Santa rally, FTX fallout and reboot of Keystone’s best week ahead

Investors are ready to see if the Christmas miracles actually come true this week with hopes of a Santa Claus rally. So far, the Nasdaq is down 8.7% in the past month, while the S&P 500 and Dow are down 4.5% and 3.3%, respectively.

While Sam Bankman-Fried’s next court date isn’t until January 3, 2023, investors will still focus on FTX this week after co-founder Gary Wang and former Alameda Research co-CEO Caroline Ellison both pleaded guilty in federal court. Both are said to be cooperating with the authorities.

Initial public offerings this week could include biotech Coya Therapeutics, health tech Nava Health MD, asset and wealth manager Prestige Wealth, and marine bunkering facilities provider CBL International.

FTX Sam Bankman-Fried Court

Sam Bankman-Fried leaves Federal Court in New York City on Thursday, December 22, 2022. The former CEO of FTX and Alameda was released on $250 million bail.

BERNIE MADOFF’S LAWYER SAYS SAM BANKMAN-FRIED SHOULD ‘SHUT UP’

The markets are closed on Mondays in observance of Christmas. Here are some financial moves to make before the end of the year.

Tuesday brings economic data, including the Federal Housing Finance Agency’s monthly house price index, which is expected to fall 0.30% from last month but is still expected to rise 9.1% year over year.

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Last month, William Doerner, the supervising economist in the FHFA’s research and statistics division, commented: “The rate of growth in US home prices has slowed markedly. This deceleration is widespread with about a third of all states and metropolitan statistical areas experiencing annual growth of less than 10 percent”.

Tuesday will also see the Case-Shiller Home Price Index. Observers expect the measure to decline 1.2% month over month. Home prices are falling as high mortgage rates deter buyers from entering the market. Mortgage rates remain almost double from a year ago, despite declining for six straight weeks.

MORTGAGE RATES CONTINUE DOWN TREND, DOWN FOR SIX WEEK

To cope with high inflation and higher costs, UPS will increase delivery charges on Tuesday. Investors will be watching this closely to see how resilient demand for shipments is.

Tuesday also marks the deadline for certification of new versions of the Boeing 737 Max, the -10 and -7, and for retrofitting existing aircraft; however, as part of the spending bill approved by the Senate last week, Boeing was granted an exemption and will no longer have to make safety changes.

CONGRESS INCLUDES WAIVER FOR BOEING’S NEW 737 MAX JET INTO OMNIBUS EXPENDITURE ACCOUNT

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There are no scheduled earnings calls of note.

TC Energy is hoping to restart the Keystone pipeline on Wednesday after it shut down in early December after spilling 14,000 barrels of oil into a creek in Kansas.

The Energy Department’s deadline for bids to replenish the Strategic Petroleum Reserve (SPR) expires Wednesday. President Joe Biden announced the release of 15 million barrels in October.

SpaceX is expected to launch two rockets on Wednesday. Both missions will use SpaceX Falcon 9 rockets. The first rocket will launch another batch of Starlink Internet satellites destined for a polar orbit, while the second rocket, which could launch Thursday, will launch the EROS high-resolution Earth imaging satellite C3 for ImageSat International.

EGG PRICES AT THE HIGHEST

Egg producer Cal-Maine Foods will release fiscal second-quarter earnings after the market closes. Egg prices have skyrocketed due to inflation,

No notable gains are expected on Thursday.

Economic data will include weekly jobless claims. Initial claims are expected to rise to 220,000, while continuing jobless claims are expected to remain at around 1.67 million. The Energy Information Administration releases its weekly report on the state of oil.

Friday will see the announcement of the results of the state of Alaska’s oil and gas lease sale tender for the Cook Inlet area.

Final trading day for 2022 will see Chicago Purchasing Manager’s Index released but no major earnings report

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