S&P 500 (SPY) Report – 04/21/23

Good morning traders!

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

Stock futures were mixed in pre-market trading Friday morning as investors reviewed the last batch of corporate earnings for the week. Procter & Gamble raised its forecast for 2023 sales growth, while oil futures stabilized and Brent Crude prices remained steady. Stocks closed lower on Thursday due to weaker-than-expected quarterly profits at Tesla, mixed earnings data, and soft housing and job figures. Cleveland Fed President Loretta Mester said interest rates need to increase above 5% due to stubborn inflation. The markets are pricing in an 84% chance of a 25-basis-point rate hike at the next FOMC meeting, but some analysts think the softness of this week’s data argues for a more dovish hike. The Purchasing Managers’ Index is expected to be released at 9:45 a.m. ET today..

In recent reports, the number of people filing for unemployment benefits for the first time in the past week was higher than expected at 245k, according to the Initial Jobless Claims report. This suggests continued economic challenges, which are also reflected in the recent comments from Cleveland and Philadelphia Fed presidents. Loretta Mester expects the fed funds rate to rise above 5% to reach the inflation goal of 2%. She also predicts the unemployment rate to increase to between 4.5% and 4.75%, with inflation easing to 3.75% this year and reaching the 2% target in 2025. The next FOMC meeting is scheduled for May 2-3.

Trade Ideas:
As the week ends, we recommend trading with caution today. The $SPY closed weak yesterday, which could potentially lead to further selling. However, it is important to note that the S&P is currently trading near recent support levels. At DailyBubble, we maintain a neutral stance on how the markets will perform today.

Friday Economic Events:
PMI Composite Flash 9:45am ET – High Volatility Expected
Baker Hughes Rig Count 1:00pm ET

Fed Speaker Scheduled:
Lisa Cook 4:35pm 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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