S&P 500 (SPY) Report – 10/24/23

Good morning traders!

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

On Tuesday, stock futures exhibited a positive trend, with the Dow Jones Industrial Average futures increasing by nearly 0.5% and both the S&P 500 and Nasdaq 100 futures rising by around 0.6%. This movement indicates a potential rebound from Monday’s losses. The surge comes in anticipation of forthcoming earnings reports from tech behemoths and other leading firms. Notably, the Nasdaq’s uptick precedes expected results from tech giants Microsoft and Alphabet.

Fluctuations in the bond market, particularly the benchmark 10-year Treasury yield, have added a layer of uncertainty to financial markets. After achieving its highest level since 2007 at over 5% on Monday, the 10-year yield demonstrated its volatility by retracting to 4.86% on Tuesday. Such erratic movements have cast doubt on the Federal Reserve’s forthcoming decisions on interest rates, leading to discussions about potential rate hikes and their impacts on stocks.

Corporate earnings remain a focal point for investors. General Motors made headlines by withdrawing its 2023 profit forecast due to increased costs associated with UAW strikes. In a pleasant turn of events, Spotify reported profits, defying prior predictions of a loss. However, much attention is concentrated on Alphabet and Microsoft, with expectations of significant quarterly revenue growth, especially considering the potential influence of advancements in artificial intelligence on their earnings.

In addition to the buzz around corporate earnings, the financial scene is bracing for key economic data releases. Thursday will reveal the initial estimate for the third-quarter GDP growth, anticipated to surpass 4% owing to a spike in consumer expenditure. Meanwhile, Friday’s data will unveil September’s core PCE price index, the Federal Reserve’s main inflation metric, which is predicted to see a 0.3% hike after three months of stability.

Tuesday Economic Events:
Redbook Sales 8:55am ET
PMI Composite Flash 9:45am ET – High Volatility Expected
Richmond Fed Mfg Index 10:00am ET
Money Supply 1:00pm ET
API Crude Oil Data 4:30pm ET

Fed Speaker Scheduled:
No Fed Speakers Scheduled

 

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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