MARKET RECAP
- US stocks +1.08%, international stocks +1.35%, bonds + 0.05%.
- The S&P 500 and the Nasdaq have been up 12 of the last 13 weeks.
- According to the Stock Trader’s Almanac, three key indicators give a glimpse of what the rest of the year might look like, they are the Santa Claus Rally, the First Five Days (of the year), and the January Barometer (performance for January). When all three are positive, the SPX has been up 90.3% of the time. But this year, only two of the three have been positive because the market was slightly down for the first five days. When one of the three has been negative, the SPX is up only 59.5% of the time, 25 of 42 years, with an average gain of 2.9%.
- The Fed meets this Wednesday and is expected to keep interest rates the same.
- The Personal Consumption Expenditures (PCE) index was up 0.2% for December and 2.6% year over year. The Core PCE (x-energy and x-food) was up 2.9% compared to last year.
- Preliminary GDP for Q4 came in at 3.3%, beating estimates of 2%, indicative that the economy continues strong.
- After releasing its earnings, TSLA dropped 12% and is now down 26% year-to-date.
- MSFT joins Apple with a market cap greater than $3 trillion.
- The SPX has been on fire, see the positive sloping black line on the chart below. However, the MACD technical indicator is showing a negative divergence. A possible sign of some short-term trouble ahead.
SCOREBOARD
