My top 10 things to watch Tuesday, Jan. 3, 2023
1. Employment number Friday. Federal Reserve should move if we don’t get above 4% unemployment and wages don’t fall. Wage inflation seems to be the only thing that matters to central bankers. The Homestretch, our new audio feature to get you ready for the final hour of trading, starts Tuesday. Look for the alert. Here’s my Sunday commentary, detailing our worldview for the first half of 2023 and the stocks that will win in the new year. The overall market looks higher on the first trading day of 2023 after Wall Street on Friday closed out a terrible 2022.
2. China’s continued move toward reopening its economy after prolonged, strict anti-Covid measures has been good for Club holdings Estee Lauder (EL) and Starbucks (SBUX). Both stocks have soared over the past three months, with EL up 15% and SBUX up nearly 18%. Starbucks can be bought even up there. Club stock Wynn Resorts (WYNN), also closely tied to China, upgraded at Wells Fargo to overweight from equal weight (buy from hold) and pushes price target up to $101 per share from $74. Macao junkets could be back.
