Stocks were lower yesterday ahead of the last trading day before the 3-day Christmas/Holiday weekend.

It was a busy day of economic reports yesterday.

The final estimate for Q3 GDP came in at 3.2%, up from the previous estimate of 2.9%. Personal Consumption Expenditures last quarter were also revised higher to 2.3% annualized from the previous estimate of 1.7%.

Weekly Jobless Claims rose by 2,000 to 216,000, but came in well below expectations for 225K.

Leading Indicators fell by -1.0% m/m vs. last month's pace of -0.9% and views for -0.5%.

Corporate Profits, however, were up 3.5% for Q3 vs. the same time last year.

Today we'll get Durable Goods Orders, New Home Sales, and Consumer Sentiment.

We'll also get the Personal Income and Outlays report, which gives us a look at the Personal Consumption Expenditures (PCE) Index – a favorite inflation metric used by the Fed.

After today, there's only 4 more trading days next week and for the year.

Q4 has been a much better quarter than the 3 quarters that preceded it. But December, which is typically the best month of the year, has so far been a disappointment, with all of the major indexes in the red for the month.

We still have today and next week. And technically, the so-called 'Santa Claus' rally takes place the last week of December. (Why they call it a Santa Claus rally if it usually starts after Christmas, I don't know. But maybe that's supposed to be the present for all the investors. Although, it remains to be seen if we'll indeed get a present next week or coal.

Either way, October and November were solid. And we can all be grateful for that. But it would be nice to end the year on a strong note.

Regardless of how this year ends, statistically, next year should be much better.

The 4-year Presidential Cycle shows that year 3 (that's 2023), is the best year of all 4 years. In fact, since 1950, stocks have always gone up in the year after midterms, with an average 12-month forward return of 18.6%.

Obviously, inflation, interest rates, and economic growth will be key factors driving stock prices next year. But it doesn't hurt having positive seasonals as a tailwind.

Note, the markets will be closed on Monday in Observance of Christmas.

Regular trading resumes on Tuesday.

In the meantime, have a Merry Christmas, and Happy Holidays,