Investors Watching for a “Santa Rally” the Last Trading Week of 2022
Stocks in the US closed higher Friday after consumer inflation continued to ease modestly, and consumer expectations are for the trend to continue. This could set the stage for the week ahead as some expect the probability of a “Santa rally” as investors may begin using their dry powder to wave in some stocks that have gone down with the crowd but are historically cheap and showing value.
Stock markets in London, Toronto, Sydney, Hong Kong, and Johannesburg are closed. on Tuesday, December 27, since Boxing Day was already a holiday since Christmas fell on a Sunday.
The four-day trading week ahead includes the latest data on home prices with the S&P CoreLogic Case-Shiller National Home Price Index and Freddie Mac’s House Price Index (October). On Wednesday, the National Association of Realtors (NAR) will issue pending home sales figures (November). The strength of the manufacturing sector on Friday, with the Chicago Purchasing Managers’ Index (PMI) for December, has market-moving potential on the last trading day of the year.
- Markets and Government Offices closed.
- Stock markets in London, Toronto, Sydney, Hong Kong, and Johannesburg are closed.
- 8:30 AM ET, The US Goods Deficit (Census basis) is expected to narrow to $97.0 billion in November after deepening by more than $6 billion in October to $98.8 billion.
- 8:30 AM ET, Wholesale Inventories, where buildups have been lessening, are expected to rise 0.4 percent in the advance report for November.
- 9:00 AM ET, Case-Shiller Home Price Index, forecasters see the adjusted 20-city monthly rate falling 1.2 percent again in October after a decline of 1.2 percent in September for an unadjusted annual rate of 8.1 percent versus September’s 10.4 percent.
- 10:AM ET, Richmond Fed Manufacturing Index, the manufacturing composite is expected at minus 6, in December vs. minus 9 in November and minus 10 in October.
- 8:30 AM ET, Jobless Claims for the December 29 week are expected to come in at 222,000 versus 216,000 in the prior week.
• 9:45 AM ET, The Chicago PMI is expected to bounce back in December to 41.0 versus November’s much weaker-than-expected 37.2.
- The Bond markets are scheduled to close at 2 PM. Stocks have the benefit of a full trading day to close out 2022.
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Managing Editor, Channelchek