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1/02/24 Weekly Market Commentary

1/02/24 Weekly Market Commentary

January 02, 2024

What happened last week…         

The year ended on a high note with all three major indices extending their winning streaks to nine straight weeks and earning gains in back-to-back months. It is the longest weekly gains streak for the S&P 500 since 2004 and the longest such streak for the DJIA and NASDAQ since 2019. The fourth quarter was also positive for each of the three indices. For 2023, the annual performances were as follows: DJIA (13.70%), S&P 500 (24.23%), NASDAQ (43.42%). Notably, the S&P 500 is just 0.6% off its record close. The top performing sector within the S&P 500 for 2023 was the technology sector, up 55%, which had its best yearly performance since 2009.


Microsoft (MSFT) and OpenAI, creator of AI chatbot ChatGPT, have been sued by the New York Times (NYT) over allegations of copyright infringement. The lawsuit claims the companies built and trained its AI models “by copying and using millions” of content generated by the New York Times without permission and seeks to hold both companies “responsible for the billions of dollars in statutory and actual damages.” The New York Times said the “GenAI tools can generate output that recites Times content verbatim, closely summarizes it, and mimics its expressive style” and that “these tools also wrongly attribute false information to The Times.”


A U.S. appeals court granted Apple (AAPL) a temporary pause on the import ban of the company’s Series 9 and Ultra 2 watches, which was imposed due to a patent dispute over its medical monitoring technology that reads blood oxygen levels. The dispute with medical device maker Masimo briefly halted the sale of the watches. A decision on January 12 is expected to determine if a redesign of the watches no longer infringes on the patents.  


Nvidia (NVDA) will release a modified version of its gaming processor in China that complies with U.S. export controls. Previously, the U.S. government restricted the sale of more advanced chips to China citing national security concerns. The slower performing chip will be available in the region in January.


What's happening this week…

On Wednesday, the manufacturing PMI for December is expected to increase to 47.1 from 46.7, which was the 13th straight contractionary reading (below 50).


On Wednesday, the ADP employment change may increase to 113,000 from 103,000. On Friday, the unemployment rate is expected to increase to 3.8% from 3.7%, nonfarm payrolls are forecasted to decrease to 163,000 from 199,000, and average hourly earnings month-over-month are expected to decrease to 0.3% from 0.4%.

Thanks for reading and Happy New Year!

- The Rockline Team

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

 The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

 Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.

 Because of their narrow focus, sector investing will be subject to greater volatility than investing more broadly across many sectors and companies.

 Dow Jones Industrial Average is comprised of 30 stocks that are major factors in their industries and widely held by individuals and institutional investors. The Dow Jones Industrial Average is comprised of 30 stocks that are major factors in their industries and widely held by individuals and institutional investors.

 NASDAQ Composite Index measures all NASDAQ domestic and non-U.S. based common stocks listed on The NASDAQ Stock Market. The market value, the last sale price multiplied by total shares outstanding, is calculated throughout the trading day, and is related to the total value of the Index.

 S&P 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.