Weekly Market Commentary – 12/30/2022
-Darren Leavitt, CFA
Financial markets finished the final week of 2022 trading with a whimper. Year-end tax-loss harvesting and asset class rebalancing accounted for much of the volume in light trade. The technical level of 3800 was able to be held but was certainly tested as a year-end rally failed to materialize.
The S&P 500 lost 0.1%, the Dow dropped 0.2%, the NASDAQ fell 0.3%, and the Russell 2000 ended the week flat. US Treasuries sold off across the curve. For the year, the S&P 500 closed down 19.4%, the Dow shed 8.8%, the NASDAQ tumbled 33.1%, and the Russell 2000 gave back 21.6%.
The 2-year yield increased by ten basis points to 442%, while the 10-year yield increased by thirteen basis points to close at 3.88%. The 2-year yield increased by 369 basis points in 2022, while the 10-year yield increased by 237 basis points.
Oil prices were little changed on the week losing $0.31 to close the year at $79.29 a barrel. Gold prices closed higher by $23.30 to $1827.50 an Oz. Copper prices were unchanged over the week, closing at $3.81 an Lb.
Economic data for the week was limited. November Pending home sales decreased by 4%, which was well below the consensus estimate of a 1% increase. Initial Jobless claims came in line at 225k while continuing claims continued to tick higher, coming in at 1710k. Next week investors will vet ISM Manufacturing and Non-Manufacturing data and the December Employment Situation report.
Investment advisory services offered through Foundations Investment Advisors, LLC (“FIA”), an SEC registered investment adviser. FIA’s Darren Leavitt authors this commentary which may include information and statistical data obtained from and/or prepared by third party sources that FIA deems reliable but in no way does FIA guarantee the accuracy or completeness. All such third party information and statistical data contained herein is subject to change without notice. Nothing herein constitutes legal, tax or investment advice or any recommendation that any security, portfolio of securities, or investment strategy is suitable for any specific person. Personal investment advice can only be rendered after the engagement of FIA for services, execution of required documentation, including receipt of required disclosures. All investments involve risk and past performance is no guarantee of future results. For registration information on FIA, please go to https://adviserinfo.sec.gov/ and search by our firm name or by our CRD #175083. Advisory services are only offered to clients or prospective clients where FIA and its representatives are properly licensed or exempted.