S&P 500 (SPY) Report – 01/24/24

Good morning, traders!

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

The S&P 500 continued its record-setting rally, reflecting the health of corporate America and the economy. The index reached a new closing high of 4,864, with Consumer Staples and Communications Services showing significant gains. In contrast, the Dow Jones Industrial Average experienced a slight decline following a disappointing profit outlook from 3M. Meanwhile, positive earnings forecasts from companies like United Airlines, which saw a 5% increase in its shares, influenced market trends.

Earnings reports remain a central focus, with over 70% of the S&P 500 companies that have reported thus far surpassing Wall Street expectations. Key reports from companies like Tesla, Las Vegas Sands, and IBM are anticipated. Moreover, the economic outlook is influenced by data on gross domestic product and personal consumption expenditures, with Wall Street showing optimism ahead of these releases.

Netflix emerged as a focal point in the market, announcing a significant deal with TKO Group’s WWE and reporting a substantial increase in subscribers. This news drove a 10% surge in Netflix’s premarket shares and contributed to the S&P 500 reaching new heights. The streaming giant’s success is part of a broader trend of strong performance by major tech companies in 2024, further propelling the bull market.

However, not all news was positive, as some companies like AT&T and Dupont De Nemours reported lower-than-expected earnings, causing their stock prices to fall. Despite these individual setbacks and predictions of weaker overall earnings per share for the S&P 500, the market has rallied, partly in anticipation of potential interest rate cuts by the Federal Reserve. These cuts could stimulate the economy and ease financial pressures, contributing to the market’s overall optimism.

Wednesday Economic Events:
MBA Mortgage Applications 7:00am ET
PMI Composite Flash 9:45am ET – High Volatility Expected
EIA Petroleum Report 10:30am ET – High Volatility Expected
5-Yr Note Auction 1:00pm ET

Fed Speaker Scheduled:
No Fed Speakers Scheduled

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