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It was a shaky start to the last trading week of 2022, with stocks finishing mixed after the long holiday weekend. Investor sentiment received a temporary boost after China said it would open its borders to international travelers next month without quarantine.
Still, it wasn’t enough to offset a persistent slump Tesla (TSLA (opens in new tab)) stocks and a sell-off in airline stocks.
The news from China was a positive catalyst for a number of US-listed Chinese stocks. Among those that got a lift were e-commerce stocks Alibaba Group (BABA (opens in new tab)+4.9%) and pinduo (PDD (opens in new tab)+1.4%).
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While those stocks closed higher on China’s push to end COVID containment measures that have slowed economic growth, Tesla fell 11.4% on news that the electric-vehicle maker is halting production in its production facility in Shanghai shut down earlier than expected, according to a Reuters report (opens in new tab). The company previously said it would halt activity at the facility for eight days from Dec. 25, but halted production a day early, with some pointing to an increase in COVID cases among the factory workers. TSLA stock is down 44% year-to-date this month.
Adding to the market’s headwinds were several US transportation stocks selling off after a deadly nationwide winter storm canceled thousands of flights. Southwest airlines (LUV (opens in new tab)) canceled about 70% of its flights on Monday and another 63% of its flights on Tuesday, causing its shares to plummet 6.0%. Fellow airlines Delta Airlines (VALLEY (opens in new tab)-0.8%) and American Airlines group (AAL (opens in new tab)-1.4%) also closed lower.
As for the main market indices, the S&P 500 index fell 0.4% to 3,829 and the Nasdaq composite returned 1.4% to 10,353. The Dow Jones Industrial Averagehowever, managed to gain 0.1% to 33,241 on strength Verizon communications (VZ (opens in new tab)+2.2%).
Top investment ideas for 2023
As we mentioned earlier in this space, the stock market is on track to close out its worst year since 2008. And while that fact alone may weigh on investor sentiment heading into the new year, there are a number of historical data points that should give investors hope as we head into 2023.
First, there’s “the S&P 500’s spotless track record in the year following the midterm elections (average return ~13%),” said Michael Reinking, senior market strategist at the New York Stock Exchange. In addition, in the 18 times the S&P 500 fell more than 1% over the year since 1946, it was higher 78% of the time the following year, averaging nearly 15% annual gains, Reinking says.
So despite the many challenges investors face in the new year, including uncertainty about inflation, interest rates and a possibly recession, there are solid portfolio choices they can make to help overcome these hurdles. These include choosing the best dividend stocks or highest analyst belief small cap stocks – the latter of which are priced for excellent returns in the new year. There’s also our list of the best stocks to buy for 2023, including high quality companies that are well positioned to break through the continued market disruptions we expect in the new year.
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Sources 2/ https://www.kiplinger.com/investing/stocks/stock-market-today-122722-tesla-keeps-sandp-500-nasdaq-in-the-red The mention sources can contact us to remove/changing this article |
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