Benchmarks Set to Close Out Last Week of 2021 With Wins

The major indexes are eyeing weekly, monthly, and yearly gains

Digital Content Manager
Dec 31, 2021 at 12:03 PM
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Wall Street is looking to close out 2021 with a bang. All three major indexes nabbed a fourth-straight daily win on Monday, while the S&P 500 scored a new intraday high and record close, as stocks continued to benefit from the "Santa Claus rally." Strong holiday retail sales data contributed to optimism with an 8.5% year-over-year growth rate -- the quickest in 17 years. The Dow continued to enjoy tailwinds on Tuesday, logging its fifth-straight gain, while the Nasdaq and S&P 500 ended their win streaks, though the latter set a fresh intraday high. Elsewhere, the Centers for Disease Control and Prevention (CDC) reduced the recommended isolation period for Covid-19 cases.

That update was followed by news on Wednesday that the U.S. hit a record seven-day average of 265,000 new cases per day. Still, the Dow extended its rally to mark its best win streak since March, while the S&P 500 notched a record close. Stocks cooled off on Thursday, with the blue-chip index finally snapping its win streak, despite logging an all-time intraday high. At last check, the major indexes were still muted, despite pacing for solid weekly, monthly, and yearly gains.

Stocks to Watch in the New Year (And Which to Avoid)

With the year coming to an end, our team here at Schaeffer's was sizing up which equities might be prudent plays in 2022, and which are better to leave behind in 2021.  Specifically, Schaeffer's Senior Quantitative Analyst Rocky White rounded up the best performing stocks in January over the last 10 years, with one streaming name in particular making the list.

Analysts were making predictions as well, with D.A. Davidson calling this tech stock "the best kept secret in security." Investors may want to keep tabs on DISH Network (DISH) as well, which is setting up nicely from a fundamental perspective. Meanwhile, this FAANG name neared an important milestone, and eclectic vehicle (EV) concern Nikola (NKLA) hinted at more truck deliveries. It's not all roses, though. Traders may want to mind these two vaccine stocks, which have both suffered lengthy losing streaks recently. 

Elsewhere, Bed Bath & Beyond (BBBY) is scheduled to enter the earnings confessional just a few days into the new year, on Thursday, Jan. 6. The retailer will be joined by blue chip Walgreens Boots Alliance (WBA).

 

First Week of 2022 Busy for Wall Street 

Next week brings a red-hot start to 2022, with a slew of employment and manufacturing data to unpack. More specifically, the Markit manufacturing purchasing managers' index (PMI), the ADP employment report, and another round of jobless claims data are on tap. Plus, the Federal Open Market Committee (FOMC) will release minutes from its latest meeting. Several companies are set to report earnings, too, including Conagra Brands (CAG), Constellation Brands (STZ), Jefferies (JEF), and WD-40 (WDFC). 

Ahead of all this activity, traders can learn how to predict early winners for 2022and take a look at which VIX levels to watch. For those feeling nostalgic, there's also three winning trades from 2021 to look back at before gearing up for a new year of trading.

 

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