S&P 500 (SPY) Report – 05/02/24

Good morning, traders!

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

U.S. stock futures saw a notable rise on Thursday, as investors shifted their focus to upcoming corporate earnings reports and a significant labor market update. This positive movement in the futures market reflects a rebound from the previous day’s fluctuations following the Federal Reserve’s decision to maintain interest rates, which brought some relief to the financial markets.

In the corporate world, there were mixed earnings reports from major companies influencing the market dynamics. Qualcomm experienced a surge of over 5% in premarket trading due to better-than-expected earnings and strong future revenue projections. In contrast, DoorDash’s shares fell by 11% after the company reported a loss per share that was wider than analysts had anticipated. Meanwhile, Carvana’s shares skyrocketed by 38% following an announcement of its best-ever earnings, illustrating the diverse responses to corporate earnings within the market.

Federal Reserve Chair Jerome Powell’s recent comments have also played a crucial role in shaping market sentiment. Powell emphasized that the next move by the central bank is unlikely to be an interest rate hike, a stance that seems to reassure investors. Despite this, the exact timing when the Fed might start reducing borrowing costs remains unclear, keeping traders on their toes. The market’s expectations for a rate cut have now been pushed to at least September, according to futures market pricing.

As investors look ahead, their attention is particularly drawn to the earnings reports of major companies such as Apple and Amgen, which are due after Thursday’s market close. Additionally, the upcoming monthly jobs report is eagerly awaited, with Wall Street keen to assess any potential weaknesses in the robust labor market, which could influence future Fed decisions. These events are critical as they could provide deeper insights into the economic outlook and further influence market trajectories.

Thursday Economic Events:
Challenger Job Cut Report 7:30am
International Trade in Goods 8:30am
Jobless Claims 8:30am – High Volatility Expected
Productivity and Costs 8:30am
Factory Orders 10:00am
EIA Natural Gas Report 10:30am
3- and 6-Month Bill Announcement 11:00am
4-Week Bill Auction 11:00am 

Fed Speaker Scheduled:
No Fed Speakers Today

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