Investors Looking To Global PMIs As New Year Begins

As the New Year approaches, investors are increasingly focusing on global purchasing managers' indexes (PMIs) to gauge economic activity across different regions. PMIs are vital indicators that reflect the health of the manufacturing and service sectors, providing insights into forward-looking economic trends.

Next week, investors will be analyzing purchasing managers’ data from the Institute of Supply Management (ISM) and S&P Global, which are scheduled for release on Thursday and Friday. This data will cover December and will play a crucial role in shaping market expectations as 2024 begins. Additionally, the pending home sales data for November will be unveiled on Monday, adding another layer of economic information for investors to consider.

The upcoming week is likely to be marked by lower trading volumes due to holiday influences, meaning that investors may be more sensitive to the limited economic indicators that will be published. The PMIs, in particular, are anticipated to attract significant attention, as they could signal shifts in economic momentum as different regions emerge from post-pandemic attitudes.

In the markets, several stocks are attracting interest due to their volatility. For instance, KULR Technology Group (NYSE:KULR) is exhibiting a high level of implied volatility based on options trading patterns. Meanwhile, stocks such as CervoMed (NASDAQ:CRVO) and Beyond Meat (NASDAQ:BYND) are noted for having high levels of outstanding short interest, which may indicate bearish sentiment among investors.

Regarding stock performance, the most overbought stocks highlighted by their 14-day Relative Strength Index include American Battery Technology (NASDAQ:ABAT), Hour Loop (NASDAQ:HOUR), and LightPath Tech (NASDAQ:LPTH). Conversely, Innovative Industrial (NYSE:IIPR), Inovio (INO), and GXO Logistics (NYSE:GXO) appear to be oversold, raising questions about their potential for recovery moving forward.

On the initial public offering (IPO) front, there are currently no significant IPOs expected next week.

In terms of dividends, investors should note that some prominent companies will have ex-dividend dates approaching. These include Cisco (NASDAQ:CSCO), Deere (NYSE:DE), Mondelez (NASDAQ:MDLZ), American Express (AXP), and Stryker (NYSE:SYK). Additionally, there are companies anticipated to raise their quarterly dividends, such as Alamo Group (NYSE:ALG), which is expected to increase from $0.26 to $0.28, and Bank OZK (NASDAQ:OZK), moving from $0.41 to $0.42.

As the end of the year draws near, investors will be seeking to navigate the landscape of potential investment opportunities and market movements based on the incoming economic data.

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