Stock futures fall ahead of first week of trading in

Stock futures fall ahead of first week of trading in the new year

Traders on the NYSE floor, October 21, 2022.

Source: New York SE

Stock futures fell Monday night as traders braced for a barrage of economic data and minutes from this week’s Federal Reserve meeting to kick off the new year.

Futures linked to the Dow Jones Industrial Average fell 72 points, or 0.2%. S&P 500 futures lost 0.28% and Nasdaq 100 futures lost 0.44%.

All major averages ended 2022 with their worst losses since 2008, each embarking on a three-year winning streak. The Dow ended the year down about 8.8% at 33,147.25 and 10.3% below its 52-week high. The S&P 500 is down 19.4% for the year and is now at 3,839.50, more than 20% off its record high. The tech-heavy Nasdaq plunged 33.1% last year. He starts 2023 at almost 34% of his record of 10,466.88.

Inflation, which triggered “the worst defeat for stocks and bonds in decades,” was the biggest investor narrative for 2022, according to Greg Bassuk, CEO of AXS Investments. The new year begins with a cloud of concern that a “harder than desired landing.” ‘ the Fed and its measures to combat inflation could push the economy into recession.

“2022 was marked by an inflation-blinded market crisis, in part because the year started with Wall Street and Main Street both expecting a containment on rising prices and a Federal Reserve that would keep rates lower,” he said. “But as inflation skyrocketed, a completely opposite reality persisted.”

“Looking ahead to 2023, as prices remain significantly elevated, investors should consider inflation-sensitive assets, as well as cyclicals and other stocks that tend to perform well in rising price environments,” he added.

Investors will get a slew of data in the first week of trading of the year, and investors will be watching closely, looking for ways to adjust their portfolios to recover from the 2022 bloodbath. Wednesday is a big day as the Job Openings and Labor Turnover Survey, better known as JOLTS, is released in the morning and minutes from the Fed’s last monetary policy meeting are released in the afternoon.

They also look forward to Friday’s December jobs report, the final jobs report that the Fed has to review before its next February 1 meeting. Several Fed President speeches are also scheduled for Thursday and Friday.

First up, however, are S&P Global Manufacturing PMI and Construction Spending, due to be released Tuesday at 9:45 am and 10:00 am ET.

Walgreens Boots Alliance and Constellation Brands are also due to release their quarterly financial results on Thursday, though it’s otherwise a quiet week for earnings reports.