Peter Berezin of BCA Research noted that, while stocks are poised to rise as 2023 wraps up, that momentum will be short-lived.

“We are approaching another phase transition from boom to bust. Investors should underweight stocks and overweight bonds on a 12-month horizon,” the firm’s chief global strategist said. “Stocks are poised to rally into year-end but will fall again in 2024 as the global recession begins.”

Berezin noted the U.S. economy is “nearing another phase transition. Labor demand is dropping, as evidenced by a shrinking jobs-workers gap.”

“If current trends prevail, the labor market will reach the flat portion of the labor supply curve by the second half of next year,” he said. “At that point, workers who lose their jobs will struggle to find new ones. Unemployment will start rising. A recession will ensue.”

— Fred Imbert

Hong Kong’s private sector activity contracted further in October as new business, including that from mainland China continues to fall, according to a survey by S&P Global.

The seasonally adjusted S&P Global Hong Kong Purchasing Manager’s Index fell to 48.9 in October from 49.6 in September. It was its lowest reading since November 2022 and marked the fourth straight month of contraction.

A PMI reading below 50 is viewed as a contraction.

S&P Global said hiring activity also decreased in Hong Kong, while input cost inflation climbed further above that of selling prices.

— Shreyashi Sanyal

Ninety percent of the entire volume of shares that changed hands on the New York Stock Exchange on Thursday advanced in price. Less than 10% declined. On the Nasdaq Stock Market, some 82% of volume was higher while less than 18% was lower in price.

Advancing stocks outnumbered declining issues by almost 9-1 on the New York Stock Exchange versus about 7-2 on the Nasdaq. Total volume of shares traded on both markets was about 15% above the past month’s daily average.

Seven of the main 11 stock sectors climbed more than the S&P 500’s 1.89% gain, led by energy and real estate (both up 3.1%), and financials (ahead 2.4%). Laggards were led by communication services (up 0.9%), consumer staples (up 1.3%) and health care (higher by 1.6%).

In addition to the boost to stocks that stemmed from retreating Treasury yields, prices were also lifted by a weaker dollar. The DXY dollar index fell 0.66% Thursday.

— Scott Schnipper

Stock futures opened lower Thursday as Apple slipped in extended trading after reporting fiscal fourth-quarter results.

Futures tied to the Nasdaq 100 fell 0.3%, while S&P 500 futures declined 0.1%. Dow Jones Industrial Average futures pulled back 8 points, or 0.02%.

— Brian Evans