KPMG Chief Economist Diane Swonk and The Cow Guy Group founder Scott Shellady discuss whether Fed rate hikes will stall the US economy and whether there is a risk of a global recession in 'The Claman Countdown'.
The dismal stock market performance of the past week has left many wondering if fears of an impending recession will finally come true this week. Investors will be busy trying to locate the signal through all the noise.
Furthermore, the decision of the Federal Reserve, under the leadership of Jerome Powell, raising the interest rate another 50bp did little to close the stubborn gap between inflation and the Federal Reserve's 2% target.
Sam Bankman-Fried's The arrest last week has made investors skeptical of cryptocurrencies in general, with $6 billion withdrawn from one FTX competitor, Binance, alone.
Federal Reserve Chairman Jerome Powell speaks during a news conference in Washington on July 27, 2022. (Manuel Balce Cenata/AP Images)
Investors will also be keeping an eye on two IPOs this week, including AlphaVest Acquisition Corp. and Intchains Group.
THE DOW DIVES INTO THE PERFECT STORM FOR STOCKS
| Heart | Safety | Latest | Change | Change % |
|---|---|---|---|---|
| me: DJI | DOW JONES AVERAGES | 32920.46 | -281.76 | -0.85% |
| SP500 | S&P 500 | 3852.36 | -43.39 | -1.11% |
| Me: COMP | NASDAQ COMPOSITE INDEX | 10705.414143 | -105.11 | -0.97% |
Monday, December 19
After the EU and US agreed to implement a price cap for Russian crude, this week will start on Monday with EU ministers discussing another price cap, this time on the price of natural gas used to heat homes and the electrical industry.
The World Trade Organization will begin a general council meeting that will run until Tuesday in Geneva. The WTO, designed to promote trade, faces unprecedented hurdles this year as growing global tensions have led many countries to reassess their manufacturing capabilities for national security reasons.
There will be no featured earnings before the bell, but Steelcase Inc. will report earnings after the bell.
| Heart | Safety | Latest | Change | Change % |
|---|---|---|---|---|
| SCS | STEELCASE INC. | 6.60 | -0.04 | -0.60% |
The main economic data reported on Monday is the NAHB housing market index.
Tuesday, December 20
There will be a deadline Tuesday for commissioners to approve Georgia Power's proposed 12% rate increase. Allowing the increase could hurt Georgia-based businesses directly through increased electricity costs and indirectly through increased cost of living for Georgian employees who would likely ask for higher wages to compensate.
The EU's competition enforcement arm is scheduled to finish its first antitrust investigation of Broadcom's acquisition of VMware in a $61 billion deal.
Earnings before the market open will include FactSet Research Systems and General Mills.
| Heart | Safety | Latest | Change | Change % |
|---|---|---|---|---|
| MSDS | FACTSET SYSTEMS INVESTIGATION INC. | 428.33 | -2.74 | -0.64% |
| NEXT | GENERAL MILLS INC. | 86.91 | -0.11 | -0.13% |
After the bell, investors will focus on BlackBerry, FedEx and Nike.
| Heart | Safety | Latest | Change | Change % |
|---|---|---|---|---|
| Bed and breakfast | BLACKBERRY LTD. | 4.21 | -0.06 | -1.41% |
| FDX | FEDEX CORP. | 171.73 | -1.42 | -0.82% |
| FROM | NIKE INC. | 105.87 | -2.65 | -2.44% |
Economic data released Tuesday will include building permits and housing starts.
Wednesday, December 21
With more and more automakers switching to electric vehicles, one Italian car designer has taken a different route. Bertone, which gave the world the Lancia Stratos and Lamborghini's iconic Countach, will unveil a hypercar that uses fuel from plastic waste on Wednesday.
Earnings before the market opens will include Cintas and Rite Aid. Rite Aid has suffered badly from the rise in subsidence, the industry buzzword for stolen goods. Given that crime has largely remained unchecked in major cities, investors should expect more talk of the slump this week.
RITE AID EXECUTIVE: IMPOSSIBLE TO STOP NYC STORE THEFT
| Heart | Safety | Latest | Change | Change % |
|---|---|---|---|---|
| ACTS | TAPES CORP. | 445.28 | +0.77 | +0.17% |
| RAD | RITE AID CORP. | 4.25 | +0.03 | +0.59% |
After the bell, investors will hear from Micron Technology, a Boise, Idaho-based company focused on semiconductor manufacturing.
| Heart | Safety | Latest | Change | Change % |
|---|---|---|---|---|
| IN | MICRON TECHNOLOGY INC. | 52.07 | +0.03 | +0.06% |
Attractive economic data for investors on Wednesday will include mortgage applications, checking accounts, consumer confidence, existing home sales and the EIA weekly crude stocks.
Thursday, December 22
On Thursday investors will await news of a hearing on the final sale of Celsius Network's cryptocurrency lending platform assets, while it is liquidated in bankruptcy court.
Earnings before the market opens will include CarMax and Paychex, with no notable gains after the bell on Thursday.
| Heart | Safety | Latest | Change | Change % |
|---|---|---|---|---|
| KMX | CARMAX INC. | 61.46 | -3.99 | -6.10% |
| PAYX | PAYCHEX INC. | 115.96 | -1.12 | -0.96% |
Economic data reported Thursday will include corporate earnings, GDP, initial jobless claims, the national activity index and the index of leading economic indicators.
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Friday, December 23
Friday will mark the last day that amazon employees may accept a voluntary severance offer as the logistics giant aims to tighten its belt as recession fears mount.
| Heart | Safety | Latest | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 87.86 | -0.59 | -0.67% |
There will be no notable earnings on Friday, but a plethora of economic data will keep analysts busy as we head into the Christmas weekend.
On Friday we will look at building permits, personal income, personal consumption, durable goods, the University of Michigan Consumer Confidence Index and new home sales.
