S&P 500 (SPY) Report – 10/12/23

Good morning traders!

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

This morning, stock futures experienced a modest uptick as investors analyzed the consumer inflation report, a key determinant that could sway the Federal Reserve’s stance on tweaking interest rates. The buzzing anticipation hovers around the likelihood of an impending rate hike or its retention. The unveiled data illustrated that despite a steady inflation rate in September, there was a slight acceleration beyond what economists had forecasted. The report underscored a 3.7% ascent in consumer prices when compared with the figures from last September, echoing the inflation trajectory of August. Furthermore, a notable 0.4% increment was observed in consumer prices on a month-over-month basis.

Moreover, the minutes from the Federal Reserve’s latest meeting showcased a consensus among most policymakers for possibly one more interest-rate hike within the year. However, they emphasized that actual economic data would guide their final decisions. Concurrently, the third-quarter earnings season kicked off, starting with reports from Delta and Walgreens, with significant bank results awaited on Friday. While earnings growth is predicted to be subdued, there’s a sentiment that the low expectations might lead to some positive surprises. In other developments, the unity between Russia and Saudi Arabia helped oil prices recover, pushing crude oil futures above $84 a barrel, amidst a delicate market mood due to escalating tensions in the Middle East.

Yesterday, major US stock indexes marked their fourth consecutive winning session. This positive stride came despite the release of higher-than-anticipated wholesale inflation data, which seemed to have a minimal impact on investor sentiment. The resilience of the stock market portrays a level of investor confidence amidst fluctuating economic indicators.

Thursday Economic Events:
CPI 8:30am ET – High Volatility Expected
Jobless Claims 8:30am ET – High Volatility Expected
EIA Natural Gas Report 10:30am ET
EIA Petroleum Report 11:00am ET – High Volatility Expected
Treasury Statement 2:00pm ET

Fed Speaker Scheduled:
Raphael Bostic 1:00pm ET
Susan Collins 4:00pm ET

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