Source: New York Stock Exchange
Stock futures rose Tuesday morning as traders kicked in the new year as they prepared for a surge in economic data and this week’s latest Federal Reserve Board meeting.
Futures tracking the Dow Jones Industrial Average rose 130 points, or 0.43%. S&P 500 futures were up 0.52% and Nasdaq 100 futures were up 0.59%.
All of the major averages in 2022 posted their worst losses since 2008, each on three-year winning streaks. The Dow ended the year down 8.8% at 33,147.25, down 10.3% from its 52-week high. The S&P 500 is down 19.4% over the year and is now at 3,839.50, more than 20% below its all-time high. The tech stock Nasdaq is down 33.1% last year. 2023 will start at 10,466.88, nearly 34% lower than that record.
According to AXS Investments CEO Greg Bassuk, inflation was the biggest investor story of 2022, causing “the worst defeat for both equities and bonds in decades.” The new year begins with a cloud of fears that a “harder than desirable landing” by the Federal Reserve and its inflation-fighting move could push the economy into recession.
“2022 will be marked by an inflation-blinding market crash, with both Wall Street and Main Street looking to contain inflation and keep interest rates low. “But as inflation soared, the exact opposite reality followed.”
“As prices continue to rise significantly into 2023, investors will be cautious about inflation-sensitive assets and cyclical and other stocks that tend to do well in rising price environments. would,” he added.
Investors have been getting a string of data in the first trading week of the year, and investors are watching closely for opportunities to adjust portfolios and recover from the 2022 catastrophe. Wednesday is a big day as the Jobs and Attrition Survey, better known as JOLTS, is set to be released in the morning and the minutes of the Fed’s latest policy meeting are due in the afternoon.
They’re also looking forward to Friday’s December jobs report. This is the final employment report he has to review by the Fed before his February 1st meeting.
First up, though, is the S&P Global Manufacturing PMI and Construction Spending, which will be released on Tuesday at 9:45am ET and 10:00am ET.
Walgreens Boots Alliance and Constellation Brands also report quarterly results on Thursday, but otherwise a quiet week for earnings reports.