50%
Abiomed (ABMD): Johnson & Johnson agreed to buy the cardiac-device maker for $17 billion in cash.
Big Movers in November 2022
41%
Etsy (ETSY): Strong results and guidance lifted the e-commerce stock.
31%
Wynn Resorts (WYNN): The casino operator rose on optimism about Macau reopening.
28%
Lincoln National (LNC): The life insurer unexpectedly took a $634 million impairment charge.
26%
Lumen Technologies (LUMN): The telecom missed earnings and revenue estimates.
24%
Catalent (CTLT): The drugmaker missed estimates and cut guidance.
Key Economic Events Last Month
 | Higher jobless rate spurs Fed policy hopes | Unemployment unexpectedly rose to 3.7% in October. That spurred hopes the Federal Reserve may slow its policy of interest-rate hikes. (4/11) |
|---|---|---|
| Housing at a crossroads? | The consumer price index rose 0.4% in October, less than the 0.6% feared by economists. Core inflation was also lower than expected. (10/11) |
| Housing data beats amid tight supply | Housing starts and building permits were higher than expected in October. (17/11) Existing home sales (18/11) also beat forecasts as a real-estate shortage offsets the drag of higher mortgage rates. |
| Fed hints at smaller rate hike in December | “A substantial majority” of Fed policymakers wanted to slow interest-rate increases, according to minutes from the November meeting. (23/11) |
Key Futures Contracts
| Product Name | Current Month | Expiration | Next Month | 1-Mon% |
|---|---|---|---|---|
| S&P 500 E-Mini (@ES) | ESZ22(Dec) | 16 Dec 22 | ESH23(Jan) | +5.1% |
| *S&P 500 E-Mini Micro (@MES) | MESZ22 (Dec) | 16 Dec 22 | MESH23 (Jan) | +5.1% |
| Nasdaq-100 E-Mini (@NQ) | NQZ22 (Dec) | 16 Dec 22 | NQH23 (Jan) | +5.2% |
| *Nasdaq-100 E-Mini Micro (@MNQ) | MNQZ22 (Dec) | 16 Dec 22 | MNQH23 (Jan) | +5.2% |
| Dow Jones E-Mini (@YM) | YMZ22 (Dec) | 16 Dec 22 | YMH23 (Jan) | +5.6% |
| *Dow Jones E-Mini Micro (@MYM) | MYMZ22 (Dec) | 16 Dec 22 | MYMH23 (Jan) | +5.6% |
* Micro contracts are one-tenth the size of standard e-minis.
Events to Watch This Month
| Date | Event | What to watch |
|---|---|---|
| Wed, 6-Dec | Non-farm payrolls | Will unemployment increase again, potentially reducing the Fed’s hawkish policy? |
| Fri, 9-Dec | Railroad strike deadline | Will Congress intervene to prevent a potentially crippling railroad strike? |
| Tue, 13-Dec | Inflation report | November’s Consumer Price Index (CPI) is due one hour before U.S. markets open. |
| Tue, 19-Dec | Inflation report | Policymakers are expected to slow rate hikes. They will also release projections for economic conditions and future policy. |
| Tue, 20-Dec | Housing & consumer data | Housing starts & building permits on 20-Dec. and consumer confidence on 21-Dec. may provide clues on the economy. |
Sector Watch
Materials12%- Industrials8%
- Utilities7%
- Financials7%
- Communications7%
- Real Estate7%
- Technology6%
- Consumer Staples6%
- S&P 5005%
- Health Care5%
- Consumer Discretionary1%
- Energy1%
Materials
Industrials
Utilities
Financials
Communications
Real Estate
Technology
Consumer Staples
S&P 500
Health Care
Consumer Discretionary
EnergyMaterials gained as investors looked for the slower interest-rate hikes and the U.S. dollar weakened.
Industrial stocks rose as Boeing recovered and transports rallied.
Utility stocks rose as lower interest rates boosted the appeal of their dividends.
Energy stocks rose the least as crude oil slid.
Noteworthy Calls & Predictions
07-November
Goldman Sachs sees no recession: Economist Jan Hatzius said the U.S. economy has a 65% chance of avoiding a recession because of the strong labor market. Unemployment is still likely to increase as inflation slows, he added.
Economy
18-November
Yardeni expects more gains: Strategist Ed Yardeni told CNBC the S&P 500 could rally 8% into yearend because of strong consumer spending
Stocks
23-November
Energy stocks have a historic disconnect from petroleum prices, according to Bespoke Investment. Companies in the sector have held their value despite crude oil sliding. Bespoke attributed the strength to the industry’s strong earnings and a favorable demand environment.
Energy Stocks
24-November
JPMorgan thinks bonds will bounce: Strategists led by Nikolaos Panigirtzoglou expect fixed-income supply to fall by $1.6 trillion in 2023. Higher demand and lower inflation could also help stabilize the market, they added.
Bonds
28-November
Tom Lee of Fundstrat expects “fireworks” in the stock market as cooling inflation makes the Fed less hawkish. He predicted the S&P 500 will end the year as high as 4500.
Stocks
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