Freedom Capital Management February Market Update (Click for Full Article)

by | Feb 12, 2023 | Banking, Business, Finance, marketing

February 13, 2023

In last month’s newsletter, I mentioned this is the first time in over a year that the market has turned up and not broken the blue mid-line to the downside. The yellow line shows the upturn and now we have also broken above the red resistance line. Market momentum may be changing. It would be encouraging if the market can stay above the red line and continue to strengthen. Can resistance become support? That is the question.

On February 1st, Federal Open Market Committee boosted the federal funds rate by another 0.25 percentage point. The move marked the eighth increase since March 2022. That takes it to a target range of 4.5%-4.75%, the highest since October 2007. The Federal Reserve is still trying to bring down inflation and gave little indication that they are nearing the end of this hiking cycle, despite recent signs of slowing. At least this latest rate hike was only 0.25 percent. Also, this week the Bureau of Labor Statistics will report on the Consumer Price Index (CPI) for Year over Year, Month to Month, and the Core CPI report. Once again, these reports usually have an impact on the markets, especially when dealing with the inflationary environment we are in. I am interested in the market reaction and direction.

The VIX Index on Friday closed at 20.53. On January 3rd it was at 22.90. The VIX hit a recent high of 29.11 on November 21. A falling VIX is generally bullish for the markets.

Percent of stocks above their 50-day and 200-day moving average: On January 3rd, 46% of stocks were above their 50-day moving average, today 72% are above their 50-day moving average.  Last month 47% of the stocks were above their 200-day moving average, today 70% are above their 200-day moving average. These numbers have increased supporting the recent upside momentum.

Federal Reserve: The next Federal Reserve announce will be March 22nd. The CME FedWatch Tool is predicting a 90% chance the Federal Reserve will raise interest rates another .25 basis points.

Employment Rate: Total nonfarm payroll employment rose by 517,000 in January, and the unemployment rate changed little at 3.4 percent, the U.S. Bureau of Labor Statistics reported February 3rd.. Job growth was widespread, led by gains in leisure and hospitality, professional and business services, and health care. Employment also increased in government, partially reflecting the return of workers from a strike.

Inflation Rate: The annual inflation rate for the United States is 6.5% for the 12 months ended December 2022 after rising 7.1% previously, according to U.S. Labor Department data published Jan. 12. The next inflation update is scheduled for release on Feb. 14, 2023, at 8:30 a.m. ET. It will offer the rate of inflation over the 12 months ended January 2023.

The 10-year Treasury index yield:  The rate today is at 3.71%. On January 3rd it was it closed at 3.79%. The intra-day high so far for this year was on January 3rd at 3.79%.

To view past Market Newsletters, go to www.freedomcapitalmanagement.com. On the home page are recent newsletters, for older newsletters go to the blog page tab at the top of the home page.

In this month’s recap: Investors were in a buying mood thanks to moderating inflation, a better-than-feared earnings season, and healthy economic data.

Monthly Economic Update

Presented by Guy Woolley, February 2023

U.S. Markets

Stocks rallied in January as moderating inflation, a better-than-feared earnings season, and healthy economic data put investors in a buying mood.

For the month, the Dow Jones Industrial Average rose by 2.83 percent, the Standard & Poor’s 500 Index jumped by 6.18 percent, and the Nasdaq Composite vaulted by 10.68 percent.1

Shift in Sentiment

The stock market opened the new year the way it ended the previous year, moving lower with high-growth names bearing the brunt of selling. Particularly troublesome to investors was the continued strength of the labor market, which heightened worries that the Fed would hike rates higher for longer to bring inflation to its target rate of 2.0 percent.

But market sentiment took a sharp U-turn after another cooling consumer inflation number reinforced the disinflationary trend of the last six months. Suddenly, investors appeared to adopt a different view of the future–one characterized by continued disinflation, a rate hike cycle nearing its end, and a fading probability of a near-term recession.2

The Power of Earnings

Corporate earnings provide some much-needed support for the rally. Investors were looking for insights to gauge the state of the U.S. economy through corporate reports and the guidance that management was offering on forward earnings prospects.

