Investors who have enjoyed a successful 2023 are looking forward to a quiet holiday week. With stock and bond markets closed on Monday in celebration of Christmas, it's a great time for investors to step back and reflect on their gains.
Economic Data Releases Await
Once the holiday is over, investors can eagerly anticipate a variety of economic data releases. On Tuesday, both S&P CoreLogic and the Federal Housing Finance Agency will provide insights into the housing market with their respective October Home Price Index reports.
Regional Manufacturing Activity Surveys
In addition to the housing market, there will also be a focus on regional manufacturing activity. On Tuesday, the Federal Reserve Bank of Dallas will release their Texas Manufacturing Outlook Survey for December. Then, on Wednesday, the Federal Reserve Bank of Richmond will follow suit with their Fifth District Survey of Manufacturing Activity for December. Finally, on Friday, the Institute for Supply Management will share their Chicago Business Barometer for December.
Earnings Season Begins in January
While no major companies will be reporting earnings this week, investors can mark their calendars for January 12. It is on this day that the fourth-quarter earnings season will unofficially kick off with notable companies such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo announcing their results.
Equity and Fixed-Income Markets Take a Break
In observance of Christmas, both equity and fixed-income markets will be closed. Investors can take this time to rest and recharge before the new year begins.
Tuesday - October Home Price Index Reports
On Tuesday, S&P CoreLogic will release its Case-Shiller National Home Price Index for October. The consensus estimate is a 5.1% year-over-year increase, surpassing the 3.9% rise in September. Meanwhile, the Federal Housing Finance Agency will also publish its House Price Index for October, reflecting the ongoing issue of low supply of homes which continues to drive prices higher in the U.S.
The Federal Reserve Bank of Dallas Texas Manufacturing Outlook Survey (December)
Economists are predicting a negative 16.0 reading for the Texas Manufacturing Outlook Survey in December, which is an improvement of almost four points compared to November. A reading below zero indicates a decline in manufacturing activity within the state.
The Federal Reserve Bank of Richmond Fifth District Survey of Manufacturing Activity (December)
The Fifth District Survey of Manufacturing Activity by the Federal Reserve Bank of Richmond is set to be released in December. Economists expect a negative 4.0 reading, showing slight improvement compared to the previous month.
Regional Federal Reserve Bank Manufacturing Indexes
All five regional manufacturing indexes published by the Federal Reserve Banks, including Dallas, Kansas City, New York, Philadelphia, and Richmond, Va., show signs of contraction in their respective manufacturing sectors. However, there are indications of slight improvement.
Thursday 12/28
Jobless Claims Data
The Department of Labor will release jobless claims data for the week ending December 23. Economists predict that initial claims will be around 205,000, in line with the previous week. This suggests that the U.S. labor market remains tight, as it is below the historical average. The unemployment rate for November was 3.7%.
Pending Home Sales Index
The Pending Home Sales Index for November will be released by The National Association of Realtors. This index serves as a leading indicator of U.S. housing activity. Economists forecast a month-over-month gain of 0.5%, following a 1.5% increase in October.
Friday 12/29
Chicago Business Barometer
The Institute for Supply Management will release its Chicago Business Barometer for December. Economists expect a reading of 49.8, which would represent a six-point decrease compared to the previous month. This could place the index back into contraction territory.
