S&P 500 (SPY) Report – 01/17/24
Good morning, traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
U.S. stock futures decline on Wednesday, suggesting that Wall Street might extend its losses from the previous session. Futures tied to major indexes such as the Dow Jones Industrial Average, S&P 500, and Nasdaq-100 showed decreases of 0.5%, 0.6%, and 0.9%, respectively. This downward trend comes as investors assess various economic indicators and their potential impact on future financial policies.
December’s retail sales data exceeded expectations, showing a 0.6% rise from November, and a 0.4% increase excluding auto sales. This robust consumer spending casts doubt on the possibility of significant rate cuts by the Federal Reserve. Meanwhile, the 10-year Treasury yield continues to climb, reflecting comments by Federal Reserve Governor Christopher Waller, who suggested that any easing of monetary policy might be slower than expected. Additionally, European Central Bank President Christine Lagarde indicated potential rate cuts later in the year, emphasizing a data-dependent approach.
The market is also reacting to mixed signals regarding future interest rate cuts, with the CME Group’s FedWatch tool indicating a 60% chance of the Federal Reserve starting rate cuts in March. Moreover, traders are weighing the implications of weaker-than-expected GDP data from China. In the corporate sphere, earnings reports are in focus. Companies like Charles Schwab and US Bancorp reported mixed financial results, affecting their stock prices in premarket trading. Jeffrey Buchbinder, chief equity strategist at LPL Financial, emphasized the importance of earnings in setting the market tone for 2024.
Investors are grappling with various global economic challenges. China’s disappointing GDP data and concerns over its economic growth have added to market uncertainties. Oil prices have also declined due to worries about reduced demand from China. Looking ahead, investors are focusing on upcoming quarterly earnings reports and economic data, including the December retail sales report and comments from Federal Reserve officials, to gauge the direction of market trends and monetary policy decisions.
Wednesday Economic Events:
MBA Mortgage Applications 7:00am ET
Retail Sales 8:30am ET – High Volatility Expected
Import and Export Prices 8:30am ET
Redbook Sales 8:55am ET
Industrial Production 9:15am ET
Business Inventories 10:00am ET
Housing Market Index 10:00am ET
Beige Book 2:00pm ET
Fed Speaker Scheduled:
Christopher Waller 11:00am ET
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