Before The Bell
The U.S. stock market has started to rally, as traders look to close out a productive year. Currently, the U.S. equity futures are ahead by several points, which suggests a positive opening to today’s session. Sentiment remains upbeat, as investors seem willing to look beyond some of the challenges that have surfaced lately. The Omicron variant no doubt remains a considerable concern, but it has been suggested that this strain of the virus could be less debilitating than the earlier Delta variant. In addition, a couple of major pharmaceutical companies are in the process of launching medicines designed to help patients cope with the illness. Meanwhile, the Federal Reserve will most likely have to take action to curb inflationary pressures, but Wall Street seems to be speculating that the central bank will take a measured approach to the problem.
In economic news, traders will have just a couple of reports to review today. Specifically, the Federal Housing Finance Agency (FHFA) Housing Price Index for the month of October will be released this morning, as will the S&P Case-Shiller Home Price Index for the latest month. Traders following the real estate markets will probably be paying close attention to these items. On a related note, the pending home sales figures for the month of November will be reported tomorrow.
In corporate news, very few companies are scheduled to post quarterly results this week. Nonetheless, after the market closes today, we will hear from Cal-Maine Foods (CALM), one of the nation’s largest producers and distributors of fresh egg products, and tomorrow, Fuelcell Energy (FCEL), a leading developer of clean energy power plants, will weigh in with its numbers. Investors have been gradually showing more interest in the alternative energy industry as climate change has become a more pressing issue. Technology has advanced considerably in recent years, making alternative energy a more viable solution.
Technically, the stock market has rebounded considerably over the past few days, putting the S&P 500 Index back into record high territory. Most of the major market sectors have been performing nicely, with notable leadership by the important technology names. However, equities often rally around the holiday season, and it remains to be seen if the market can deliver a sustained advance in the weeks ahead. We should get a better sense of the situation once 2022 commences.
– Adam Rosner
At the time of this article’s writing, the author did not have positions in any of the companies mentioned.
