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Stock futures inched higher Tuesday evening after Wall Street started 2023 on a sour note.
Futures tied to the Dow Jones Industrial Average rose 0.04%, or 14 points, while S&P 500 and Nasdaq 100 futures traded flat rose 0.08% and 0.2%, respectively.
The overnight moves followed a down session for stocks as rising rate concerns, high inflation and recessionary fears crushed hopes that Wall Street could kick off the new year on a positive note.
During regular trading Tuesday, the Nasdaq shed 0.76%, while the Dow Jones Industrial Average and S&P 500 dipped 0.03% and 0.4%, respectively. Shares of Tesla plummeted more than 12% on delivery numbers that missed expectations, while Apple fell 3.7% on reports of production cuts.
Six of the 11 major S&P sectors closed lower, led to the downside by energy. The sector was the best performer in 2022 as oil prices boosted energy stocks. Communication services gained about 1.4%, led to the upside by Meta Platforms and Walt Disney.
"U.S. stocks were unable to hold onto earlier gains as restrictive policy and recession fears remained front and center for investors," wrote Oanda's senior market analyst Ed Moya in a note to clients Tuesday. "Discount buying triggered another bear market rebound that didn't last long at all."
Many investors have been hoping the market would bounce back after the major averages notched their worst year since 2008. The Federal Reserve and its tightening plan hang over markets in the near term, along with fears of a looming recession.
Investors will gain more insight into what Fed members are thinking on Wednesday afternoon as minutes from the central bank's latest policy meeting are released. Earlier in the day, the Job Openings and Labor Turnover Survey, or JOLTS, and ISM manufacturing data are due out.
Friday's December jobs report also will be closely watched as it is the last read on the labor market before the Fed meeting in February.
"It is too early to start betting on a Fed pivot this year and that should make this difficult environment for stocks," Moya said.
Stock markets endured a horrible 2022 as major indexes clocked their worst performances in more than a decade.
As market pros warn investors of bumpy times ahead, CNBC Pro used FactSet data to screen for low-volatility stocks that not only beat the market in 2022 but are expected to rise further this year.
Pro subscribers can read more here.
— Zavier Ong
The once-hot chip sector suffered in 2022, but Wall Street looks to be turning more optimistic on semiconductor stocks for the year ahead.
Recently, several pros have urged investors to take a longer-term view on the sector, given the importance of chips in several key secular trends.
Analysts named one stock in particular they're bullish on, citing its earnings potential and future profitability.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Shares of Alibaba listed in Hong Kong rose 7.11% in Wednesday's morning trade – after China's Banking and Insurance Regulatory Commission approved a plan for Ant Group's capital expansion plan for its consumer financial unit based in Chongqing.
According to a notice posted last week, Chinese regulators gave the greenlight to billionaire Jack Ma's financial technology firm to raise 10.5 billion yuan ($1.5 billion).
Ant Group is an affiliate of Alibaba in which the e-commerce giant owns 33%. Ant Group runs the Alipay mobile payments wallet in China. Alibaba's shares rose 2.78% on Tuesday, the first trading session after the notice was posted.
Other companies named in the notice included Hangzhou Jintou Digital Technology Group, Nanyang Commercial Bank, Zhejiang Sunny Optical and China Huarong Asset management.
The approval marks progress in the state-led regulatory overhaul of the fintech giant.
– Jihye Lee, Evelyn Cheng
Don't be surprised if software stocks outperform in 2023, according to Trivariate Research's Adam Parker.
"I'll bet you the software index beats the S&P 500 in 2023, and I think it's because the Fed will start getting less hawkish — maybe even dovish by year end — and that will be good for multiples," he told CNBC's "Closing Bell: Overtime" on Tuesday.
Software stocks suffered in 2022 as growth tumbled in the wake of rising interest rates. After this reset, Parker said he sees "tons" of stock opportunities in the $3 billion to $20 billion market cap range, down 80% and projected to improve productivity going forward.
"The numbers have been reset massively from where we were, and so, I just think the risk-reward is getting from horrendous a year ago to not terrible," he said.
— Samantha Subin
Apple and Amazon were biggest losers of market cap in 2022, shedding $846.34 billion and $834.06 billion in market cap, respectively.
The value shed by each of the two companies overshadows the total size of some other popular tech stocks, with Bespoke Investment Group calling the numbers "staggering" in a tweet.
Broken down, Amazon's market cap losses alone equates to 10 PayPals and 49 Rivians. Read more on the sheer size of Apple and Amazon's losses and what that means in relation to other companies here.
— Alex Harring, Samantha Subin
Stock futures opened slightly lower in overnight trading Tuesday.
Futures tied to the Dow Jones Industrial Average slipped 0.14%, or 48 points, while S&P 500 and Nasdaq 100 futures dipped 0.14% and 0.13%, respectively.
— Samantha Subin
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