The first week of the new year will be a busy one with December’s jobs report due on Friday and many investors may be looking to repair their portfolios following the year’s plunge. 2022. After a negative year, the worst losers in the stock market could be the winners next year. Investors may already be hunting for bargains in sectors that have suffered the most — technology and consumer discretionary goods, for example. The good news for investors is that the market as a whole is 81% higher in the 12 months following a year of decline, according to the CFRA. Sam Stovall, chief investment strategist at CFRA, said: “Historically recommends pivoting from ‘first to worst’ by exiting defensive groups that are best able to withstand a downturn. . ended 2022 with its worst loss since 2008. The S&P 500 index closed at 3,839.50, down 19.4% for the year, even as it gained more than 7.1% in the fourth quarter. The numbers were slightly negative in the final week of the year but fell 5.9% in December. Nasdaq was far worse, with a 33% drop for the year.What to see Friday’s jobs report was one of two big events. on the market calendar next week The Federal Reserve releases the minutes of its December meeting on Wednesday at 2 p.m. and investors will be hoping for clues about the size of the next rate hike. follow and intend h in its future. The jobs report is important because it is the last jobs report the Fed will look at before its next meeting, Feb. 1. After the 50 basis point rally in December, many investors are now looking to earn a 25 basis point gain in February. One basis point is equal to 0.01 of a percentage point. CNBC Pro’s 2023 Investment Guide Here’s how the US economy can come out of recession in 2023. Oil is expected to continue to fluctuate in 2023, but prices could depend on China National reopening Top Wall Street strategists see a bumpy 2023 ahead with minimal returns on equities Economists expect 217,500 jobs created in December, compared with 263,000 in November, according to Dow Jones. The unemployment rate is expected to hold at 3.7% and average hourly wages are expected to increase by 0.4%. “It will be interesting to see how the market interprets the jobs report as either too hot or too cold,” said Julian Emanuel, head of quantitative, derivatives and equity research at Evercore ISI. “Very likely, good news will continue to be bad news for the stock market as the Fed is fully focused on cooling down the labor market.” Economists predict the job market will start to slow, and many expect to see negative numbers at some point next year. The labor market remains strong, even as the Fed raised its federal funds rate target rate in the range seven times since March. “Our view is that in the next month or two, a spike in layoff announcements is likely to face a significant increase in claims for unemployment benefits,” said Emanuel. . that you have never seen,” said Emanuel. “Maybe part of this is because this wave of layoffs has so far been very office-oriented, so there have been severance packages instead of ‘see you later’.” History as a guide Before 2022, the S&P 500 was negative for 21 years from 1945 and higher about 4/5 times a year thereafter. The average increase in the following year was 14.2%. But when the losses are larger – the double-digit drop – the gains are not as great. “Back in World War II, there were 12 double-digit market declines,” said Sam Stovall, director of investment strategy at CFRA. “Over the next year, the market went up 7.8%.” It went up 73% of the time. In all the years since 1945, the S&P 500 has averaged 8.6% and is up 70% during that time. After each decline in the past 31 years, the four worst performing sectors in the negative year have grown by 14.8% on average over the next 12 months, and they beat the market 56% of the time, Stovall said. [S & P data on sectors begins in 1991.] But the four areas that outperformed in the down years continued to grow, posting an average 11.6 percent gain in the new year. However, those sectors only beat the market 22% of the time. The worst major S&P sector in 2022 was media services, down 40.4% at Thursday’s close. That sector includes internet companies like Meta Platforms, which are down more than 65% on the year. Followed by non-essential consumer goods, down 37.6%. That includes retailers and Amazon, which fell about 50% in 2022. Technology was the third worst industry, down 28.9% and real estate down 28.4%. Next Week Calendar Monday New Year Holiday Markets Closed Tuesday 9:45 a.m. S&P Global Manufacturing PMI [December] 10 am Construction cost [November] Wednesday Car sales for December 10 ISM production [December] 10 am [November] 2pm FOMC Thursday 8:15am ADP Payroll Data [December] 8:30 a.m. Initial Weekly Unemployment Claims 8:30 a.m. International Trade [November] 9:20 a.m. Atlanta Fed President Raphael Bostic 9:45 a.m. S&P Global Services PMI [December] 1:20 p.m. St. Louis President James Bullard Friday 8:30 a.m. Employment Report [December] 10 a.m. ISM service [December] 10 a.m. Factory Orders [November] 11:15 am Fed Governor Lisa Cook 11:15 am Atlanta Fed President Bostic 12:15 pm Richmond Fed President Tom Barkin 3:30 pm Atlanta Fed President Bostic