January 3, 2022

Markets:

U.S. stocks looked to open near record highs on Monday, as investors built on momentum from last week into at least the first session of the new year.

U.S. equities posted another year of solid gains in 2021, rising by 27% and delivering a rare third consecutive double-digit annual percentage increase. Within the S&P 500, the energy and real estate sectors outperformed, gaining more than 42% each during the year for these sectors' best annual gains on record.  

This week investors will be eyeing new economic data including the Labor Department's December jobs report to help show the relative strength of U.S. economic growth in the final weeks of the year, as inflation concerns and labor shortages continued to ripple across the country. Risks around the latest surge of the coronavirus are also weighing, with impacts to the labor market from the Omicron variant potentially set to show in the final monthly jobs report for 2021. 

Employment data will be in the spotlight this week. The Department of Labor’s monthly jobs report due for release on Friday will offer an updated look at the strength of hiring and labor force participation — important measures of the U.S. economy, made even more consequential in recent weeks amid a backdrop of rising COVID-19 cases as investors look to assess the impact of the the latest Omicron-driven wave.

Fed officials indicated last month that all 18 members predict at least one 25 basis point hike next year, with the median member forecasting three rate hikes before 2022 is over. The next FOMC meeting is scheduled to take place on Jan. 25 and 26.

Portfolio:

We enter the new year and new trading week holding positions in IONQ, F, SFIX, UA, CPG, PINS, and continue to hold itrm for update release.  Well positioned for the moves we see over the next few weeks but we will be looking to add this week as well.  So much opportunity is being created and the queue is igniting!  This is truly an exciting period within the calendar year and historically the first quarter has been sensational for our us.  We love that earnings season will begin in a few weeks and feel this will help the market engage in company earnings and outlook and provide us another element other than just Fed and Omnicron narratives.  

Let's have a great year!  It begins today!  We are going to smash 2022!