S&P 500 (SPY) Report – 07/17/23

Good morning traders! 

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

Stock futures fell slightly on Monday in anticipation of a busy week for corporate earnings. Last week, the Dow Jones Industrial Average had its best weekly gain since March, increasing by 2.3%. The S&P 500 and Nasdaq Composite also rose, by 2.4% and 3.3% respectively. This positive trend was driven by strong earnings from big banks and lower inflation reports, which boosted investor confidence and raised hopes that the Federal Reserve could control inflation without causing a recession.

The second quarter earnings season continues this week with results expected from major financial institutions like Bank of America, Morgan Stanley, and Goldman Sachs, as well as from United Airlines, Las Vegas Sands, Tesla, and Netflix. However, Wall Street is preparing for a potentially disappointing season with lower profits. Analysts are predicting a more than 7% drop in S&P 500 earnings compared to last year, according to FactSet.

This week also marks the start of the Fed’s “blackout period” before its July policy meeting. Traders are predicting a nearly 97% chance that the central bank will raise interest rates later this month, following a pause in hikes in June.

Monday Economic Events:
Empire State Mfg Index 8:30am ET

Fed Speaker Scheduled:
No Fed Speakers Scheduled

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