Here are the most important news, trends and analysis investors need to start their trading day:
1. Stocks Expected to Dip on Open After Record Close of Dow, Nasdaq Fall
People walk past the New York Stock Exchange (NYSE) on January 4, 2022 in New York City.
Angela Weiss | TBEN | Getty Images
US equity futures fell slightly on Wednesday, a day after the Dow Jones closed at another record high. The 30-stock average rose nearly 0.6% after Monday’s advance on the first trading day of 2022. Investors looked for stocks that stand to benefit from an economic recovery, betting the explosion of cases of Covid in the United States due to the omicron variant will not shut things down.
- The S&P 500 edged down on Tuesday from the record close of the previous session.
- The Nasdaq lost 1.3% on Tuesday as growth-oriented tech stocks were knocked down by a 10-year Treasury yield above 1.7% at one point. The 10-year rate fell on Wednesday.
- The seasonal Santa rally, which often occurs in the last week of December and the first two trading days of January, held up for the Dow and S&P 500. However, the Nasdaq was lower during this time.
2. ADP Shows Strong Job Growth in US Businesses Last Month
ADP’s December report on US business hiring, which was released on Wednesday before the bell, showed job growth of 807,000, more than double estimates. November’s total has been revised down from the 534,000 originally reported. The Labor Department is expected to release weekly unemployment claims data on Thursday and the December monthly employment report on Friday.
The Federal Reserve will closely monitor these numbers ahead of its two-day January meeting later this month. At 2 p.m. ET on Wednesday, the Fed released the minutes of its December meeting when it unveiled its plans to accelerate the reduction in bond purchases and signaled three interest rate hikes in 2022.
3. Wall Street strategists forecast a more eventful year as the Fed tightens
As the Fed begins to tighten its ultra-relaxed monetary policy, Wall Street expects a bumpier road for the stock market this year. The median year-end target for the S&P 500 now stands at 5,050, a gain of just 5% from Tuesday’s close of 4,793.54, according to TBEN’s Strategist survey. The highest 2022 target of 5,330 comes from Oppenheimer’s John Stoltzfus. The lowest target for 2022 of 4,400 comes from Morgan Stanley’s Mike Wilson.
Wall Street Outlook 2022
|Solidify||Strategist||2022 S&P 500||EPS 2022||Implicit P / E|
|Bank of America Merrill Lynch||Savita Subramanian||4600||$ 173||26.59|
|Barclays||Maneesh Deshpande||4800||$ 235||20.43|
|BMO||Brian Belski||5300||$ 245||21.63|
|CFRA||Sam stovall||5024||$ 220||22.81|
|Citi||Scott Chronert||4900||$ 221||22.22|
|Swiss credit||Jonathan golub||5200||$ 235||22.13|
|Goldman Sachs||David kostin||5100||$ 226||22.57|
|JPMorgan Chase||Dubravko Lakos-Bujas||5050||$ 240||04.21|
|Morgan stanley||Mike Wilson||4400||$ 227||19.38|
|Oppenheimer||John stoltzfus||5330||$ 230||23.17|
|RBC||Lori Calvasina||5050||$ 222||22.75|
|UBS||Keith parker||4850||$ 242||04/20|
|Wells Fargo Investment Institute||Darrell cronk||5200||$ 235||22.13|
4. CDC panel to meet on boosters as agency updates isolation guidelines
The headquarters of the Centers for Disease Control and Prevention (CDC) in Atlanta, Georgia.
Tami Chapel | Reuters
The Centers for Disease Control and Prevention’s vaccine advisory group is scheduled to meet on Wednesday to discuss the use of a booster dose of the two-shot Covid vaccine from Pfizer for children 12 to 15 years old.
- On Tuesday, the CDC recommended shortening the interval between the second dose of Pfizer and the booster from six months to five months.
- The agency changed its controversial Covid isolation guidelines, refusing to add a testing requirement as public health officials expected after the CDC last week reduced its recommended 10-day quarantine to five.
- The CDC also said that omicron accounted for 95% of sequenced Covid cases in the United States in the week ending New Years Day, while the once-dominant delta variant only made up 4.6% of sequenced cases. .
5. Chicago schools are closed for the day as unions vote to go remote
Students leave Darwin Elementary School in Chicago’s Logan Square neighborhood on Monday, January 3, 2022, the first day back to school after the winter break for Chicago Public Schools.
Brian Cassella | Tribune press service | Getty Images
Chicago public school leaders canceled classes on Wednesday after the teachers’ union voted to switch to distance learning amid the upsurge in Covid cases. This is the latest development in an intensifying battle over pandemic safety protocols in the nation’s third largest school district. The status of the investigation for the remainder of the week remained uncertain. District leaders said a plan to “continue student learning” would come later Wednesday. School officials called the union’s action a “work stoppage” and said those who did not show up to schools on Wednesday would not be compensated.
– Reuters and The The Bharat Express News contributed to this report. Follow all market actions like a pro on TBEN Pro. Get the latest pandemic news with TBEN’s coronavirus coverage.