S&P 500 (SPY) Report – 07/20/23

Good morning traders! 

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

Stock futures trade lower on Thursday as investors evaluate the latest corporate earnings reports. Netflix shares dropped 5.5% after its Q2 earnings report showed revenue of $8.19 billion, missing the expected $8.3 billion. Tesla shares also fell by 4.1% after announcing a slowdown in vehicle production for Q3 due to factory upgrades. However, Johnson & Johnson shares rose over 1% in premarket trading after surpassing earnings expectations and raising its full-year outlook. With 77% of S&P 500 companies exceeding earnings expectations so far, there’s optimism for a soft economic landing. The Dow is on an eight-day winning streak, its longest since September 2019.

In today’s economic data releases, the labor market improved while manufacturing activity in the Philadelphia area fell more than anticipated. First-time jobless claims dropped to 228,000 for the week ending July 15, a decrease of 9,000 from the previous week, which was better than the expected 240,000. However, ongoing claims rose by 33,000 to 1.754 million, exceeding the estimated 1.73 million. Meanwhile, the Philadelphia Federal Reserve’s manufacturing index showed a -13.5 reading, worse than the expected -10. This negative figure indicates a contraction in the sector. Both new orders and shipments declined, while the prices received index increased significantly.

ThursdayEconomic Events:
Initial Jobless Claims 8:30am ET – High Volatility Expected
Philly Fed Mfg Index 8:30am ET – High Volatility Expected
Existing Home Sales 10:00am ET – High Volatility Expected
Leading Indicators 10:00am ET
EIA Natural Gas Report 10:30am ET

Fed Speaker Scheduled:
No Fed Speakers Scheduled

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