Mid-Morning Look: December 27, 2022

Auto PostDaily Market Report

Mid-Morning Look

Tuesday, December 27, 2022






DJ Industrials




S&P 500








Russell 2000






U.S. stock futures are volatile early, with markets initially looking higher overnight on hopes of a “Santa Claus” rally in the final trading week of the year – but selling pressure on the open took major averages lower, adding to sharp December losses as investors bail on this year’s biggest sector decliners. Stocks have since pared losses, with sectors mixed overall early. The biggest sector decliners of 2022 care Communications (-39% YTD), Consumer Discretionary (-37% YTD), and Technology (-29% YTD) are among the biggest decliners today. Coming into today, stocks on track for first down December since 2018, with the Dow down -4%, the S&P 500 -5.8% and the Nasdaq down -8.5%, adding to year-to-date (YTD) losses. The sharp rise in interest rates from the Fed this year has been a major drag on growth related stocks, as well as housing and high dividend paying names, while markets also fear a possible recession. Energy has been the top performer in 2022 up 57% YTD, with only modest declines in Staples (-2% YTYD), Utilities (-1% YTD) and Healthcare -3.7% YTD). U.S. stock looked higher initially after China said it would open its borders next month, bolstering investors’ hopes that the thawing of the world’s second-largest economy will support global growth. China will stop requiring inbound travelers to go into quarantine starting from Jan. 8, the National Health Commission said on Monday in a major step towards easing curbs on its borders, which have been largely shut since 2020. Gold prices jump early along with oil prices in a bounce for commodity prices on China headlines.


Economic Data

·     U.S. home prices declined -0.3% in October, the fourth consecutive monthly decline, according to the Case-Shiller national index – all 20 cities in the U.S. index posted monthly declines

·     U.S. October 20-metro area home prices +8.6% from year ago vs +10.4% in September—S&P CoreLogic Case-Shiller showed; October home prices in 20 metro areas -0.5% seasonally adj vs revised -1.3% in September; Oct 20-metro area home prices non-adjusted -0.8% vs -1.5% in Sept

·     Goods Trade Deficit narrowed in November to its smallest in two years after imports collapsed. The $83.3 billion deficit was massively ‘better’ than the $96.3 billion gap expected. Shrinkage in the deficit was driven a 7.6% plunge in imports $252.2 billion, the lowest in more than a year. The value of exports also dropped, down 3.1% to $168.9 billion.







WTI Crude















10-Year Note






·     BABA along with gains in BIDU, JD, PDD and other US listed Chinese stocks rebound on China headlines of China will stop requiring inbound travelers to go into quarantine starting from Jan. 8

·     EL +2%; strength in consumer staples early

·     KALV +16%; announced the registered direct offering and sold 182k pre-funded warrants, bringing total gross proceeds to $58m

·     MLCO +6% and gains in WYNN +6%, LVS and other casinos in the Macau region rally after China will stop requiring inbound travelers to go into quarantine starting from Jan. 8, the National Health Commission said on Monday in a major step towards easing curbs on its borders

·     NEM +2%; among leaders in the S&P as gold miners rally behind gold bounce



·     ALB -3%; as lithium producers extend recent declines (LTHM, SQM) amid weakness in EV sector following headlines from NIO and TSLA today

·     CHRS -8%; the FDA delayed its decision on its investigational drug, Toripalimab, for patients with nasopharyngeal carcinoma, an aggressive type of head/neck cancer (decision was due 12/23)

·     LUV -5%; while AAL, UAL, DAL all up modestly as data showed of the more than 3,800 U.S. airline flights canceled on Monday, 2,800 were operated by Southwest Airlines — nearly 70% of the carrier’s total scheduled for the day

·     NIO -6%; cuts its Q4 delivery outlook to 38,500-39,500, down from previous outlook of 43,000-48,000, saying it has been facing challenges in deliveries and productions, along with supply chain constraints, caused by the outbreak of COVID-19 in China

·     NVDA -3%; broad weakness in semiconductors early in broad tech sell-off

·     TSLA -6%; falling for the 6th straight day and 9 of last 10 as NIO headlines hit EV stocks; also, TSLA suspended production at its Shanghai plant as of Saturday, bringing forward by a few days a plan to pause most work during the final week of the year


Market commentary provided by Hammerstone Markets, Inc, a firm separate from and not affiliated with Regal Securities. Regal Securities has not participated in the creation of the content, and does not explicitly or implicitly endorse the content.

Live Trading

Open an Account

Paper Trading