As of January 27th, with 29 percent of the companies comprising the S&P 500 Index reporting, 69 percent reported earnings above Wall Street estimates, less than the five-year average of 77 percent but strong enough to bolster confidence.3

A Winding Road Higher

The march toward higher stock prices did not follow a straight line. The month’s trading was choppy, with stretches that saw the resurfacing of recession fears and anxieties over future Fed rate hikes. For instance, stocks retreated midmonth on weak retail sales and manufacturing data that raised concerns that the Fed might have gone too far in raising rates.

As the month ended, stocks wavered ahead of a busy week for earnings and the scheduled Fed meeting. But they regained their footing on the final day of trading to close out a strong month.

Sector Scorecard

Most industry sectors ended higher in January, including Communications Services (+14.77 percent), Consumer Discretionary (+15.13 percent), Energy (+2.81 percent), Financials (+6.81 percent), Industrials (+3.71 percent), Materials (+8.97 percent), Real Estate (+9.91 percent), and Technology (+9.26 percent). Three sectors posted losses: Consumer Staples (-1.09 percent), Health Care (-1.83 percent), and Utilities (-2.00 percent).4

What Investors May Be Talking About in February

In the month ahead, investors are expected to dig into the details of the January inflation report scheduled for release on February 14.5

Investors cheered when the December update showed that inflation dropped again, confirming a six-month downtrend.

While the cost of goods has dropped over that time, the cost of services has stubbornly remained high.

In gauging how the Fed is viewing inflation progress, investors may keep an eye on the labor market, a major contributor to service costs. The Fed has expressed that a tight labor market, with its attendant wage gains, places upward pressure on inflation.

Consequently, wage trend reports, including the monthly Employment Situation Summary and the Atlanta Fed’s monthly Wage Growth Tracker, along with the services inflation number, may become the real headlines going forward.

T I P   O F   T H E   M O N T H
If you’re financing a new car, look for the best interest rate before setting foot in the dealership. It could be to your advantage to take a cash rebate and get a loan elsewhere.

 World Markets

The MSCI EAFE Index gained 8.05 percent, sparked by falling inflation, an improving economic outlook in Europe, and the continued reopening of China.6

European markets saw solid gains, led by Italy, which picked up 12.04 percent. France tacked on 9.40 percent, Germany rose by 8.65 percent, and the U.K. advanced by 4.29 percent.7

On the Pacific Rim, China’s Hang Seng Index rose by 11.57 percent, and Australia’s ASX 200 climbed by 6.22 percent. Closest to the U.S., Mexico’s IPC All-Share rallied 12.59 percent.8

Indicators

Gross Domestic Product: The nation’s economy grew at a 2.9 percent annualized rate in the fourth quarter. This represented a slowdown from the 3.2 percent expansion in the third quarter, though it is a tick higher than the 2.8 percent consensus estimate by economists.9

Employment: Employers added 223,000 jobs in December, while wage growth slowed to a 0.3 percent gain from the previous month and 4.6 percent from a year ago. The unemployment rate fell to 3.5 percent.10

Retail Sales: Retail sales fell by 1.1 percent in December, while November sales were revised downward. It was the second consecutive month of month-over-month declines and the largest contraction in a year.11

Industrial Production: Industrial production declined by 0.7 percent, led by a 1.3 percent decline in manufacturing output. Output by the nation’s factories, mines, and utilities fell by 1.7 percent on an annualized basis in the fourth quarter.12

Housing: Housing starts dropped by 1.4 percent in December, though single-family housing starts rebounded by 11.3 percent.13

Sales of existing homes fell for the 11th consecutive month, slipping by 1.5 percent in December. For the full year of 2022, sales declined by 17.8 percent–the weakest annual result since 2014.14

New home sales rose by 2.3 percent, making it the third consecutive month of increases, though 2022 sales fell to their lowest level in four years.15

Consumer Price Index: The rise in consumer prices slowed for the sixth month straight, falling by 0.1 percent month over month and decelerating to a 6.5 percent increase from a year ago. Core prices (excluding energy and food) rose by 5.7 percent, an easing from November’s 6.0 percent year-over-year jump.16

Durable Goods Orders: Orders for long-lasting goods rose by 5.6 percent in December–well above the 2.4 percent forecast.17

Q U O T E   O F   T H E   M O N T H

“Don’t try to solve serious matters in the middle of the night.”

