S&P 500 (SPY) Report – 01/18/24

Good morning, traders!

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

U.S. stock futures showed signs of recovery on Thursday, indicating a potential rebound from the recent downward trend in the market. Futures linked to major indices such as the S&P 500, Nasdaq-100, and Dow Jones Industrial Average displayed mixed performances, with the S&P 500 and Nasdaq-100 futures rising by 0.5% and 0.9% respectively, while Dow Jones futures dipped slightly by 0.1%. Notably, Apple shares surged over 2% in premarket trading after Bank of America upgraded its rating to buy, predicting significant growth in the next year. This uptick comes amidst Wall Street’s struggle with consecutive losing sessions across major averages.

The market’s recent performance has been influenced by various economic indicators. One key factor is the rise in Treasury yields, reflecting concerns about the labor market’s strength. The 10-year Treasury yield surpassed 4.1%, a reaction to new jobs data showing a tighter labor market, with unemployment claims dropping unexpectedly. This robust labor and retail data raises doubts about the likelihood of rate cuts from the Federal Reserve, with market predictions now leaning towards a less aggressive rate cut strategy.

Amidst these economic developments, investor sentiment is cautious. Experts like Chris Toomey from Morgan Stanley express concerns about the market’s over-reaction to Federal Reserve policies and the potential for increased selling pressure if interest rates climb. This sentiment is mirrored in the market’s response to company-specific news, such as Discover’s shares dropping 8% in premarket trading due to an increase in its net charge-off rate, despite exceeding revenue estimates.

The focus now shifts to upcoming economic reports and statements from Federal Reserve officials, which could provide further insights into the central bank’s policy direction. Investors are particularly attentive to the latest jobless claims data, housing starts, and building permits, seeking clues about the economy’s health and the Fed’s potential response. This heightened interest also extends to comments from Atlanta Fed President Raphael Bostic, whose perspectives might offer additional guidance on the Fed’s rate-cutting stance.

Thursday Economic Events:
Housing Starts and Permits 8:30am ET
Jobless Claims 8:30am ET – High Volatility Expected
Philly Fed Mfg Index 8:30am ET – High Volatility Expected
EIA Natural Gas Report 10:30am ET
EIA Petroleum Report 11:00am ET – High Volatility Expected
10-Yr TIPS Auction 1:00pm ET

Fed Speaker Scheduled:
Raphael Bostic 7:30am ET
Raphael Bostic 12:05pm ET

 

DailyBubble’s Disclaimer
This article provided by the DailyBubble team should only be considered as informational and/or entertainment by the reader. DailyBubble makes no representation to buy or sell any security or financial instrument within the article. Readers seeking investment advice should seek independent financial advice from a professional, and independently research and verify. The DailyBubble team wrote this article and may express its own opinions therein.

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Donald J. Trump
Donald J. Trump
5 months ago

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