Stock futures rise slightly ahead of the first trading week of the new year

Stock futures rose Monday night as traders prepared for a slew of economic data and minutes from the Federal Reserve’s final meeting this week to kick off the new year.

Futures linked to the Dow Jones Industrial Average rose 80 points, or 2%. S&P 500 futures rose 0.2% and Nasdaq 100 futures rose 0.2%.

All of the major averages closed out 2022 with their worst losses since 2008, each snapping a three-year winning streak. The Dow finished the year down about 8.8% at 33,147.25, down 10.3% from its 52-week high. The S&P 500 has lost 19.4% for the year and is now settling at 3,839.50, 20% below its record high. The Nasdaq, which specializes in technology, is down 33.1% last year. He starts 2023 at almost 34% off his record high of 10,466.88.

Inflation, which caused “the worst rout for both stocks and bonds in decades,” was the biggest investor narrative of 2022, according to Greg Pasuk, CEO of AXS Investments. The new year begins on a cloud of concern that the “hard landing” by the Federal Reserve and its anti-inflationary moves could push the economy into recession.

“2022 was marked by a market rout that held back inflation, in part because the year started with both Wall Street and Main Street expecting higher prices to be contained and the Federal Reserve to keep prices low,” he said. “But the sharply opposite reality has held, with inflation soaring.”

He added, “Going into 2023, as prices continue to rise materially, investors would be wise to consider inflation-sensitive assets, as well as cyclical stocks and other stocks that tend to perform well in higher price environments.”

Investors get a raft of data in the first trading week of the year, and investors will be watching closely for opportunities to adjust their portfolios to recover from the carnage of 2022. Wednesday is a big day with the Job Opportunities and Employment Turnover Survey, known as JOLTS, due for release in the morning. And the minutes of the Fed’s latest policy meeting scheduled for release in the afternoon.

They also look ahead to the December jobs report on Friday, which is the final employment report the Fed will have to consider before its next meeting on February 1. There are also several speeches by the Fed Chairs scheduled for Thursday and Friday.

First, however, comes the S&P Global Manufacturing PMI and Construction Spending, due for release at 9:45 a.m. and 10:00 a.m. ET on Tuesday.

Walgreens Boots Alliance and Constellation Brands will both report their quarterly financial results on Thursday, although it’s been a quiet week for earnings reports.