PHILIP K. DICK

 The Fed

Minutes from December’s meeting of the Federal Open Market Committee (FOMC) reflected concerns that investors’ hopes of near-term easing in short-term rate hikes could make the Fed’s job of combating inflation more difficult.18

These minutes also indicated that additional rate hikes are likely, at least through the spring, with any potential cuts not expected to occur until sometime in 2024.

Fed officials welcomed the recent cooling in monthly inflation numbers but would require more sustained progress before they felt confident that inflation was under control.18

 

Sources: Yahoo Finance, January 31, 2023.

The market indexes discussed are unmanaged and generally considered representative of their respective markets. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results. U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid.

T H E  M O N T H L Y   R I D D L E

What can you fill with empty hands?

 LAST MONTH’S RIDDLE: I am the center of gravity, and part of every victory. I am clearly seen in the middle of a river. Three are in love with me and I have three associates in vice. What am I?

ANSWER: The letter V.

 Guy Woolley may be reached at 415.236-5364

www.freedomcapitalmanagement.com

Know someone who could use information like this?
Please feel free to send us their contact information via phone or email. (Don’t worry – we’ll request their permission before adding them to our mailing list.)

«RepresentativeEmailDisclosure»

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs, or expenses. Investors cannot invest directly in indices. All economic and performance data is historical and not indicative of future results. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The CBOE Volatility Index® (VIX®) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. The SSE Composite Index is an index of all stocks (A shares and B shares) that are traded at the Shanghai Stock Exchange. The CAC-40 Index is a narrow-based, modified capitalization-weighted index of 40 companies listed on the Paris Bourse. The FTSEurofirst 300 Index comprises the 300 largest companies ranked by market capitalization in the FTSE Developed Europe Index. The FTSE 100 Index is a share index of the 100 companies listed on the London Stock Exchange with the highest market capitalization. Established in January 1980, the All Ordinaries is the oldest index of shares in Australia. It is made up of the share prices for 500 of the largest companies listed on the Australian Securities Exchange. The S&P/TSX Composite Index is an index of the stock (equity) prices of the largest companies on the Toronto Stock Exchange (TSX) as measured by market capitalization. The Hang Seng Index is a free float-adjusted market capitalization-weighted stock market index that is the main indicator of the overall market performance in Hong Kong. The FTSE TWSE Taiwan 50 Index is a capitalization-weighted index of stocks comprising 50 companies listed on the Taiwan Stock Exchange developed by Taiwan Stock Exchange in collaboration with FTSE. The MSCI World Index is a free-float weighted equity index that includes developed world markets and does not include emerging markets. The Mexican Stock Exchange, commonly known as Mexican Bolsa, Mexbol, or BMV, is the only stock exchange in Mexico. The U.S. Dollar Index measures the performance of the U.S. dollar against a basket of six currencies. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability, and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. The publisher is not engaged in rendering legal, accounting, or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

CITATIONS:

  1. WSJ.com, January 31, 2023
  2. CNBC.com, January 12, 2023
  3. Insight.FactSet.com, January 27, 2023
  4. SectorSPDR.com, January 31, 2023
  5. BLS.gov, January 31, 2023
  6. MSCI.com, January 31, 2023
  7. MSCI.com, January 31, 2023
  8. MSCI.com, January 31, 2023
  9. CNBC.com, January 26, 2023
  10. WSJ.com, January 6, 2023
  11. WSJ.com, January 18, 2023
  12. FederalReserve.gov, January 18, 2023
  13. Reuters.com, January 19, 2023
  14. WSJ.com, January 20, 2023
  15. Bloomberg.com, January 26, 2023
  16. WSJ.com, January 12, 2023
  17. CNBC.com, January 26, 2023
  18. WSJ.com, January 4, 2023

 

 

Freedom Capital Management January Market Update (Click for Full Article)

by | Jan 10, 2023 | Finance

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January 10, 2023

Happy New Year!

