The market got off to a mixed start on Tuesday as the tech-heavy NASDAQ fell after an extended weekend in honor of Christmas. Hopefully investors are still enjoying the Christmas spirit.It’s going to be a very boring week for the stock market.
Everyone is still on vacation, which is great! Economic data is very light, with unemployment insurance claims the biggest report of the week and Cal-Maine Foods (CALM) headlining earnings week, including itself and Cal-Maine.
On the other hand, investors expect a Santa Claus rally as retail traders have more influence in the market as the majority of institutional investors are on vacation and the market still maintains the holiday spirit. I’m waiting to see if you do.
China and airlines were the biggest headlines to kick off the shortened trading week as they announced they would end quarantine requirements and ease travel restrictions for international travelers from 8 January. All you need to do is get a negative COVID-19 test result within hours, and you won’t have to quarantine yourself in a hotel for five days after arrival.
Southwest found far worse reasons to travel, as it managed to cancel 62% (5400) flights in 48 hours over the holiday season weekend. Now that we’ve had some major winter storms and an ongoing pilot shortage, it’s kind of understandable how this situation could develop… I’m sure a Southwest spokesperson has already said In reality, Delta, United, American and JetBlue all reported just 2% of canceled flights, so Southwest was the extreme outlier in this regard. Many fell behind, but even Southwest fared well ahead of its competitors in that respect.
A wave of mass flight cancellations of thousands (possibly millions) of travelers is unacceptable and the Department of Transportation has said it will investigate the situation. would change to
light week of new data
An unemployment insurance claims data set released on Thursday is expected to show a slight increase in first claims for the week ending December 24, from 216,000 to 220,000. Claims are hovering at levels just before the pandemic first hit, and have remained relatively flat over the past six months, with only a few major spikes or dips in weekly claims volumes. EIA crude and natural gas inventory levels are also due to be released on Thursday.
Meanwhile, new housing data headlines Wednesday’s economic data release as pending home sales are expected to fall 0.2% in November, following a 4.6% drop in the previous month.
economic events of the week
– 7:00 ET – MBA Mortgage Application Index – 10:00 ET – Pending Home Sales
– 8:30 ET – Initial and Recurring Billing – 11:00 ET – EIA Crude Stocks
– 9:45 ET – Chicago PMI
Earnings report of the week