S&P 500 (SPY) Report – 01/18/23

Good morning traders!

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

The markets briefly extended gains on Wednesday after retail sales declined more than anticipated in December, increasing expectations for more gradual Federal Reserve interest rate increases. Another report revealed that U.S. producer prices increased less than anticipated year over year in December, supporting the idea that inflation is beginning to ease. Investors and traders are about to enter the midst of what is probably going to be a difficult fourth-quarter earnings season. Analysts have been downgrading their predictions for a rise in earnings. According to statistics from FactSet Research, the S&P 500 is predicted to post a 3.9% year-over-year fall in earnings for the fourth quarter. If this prediction comes true, this would be the first earnings decline for the index since late 2020.

In the news, a sudden decision by the Bank of Japan is a small taste of the volatility the dollar is expected to see this year. On Wednesday, when many economists expected a hike, the BOJ maintained its restriction on the yield on 10-year government bonds at 0.5%, keeping longer-term interest rates low. The yen dropped following the news.

Potential Intraday Resistance Levels:
1/17/23 High of Day: $400.23

Potential Intraday Support Levels:
EOD VWAP: $398.19

Note: Moving averages are reported from the previous trading session and will change during the next trading session. 

Wednesday Economic Events:
MBA Mortgage Applications 7:00am ET
PPI-Final 8:30am ET – High Volatility Expected
Retail Sales 8:30am ET – High Volatility Expected
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:
Raphael Bostic 9:00am ET
James Bullard 9:30Am ET
Esther George 1:00pm ET
Patrick Harker 2:00pm ET
Patrick Harker 3:15pm ET
Lorrie Logan 5:00pm ET

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