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The tech-heavy Nasdaq 100 index (.NDX) has gained over 3% in 2023, double the rise for the S&P 500 (.SPX). The Nasdaq 100 fell 33% in 2022, while the S&P 500 lost 19.4%. Apple, the largest U.S. company by market value, and Google-parent Alphabet report the following week. Fourth-quarter earnings in the tech sector are expected to have declined 9.1% from a year ago, compared to a 2.8% decline for S&P 500 earnings overall, according to Refinitiv IBES. The S&P 500 tech sector still trades at a roughly 19% premium to the broader index, above its 7% average of the past 10 years, according to Refinitiv Datastream.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch the full post-market discussion with Ritholtz's Josh Brown, Wells Fargo's Sameer Samana and OptionsPlay's Jessica InskipJosh Brown, CEO of Ritholtz Wealth Management, joins 'Closing Bell: Overtime' to discuss recent economic data and what it says about the economy and ongoing Fed rate increases. With Sameer Samana of the Wells Fargo Institute and Jessica Inskip of OptionsPlay.
2022 brought an end to an impressive bull run for technology — and the worst year for the Nasdaq Composite since 2008. Energy stocks, meanwhile, found favor in investors' portfolios, as did healthcare and financials. Given this outlook, CNBC examined some of the worst and best-performing stocks in the Nasdaq 100 this year. Energy stocks Energy won 2022, benefitting from volatile oil prices triggered by the war in Ukraine. Meta Platforms was the worst-performing FAANG name, and one of the poorest-performing Nasdaq stocks.
The U.S. central bank hiked rates by 50 basis points (bps) on Wednesday, slowing down from four back-to-back 75 bps hikes, although Fed Chair Jerome Powell said recent signs of slowing inflation have not brought any confidence yet that the fight had been won. The Fed's policy-setting committee projected it would continue raising rates to above 5% in 2023, a level not seen since a steep economic downturn in 2007. Money market participants currently expect at least two 25 bps rate hikes next year and borrowing costs to peak at 4.9% by May next year, before falling to around 4.4% by year-end. Wall Street's main indexes have staged a strong recovery since hitting 2022 lows in October on hopes of a less aggressive Fed, but the rally stalled in December due to mixed economic data and worrying corporate forecasts. Tesla Inc (TSLA.O) fell 2.9% after CEO Elon Musk disclosed another $3.6 billion in stock sales, taking his total near $40 billion this year and frustrating investors as the company's shares wallow at two-year lows.
The Fed's policy-setting committee projected it would continue raising rates to above 5% in 2023, a level not seen since a steep economic downturn in 2007. Money market participants currently expect at least two 25 bps rate hikes next year and borrowing costs to peak at 4.9% in the first half, before falling to around 4.4% by the year end. Wall Street's main indexes have staged a strong recovery since hitting 2022 lows in October on hopes of a less aggressive Fed, but the rally stalled in December on the back of mixed economic data and worrying corporate forecasts. Investors also digested economic data on Thursday that showed a steeper-than-expected decline in retail sales in November and the number of Americans filing for unemployment benefits falling last week, indicating a tight labor market. The S&P index recorded no new 52-week highs and four new lows, while the Nasdaq recorded 24 new highs and 120 new lows.
How High Will CD Rates Go in 2023?
  + stars: | 2022-12-01 | by ( ) www.wsj.com   time to read: +6 min
Whether or not CD rates will continue to rise in 2023 depends a lot on what the Fed does to fight inflation, with higher inflation likely higher interest rates. Where will CD rates go in 2023? There is no direct relationship between CD rates and those set by the Federal Reserve, since banks can offer whatever interest rates they wish. And that means that CD rates likely have a little room to rise, but not a whole lot. While CD rates continually shift, it’s now possible to find rates of between 4% and 5% from well-known institutions like Capital One, BMO Harris, Synchrony and more.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with CFRA's Sam Stovall and Wells Fargo's Sameer SamanaSam Stovall, CFRA Research chief investment strategist, and Sameer Samana, Wells Fargo Investment Institute, join 'Squawk on the Street' to discuss Powell's recent comments at Brookings, whether now is a good time to buy equities and more.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe're on the side of 50bps in February and 25bps in March, says CFRA's StovallSam Stovall, CFRA Research chief investment strategist, and Sameer Samana, Wells Fargo Investment Institute, join 'Squawk on the Street' to discuss Powell's recent comments at Brookings, whether now is a good time to buy equities and more.
The S&P 500 is down 14.4% year-to-date. U.S. consumer prices rose less than expected in October, supporting the view that inflation was ebbing. Further ahead, some of Wall Street’s biggest banks are now forecasting that the Fed's monetary policy tightening will bring on a recession next year. In options markets, traders appear more preoccupied with not missing out on more gains in stocks than guarding against future declines. The one-month moving average of daily trading in bearish put contracts against bullish calls on the S&P 500 index-tracking SPDR S&P 500 ETF Trust's options is at its lowest since January 2022, according to Trade Alert data.
Powell says rate hike moderation may come by December
  + stars: | 2022-11-30 | by ( ) www.reuters.com   time to read: +3 min
Curing inflation "will require holding policy at a restrictive level for some time," he said. read moreUS stocks turned sharply higher on his comments, while Treasury yields fell back and the dollar turned lower. More than that, I think (investors) are starting to get a little more comfortable with investing at rates at this level... Investors have gotten to the point now where they are looking to come back into the market. SAMEER SAMANA, SENIOR GLOBAL MARKET STRATEGIST, WELLS FARGO INVESTMENT INSTITUTE, CHARLOTTE, NC"The market is taking this glass-half-full, it could've been worse approach. The balance sheet is almost as important if not more important than the level of rates."
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Wells Fargo's Sameer Samana and Leuthold Group's Jim PaulsenSameer Samana from Wells Fargo Investment Institute and Jim Paulsen from the Leuthold Group join 'Closing Bell' to discuss the negative impact of Fed balance sheet tightening, instability of Fed policy and the market impact of inflation fears compared to recession fears.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailTwo takes on the market rally and whether it can last, with Sameer Samana and Jim PaulsenSameer Samana from Wells Fargo Investment Institute and Jim Paulsen from the Leuthold Group join 'Closing Bell' to discuss the negative impacts of Fed balance sheet tightening, instability of Fed policy and the market impact of inflation fears compared to recession fears.
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