on technology NASDAQ Composite The major index trailed its path, falling 1.5% to 10,546.wider S&P500 Index (3,817 at -0.9%) and blue chips Dow Jones Industrial Average (32,757 at -0.5%) also closed in the red.
Looking ahead, here are some notable names of the week earnings calendarquarterly results fedex (FDX (opens in new tab)) When Nike (No (opens in new tab)) on sale tomorrow. Revenues from logistics giants and athletic shoe and apparel retailers are often seen as a precursor to broader economic activity.
Best Energy Stocks of 2023
The market should care about the Fed. This is from former Federal Reserve Board Vice Chairman Bill Dudley. “The Federal Reserve seems unable to break the market’s relative optimism about the outlook for interest rates,” Dudley wrote. Bloomberg Weekend Opinion Article (opens in new tab)He said despite the central bank’s best efforts to be as clear as possible, inflation Regardless of cost, “investors are not getting the message.”
This diverging outlook could continue to destabilize markets in the new year as investors continue to be disappointed by the hawkish Federal Reserve. That’s why Ryan Grabinski, investment strategist at institutional brokerage and advisory firm Strategas, says he’s “a little more cautious” heading into the new year, preferring defensive sectors such as: Daily necessities When health care.
Grabinski is also optimistic about energy, as the company focuses on returning capital to shareholders through dividends. share buyback“And if we had a deep recession, energy would probably dip, but so would most sectors,” Grabinski added. “It’s just a matter of picking the one that sells the least, and we think there’s a structural force that supports energy.” With that in mind, here best energy stocks Buy now. Oil and gas prices are likely to cool in the new year, but analysts are eyeing big gains for these eight names.