Previously, in our August 2022 newsletter, I wrote about the descending Zig-Zag Pattern that the market has been in since January 2022. As you can see in the chart below, we are still in this descending channel. The red line on the chart has been resistance, the green line marks support and the blue line marks the center of the channel.

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Take a close look at the yellow reversal line on the chart. This is the first time in over a year that the market has turned up and not broken the blue mid-line. This upturn has only been four days and I can’t predict if we will break above the red resistance line, but it is the first time in a year that this has looked slightly promising. Are traders becoming optimistic? While the upturn is encouraging, this week the Bureau of Labor Statistics will report on the Consumer Price Index (CPI) for Year over Year, Month to Month, and the Core CPI report. The Federal Reserve will be taking notice to judge if the interest rate hikes, they have implemented, are slowing the economy to their satisfaction. The results could be very impactful on the markets, up or down. The next FOMC meeting announcement will be on Wednesday, February 1st. Whatever the CPI reports, the Fed Watch Tool is expecting a 76% chance of another ¼ point rate hike. At least the declining rate hike from the last meeting’s ½ point rate hike is encouraging.

The VIX Index closed today at 20.58. On December 1st it was at 20.38. The VIX hit a recent high of 34.88 on September 28. A falling ViX is generally bullish for the markets.

Percent of stocks above their 50-day and 200-day moving average: On 12/1, 90% of stocks were above their 50-day moving average, today 68% are above their 50-day moving average.  Last month 62% of the stocks were above their 200-day moving average, today 56% are above their 200-day moving average. These numbers went much lower during the month of December and are rising higher recently, supporting the recent upside momentum.

Federal Reserve: The CME FedWatch Tool is predicting a 79% chance the Federal Reserve will raise interest rates another .25 basis points.

Employment Rate: Total nonfarm payroll employment increased by 223,000 in December, and the unemployment rate edged down to 3.5 percent, the U.S. Bureau of Labor Statistics reported on January 6th. Notable job gains occurred in leisure and hospitality, health care, construction, and social assistance 

Inflation Rate: The annual inflation rate for the United States is 7.1% for the 12 months ended November 2022 after rising 7.7% previously, according to U.S. Labor Department data published Dec. 13. The next inflation update is scheduled for release on Jan. 12, 2023, at 8:30 a.m. ET. It will offer the rate of inflation over the 12 months ending December 2022.

The 10-year Treasury index yield:  The rate today is at 3.60%. On December 1st it was at 3.62%. The high so far for this year was on January 3rd at 3.81%.

To view past Market Newsletters, go to www.freedomcapitalmanagement.com. On the home page are recent newsletters, for older newsletters go to the blog page tab at the top of the home page.

In this month’s recap: Stocks struggled in December on renewed recession fears.

Monthly Economic Update

Presented by Guy Woolley, January 2023

U.S. Markets

Stocks were under pressure in December on renewed recession fears and concerns that the Fed may keep rates higher than markets anticipated.

The Dow Jones Industrial Average lost 4.17 percent for the month, while the Standard & Poor’s 500 Index fell 5.90 percent. The tech-heavy Nasdaq composite dropped 8.73 percent.1


A Challenging December

After two solid months of gains, investor sentiment took a u-turn in December. Stocks opened the month lower on new data pointing to economic strength and the loosening of Covid restrictions in China. At one time, both may have earned positive views. They may now become reasons for the Fed to raise rates into 2023.


Hawkish Fed

Stocks found temporary support from a lower-than-expected inflation report. Still, markets resumed their slide when a hawkish-sounding Fed Chair suggested rates may trend higher for longer than markets anticipated.

Stocks bounced around in quiet pre-holiday trading as investors navigated the crosscurrents of economic reports.


