Stock futures are rising as the week begins

His name is Goldman Sachs SolarEdge Technologies And the First Solar As the best picks for the new year, noting that both stocks have a significant rise over the next 12 months.

“While solar stocks have outperformed 2022 versus the R2K, stocks are still nearly 20% below their early ’21 peak levels, and valuations remain below pre-IRA levels,” analyst Brian Lee writes.

“This is despite the fact that fundamentals have significant positive momentum that we see for a healthy uptrend across several pockets of the group into 2023, particularly on the back of improving margins and policy tailwinds (not uncertainty),” Lee added.

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– Sarah Maine

Don’t be surprised if the market volatility seen in 2022 continues into the new year, according to Art Hogan, chief market strategist at B. Riley Financial.

wrote in a note to clients Friday. “This tug-of-war is likely to continue in the first quarter of 2023 unless and until the Fed hits the final federal funds rate.

Investors should expect a “bumpy road” during the first few months of the year as the central bank heads toward the final federal funds rate.

“Weaker economic trends are likely to form heading into 2023 as the Fed battles inflation, but a mild recession could help lift inventories for a better second half of the year,” he said.

Given this background, Hogan recommends taking an “iron” investment approach, with a focus on energy, basic materials and healthcare. On the other hand, investors should look for well-priced growth companies that have seen multiple contractions between price and earnings. These companies must offer strong balance sheet liquidity and free cash flow, with leadership roles in their sectors.

– Samantha Sobin

This is where the major averages stand heading into one of the final trading weeks of 2022

Dow Jones Industrial Average:

• It decreased by 4.83% for the month of December
• 10.91% of its record height
• Down 9.41% from the year

Standard & Poor’s 500

• It is down 5.58% this month
• It is down 20.05% from record highs
• It decreased by 19.17% for the year 2022

Nasdaq Composite:

• It is down 6.65% this month
• 32.68% from its high
• Down 31.57% from the year

Samantha Sobin, Chris Hayes

Stock futures opened slightly lower to start the week.

And futures contracts related to the Dow Jones Industrial Average fell 18 points, or 0.05%. S&P 500 and Nasdaq 100 futures fell 0.04% and 0.05%, respectively.

– Samantha Sobin