Good MorningEquity markets are bracing for what could be a very frosty winter for the stock market. The lingering rise in inflation coupled with the rise of FOMC interest rates has the outlook for S&P 500 earnings in decline and that is the single most important factor to lead the stock market. In this light, the S&P 500 could be expected to fall back to previous lows near 3,500 sometime early in the New Year. The question is when it will be hit and how low the bottom will be when the market gets there. If the outlook for earnings continues to deteriorate the S&P 500 could easily slip below support at the 3,500 level and continue its plunge deeper into correction territory.
The risk for the market this week is almost entirely in the economic data. There are several important reports due out this week including the ADP and NFP reports on employment. The takeaways will be the level of employment and the pace of wage inflation. If either holds true to trends that include steady job gains and mid-single-digit levels of wage inflation the market will not take the news well. Featured: Today's Stock of the Day (Ad) 
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Technology | |
In what was a forgettable 2022 for the S&P 500, the information technology sector declined -28%, on par with REITs for the year’s worst economic group.
A surge in interest rates, 40-year high inflation and the Russia-Ukraine conflict, put relentless pressure on technology and other grow... Read the Full Story |
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From Our Partners | | A Federal Reserve filing, Docket No. OP-1670, is drawing scrutiny for language that could expand the Fed's visibility into consumer bank transactions.
A pilot program is reportedly already underway, with wider rollout at major banks possibly beginning this summer.
Martin D. Weiss, PhD, founder of Weiss Ratings, breaks down what the document says and what steps account holders might consider. | | Click here to see the document and learn protective steps |
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Consumer Staples | |
Analysts rated shares of Tyson Foods Inc. (NYSE: TSN) a hold, opting for caution throughout 2022. The MarketBeat analyst consensus rating creeped toward a bullish position. We estimate that the stock offers a potential value opportunity at around $60.
Tyson ranks as the fifth largest food and be... Read the Full Story |
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Utilities | |
Diversified energy utility Duke Energy Co. (NYSE: DUK) stock has been resilient throughout 2022 as shares closed out the year virtually flat compared to the (-20%) drop in the S&P 500 (NYSEARCA: SPY). The Company operates three divisions comprised of Electric Utilities and Infrastructure, Gas ... Read the Full Story |
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Consumer Staples | |
Due to the continual interest rate hikes by the Federal Reserve over the last twelve months, it has become increasingly likely that the US will head into a recession, likely sometime within the first quarter of next year.
For this reason, investors are rushing toward defensive safe havens to... Read the Full Story |
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Technology | |
Enterprise data storage solutions provider Pure Storage Inc. (NYSE: PSTG) stock closed out 2022 with a (-16.5%) loss. Much of the selling in the shares was attributed to the weakening demand for storage chips, as warned by DRAM maker Micron Technology Inc. (NASDAQ: MU).
Micron warned of continued... Read the Full Story |
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From Our Partners | | Last month, the Fed raised rates for the first time in three years. Inflation won't go away. And the AI boom that's carried this market for years is starting to look shaky... One major research firm calls it a "late-stage bubble" and is warning the market could fall 30% or more from its high.
If the crash comes, younger investors get knocked down and get back up. They have paychecks. They have time. Retirees don't get that luxury.
Just ask anyone who retired in 2008. Plans that looked bulletproof were gutted in months. People who did everything right were forced back to work... or forced to watch their account shrink year after year. Their plan never asked the one question that mattered: What happens if the crash comes at the worst possible time? | | Take the free 2-minute quiz to see where your retirement stands. |
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Consumer Discretionary | |
The second largest U.S. automaker Ford Motor Company (NYSE: F) stock, took a (-46%) plunge in 2022 as normalization kicked in from the post-pandemic demand shock. Ford lost steam after a strong Q2 2022 EPS beat with strong revenues as its Q3 2022 results fell flat, accompanied by lowered guidance.... Read the Full Story |
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Industrials | |
The market was closed on New Year’s Day (observed), but the analysts are still working hard. A string of positive commentaries has come out, and it looks like it will push names like Nike (NYSE: NKE) and FedEx (NYSE: FDX) higher. The key takeaway from the news is that consensus figures are o... Read the Full Story |
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Communication Services | |
Media and entertainment giant The Walt Disney Company (NYSE: DIS) enters 2023 under new but familiar leadership with the return of Bob Iger as its CEO. Iger was the previous CEO for 15 years until his departure in 2020, moving on to the role as Executive Chairman of the Board. Its newly crowned CE... Read the Full Story |
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Technology | |
As the Mega Millions jackpot climbs back toward $1 billion, a big-time lottery winner could emerge this week.
In a gambling arena of far better odds — the U.S. stock market — investors are hoping $1 trillion market cap companies live up to their ‘mega’ name in the months a... Read the Full Story |
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Consumer Discretionary | |
2022 has been challenging for big tech. While the QQQ NASDAQ Index tracking stock (NYSE: QQQ) is down more than 33% from its post-pandemic peak names like Facebook (cough Meta Platforms (NASDAQ: META)), Amazon (NASDAQ: AMZN) and Salesforce.com (NYSE: CRM) are down more than 50%, and the figure may... Read the Full Story |
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Tuesday's Early Bird Stock Of The Day Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play and YouTube; and devices, as well as in the provision of YouTube consumer subscription services. The Google Cloud segment offers infrastructure, cybersecurity, databases, analytics, AI, and other services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells healthcare-related and internet services. The company was incorporated in 1998 and is headquartered in Mountain View, California. | | View Today's Stock Pick |
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