The major stock market held morning losses, down in the last hour and off the lows of the day. Today's slide tops off annual losses not seen in years. Investors look to put the painful year behind them, hoping for a better 2023, but recession fears lurk.
The S&P 500 dipped 0.7% into the noon hour while the Nasdaq gave back 0.8%. The Dow Jones Industrial Average trimmed 0.6%. The Russell 2000 small-cap index also saw losses, shedding 0.4%.
All major benchmarks are set to incur losses not seen since the infamous 2008 Great Recession.
The S&P 500 has lost 19% of its value in 2022, through Thursday's close. The Nasdaq has posted a 33% loss while the Dow is holding up the best, down over 8%.
The Dow dipped back below its 50-day moving average after a brief trip above it on Thursday. The S&P 500 and Nasdaq also remain below their 50-day lines.
The tech-heavy Nasdaq 100-tracking Invesco QQQ trust ETF dropped 0.8%.
NYSE and Nasdaq volume was sharply lower vs. the same time on Thursday.
Crude oil gained 0.8% to $79.07 per barrel. The Energy Select Sector SPDR ETF edged up 0.2%. Natural gas dropped 2.9% and is trading below $5 per million British thermal units.
Bitcoin futures added 0.6% to $16,490. The 10-year Treasury note yield added 6 basis points to 3.88%.
European stock markets closed lower, with the German DAX down 1.1% and the Paris CAC 40 retreating 1.6%. The London FTSE 100 shed 0.8% to close out the trading year. European markets posted their worst year since 2018.
Odds for a 25-basis-point hike by the U.S. Federal Reserve at the February meeting stand at 68.2%. That would take the fed funds rate to the 4.5%-4.75% range. Meanwhile, 31.8% of market watchers are looking for a 50-basis-point hike, according to the CME Group FedWatch Tool.
PMI Surprises On The Upside
December's Chicago purchasing managers' index came in at 44.9 vs. the 41.0 expected, higher than November's 37.2. The PMI measures overall economic activity in the Chicago area, and is considered a bellwether for the overall economy. A reading below 50 points to contraction in business activity while a reading above 50 shows expansion.
Look to next week for key economic data, including the ISM manufacturing and JOLTS numbers on Wednesday. They should provide color on the manufacturing and labor markets. The FOMC minutes for the December meeting will also be released on Wednesday, but no surprises are expected.
Stock Market Today: Offshore Driller Breaks Out
Offshore driller Tidewater broke out and hit the 36.60 buy point of a cup base earlier in the session, adding 0.3% in heavy volume. Tidewater's relative strength line hit a new high as indicated by the blue dot on the MarketSmith chart.
Tesla gave back 0.2% and will book its worst year on record, down over 65%. The brutal drop marks just the second annual loss since 2010 when it came public.
Netflix was unchanged after yesterday's 5.1% gain in reaction to a CFRA upgrade to buy and a 310 price target.
Meta Platforms trimmed morning losses, now unchanged but down over 64% for the year. The Facebook parent continues to invest heavily in developing the metaverse as online advertising revenue has plateaued.
Canadian communications provider Shaw Communications rose over 9% after the Canadian Competition Tribunal approved the sale of Freedom Mobile. This should clear the decks for the firm's proposed merger with Rogers Communications. Shares of RCI were up 5.2% on the news.
Merck shed 0.3% on news that China approved the molnupiravir antiviral for emergency use in Covid-19 treatment.
Stock Market 2023: What To Do After 'Stay Away' Year
IBD 50 Movers: AI Stock Pulls Ahead
The Innovator IBD 50 ETF was in line with the major stock market indexes, losing 0.6%.
Israeli-based autonomous-driving developer Mobileye rose 1.6%, adding to yesterday's 2.8% gain. The stock is extended from the buy zone of an IPO base with a 31.98 buy point. The stock has already earned respectable CAN SLIM ratings since its trading debut on Oct. 26.
Planet Fitness gave back morning gains, down 0.5%. Shares are on an upward trend with support at their 21-day exponential moving average. Planet's 90 Relative Strength Rating moved up from 85 four weeks ago.
