With a brutal year for the stock market drawing to a close, investors may be showing renewed interest in their investments as they look to take action in 2023.
Google searches for “Dow Jones” have increased over the past month (chart below), according to findings compiled by DataTrek Research. The Dow Jones Industrial Average is often regarded as the most widely used metric for stocks by the average American household.
However, DataTrek noted that “Dow Jones” inquiries are still down 18% from the week of the June low in markets, underscoring how pressured stock prices have caused many investors to bury their heads in the dark. sand.
To be sure, investors showing interest in the stock market are once again facing a series of headwinds that make it difficult to take action of any kind.
The Dow Jones Industrial Average (^DJI), S&P 500 (^GSPC), and Nasdaq Composite (^IXIC) remain mired in double-digit percentage declines for the year as the Federal Reserve aggressively raises interest rates to make push back inflation. A stronger US dollar has also weighed on sentiment, culminating in sales warnings from majors like Nike and FedEx.
The tone in the markets may not improve much towards the end of the year as companies use the upcoming earnings season to warn of future economic growth and stubbornly high costs.
Wall Street analysts expect 3% year over year growth in earnings per share for S&P 500 companies for the third quarter, sales growth of 13%, and margin contraction of 75 basis points to 11.8%. , according to data prepared by Goldman Sachs. Just a few months ago, analysts were anticipating 10% growth in earnings per share for the third quarter of S&P 500 companies.
Excluding the energy sector (which has posted triple-digit earnings growth), earnings per share are expected to fall 3% and margins are projected to contract by 132 basis points.
The negative backdrop raises an interesting question.
Are investors showing renewed interest in stocks to buy on the pullback? Or are they doing research to find out the best way to limit losses and get out?
“I think interest is how to get out,” TheStreet founder Jim Cramer (below) tweeted me.
brian sozzi is a general editor and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and in LinkedIn.
Click here for the latest stock market news and in-depth analysis, including events that move stocks.
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app to Apple either Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, flip board, LinkedInY Youtube