Bidenomics: S&P 500 in 2022 down almost 20%, worst year since 2008

Friday marked the end of 2022’s trading days. This was also true for the quarter, month, and year. These are the results of major market averages over these time periods.

The Dow came out on top:

• The year ended with a drop of 8.78%
• Up 15.39% in the quarter
• The month’s decline was 4.17%
• The week ended at a decrease of 0.17%

The S&P 500 is now closed:

• Yearly drop of 19.44%
• The quarter saw an increase of 7.08%
• Monthly drop of 5.90%
• The week ended at a decrease of 0.14%

The Nasdaq Composite was successful:

• Yearly drop of 33.10%
• The quarter ended in a decrease of 1.03%
• Monthly drop of 8.73%
• For the week, it was down 0.3%

The Russell 2000 small caps were completed:

• Yearly drop of 21.56%
• The quarter saw an increase of 5.8%
• Monthly drop of 6.64%
• Up 0.02% for this week

— Jesse Pound, Christopher Hayes

Although stocks closed at their lowest levels of the session on Friday (see chart), the major averages finished in the red.

The Dow lost about 75 points while the S&P 500, Nasdaq Composite and Nasdaq Composite dropped 0.25% and 0.1%, respectively.

— Jesse Pound

One hour remains in the trading season and the Dow is down 295pts, while the Nasdaq 500 and S&P 500 are down by approximately 1%.

The Energy Select Sector SPDR Fund gained 0.4%, indicating that the sector’s performance is superior to other sectors. Both tech stocks and utilities are in trouble.

— Jesse Pound

The benchmark 10-year Treasury yield is now over. year below 4%. This is a significant relief for markets, as opposed to October when it soared to above 4.3%.

The 10-year journey provides a snapshot of investing for 2022. It began the year at 1.5% and climbed higher as the Federal Reserve failed in its efforts to fix the U.S. inflation problem. This caught even prudent investors off guard.

Although the bond market is ending the year with some optimism, it still shows signs of the volatility it has been experiencing throughout 2022.

— Jesse Pound

As Wall Street prepares to close 2022 with a bad note, the major averages are trading at session lows. The Dow has fallen more than 300 points while the Nasdaq 500 and S&P 500 have both dropped about 1%.

All heavyweight stocks, including Apple, Amazon, Microsoft and Citigroup, suffered modest losses on the day.

— Jesse Pound

According to a report, Japan’s central bank may consider increasing its January inflation forecasts to reflect price growth closer to the 2% target for 2024 fiscal year. Dec. 30 report Sources familiar to Nikkei

According to the report, this move could help lay the foundation for tighter fiscal policies.

The report arrives more then a week later than the Bank of Japan changed its bond yield controlsThis will allow long-term interest rates rise even more. The rate on the 10-year bond will be allowed to fluctuate by half a percentage point above and below the nation’s target of 0% – up from a quarter-percentage point range.

Japan has seen a rise in retail sales, which have also risen for a ninth consecutive month November

—Darla Mercado

Despite the market decline of 2022, aerospace and defense stocks soared in 2022 due to increased commercial travel and rising geopolitical tensions.

The S&P 500 industry had risen nearly 15% in the last year, and 24% in the last quarter as of Friday midday.

Northrop Grumman is the best performer. Northrop Grumman’s shares soared by more than 40% in this year and an additional 15.5% during the fourth quarter. Lockheed Martin is close behind, with shares rising by 36% in the third quarter and 23% respectively in the fourth quarter of 2022.

Boeing’s performed the best for the quarter, rising more than 56%. Lockheed and Howmet are up 27% and 25% respectively this quarter.

Only four stocks, including Boeing, are expected to lose money in 2022. Textron is the worst-performing share, falling 8.7%. Comparatively, the benchmark index has fallen almost 20% in the last year.

— Samantha Subin

Technology stocks have had a tough year. The Nasdaq Composite fell to its lowest level since 2008, as rate hikes have slowed growth.

CNBC’s recent survey suggests that investors might still place bets on these stocks as the calendar year ends.

These are the names top of mind for investors in 2023.

— Samantha Subin

European stocks wrapped up their worst year since 2018 Friday

The pan-European Stoxx 600 index ended the year with a loss of 12.76%.

The FTSE 100 achieved an average annual gain of 1% in the U.K. The domestic-focused FTSE 250, however, fell 19.5% in its worst year since 2008.

—Elliot Smith, Jesse Pound

Fundstrat’s Tom Lee stated on “Squawk on the Street“That too many investors seem to overlook the reasons stocks see substantial gains next year.

“The question we have to ask in 2023 is what is the probability the market has an above-average year,” Lee said.

Fundstrat has a target year-end 2023 for 4,750 on S&P 500. CNBC’s targets for larger firms are higher than those set by Fundstrat. Market Strategist Survey.

He mentioned that easing credit markets and volatility could be factors that can boost stocks in the coming year. He said that stocks could be at risk of pricing in rate increases and weaker earnings.

“If 2023 is a year where earnings are declining, but they rebound in 2024, well markets begin to look through that. In fact, on average, stocks bottom before earnings estimates bottom,” Lee said.

