S&P 500 (SPY) Report – 01/04/24

Good morning, traders!

The S&P 500 ($SPY) is trading near yesterday’s close. Let’s get into it… 

U.S. stock futures showed a mixed response on Thursday, reflecting ongoing uncertainty on Wall Street. This situation follows a challenging trading session where the Dow lost about 300 points, the Nasdaq Composite suffered its fourth consecutive loss, and the S&P 500 also fell sharply yesterday. Notably, mega-cap tech stocks like Apple are experiencing a downturn, with Apple’s shares dropping by over 4% this week following downgrades from Piper Sandler and Barclays.

On the employment front, the labor market showed signs of resilience. The ADP report revealed stronger-than-expected job growth in December, with companies adding 164,000 jobs, surpassing the Dow Jones estimate of 130,000. The leisure and hospitality sector led the new job additions. Additionally, the pace of layoffs slowed down, with initial jobless claims dropping to 202,000, lower than expected. These figures suggest a still tight labor market, reinforcing the view of a robust employment sector.

Investors remain cautious as they interpret recent Federal Reserve minutes and await further labor market data. The Fed’s minutes indicated that while rates might decrease by the end of 2024, they could remain high for some time depending on inflation trends. This uncertainty has led to mixed responses in the stock market, with investors particularly focused on labor data, including the ADP private payrolls report and the Labor Department’s nonfarm payrolls release, which could influence the Fed’s decisions on interest rates.

Thursday Economic Events:
Challenger Job Cut 7:30am ET
ADP Employment Report 8:15am ET – High Volatility Expected
Initial Jobless Claims 8:30am ET – High Volatility Expected
S&P Global Composite 9:45am ET – High Volatility Expected
EIA Natural Gas Report 10:30am ET
EIA Petroleum Report 11:00am ET – High Volatility Expected

Fed Speaker Scheduled:
No Fed Speakers Scheduled

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