Stock market worries, crypto fallout, and doubts of a Santa Claus rally top week ahead
Worsening stock market sentiment and crypto meltdown mount this holiday season
Risk of recession in Europe is 'very high': Diane Swonk
KPMG chief economist Diane Swonk and The Cow Guy Group founder Scott Shellady discuss if Fed rate hikes will bring the U.S. economy to a halt and if there's a risk of global recession on 'The Claman Countdown.'
Last week's awful stock market performance has left many wondering whether the fears of a looming recession will finally be realized this week. Investors will be busy trying to locate the signal through all the noise.
Additionally, the decision by the Federal Reserve, under the leadership of Jerome Powell, to raise the interest rate another 50bps did little to bridge the stubborn gap between inflation and the Fed's 2% goal.
Sam Bankman-Fried's arrest last week has seen investors become skeptical of crypto in general, with $6 billion being withdrawn from one FTX competitor, Binance, alone.
Federal Reserve Chairman Jerome Powell speaks during a news conference in Washington, July 27, 2022. (Manuel Balce Ceneta / AP Images)
Investors will also watch for two IPOs this week, including AlphaVest Acquisition Corp. and Intchains Group.
DOW PLUNGES IN PERFECT STORM FOR STOCKS
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 44782 | -128.65 | -0.29% |
| SP500 | S&P 500 | 6047.15 | +14.77 | +0.24% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19403.947849 | +185.78 | +0.97% |
Monday, December 19
After the EU and the US agreed to implement a price cap for Russian crude oil, this week will start off on Monday with EU ministers discussing another price cap, this time on the price of natural gas used to heat homes and power industry.
The World Trade Organization will begin a general council meeting that will run through Tuesday in Geneva. The WTO, designed to promote trade, is facing unprecedented hurdles this year as increasing global tensions have led many countries to rescore their manufacturing capabilities over national security concerns.
There will be no earnings of note before the bell, but Steelcase Inc. will report its earnings after the bell.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SCS | STEELCASE INC. | 13.47 | 0.00 | 0.00% |
The main economic data reported on Monday is the NAHB housing market index.
Tuesday, December 20
Tuesday will see a deadline for commissioners to approve Georgia Power’s proposed 12% rate hike. Allowing the hike could hurt Georgia-based companies directly through increased electricity costs and indirectly through increased cost of living of Georgian employees that would likely ask for higher wages to compensate.
EU competition enforcement arm is slated to finish its first antitrust probe of Broadcom's acquisition of VMware in a $61 billion deal.
Earnings before the market open will include FactSet Research Systems and General Mills.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FDS | FACTSET RESEARCH SYSTEMS INC. | 489.47 | -1.20 | -0.24% |
| GIS | GENERAL MILLS INC. | 67.01 | +0.75 | +1.13% |
After the bell investors will be focused on BlackBerry, FedEx and Nike.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BB | BLACKBERRY LTD. | 2.57 | +0.22 | +9.36% |
| FDX | FEDEX CORP. | 305.15 | +5.18 | +1.73% |
| NKE | NIKE INC. | 79.26 | +1.86 | +2.40% |
Economic data published on Tuesday will include building permits and housing starts.
Wednesday, December 21
With more and more car makers shifting to electric vehicles, one Italian car designer has driven a different route. Bertone, which gave the world the Lancia Stratos and Lamborghini's iconic Countach, will unveil, on Wednesday, a Hypercar that uses fuel made from plastic waste.
Earnings before the market open will include Cintas and Rite Aid. Rite Aid has suffered heavily from increased sink, the industry codeword for stolen goods. As crime has continued to go largely unchecked in major cities, investors should expect more talk of sink this week.
RITE AID EXEC: IMPOSSIBLE TO STOP NYC STORE THEFTS
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CTAS | CINTAS CORP. | 222.64 | -3.15 | -1.40% |
| RAD | NO DATA AVAILABLE | - | - | - |
After the bell, investors will hear from Micron Technology, a Boise, Idaho-based company focused on semiconductor manufacturing.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MU | MICRON TECHNOLOGY INC. | 96.63 | -1.57 | -1.59% |
Economic data attractive to investors on Wednesday will include mortgage applications, current accounts, consumer confidence, existing home sales, and the EIA weekly crude stocks.
Thursday, December 22
Thursday will see investors await news from a hearing on the final sale of cryptocurrency lending platform Celsius Network's assets, as it liquidates in bankruptcy court.
Earnings before the market opens will include CarMax and Paychex, with Thursday having no earnings of note after the bell.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| KMX | CARMAX INC. | 84.55 | -0.54 | -0.63% |
| PAYX | PAYCHEX INC. | 145.71 | -0.48 | -0.33% |
Economic data reported on Thursday will include corporate profits, GDP, initial jobless claims, national activity index, and index of leading economic indicators
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Friday, December 23
Friday will mark the last day that employees of Amazon can take a voluntary severance offer, as the logistics giant aims to tighten its belt as fears of a recession mount.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 210.71 | +2.82 | +1.36% |
Friday will not have any earnings of note, but a plethora of economic data will keep analysts busy as we go into Christmas weekend.
Friday will see building permits, personal income, personal consumption, durable goods, the U of Michigan consumer sentiment index, and new home sales reported.