Stock market historically witnesses more gains than losses in the last week, also called the Santa Claus rally.
While all three indexes ended higher on Friday, the S&P 500 and Nasdaq posted weekly losses. Only the blue-chip Dow logged modest weekly gains of 0.9%. Crude oil prices notched gains for the second straight week as Russia plans to cut oil output. As a result, energy stocks were up more than 4% over the last week.
Meanwhile, economic data showed that U.S. consumer spending and inflation slowed down in November. On the brighter side, a survey revealed that consumers expect price pressures to moderate notably in the next year.
Top stories from last week
- L3Harris (LHX), a US defence contractor, agreed to buy rocket maker Aerojet Rocketdyne (AJRD) for $4.7 billion.
- Nike’s (NKE) quarterly revenue and earnings surpassed market expectations. Revenue jumped 17% to $13.32 billion. Shares ended the week 11% higher.
- FedEx (FDX) announced another round of cost cuts worth about $1 billion. The company sees total fiscal 2023 savings of $3.7 billion.
- Micron (MU) plans 10% job cuts in 2023 due to a nagging glut in the semiconductor market.
- Investors can keep an eye out for Nio (NIO) as it holds an annual investor event.
- Tesla (TSLA) may break its six-session losing streak.
- Auto stocks will also be in focus as some of the carmakers will unveil new models during the four-day San Diego auto show.
- Earnings this week: GreenTree Hospitality Group (GHG), Cal-Maine Foods (CALM), Uxin Limited (UXIN).
- Economic data this week: Pending home sales index, Jobless claims, Chicago PMI.
*Consensus rating and average price target as per Tipranks data.