According to the strategist, technology stocks could surprise the market in 2023. However, the Federal Reserve’s tight policy was a downside risk.

— Jesse Pound

John Stoltzfus is an Oppenheimer strategist. He was not optimistic about 2022 markets, but this year’s mishaps aren’t going to affect his outlook for 2023.

“The bears have had it this year. They were wrong for almost 13 years, notwithstanding some pullbacks,” Stoltzfus claimed that “Squawk on the Street.”

The strategist compared today’s market setup to 2009, which saw stocks fall sharply in the first months of the year before rebounding to end the year with large gains. Stoltzfus’ 2023 year-end target is 4,400 for the S&P 500.

“I think 10-12% upside from here would be highly likely should the Fed be able to prove that it can pause inflation,” Stoltzfus said.

— Jesse Pound

The December Chicago purchasing managers’ index, which is a measure of business activity, was hotter than anticipated.

The index was at 44.9. This is higher than the consensus Dow Jones estimate of 40.5. It also represents an improvement from the previous reading of 37.2.

A reading below 50 indicates economic contraction, despite the rise in readings. A higher reading generally indicates a stronger economy.

— Alex Harring

On Friday, stocks were lower across the board. The Dow lost more than 100 point. Energy was the bright spot early on, with the Energy Select Sector SPDR Fund gaining about 0.3%.

— Jesse Pound

One strategy stood out in a tough year for investors: it was simple.

The average “Dogs of the Dow” Stocks are on track to earn a positive total yield for 2022. This strategy is used to identify the Dow Jones Industrial Average’s 10 highest yielding dividend names. The shift to income and value investing this year has benefited the group.

Next year, JPMorgan will be added to the list. Check out the full list on CNBC Pro.

— Jesse Pound

These are some notable early movers who were there before Friday’s bell rang.

Shaw Communications – Canada’s Competition Tribunal dismissed an attempt by the country’s competition watchdog to block the $26 billion acquisition of the telecom company by rival Rogers Communications. Shaw rose 10.1% in the premarket while Rogers gained 0.4%

Tesla – Tesla is down 1% in the premarket after posting its first back-to-back gains since Nov. 22 to 23. Since a four-day winning streak between Oct. 25 and 28, Tesla hasn’t risen for three consecutive days. The stock is still down by 65% for 2022.

Check out the full list here.

— Peter Schacknow, Jesse Pound

Stock futures dropped in morning trading. Dow futures were down by around 130 points.

S&P 500 futures fell 0.6% while Nasdaq 100 futures dropped 0.9%.

— Jesse Pound

Bond yields On Friday morning, they were modestly higher. The 10-year Treasury yield climbed about 1 basis point to 3.846%, while 2.year Treasury yield traded at 4.388%.

A basis point equals 0.01%, and yields move against price.

The yields have fallen from their highest levels in the year. The 10-year traded above 4% in November and October.

— Jesse Pound

Biotech will remain an important industry. “stock-pickers market” Citi predicts 2023.

The bank discusses how biotech can perform in different economic situations and names three of its top choices for 2023.

CNBC Pro subscribers can read more here.

— Weizhen Tan

In 2022, the energy sector was at its best as investors managed to deal with the effects of the oil crisis that was triggered by the conflict in Ukraine.

At Thursday’s closing, it was the only major S&P 500 Sector on track to finish the year in gains, with nearly 58%.

In 2022, the communication services sector will be the worst laggard, with a drop of more than 40%. Consumer discretionary dropped more than 37% and information technology will finish almost 29% below.

The quarter saw gains in all major sectors, except for consumer discretionary and communications services which fell about 10.2% each and 1.6%, respectively. Except for utilities, all sectors are heading for monthly losses. This is 0.2% higher.

— Samantha Subin, Chris Hayes

Stocks have had a difficult year, with the major averages registering their worst performance since 2008. They are poised to end a three-year winning streak.

This is where the Dow Jones Industrial Average (S&P 500), and Nasdaq composite stand, with only one trading day left in 2022.

Dow:

• The week ended up 0.05% and is on track for its second positive week in succession
• December saw a drop of 3.96%, and it is expected to end a streak of two months.
• The quarter saw a 15.65% increase and is on track to end a three-quarter losing streak
• A decrease of 8.58% in the year

S&P:

• We are up 0.12% so far this week and we are on track to end a three-week losing streak.
• Monthly decline of 5.66%, with a pace to surpass three months of gains and to surpass a 2-month high.
• The quarter’s increase in 7.35% is expected to end the three-quarter losing streak.
• In 2022, the decline is 19.24%

Nasdaq:

• For its fourth consecutive negative week, the stock market is down 0.19%
• 8.63% lower in December and on pace for breaking a two-month winning streak.
• It was down by 0.92% in the quarter, and heading for its fourth consecutive negative quarter.
• This year, tumbled 33.03%    

— Samantha Subin, Chris Hayes

Stocks were flat during overnight trading on Thursday

Futures that are tied to the Dow Jones Industrial Average lost 22 points, or 0.7%, while futures on S&P 500, Nasdaq 100, and Nasdaq 100 traded flat.

— Samantha Subin