Monday December 26, 2022: Markets Closed
Dec 26, 2022 2:48:46 GMT -8
artman1033 and silkstone like this
Post by Dave on Dec 26, 2022 2:48:46 GMT -8
Christmas holiday, there’s no need to check todays stock price. As you were.
What to Expect in the Markets Next Week
Events Calendar:
Monday, December 26
U.S. Markets Closed for Holiday
Tuesday, December 27
S&P Case-Shiller National Home Price Index (Oct)
Freddie Mac National House Price Index (HPI) (Oct)
Wholesale Inventories - Advance Estimate (Nov)
Retail Inventories - Advance Estimate (Nov)
Dallas Fed Manufacturing Index (Dec)
U.S. Goods Trade Balance (Nov)
Wednesday, December 28
Pending Home Sales (Nov)
Dallas Fed Services Index (Dec)
Richmond Fed Manufacturing Index (Dec)
Thursday, December 29
- - - -
Friday, December 30
Chicago Purchasing Managers’ Index (PMI) (Dec)
The Latest Data on Home Prices
The latest data on U.S. home prices will arrive next week. On Tuesday, index provider S&P Global will release its Case-Shiller National Home Price Index for October, while mortgage originator Freddie Mac will issue its House Price Index (HPI) for the same month. Home prices as tracked by the Case-Shiller Index are projected to have fallen 1.2% in October, following a 1.5% decline in September and marking the fourth consecutive month of price declines. On an annual basis, prices likely decelerated further, rising by just 9.1% compared to a 10.4% gain in September. This would mark the slowest pace of annual price gains in over two years.
On Wednesday, the National Association of Realtors (NAR) will release data on pending home sales in November. Sales are projected to have fallen 0.5% in November, or over 30% from a year earlier. Pending home sales have fallen for 11 of the past 12 months, as rising mortgage rates, declining affordability, and limited inventory weigh on housing demand.
Purchasing Managers' Index (PMI)
On Friday, the Institute for Supply Management (ISM) will release the Chicago Purchasing Managers’ Index (PMI) tracking manufacturing activity across the Midwestern U.S. The Chicago PMI likely declined further in December after tumbling to 37.2 points in November, which was down from 45.2 points in October. Last month’s PMI reading was the lowest since June of 2020 as an economic slowdown in recent months has impacted the U.S. manufacturing sector. Any reading below 50 indicates a contraction in business activity.
Will There Be a Santa Claus Rally?
While there’s no guarantee, it’s possible markets could get a boost from a “Santa Claus rally,” which is the tendency for the stock market to rally either just before or after Christmas. Though markets are lower for the month so far, looking at historical price data, December has been one of the strongest months of the year for U.S. stocks with an average gain of 1% for the S&P 500 since 1950. And over the same period, the S&P 500 has gone up an average of 1.3% over the last five trading days of December and the first two of January, according to the Stock Trader’s Almanac. There is no definitive explanation for why stocks tend to rise at the end of the year, but some theories posit that holiday shopping, seasonal optimism, and institutional investors settling their books could have helped fuel the trend
What to Expect in the Markets Next Week
Events Calendar:
Monday, December 26
U.S. Markets Closed for Holiday
Tuesday, December 27
S&P Case-Shiller National Home Price Index (Oct)
Freddie Mac National House Price Index (HPI) (Oct)
Wholesale Inventories - Advance Estimate (Nov)
Retail Inventories - Advance Estimate (Nov)
Dallas Fed Manufacturing Index (Dec)
U.S. Goods Trade Balance (Nov)
Wednesday, December 28
Pending Home Sales (Nov)
Dallas Fed Services Index (Dec)
Richmond Fed Manufacturing Index (Dec)
Thursday, December 29
- - - -
Friday, December 30
Chicago Purchasing Managers’ Index (PMI) (Dec)
The Latest Data on Home Prices
The latest data on U.S. home prices will arrive next week. On Tuesday, index provider S&P Global will release its Case-Shiller National Home Price Index for October, while mortgage originator Freddie Mac will issue its House Price Index (HPI) for the same month. Home prices as tracked by the Case-Shiller Index are projected to have fallen 1.2% in October, following a 1.5% decline in September and marking the fourth consecutive month of price declines. On an annual basis, prices likely decelerated further, rising by just 9.1% compared to a 10.4% gain in September. This would mark the slowest pace of annual price gains in over two years.
On Wednesday, the National Association of Realtors (NAR) will release data on pending home sales in November. Sales are projected to have fallen 0.5% in November, or over 30% from a year earlier. Pending home sales have fallen for 11 of the past 12 months, as rising mortgage rates, declining affordability, and limited inventory weigh on housing demand.
Purchasing Managers' Index (PMI)
On Friday, the Institute for Supply Management (ISM) will release the Chicago Purchasing Managers’ Index (PMI) tracking manufacturing activity across the Midwestern U.S. The Chicago PMI likely declined further in December after tumbling to 37.2 points in November, which was down from 45.2 points in October. Last month’s PMI reading was the lowest since June of 2020 as an economic slowdown in recent months has impacted the U.S. manufacturing sector. Any reading below 50 indicates a contraction in business activity.
Will There Be a Santa Claus Rally?
While there’s no guarantee, it’s possible markets could get a boost from a “Santa Claus rally,” which is the tendency for the stock market to rally either just before or after Christmas. Though markets are lower for the month so far, looking at historical price data, December has been one of the strongest months of the year for U.S. stocks with an average gain of 1% for the S&P 500 since 1950. And over the same period, the S&P 500 has gone up an average of 1.3% over the last five trading days of December and the first two of January, according to the Stock Trader’s Almanac. There is no definitive explanation for why stocks tend to rise at the end of the year, but some theories posit that holiday shopping, seasonal optimism, and institutional investors settling their books could have helped fuel the trend