Weekly market recap
Stock futures held steady in overnight trading Sunday after the S&P 500 notched its best week since February at a fresh record close, rebounding from a big sell-off triggered by fears of the omicron coronavirus variant.
$Dow Jones Industrial Average (.DJI.US)$ futures traded 35 points higher. $S&P 500 Index (.SPX.US)$ futures inched up 0.1% and $NASDAQ 100 Index (.NDX.US)$ futures were flat.
The overnight action followed a strong week on Wall Street as investors shrugged off a hot inflation reading. The blue-chip Dow gained 4% last week, breaking a four-week losing streak with its best weekly performance since March. The S&P 500 and the Nasdaq Composite jumped 3.8% and 3.6%, respectively, last week, both posting their best weekly performance since early February.
Investors digested a jump in headline inflation data, which came in at 6.8% in November year-over-year for the biggest surge since 1982. The print was marginally higher than the 6.7% Dow Jones estimate.
Here's a look at the return of S&P 500 sectors
This week ahead in focus
Investors this week are set to focus on the Federal Reserve's final monetary policy decision of 2021, which may include more signaling of a monetary policy adjustment amid elevated inflation and a strengthening economic backdrop.
Members of the Federal Open Market Committee are set to hold their two-day policy-setting meeting on Tuesday and Wednesday, after which they will release their monetary policy statement and hold a press conference with Federal Reserve Chair Jerome Powell. The December statement will also be accompanied by an updated Summary of Economic Projections — the first since September — outlining members' expectations for economic conditions and interest rates over the next few years.
Many economists now expect that this month's meeting will serve as the platform for Fed officials to increase the rate of tapering of their asset-purchase program. For more than a year-and-a-half during the pandemic, the Fed bought Treasuries and agency mortgage-backed securities (MBS) at a clip of $120 billion per month, with this program comprising a key tool in supporting the virus-stricken economy. Last month, the Fed began winding down this program, slowing its purchases by $15 billion per month in each of November and December as the economy showed signs that it could continue to recover from the pandemic without the added monetary policy support.
Retail sales
One key piece of economic data out this week will be November retail sales, offering a look at the strength of the consumer in the midst of the holiday shopping season.
Consensus economists are expecting to see retail sales rise by 0.8% in November compared to October, according to Bloomberg data. This would slow compared to October's 1.7% monthly increase, but still represent a fourth straight monthly increase.
"The gain should be supported by holiday sales with clothing showing the biggest sequential gain among major sectors," Bank of America economist Michelle Meyer estimated in a note on Friday. "That said, we do think the risks are skewed to the downside given the sizable upside surprise in October's sales."
The bigger-than-expected rise in retail sales in October stemmed from strength in a variety of categories. Non-store retailers, or e-commerce platforms, posted a 4% sales increase, while gasoline station sales and electronics and appliance stores saw sales grow 3.9% and 3.8%, respectively. Some economists suggested the monthly jump likely stemmed from consumers doing their holiday shopping earlier this year to try and get ahead of supply chain disruptions and shipping delays.
Other private data on consumption for November came in strong, further suggesting another solid monthly rise in retail sales. Adobe Analytics said in an update published Nov. 30 that consumers had already spent $109.8 billion online between Nov. 1 to Nov. 29, with this figure growing 11.9%, compared to last year.
Economic calendar
- Monday: No notable reports scheduled for release
- Tuesday: NFIB Small Business Optimism, November (98.4 expected, 98.2 in October); Producer Price Index (PPI), month-over-month, November (0.5% expected, 0.6% in October); PPI excluding food and energy, month-over-month, November (0.4% expected, 0.4% in October); PPI year-over-year, November (9.2% expected, 8.6% in October); PPI excluding food and energy, year-over-year, November (6.8% expected, 6.8% in October)
- Wednesday: MBA Mortgage Applications, week ended Dec. 10 (2.0% during prior week); Retail sales excluding autos and gas, month-over-month, November (0.8% expected, 1.4% in October); Import price index, month-over-month, November (0.8% expected, 1.2% in October); Business Inventories, October (1.0% expected, 0.7% in September); NAHB Housing Market Index, December (84 expected, 83 in November); FOMC Rate Decision
- Thursday: Initial jobless claims, week ended Dec. 11 (199,000 expected, 184,000 during prior week); Continuing claims, week ended Dec. 4 (1.992 million during prior week); Housing starts, month-over-month, November (3.3% expected, -0.7% in October); Building permits, month-over-month, November (0.4% expected, 4.2% in October); Philadelphia Fed Business Outlook Index, December (30.0 expected, 39.0 in November); Industrial Production, month-over-month, November (0.7% expected, 1.6% in October); Capacity Utilization, November (76.8% expected, 76.4% in October); Manufacturing Production, November (0.7% expected, 1.2% in October); Markit U.S. Manufacturing PMI, December preliminary (58.5 expected, 58.3 in November); Markit U.S. Composite PMI, December preliminary (57.2 in November); Markit U.S. Services PMI, December preliminary (58.0 in November); Kansas City Federal Reserve Manufacturing Activity, December (24 in November)
- Friday: No notable reports scheduled for release
Earnings calendar
- Monday: No notable reports scheduled for release
- Tuesday: No notable reports scheduled for release
- Wednesday: $Lennar Corp (LEN.US)$ after market close
- Thursday: $Adobe (ADBE.US)$, $FedEx (FDX.US)$, $Rivian Automotive (RIVN.US)$ after market close
- Friday: $Darden Restaurants (DRI.US)$ before market open
Source: CNBC, jhinvestments, Yahoo Finance

