In the context of the short term market prediction, the following S&P 500 Forecast for the Week Ahead is most likely to occur: The Dow Jones Industrial Average will reach 17,000 points before New Year’s Day. This is a notable high and will be achieved by a wide range of stocks, companies, and sectors.
More than two-thirds of the Dow’s opening advance came from the technology sector, and from a number of the Big Three U.S. stock exchanges. Tech stocks typically move in huge waves; as you might expect, the technology sector is the one category that is going to move the most in January.
As we move through the second week of January, there are going to be a number of additional technology companies that have earnings reports coming out. Since so many technology companies had lackluster quarters, the balance sheets of these companies will probably be looking for a way to improve.
Here is where a number of new consumer brands are going to do well. Almost all of the major car manufacturers are planning to release product lines on New Year’s Day.
Several of the auto makers (including Nissan, GM, Fiat, Honda, and Volkswagen) have announced plans to introduce more fuel-efficient cars and trucks this year. Some of these models are going to be priced below $20,000.
It will be difficult to make any predictions about when and how this minor disruption to the economy might affect the markets. However, once it is over, we will get a better idea of what might have happened.
The slight damage that occurred was to certain brands and segments of the overall economy. Even before the first New Year’s Day, we are already seeing the impact of lower economic activity throughout the country.
If we find that sales are down in every segment of the economy, then we can expect to see a number of industries come to a fallback position at this time of year. They will go into hibernation and they will not be generating any growth for the rest of the year.
Consumers have great time management skills, and they are generally savvy at spotting low in the economy. They are also very good at keeping their spending under control.
In fact, many of them know when to avoid buying stuff during the holiday seasons and when to buy stuff during the off months of the year. This makes them excellent time planners, and they know when they need to save or get ahead.
If this pattern continues throughout the year, then it may help certain segments of the population, and it will cause some loss to other sectors of the economy. Fortunately, it should be a short-term problem, and the major issues will begin to get resolved as soon as possible.
The S&P 500 Short-Term Forecast for the Week Ahead is certainly going to be based on numbers, and here is a list of the five segments that you will find to be having an impact on the U.S. equity markets. We see that many more tech stocks will do well and get close to reaching the 17,000 point level before the end of the year.