Stocks Soared Yesterday, 1 More Trading Day To Go  Image: Shutterstock Stocks soared yesterday with all of the indexes up sharply. The Nasdaq led the way with a gain of 2.59%, followed by the small-cap Russell 2000 with 2.57%, the S&P with 1.75%, and finally the Dow with 1.05%. Yesterday's rally turned stocks positive for the week (sans the Nasdaq, but they are only 0.20% away from getting over that threshold), with one more trading day to go. But it's looking like they will all buck the seasonal tendency of a higher December and finish lower for the month. Yesterday's Weekly Jobless Claims rose by 9,000 to 225,000 vs. the consensus for 222,000. The smoother 4-week moving average came in at 221,000. The EIA Natural Gas Report showed supplies down -213 billion cubic feet (Bcf), on w/w basis, compared to last week's -87 Bcf draw. And the EIA Petroleum Status Report showed crude oil inventories rose 0.7 million barrels (Mbbl), on a w/w basis, vs. last week's -5.9 Mbbl change. Gasoline inventories dropped -3.1 Mbbl, while distillates increased by 0.3 Mbbl. Today, we'll get the Chicago PMI (Purchasing Managers' Index), and the Baker Hughes Rig Count report. Markets trade normal hours today. But once the bell rings at the close, that will be a wrap on the markets for 2022. And it looks like stocks are headed for their worst year since 2008. We still have one more trading day to go, but so far, the so-called Santa Claus rally looks to be a bust (although, yesterday showed some promise). And the seasonal tendency for December to be one of the strongest months, also looks to be a disappointment as well. That being said, feel free to take the next seasonal tendency with a grain of salt – but next year could be setting up for a solid year. That's because, the 4-year Presidential Cycle shows that year 3 (that's 2023), is the best year of all 4 years. In fact, since 1950, stocks have always gone up in the year after midterms, with an average 12-month forward return of 18.6%. If that statistic holds up, 2023 could look markedly different than 2022. (Let's hope so.) Remember, markets will be closed on Monday in observance of New Year's Day. Trading will resume on Tuesday. In the meantime, Happy New Year's!  Kevin Matras
Executive Vice President, Zacks Investment Research | 
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