Portfolio Manager Commentary:
The S&P 500 fell Tuesday to start the holiday-shortened week, as yields climbed and investors weighed the economic outlook for 2023. China-linked stocks rose as the country loosened Covid restrictions. Tesla dropped more than 11% after announcing an extended production pause, with the stock on pace for its worst year ever. The stock has lost 73% of its market value year-to-date. Southwest fell 6% after they canceled thousands of flights.
The combination of tax loss selling, portfolio rebalancing, and investors deciding where to position for 2023 may also be weighing on the indices, said Sameer Samana, senior global market strategist for Wells Fargo Investment Institute.
After a brutal year instigated by inflation and recession fears, investors hoped to cap off 2022 on a positive note. Friday kicked off the period for a Santa Claus rally, which is typically considered the final five-day trading stretch in the current year, as well as the first two trading days in the new year.
Chart of the Day:
The restaurant industry experienced vast reductions in jobs and workers after the Covid-19 pandemic struck the U.S., and now it has erased most of those losses. Over the past month, restaurants and bars had nearly doubled the number of employees working at the pandemic low in April 2020, according to the Labor Department. There were 62,000 jobs added to restaurants and bars in the past month alone. This comeback has been influenced by pay increases, improved conditions, and fewer alternative opportunities amid a weakening economy.