Stocks set for steady open; Pound dips on omicron
Stocks looked set for a steady open Monday at the start of a key week for central bank policy decisions amid elevated inflation and questions about the impact of the omicron virus variant on growth.
Futures earlier pointed higher for Australia, Japan and Hong Kong. The $S&P 500 Index (.SPX.US)$ closed at a record high Friday on bets the U.S. economy can weather the Federal Reserve's move to reduce stimulus to curb price pressures.
Goldman Sachs says risk of major stocks drawdown modest for now
$Goldman Sachs (GS.US)$ strategists said there's little reason to expect a major retreat in U.S. stocks in the months ahead, even as the breadth of the rally that has pushed the S&P 500 index into successive records is getting increasingly narrow.
"The macro environment does not suggest drawdown risk is elevated in the coming months," the strategists wrote, highlighting that earnings and margins continue to surpass expectations, a low risk of recession, and share prices already reflecting the likely Fed tightening.
Airbnb, Lucid and Zscaler added to Nasdaq 100 tech benchmark
Six stocks, including $Airbnb (ABNB.US)$ and $Lucid Group (LCID.US)$, will be added to the Nasdaq 100 index as part of its annual reconstitution, which adjusts the tech benchmark's membership for changes in market capitalization.
$Fortinet (FTNT.US)$, $Palo Alto Networks (PANW.US)$, $Zscaler (ZS.US)$ and $Datadog (DDOG.US)$ will also be added to the index. All changes are effective as of the close on Dec. 17, the same day as the rebalancing of the S&P 500 Index takes effect.
ETF inflows top $1 trillion for first time
This year's inflows into ETFs world-wide crossed the $1 trillion mark for the first time at the end of November, surpassing last year's total of $735.7 billion, according to Morningstar Inc. data. That wave of money, along with rising markets, pushed global ETF assets to nearly $9.5 trillion, more than double where the industry stood at the end of 2018.
Most of that money has gone into low-cost U.S. funds that track indexes run by Vanguard Group, $Blackrock (BLK.US)$ and $State Street (STT.US)$ , which together control more than three-quarters of all U.S. ETF assets.
Own everything but 'bubble assets' tech and crypto, recommends Institutional Investor hall of famer Rich Bernstein
Institutional Investor hall of famer Rich Bernstein is a market bull whose playbook excludes some of Wall Street's most popular groups. He blames a risky see-saw dynamic playing out in the marketplace.
"On one side, we have all that I would call the bubble assets: tech, innovation, cryptocurrencies," the Richard Bernstein Advisors CEO and CIO told CNBC on Friday. "On the other side of this see-saw, you have literally everything else in the world. I think if you're looking at 2022 into 2023, you want to be in the everything else in the world side of that see-saw."
Amazon Web Services explains outage and will make it easier to track future ones
A major Amazon Web Services outage on Tuesday started after network devices got overloaded, the company said on Friday.
$Amazon (AMZN.US)$ ran into issues updating the public and taking support inquiries, and now will revamp those systems.
Inflation surge pushes U.S. real interest rates into more deeply negative territory
Inflation rose 6.8% from a year ago in November, slightly higher than estimates according to the consumer price index released Friday. Excluding food and energy, the CPI increased 4.9%, in line with expectations.
Surging prices for food, energy and shelter accounted for much of the gains.
Uber, Lyft drivers want more protection as rising crime keeps many off the roads
Ride-sharing companies $Uber Technologies (UBER.US)$ and $Lyft Inc (LYFT.US)$ —which were already caused by Covid-19 concerns—are grappling with a rise in violent crimes and implementing new safety measures and policies to try to better protect the drivers still on their systems. Drivers aren't returning as quickly as consumers, despite big bonuses from companies and the expiration of temporary unemployment benefits extended to gig workers.
Source: Bloomberg, WSJ, CNBC

