The beginning of 2024 was a departure from the end of 2023
The first week of 2024 didn't kick off like many were hoping. The holiday-shortened week started off with the Nasdaq Composite Index (IXIC) suffering a triple-digit deficit, though the Dow Jones Industrial Average (DJI) managed to eke out a win. The S&P 500 (SPX) and Dow quickly caught up with the tech-heavy Nasdaq in terms of losses, however, after the Federal Reserve's meeting minutes hinted that the central bank isn't quite ready to slash interest rates.
Investors eyed a slew of jobs data the latter half of the week, with Friday's nonfarm payrolls report coming in hotter than anticipated. Bond yields were in focus as well, with the 10-year Treasury yield rising above 4% by the end of the week. Despite Wall Street's midday lead Friday afternoon, all three benchmarks are marching towards weekly losses.
Stocks To Watch This Month & Year
Our 2024 stock picks report is out now, and among the 12 stocks we think will outperform this year are Cloudflare (NET) and Dropbox (DBX). Seasonality trends also provide some helpful insight for those looking to make bullish bets to start the year. Google parent Alphabet (GOOGL) is the best member of the 'Magnificent Seven' to own in January, while Electronic Arts (EA) is the best video game name. Meanwhile, among the stocks that tend to underperform in the first month of the year are Pfizer (PFE) and Qualcomm (QCOM).
New Year, New Corporate Moves
Some major names made big moves in the first week of the year. Peloton (PTON) inked an agreement with TikTok to create an online workout hub called #TikTokFitness. Eli Lilly (LLY) launched a new website that offers home delivery and telehealth options. Another pharmaceutical stock, Novo Nordisk (NOVO), popped after announcing new partnerships with both Cellarity and Omega Therapeutics (OMG). Finally, Southwest Airlines (LUV) looks like it will finally have to pay up for its 2022 holiday travel debacle that left more than 2 million travelers stranded.
Bank Earnings, Inflation Data Set to Start 2024
While the earnings docket has been relatively bare to start the year, reports from major banks are due out next week that are sure to excite investors. In addition, consumer price index (CPI) and producer price index (PPI) readings are on tap. Plus, breaking down Wall Street's bounce-back year, and why short-term traders should be weary of the rally.