Stansberry Research

Tuesday Afternoon Market Recap

Stansberry NewsWire

Afternoon Market Recap:

U.S. equity markets finished Tuesday lower.

Domestic equity markets ended lower on the first trading day of 2023, giving up some early gains. Markets struggled to gain traction as investors await key figures due out later this week – namely data dealing with the labor market. The day was fairly quiet on the macroeconomic calendar, with the final December Manufacturing Purchasing Managers' Index ("PMI") reading unchanged from the initial reading. November construction spending came in slightly better than the prior month's number. Bearish talking points remain the headline news as the 2023 economic outlook darkens with further rate hikes and earnings estimates expected to be revised lower.

Within the S&P 500 Index, six of the 11 sectors finished lower...

European markets finished higher. Eurozone markets ended higher but off their best levels on Tuesday. The biggest macro news came from Germany as cooler inflation data spurred today's bond market rally. The country's December Consumer Price Index came in at 9.6% – a sharp downturn from November's 11.3% and a consensus for a 10.7% annual growth rate. Easing pricing pressures continue to push the narrative that the European Central Bank may not be as aggressive this year. More positive news came from the eurozone's December Manufacturing PMI reading as it remained flat, sparking optimism that supply chains are beginning to recover. However, the U.K. and Italy appear to be heading toward the harshest recession for this year, as economic indicators and analysts continue to provide bearish indicators of the two nations' economies.

Asian markets finished higher. Japanese markets were closed, China's manufacturing contracted at a quicker-than-expected pace in December, as the latest COVID-19 outbreak and weak global demand weighed heavily on production, new orders, and exports. Consulting firm China Beige Book said the economy likely contracted in the fourth quarter, while Singapore's fourth-quarter gross domestic product slowed to 2.2% year-over-year growth. Finally, Australian home prices recorded the largest annual decline since 2008. The country's markets finished weak thanks to the poor macro data from China.

(Narratives written as of local market close.)

Risk:

VIX +5.68%

Bitcoin -0.45%

Ethereum -0.60%

Growth:        

WTI crude -3.80%

Brent crude -4.16%

Natural gas -10.41%

Copper -1.09%

Safety:

Gold +1.06%

Silver +0.56%

Tomorrow, we are on the lookout for France's inflation data, as well as manufacturing and job data stateside.

Have a great evening!

C. Scott Garliss and Kevin Sanford