S&P 500 (SPY) Report – 01/25/24

Good morning, traders!

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

US stock futures experienced modest gains this morning, as investors evaluate new economic growth data and the latest earnings reports. This uptick reflects ongoing economic growth despite various challenges. The broader economic landscape provided a positive backdrop, with more than 16% of S&P 500 companies exceeding Wall Street’s financial expectations this earnings season. The U.S. economy demonstrated robust growth, expanding by 3.3% in the fourth quarter, significantly outpacing the 2% growth predicted by economists. This strong economic performance comes amid expectations of possible Federal Reserve rate cuts later in the year.

However, not all companies fared well in this optimistic market environment. Tesla’s stock plummeted nearly 9% in premarket trading after the electric vehicle giant reported lower-than-expected fourth-quarter results and projected slower vehicle volume growth for 2024. In contrast, IBM’s shares surged over 6% following their earnings report, which exceeded analysts’ expectations. The airline sector also saw varied movements; American Airlines’ shares grew by more than 4%, while Southwest and Alaska Airlines each advanced by over 1%.

Despite these positive indicators, some uncertainties remain in the market. Tesla’s underwhelming performance and concerns over slower electric vehicle production growth weighed on investor sentiment. Additionally, the Federal Aviation Administration’s directive to Boeing to halt production increases on its 737 Max 9 jets due to a door plug flaw could spell further disruptions. Investors continue to closely monitor these developments, along with upcoming earnings reports from major companies like Intel and various airlines, to gauge the market’s direction.

Wednesday Economic Events:
Durable Goods Orders 8:30am ET – High Volatility Expected
GDP 8:30am ET – High Volatility Expected
International Trade 8:30am ET
Jobless Claims 8:30am ET – High Volatility Expected
Wholesale Inventories 10:00am ET
New Home Sales 10:00am ET – High Volatility Expected
EIA Natural Gas Report 10:30am ET
7-Yr Note Auction 1:00pm ET

Fed Speaker Scheduled:
No Fed Speakers Scheduled

 

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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