Here Are 7 Of The Biggest Market Catalysts Happening In January

For the stock market, the month of January assumes much significance, as it sets the trend for the rest of the calendar year. It is a general belief that if stock prices rise in January, they will continue to increase for the rest of the year.

The month will usually witness higher stock prices, which are attributed to increased buying following selloffs in December when investors exit their positions to offset realized capital gains. This phenomenon is called January Effect.

It is believed that small-cap stocks benefit more from the January Effect than large- and mid-cap stocks, as retail investors, who are predominant among the sellers in December and buyers in January, are likely to lean toward buying affordable small-cap stocks.

In addition, January is a month that is generally bound with several catalysts for various sectors, especially biotechs. This year, the month will also see the presidential inauguration.

Following is a list of seven of the biggest catalysts happening in the first month of 2017:

1. Dow set to touch 20,000 level. The event could happen at any time in January if it doesn't come through in December.
2. The annual CES event in Las Vegas is set for January 5–8. One of the biggest tech events, this could be a catalyst for many technology and chip stocks. This year, T-Mobile US Inc TMUS set to release its big “Un-carrier” announcement at the event.
3. On the macro front, Janet Yellen will be speaking for the first time post-rate raise decision, while the FOMC meeting begins on the last day of January. The market will be looking for indications for next round of rate hikes.
4. Alexion Pharmaceuticals, Inc. ALXN's long-delayed 10-Q filing deadline with NASDAQ is January 17. The company’s ongoing audit and finance committee investigation have led to the departure of CEO David Hallal and chief financial officer, Vikas Sinha.
5. Donald Trump will officially become the U.S. president on Jan 20. The market will closely watch Trump's speech and tweets for any market-moving statements.
6. The latest deadline for the Walgreens Boots Alliance Inc WBA/Rite Aid Corporation RAD merger is January 27. The consummation of deal is considered as a key catalyst for the shares of Walgreens, which operates nearly 13,000 stores globally, will add another 3,735 once it acquires Rite Aid.
7. Synergy Pharmaceuticals Inc SGYP is one of the key pharma gainers in the recent days due to its positive studies of plecanatide in constipation-predominant irritable bowel syndrome (IBS-C). Synergy has a PDUFA date for its Plecanatide drug on January 29. Meanwhile, BTIG’s Timothy Chiang says Synergy could become an attractive takeover target.