(CercleFinance.com) – After suffering two weeks of decline in a row, the New York Stock Exchange should recover very modestly on Monday morning, supported by the rebound in oil prices as the Christmas holidays approach.
About half an hour before the opening, the ‘futures’ on the major New York indices signal an opening of Wall Street up barely 0.1%.
This period of the year is traditionally quiet and usually allows investors to carry out their last balance sheet dressing operations, in particular by selling the winning stocks over the year.
Volumes are nevertheless expected to be reduced and market participants should take advantage of these last sessions of 2022 to protect their portfolios and insure themselves before approaching the end of the year in a calm position.
On the oil market, US light crude (West Texas Intermediate, WTI) rebounded 1.4% to 75.3 dollars this morning, which should benefit energy heavyweights like ExxonMobil or Chevron.
U.S. equity markets fell last week after the announcement midweek of another Fed rate hike, accompanied by projections of further rate hikes in 2023.
Over the week as a whole, the Dow dropped 1.7%, the S&P 500 2.1% and the Nasdaq 2.7%, losses however lower than those which had characterized the previous week.
Now that the Fed’s meeting has passed, analysts think that the market will once again be able to turn its attention to fundamentals, starting with results.
The fourth quarter results will start to come in January and the market’s attention will be entirely focused on these publications and these prospects.
According to FactSet, the profits of S&P 500 companies should only have increased by 5.1% in 2022, a performance much lower than their average annual growth over the last ten years (+8.5%).
Among the indicators for the week are the Conference Board leading indicators on Thursday and household spending and durable goods orders on Friday.
For the time being, Wall Street hasn’t really had the traditional upward movement at the end of the year, since the S&P 500 index has at this stage posted a decline of around 6% since the beginning of December.
The New York Stock Exchange will live a full week before the Christmas festivities, but will remain closed all day Monday, December 26.
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