Good morning traders!
The S&P 500 ($SPY) is trading below Friday’s close. Let’s get into it…
Stock futures are trading slightly lower today, as investors and traders try to maintain their early 2023 momentum and take the most recent earnings results into consideration. The fourth quarter profit for Goldman Sachs was lower than anticipated, which caused the stock to drop by more than 2% in premarket trading. Revenue losses in investment banking and asset management weighed heavily on the bank’s earnings. Meanwhile, rival company Morgan Stanley reported better-than-expected results in part to record wealth management revenue. These results follow mixed quarterly reports from other large banks like JPMorgan and Citigroup.
Recent gains in the market are due to the release of the first batch of inflation-related data, which investors saw as signaling a slowing economy and on the assumption that it will provide the Federal Reserve with grounds to slow interest rate increases. According to Mike Wilson, chief U.S. equities strategist at Morgan Stanley, Wall Street is coming off consecutively good weeks to start the new year, but investors may have entered a hall of mirrors. “The rally this year has been led by low quality and heavily shorted stocks. However, it’s also witnessed a strong move in cyclical stocks relative to defensive ones. This move in particular is convincing investors they are missing something and must re-position,” Wilson said in a report.
Potential Intraday Resistance Levels:
1/13/23 High of Day: $399.10
Potential Intraday Support Levels:
EOD VWA: $396.79
200D SMA (30min): $394.43
Note: Moving averages are reported from the previous trading session and will change during the next trading session.
Tuesday Economic Events:
Empire State Mfg Index 8:30am ET
Fed Speaker Scheduled:
John Williams 3:00pm ET
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