fundamental News - SP500
U.S. stock futures were sideways Monday evening after a momentous first trading day of 2022.
Contracts on the Dow Jones Industrial Average, S&P 500, and
Nasdaq were mostly flat after all three indexes rallied in Monday’s
session. The Dow jumped nearly 250 points to notch a record close, and
the S&P 500 gained 0.6% to 4,796.56, topping its previous
high. The Nasdaq drew strength from a great day for tech to end 1.2% up
but fell short of its last record close in November.
When I think about the market and the economy right now, I think
about momentum,” Baird market strategist Michael Antonelli told Yahoo
Finance Live.
“Momentum is one of the most durable factors when it comes to the
stock market,” he said. “If you looked at new all-time highs last year,
there were actually more new all-time highs than in the entire '70s and
2000s combined, those two decades — we’ve
got a lot going for us right now.”
The S&P 500’s performance on Monday showed the index was
powered by its own velocity indeed, picking up right where it left off
in 2021, ending a banner year with 70 closing records and its third
annual double digit increase of 27%.
The Nasdaq also powered on to start 2022 trading, lifted mostly by
landmark days for Apple (AAPL) and Tesla (TSLA), some of its most
heavily-weighted stocks. Apple (AAPL) rallied 3% intraday to briefly
cross a $3 trillion market capitalization, making
it the first company to reach that milestone. Shares closed up 2.5% to
$182.01 per share.
Meanwhile, Tesla (TSLA) began the new year with a 13% daily gain
after its fourth quarter vehicle deliveries smashed estimates. Wedbush
analyst and Tesla bull Dan Ives thinks it's just the beginning for the
electric vehicle maker, which he predicts will
hit a $2 trillion market capitalization in about 18 months. The stock
closed at $1,199.78 on Monday, up 13.53%.
The “January Effect” seems so far underway. Wall Street theorizes
this perception of a seasonal rise in U.S. equities during the first
month of the year is caused by an increase in purchasing following the
drop in prices that occurs in December when investors
sell positions that have declined in order to take the capital loss in
that calendar year's taxes. Some also think the anomaly is the result of
traders using year-end cash bonuses to purchase equities the following
month.
Strategists have made more than 5,000 calls for year-end S&P
500 targets. With profits expected to trend up, lofty equity valuations
growing higher, and a strong pipeline for IPOs in the works, many think
stocks will go up — some just believe that not
as much.
Among them, Insigneo Financial Group CIO Ahmed Riesgo said an
internal rotation is likely in 2022, with stocks that performed very
well last year set to potentially underperform and drag the market down a
bit while the vast majority of stocks will shoot
up. Riesgo predicted mid- to single-digit returns for the [S&P 500]
next year.”
Royce Investments co-CIO Francis Gannon shared similar sentiments with Yahoo Finance Live.
“You’re going to see more muted returns in the market this year,” he
said. “But I do think that small caps have an edge here over their
large-cap brethren just because of the fact that you’re going to see
very strong earnings growth.”
expectation today: neutral
