Stansberry Research

Friday Afternoon Market Recap

Stansberry NewsWire

Friday Afternoon Market Recap

U.S. equity markets finished higher.

Economic Indicators

  • December existing home sales fell 15% month over month to 4.02 million, posting the biggest monthly decline since 2008 and the lowest number of homes since 2010. Annual sales were down 17.8% year over year ("YOY"), as rising mortgage rates and tighter supply strangled the housing market in 2022.

Macro Commentary

  • Federal Reserve Governor Christopher Waller said that he favored a 25-basis-point rate hike at the central bank's next policy meeting in February.
  • Netflix (NFLX) logged a strong earnings report for the fourth quarter, as it added 7.78 million subscribers, much higher than the 4.5 million estimated.

Within the S&P 500 Index, all the 11 sectors finished higher...

European equity markets finished higher.

Economic Indicators

  • German producer price inflation slowed to an annual growth rate of 21.6% in December, the lowest reading since November 2021 and less than half the peak seen in August and September.
  • U.K. retail sales for December unexpectedly fell, finishing off the worst year on record since the data started being recorded in 1997. Lower spending was driven by a drop-off in sales of nonfood items as consumers' purchasing power continues to be constrained.

Macro Commentary

  • European Central Bank Chief Christine Lagarde urged policymakers and central banks around the world to stay the course on its collective rate-tightening monetary policy.

Asian equity markets finished higher.

Economic Indicators

  • Japanese core inflation was up 4.0% YOY in December, with energy and nonfresh-food prices contributing the most to the headline number's largest rise since 1981.

Macro Commentary

  • Japanese Prime Minister Fumio Kishida directed his cabinet to downgrade the current COVID-19 classification –to be in line with the seasonal flu – to refocus on the nation's economic recovery.
  • The People's Bank of China left loan prime rates unchanged at the one-year and five-year maturities.
  • China's markets will be closed next week for the Lunar New Year holiday.

(Narratives written as of local market close.)

Asset Snapshot

What we're paying attention to next week...

U.S.

  • S&P Global U.S. Preliminary Manufacturing, Services, and Composite PMI for January (T)
  • Richmond Fed Manufacturing Index (T)
  • Chicago Fed Manufacturing Index for December (Th)
  • GDP for Q4 (Th)
  • Kansas City Fed Manufacturing Index for January (Th)
  • Personal Consumption Expenditure for December (F)

Europe

  • Eurozone – Consumer Confidence Indicator for January (M)
  • Eurozone/U.K. – S&P Global Preliminary Manufacturing, Services, and Composite PMI for January (T)
  • U.K. – PPI for December (W)
  • U.K. – CBI Distributive Trades Survey for January (Th)
  • France – Consumer Confidence Survey for January (F)

Asia

  • China – Markets Closed for Lunar New Year Holiday (M-F)
  • Japan – Markit/JMMA PMI Manufacturing for January (T)
  • Japan – CPI for January (F)

(Day of week in parentheses.)

Have a great weekend!

C. Scott Garliss and Kevin Sanford