Important News From Last Week:
With 263,000 new jobs generated last month—221,000 in the private sector and 42,000 in public—instead of the consensus estimate of 220,000—200K in the private sector and zero in public—the Employment Situation Report released on Friday exceeded expectations.
Technically speaking, the stock market surge that started in mid-October is still going strong. The S&P 500 Index surpassed its 200-day moving average last week. Although the bulls pulled off a remarkable performance, whether these gains can be significantly extended is still being determined.
It should be noted that when market conditions are unclear, traders may feel anxious and act swiftly to lock in profits. Continued volatility could result from this, especially for the shares of smaller businesses that lack the support of influential institutional investors.
There aren't any significant earnings reports scheduled for today in corporate news. However, Lululemon Athletica (LULU), Oracle (ORCL), and Costco Wholesale (COST) will be released later this week. Due to the size of these companies and the fact that their results represent the whole industry, investors should carefully analyze their reports.
The last quarter of 2022 will soon end, and traders will start focusing on the prospects for 2023. Numerous economists have expressed concern that the economy may slow significantly in the coming months and that businesses may find it difficult to generate profit increases. Unfortunately, equities prices can suffer if earnings are revised downward.