S&P 500 (SPY) Report – 01/31/24
Good morning, traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
U.S. stock futures experienced mixed movements this morning, influenced by tech company performances and anticipation of the Federal Reserve’s interest rate decision. Nasdaq-100 futures fell by 0.9%, impacted by disappointing ad revenue from Alphabet, despite the company beating overall earnings expectations. Microsoft also saw a modest decline after their earnings report. This trend reflects a short-term reaction, as investors might be selling to secure profits despite good results.
Tech companies, having driven the market rally through 2023 and into 2024, now face high valuation pressures. The tech sector trades at nearly 29 times its 2024 earnings, which implies that these companies need to show earnings growth to justify their high price-to-book levels. Investors are shifting focus from just high valuations to demanding actual earnings improvements.
The Federal Reserve’s interest rate decision was a key focus for investors. The market largely expected the Fed to maintain rates at current levels, but there was interest in any indications of future rate cuts. The general expectation was that the Fed would adopt a cautious approach to rate cutting, aiming to avoid past mistakes of being too aggressive with rate reductions.
Other significant news affecting the stock market includes the mixed performance of the S&P 500 and the Dow Jones Industrial Average, and the anticipation of earnings reports from other tech giants like Apple, Amazon, and Meta. Additionally, the ADP employment report showed a lower-than-expected increase in private jobs for January, suggesting a slowing in wage growth for job switchers, an important factor in the post-lockdown job market.
Wednesday Economic Events:
MBA Mortgage Applications 7:00am ET
ADP Employment Report 8:15am ET – High Volatility Expected
Employment Cost Index 8:30am ET
Treasury Refunding 8:30am ET
Chicago PMI 9:45am ET – High Volatility Expected
EIA Petroleum Report 10:30am ET – High Volatility Expected
Farm Prices 3:00pm ET
Fed Speaker Scheduled:
FOMC Announcement 2:00pm ET – High Volatility Expected
Fed Chair Press Conference 2:30pm ET – High Volatility Expected
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.
Normally I do not read article on blogs however I would like to say that this writeup very forced me to try and do so Your writing style has been amazed me Thanks quite great post
I loved as much as youll receive carried out right here The sketch is attractive your authored material stylish nonetheless you command get bought an nervousness over that you wish be delivering the following unwell unquestionably come more formerly again as exactly the same nearly a lot often inside case you shield this hike
Ive read several just right stuff here Certainly price bookmarking for revisiting I wonder how a lot effort you place to create this kind of great informative website
I’m a fresh fan of this primo website serving up choice content. The creative owner clearly has got the magic touch keeping visitors plugged in. I’m jazzed to be aboard and looking forward to more dynamite content!
I’m often to blogging and i really appreciate your content. The article has actually peaks my interest. I’m going to bookmark your web site and maintain checking for brand spanking new information.