The stock market's rapid rebound is good news for ETF traders who've sunk a record $1.5 billion on a high-octane tech bet.
With the $NASDAQ 100 Index (.NDX.US)$ surging on Tuesday and Wendsday, it looks like vindication for investors who poured into the $ProShares UltraPro QQQ ETF (TQQQ.US)$ en masse in the Friday rout.
What is TQQQ?
$ProShares UltraPro QQQ ETF (TQQQ.US)$ is one of the largest leveraged ETF that tracks the $NASDAQ 100 Index (.NDX.US)$. The index is focusing on large international and U.S. companies in the technology, health care, industrial, consumer discretionary, and telecommunications sectors. TQQQ uses derivatives and debt to increase the returns to investors.
The fund, which uses options to deliver three-times the benchmark's performance, is among market leaders after cratering last week thanks to the Federal Reserve's hawkish tilt and concerns about the omicron variant.
Flow data, which arrives with a one-day lag because of the way the fund settles, showed investors added an unprecedented $1.47 billion at the end of last week. More than $13 billion of shares in TQQQ had changed hands in the session as it slumped 5%.
Higher interest rates make so-called growth stocks less appealing because much of their value is linked to potential future earnings, which are less attractive if yields are high or rising. Nonetheless, betting against the tech giants has rarely paid off. The likes of $Apple (AAPL.US)$ and $Microsoft (MSFT.US)$ still dominate their industries, while investors often rush to the safety of the mega caps at times of economic doubt.
As a leveraged fund, TQQQ is intended for short-term trading. Yet such is the power of Big Tech, an investor who stayed put in the last five years would have seen the ETF return almost 1,500%.
Source: Bloomberg, Investopedia

$PING AN (02318.HK)$ going 45 is not a problem

US tech giant $Apple (AAPL.US)$is set to reveal its long-awaited mixed reality (MR) headset in the 'second half' of 2022. The new MR headset would cost roughly $2,000 and will not be a standalone device. It ill require tethering to an iPhone or MacBook with a Bluetooth connection. It will also include a camera and laser optical sensor, contain a "high-strength, lightweight magnesium alloy material" for top durability, and would weigh up to 110 grammes.
Apple wants to create an App Store for the headset, with a focus on gaming, streaming video content, and video conferencing. It has been described by Bloomberg as an "all-encompassing 3-D digital environment" designed for gaming, watching video, and communicating.
After $Meta Platforms (FB.US)$CEO Mark Zuckerberg changed his company's name from 'Facebook' to 'Meta', the company is planning to transition from a social media company to a metaverse company. In addition to its VR glasses, a haptic glove is created by Meta to bring the virtual world to our fingertips.
These gloves would allow the wearer to not only interact with and control the virtual world, but experience it in a way similar to how one experiences the physical world. The wearer would use the gloves in tandem with a headset for AR or VR. A video posted by Meta in a blog shows two users having a remote thumb-wrestling match. In their VR headsets, they see a pair of disembodied hands reflecting the motions that their own hands are making. In their gloves, they feel every squeeze and twitch of their partner's hand—at least that's the idea.
Mooers, which tech giant will be the winner in this 'Metaverse War', Apple or Meta? Leave your comments here!
Source: MacRumors, XR TODAY

Monday, December 6, 2021
By Johnson
$Apple (AAPL.US)$ $Rivian Automotive (RIVN.US)$ $Healthpeak Properties (PEAK.US)$ $Citigroup (C.US)$

$Tesla (TSLA.US)$ seems like all going down.