Inflation Yields to Recession Talk

Somewhat overlooked amid the recession talk was some encouraging news on the inflation front. The November Consumer Price Index (CPI) came below consensus expectations at a 0.1 percent increase and a 7.1 percent rise year-over-year. It was the fifth straight month of declining price increases.2

Later in the month, the Personal Consumption Expenditures (PCE) price index, the preferred inflation measure of the Fed, also saw moderating inflation, rising just 0.1 percent in November and 5.5 percent from a year earlier.3

Stocks closed the month lower with a quiet holiday week, capping a discouraging year for investors.

Sector Scorecard

All 11 market sectors were down in December. Communications Services (-6.83 percent), Consumer Discretionary (-11.64 percent), Consumer Staples (-3.42 percent), Energy (-4.04 percent), Financials (-5.81 percent), Industrials (-3.45 percent), Materials (-6.13 percent), Real Estate (-5.89 percent), Technology (-8.47 percent), Health Care (-2.28 percent) and Utilities (-1.30 percent) all were lower for the month.4

What Investors May Be Talking About in January

Expect the market spotlight to fall on three key dates in the month ahead.

The first will come on January 12th with the December Consumer Price Index report. A continued slowdown in inflation may lift some pressure on the Fed to raise interest rates.5

The second will be on January 26th, with the initial reading of the fourth-quarter Gross Domestic Product. A healthy number may relieve those worried about an imminent recession, or it may become a reason for the Fed to maintain its hawkish rate hike path.5

Finally, the Federal Open Market Committee will open its two-day meeting on January 31st. The forward-looking markets tend to focus on what Fed Chair Powell says about the economy’s direction in the post-meeting press conference.5

T I P O F T H E M O N T H

Icon Description automatically generated

Exercise is not only wise, it may also prove economical. In the long run, just keeping fit may save you thousands of dollars (or more) in medical bills that an unhealthy person may incur.

World Markets

International markets were flat in December, with the MSCI-EAFE Index checking in with a loss of 0.01.6

European markets trended lower on fears of a difficult winter, with losses posted in Germany (-3.29 percent), Italy (-3.67 percent), France (-3.93 percent), and the U.K. (-1.60 percent).7

Pacific Rim markets showed mixed results, with Hong Kong jumping 6.37 percent on further China reopening steps. Meanwhile, Australia dropped 3.37 percent, and Japan fell 6.70 percent.8

Indicators

Gross Domestic Product: The final estimate of third-quarter GDP growth was revised higher, from an annualized rate of 2.9 percent to 3.2 percent. The revision was due to an increase in an earlier estimate of personal consumption.9

 

Employment: The economy added 263,000 new jobs in November, a result above the consensus estimate of 200,000. The unemployment rate was unchanged at 3.7 percent. Wages rose 0.6 percent for the month, which was double the estimate. Wages rose 5.1 percent year-over-year, above the forecast of 4.6 percent.10

 

Retail Sales: Retail sales fell 0.6 percent as holiday shopping got off to a muted start. It was the most significant decline in nearly a year.11

Industrial Production: Output from the nation’s factories, mines, and utilities declined for the second straight month, falling 0.2 percent in November.12

 

Housing: Housing starts fell 0.5 percent, dragged lower by a decline of 4.1 percent in single family home starts. Permits for future home construction slumped 11.2 percent.13

 

Sales of existing homes dropped 7.7 percent from October and 35.4 percent from a year ago. November’s decline was the 10th straight month of declining sales. Higher mortgage rates, in combination with elevated home prices, kept many would-be buyers on the sidelines.14

 

New home sales posted a surprise month-over-month increase of 5.8 percent, though year-over-year sales dropped by 15.3 percent.15

Consumer Price Index: Prices of consumer goods and services rose just 0.1 percent in November and increased 7.1 percent year-over-year. Both figures came under consensus estimates of 0.3 percent and 7.3 percent, respectively. Core prices (excluding food and energy) were slightly lower than expected. Declines in energy and used car prices more than offset higher costs in food and shelter.16

 

Durable Goods Orders: Durable goods orders fell 2.1 percent, pulled lower by a sharp drop in aircraft orders (-36.0 percent).17

Q U O T E O F T H E M O N T H

A picture containing text, clipart Description automatically generated

“If you really look closely, most overnight successes took a long time.”

