Stock Market Today: December 18th - 22nd, 2023

Top of the morning StonkForumers! Happy Tuesday to all of you and welcome to the new trading day and a frrrrrrrrrrrresh start. Here is a quick check on those futures as we are over an hour from the US cash market open.

GLTA on this Tuesday, December the 19th, 2023!

 

Good Tuesday morning StonkForumers!

Here is this morning's pre-market news thread for those of you wanting to get a quick read before today's open-
<-- click there to read!

Hope everyone has a great new trading day ahead!

 

Here is a quick recap of this morning's economic reports and what's left to come rest of today:

 

Here are some earning results from this morning and those reporting after the close today:

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Here are some of today's analyst upgrades & downgrades:

 

Morning Lineup - 12/19/23 - Like Oil and Water
Tue, Dec 19, 2023

The Dow and the Nasdaq are both on pace for their ninth straight session of gains, and this morning's data on Housing Starts and Building Permits hasn't done anything to change the direction. Building Permits were ever so slightly weaker than expected, but Housing Starts came in significantly better than expected coming in at 1.56 million compared to forecasts for a level of 1.36 million. If these pre-market gains in futures hold, it will further reinforce the point that good economic news is good again now that the Fed has pivoted away from rate hikes.

The energy sector was always the fuel to power the industrial economy, but in the digital economy, it has taken a back seat to technology. An example of the shifting role of each sector is the fact that in 1990, Energy accounted for 13.4% of the S&P 500’s market cap or more than twice the 6.3% weighting of the Technology sector. Today, Energy accounts for just 4.7% of the S&P 500’s market cap compared to Technology’s 27.9% weighting.

While most stocks are positively correlated with each other, there has been little correlation between Technology and Energy in recent years, and the last two years provide a perfect example. The charts below show the annual returns of the Energy and Technology sectors since 1990. In 2022, Energy had its best year since at least 1990, rallying 59.0%. Technology, meanwhile, cratered 28.9% for its worst year since 2008 and its fourth worst year since at least 1990. This year (through 12/18), we have seen the opposite pattern playout as Energy has declined 4.3% while Technology has rallied 56.3% for its best year since 2009 and its fourth-best year on record.




Looking at a comparison between the performance of the two sectors a little more closely, the chart below shows the annual performance spread between Technology and Energy for each year since 1990. Last year, Technology underperformed Energy by the largest amount since at least 1990, but this year it is outperforming Energy by the fourth largest margin on record. Additionally, there have been more years (6) in the last ten where the direction of Energy was the opposite of Technology than there were in the prior 24 years (5). Like oil and water, Energy and Technology just don’t mix.

 

Here is a final look at today's market and futures maps, as well as how each sector performed individually at the close on Tuesday, December 19th, 2023.

 

Here are some of this morning's gappers up & down:

 

Top of the morning StonkForumers! Happy Hump Day to all of you and welcome to the new trading day and a frrrrrrrrrrrresh start. Here is a quick check on those futures as we are over an hour from the US cash market open.

GLTA on this Wednesday, December the 20th, 2023!

 

Good Wednesday morning StonkForumers!

Here is this morning's pre-market news thread for those of you wanting to get a quick read before today's open-
<-- click there to read!

Hope everyone has a great new trading day ahead!

 

Here are some earning results from this morning and those reporting after the close today:

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Morning Lineup - 12/20/23 - Perfect Ten?
Wed, Dec 20, 2023

It's finally starting to get colder here in the northeast, and that coupled with the shorter days quickly makes us miss the warmer weather and longer days of the summer. While the temperature is likely to only get colder from here in the coming weeks, if there's any consolation, tomorrow is the shortest day of the year which means that the days only get longer from there. Applying the forward-looking nature of the market, winter is over!

Traders are coming in today to the warmth of red on their screens as equity futures and treasury yields are both lower. On the economic calendar, we'll get Existing Home Sales and Consumer Confidence at 10 AM. On the earnings front, the notable reports since yesterday's close were FedEx (FDX) and General Mills (GIS). Both stocks are trading lower in reaction to their results after management from each company lowered guidance. FDX is getting hit the hardest, though, as the stock is down over 10% and GIS is down 4%. If the declines in FDX hold through the close, it will be the stock's worst earnings reaction day performance since December 2019.

Like the warmth of summer, it’s hard to fully appreciate a rally without first going through some weakness, and that made the late summer/early fall correction the perfect prelude to the current year-end rally. Heading into today, the Nasdaq has seen nine straight days of gains which is the longest losing streak since – wait for it – November 8th. That’s right. Since the October lows, the Nasdaq has now had two separate nine-day winning streaks. To find a time when there were two winning streaks of nine or more days in closer proximity to each other, you have to go back to 1979!



In the history of the Nasdaq dating back to 1971, it has had 48 different winning streaks of at least nine days. While they aren’t particularly uncommon, what makes the current streak a little more unique is that it has also come as the Nasdaq closed at overbought levels (1+ standard deviation above 50-DMA) on each day of the winning streak. Of the 48 prior streaks, only 16 shared that same trait with the current streak. In today's Morning Lineup, we provided an analysis of the Nasdaq's performance following prior nine-day winning streaks along with nine-day winning streaks that occurred when the index closed at overbought levels on each day of the streak.

 

Here is a final look at today's market and futures maps, as well as how each sector performed individually at the close on Wednesday, December 20th, 2023.

 

And finally here are this morning's gappers up & down:

Have a great trading Wednesday to all.

Gapping Up


Gapping Down