A flat market, uninspiring employment data — and more in Friday’s stock market recap.
Weaker-than-expected jobs data before the holiday season indicates that companies are being cautious about their growth prospects.
Federal Reserve Chair Jerome Powell has already expressed interest in pulling back on the central bank’s bond purchases even faster than originally planned, which will be a topic of conversation at the Fed’s December meeting.
The FDA is preparing to review omicron-specific vaccines and treatments if necessary, as the cases have been confirmed in five states across the U.S.
Omicron is what’s currently driving the market. That’s why I’m holding a special open house of my VIP Champion Trade Room today, at 11 a.m. EST to discuss exactly what that means for certain stocks.
I’ll also give you a critical update on market momentum levels, explain how I would protect my own portfolio from volatility, show you which stocks I would buy and short, and the ones I’d avoid as interest rates rise.
In this morning’s stock market recap video, you’ll discover whether the overall market is stable or fragmented… which index has the highest odds of moving higher and why… my thoughts on the chip sector and the most likely scenario ahead… an update on current momentum levels and market breadth… whether volatility is set to increase or decrease… the strongest and weakest stocks in the S&P 500 right now… and a preview for the week ahead with trading action and levels.
Roger’s Radar: Another Chinese Real Estate Developer on the Brink of Default
On my radar heading into the weekend, Chinese real estate developer Kaisa Group Holdings Ltd. warned Friday it might fail to pay off a $400 million bond that’s due next week. This will only add more financial strain to an industry already plagued with debt.
The company said it tried to renegotiate the debt, which is due Tuesday, but there weren’t enough bondholders that agreed to the terms.
We don’t know if there’s a grace period before going into default, which would require Kaisa Group to pay it immediately.
Some Chinese developers are struggling to reduce debt after regulators tightened limits last year on their use of borrowed money. That is fueling fears about possible defaults and turmoil in financial markets.
Investors worry the biggest, Evergrande Groupe, its global industry’s biggest debtor, might collapse with 2 trillion yuan ($310 billion) of debt.
Chinese central bank officials have tried to reassure investors the financial system can be protected from Evergrande’s problems. Economists say Beijing can step in to make sure there is adequate money in lending markets but wants to avoid sending the wrong signal by bailing out Evergrande or other developers.
Kaisa said it would look at options including selling assets.
Stock Market Recap: By the Numbers
This morning’s stock market futures recap:
- Close: 34,639.79.
- Futures: 34,746.
- Change: +124.
S&P 500 (mini)
- Close: 4,577.1.
- Futures: 4,595.25.
- Change: +20.5.
- Close: 15,990.76.
- Futures: 16,054.
- Change: +65.5.
- Close: 2,206.33.
- Futures: 2,215.1.
- Change: +9.9.
Note: Updated as of 9:32 a.m. EST
P.S. I’m opening up my VIP Champion Trade Room to anyone who wants to join us today!
It starts at 11 a.m. eastern, and I’ll be covering:
- What the omicron variant means for certain stocks and sectors.
- How I’d protect my portfolio from surging volatility.
- My “buy” and “short” watchlists.
- A critical update on market momentum levels.
- Stocks I’d avoid with rising interest rates coming next year… and much more!
Make sure to save this link and enter the room before 11 a.m. eastern this morning.
Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.