Tech Talk for Monday December 23rd 2024

U.S. equity index futures were mixed this morning. S&P 500 futures were up 4 points at 8:30 AM EST.

Honda added $3.76 to $27.65 after confirming a merger plan with Nissan by 2026.

Qualcomm gained $4.11 to $157.00 after winning a jury trial to determine a licencing dispute with Arm Holdings.

Netflix advanced $3.51 to $912.56 on plans to expand its live sport coverage.

EquityClock's Stock Market Outlook for December 23rd

Businesses and investors may not be feeling very merry this holiday period, but there is still fuel in the tank for stocks to move higher. See:

https://equityclock.com/2024/12/21/stock-market-outlook-for-december-23-2024/

The Bottom Line

Here comes Santa Claus! Peak period for the "Santa Claus rally" for U.S. and Canadian equity indices is from December 24th to December 31st

Passage by Congress and the President on Saturday of a bill to extend the debt ceiling until March 15th removes a short term stock market uncertainty and sets the stage for the proverbial "Santa Claus rally".

Consensus for Earnings and Revenues for S&P 500 companies

Source: www.factset.com

Year-over-year earnings and revenue gains accelerate in the fourth quarter from the third quarter. Consensus calls for an 11.9% earnings increase (up from 11.8% last week) and a 4.6% revenue increase (down from 4.7% last week).

For all of 2024, consensus calls for a 9.4% earnings increase (down from 9.5% last week) and a 5.1% revenue increase.

Consensus for earnings and revenue gains in 2025 was unchanged last week. First quarter earnings are expected to increase 12.8 % on a year-over-year basis and revenues are expected to increase 5.2%. Second quarter earnings are expected to increase 12.1% and revenues are expected to increase 5.4%. Third quarter earnings are expected to increase 15.2% and revenues are expected to increase 5.7%. Fourth quarter earnings are expected to increase 16.9% and revenues are expected to increase 6.6%. For all of 2025 earnings are expected to increase 15.0% and revenues are expected to increase 5.8%.

Economic News This Week

Canada's October GDP released at 8:30 AM EST on Monday is expected to increase 0.1% versus a gain of 0.1% in September.

Bank of Canada offers deliberations at 1:30 PM EST on Monday.

November Durable Goods Orders released at 8:30 AM EST on Tuesday are expected to drop 0.4% versus a 0.2% gain in October.

November U.S. New Home Sales released at 10:00 AM EST on Tuesday are expected to increase to 650,000 from 610,000 in October.

Selected Earnings News This Week

Nil

Trader's Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for December 20th 2024

Green: Increase from previous day

Red: Decrease from previous day

Source for all positive seasonality ratings: www.EquityClock.com

Commodities

Daily Seasonal/Technical Commodities Trends for December 20th 2024

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for December 20th 2024

Green: Increase from previous day

Red: Decrease from previous day

Changes Last Week

Links offered by valued providers

Michael Campbell's Money Talks for December 21st

Michael Campbell's MoneyTalks - Complete Show (mikesmoneytalks.ca)

Stock Markets, Cryptos, Due for Big Correction: Mark Leibovit

Stock Markets, Cryptos, Due for Big Correction - HoweStreet

JPMorgan’s Gabriela Santos on 2025 outlook: Out of the cyclical storm, into the policy fog

JPMorgan’s Gabriela Santos on 2025 outlook: Out of the cyclical storm, into the policy fog - YouTube

Peter Boockvar on The Fed, Volatility, Valuations and 2025 Market Shifts

Peter Boockvar on The Fed, Volatility, Valuations and 2025 Market Shifts - YouTube

PCE data was better than expected and we’re on path to get inflation to 2%: Chicago Fed’s Goolsbee

PCE data was better than expected and we’re on path to get inflation to 2%: Chicago Fed’s Goolsbee – YouTube

Could China's Real Estate Woes Spread Here? Bob Hoye

Could China's Real Estate Woes Spread Here? - HoweStreet

Trading Desk Notes for December 21, 2024: Victor Adair

Trading Desk Notes for December 21, 2024 - HoweStreet

Technical Notes for Friday

Natural Gas ETN $UNG moved above $15.52 completing a double bottom pattern.

United Kingdom iShares $EWU moved below $33.61 and $33.41 completing a Head & Shoulders pattern.

S&P 100 stocks and NASDAQ 100 stocks moving below support extending an intermediate downtrend included Kraft Heinz, CSX, Old Dominion Freight Line, Autodesk, Intuit, Qualcomm, Synopsys and ON Semiconductor

Oil Services ETF $OIH moved below $262.18 extending an intermediate downtrend.

Bank of Nova Scotia $BNS.TO moved below $75.93 completing a double top pattern

S&P 500 Momentum Barometers

The intermediate term Barometer dropped 21.00 last week, but bounced 5.60 on Friday to 26.60. It changed last week from Neutral to Oversold on a drop below 40.00.

The long term Barometer dropped 10.20 last week, but recovered 2.20 on Friday to 56.40. It changed last week from Overbought to Neutral on a drop below 60.00.

Short term (20 day) Barometer bounced on Friday to 11.80 from a deeply oversold 7.80.

TSX Momentum Barometers

The intermediate term Barometer dropped 15.99 last week, but bounced 4.11 on Friday to 26.48. It changed last week from Neutral to Oversold on a drop below 40.00.

The long term Barometer dropped 7.76 last week, but recovered 2.74 on Friday to 59.82.It changed last week from Overbought to Neutral on a drop below 60.00.

Short term (20 day) Barometer bounced on Friday to 11.87 from deeply oversold 8.68

Disclaimer: Seasonality ratings and technical ratings offered in this report and at

www.equityclock.com are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered in this report is believed to be accurate, but is not guaranteed