STEVE JOBS

The Fed

In its mid-December Federal Open Market Committee (FOMC) meeting, the Fed approved a hike in its federal funds rate of 0.50 percent while indicating its plans to raise rates further in 2023 to combat inflation.

In his press conference following the news, Fed Chair Jerome Powell suggested that the next hike may be at a quarter-percentage point increment. FOMC members lifted the terminal rate (the rate at which hikes would come to an end) to between 5 percent and 5.5 percent, up from their projection of 4.6 percent in September.18

MARKET INDEX Y-T-D CHANGE December 2022
DJIA -8.78% -4.17%
NASDAQ -33.10% -8.73%
S&P 500 -19.44% -5.90%
BOND YIELD Y-T-D December 2022
10 YR TREASURY 2.37% 3.88%

 

Sources: Yahoo Finance, December 31, 2022.

The market indexes discussed are unmanaged and generally considered representative of their respective markets. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results. U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid.

T H E M O N T H L Y R I D D L E

Icon Description automatically generated

I am the center of gravity, and part of every victory. I am clearly seen in the middle of a river. Three are in love with me and I have three associates in vice. What am I?

LAST MONTH’S RIDDLE: I went into the woods and got it. I sat down to seek it. I brought it home with me because I couldn’t find it. What is it?

ANSWER: A splinter.

Guy Woolley may be reached at 415-236-5364 or guy@freedomcapitalmanagement.com
www.freedomcapitalmanagement.com

Know someone who could use information like this?
 Please feel free to send us their contact information via phone or email. (Don’t worry – we’ll request their permission before adding them to our mailing list.)

«RepresentativeEmailDisclosure»

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs, or expenses. Investors cannot invest directly in indices. All economic and performance data is historical and not indicative of future results. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The CBOE Volatility Index® (VIX®) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. The SSE Composite Index is an index of all stocks (A shares and B shares) that are traded at the Shanghai Stock Exchange. The CAC-40 Index is a narrow-based, modified capitalization-weighted index of 40 companies listed on the Paris Bourse. The FTSEurofirst 300 Index comprises the 300 largest companies ranked by market capitalization in the FTSE Developed Europe Index. The FTSE 100 Index is a share index of the 100 companies listed on the London Stock Exchange with the highest market capitalization. Established in January 1980, the All Ordinaries is the oldest index of shares in Australia. It is made up of the share prices for 500 of the largest companies listed on the Australian Securities Exchange. The S&P/TSX Composite Index is an index of the stock (equity) prices of the largest companies on the Toronto Stock Exchange (TSX) as measured by market capitalization. The Hang Seng Index is a free float-adjusted market capitalization-weighted stock market index that is the main indicator of the overall market performance in Hong Kong. The FTSE TWSE Taiwan 50 Index is a capitalization-weighted index of stocks comprising 50 companies listed on the Taiwan Stock Exchange developed by Taiwan Stock Exchange in collaboration with FTSE. The MSCI World Index is a free-float weighted equity index that includes developed world markets and does not include emerging markets. The Mexican Stock Exchange, commonly known as Mexican Bolsa, Mexbol, or BMV, is the only stock exchange in Mexico. The U.S. Dollar Index measures the performance of the U.S. dollar against a basket of six currencies. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability, and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. The publisher is not engaged in rendering legal, accounting, or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

CITATIONS:

1. WSJ.com, December 31, 2022

2. CNN.com, December 13, 2022

3. CNN.com, December 23, 2022

4. SectorSPDR.com, December 31, 2022

5. Finance.Yahoo.com, January 2, 2023

6. MSCI.com, December 31, 2022

7. MSCI.com, December 31, 2022

8. MSCI.com, December 31, 2022

9. FoxBusiness.com, December 22, 2022

10. CNBC.com, December 2, 2022

11. WSJ.com, December 15, 2022

12. MarketWatch.com, December 15, 2022

13. Reuters.com, December 20, 2022

14. CNBC.com, December 21, 2022

15. CNN.com, December 23, 2022

16. CNBC.com, December 13, 2022

17. MarketWatch.com, December 23, 2022

18. WSJ.com, December 14, 2022