S&P 500 (SPY) Report – 11/10/23

Good morning traders!

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

US stock futures show mixed performances this morning, with S&P 500 futures showing little change and the Dow Jones futures slightly up. However, the market is facing challenges, as seen in the significant declines of companies like Trade Desk and Plug Power. This comes after a period of gains, with the S&P 500 recently ending an eight-day winning streak, and the Nasdaq and Dow also experiencing drops.

Federal Reserve Chair Jerome Powell’s recent comments have impacted the market. He expressed uncertainty about the Fed’s efforts in controlling inflation, emphasizing the goal to stabilize it at 2 percent over time. This statement, along with rising bond yields, has put pressure on stocks. Investors, like Kevin Simpson of Capital Wealth Planning, are adjusting their strategies to accommodate expectations of higher interest rates lasting until at least 2025.

In the oil sector, prices have shown a slight increase, but overall, they are down for the week. This decline is attributed to a decrease in demand and easing tensions in the Middle East. Brent crude and West Texas Intermediate have both seen rises in prices, but they are still down by 5% for the week. Analysts at Citibank anticipate price stabilization, despite the recent sell-off and existing risks in the market.

In the news, China’s largest chipmaker, SMIC, is facing significant financial challenges, with an 80% drop in third-quarter profit. This downturn is attributed to a global demand weakness, impacting the semiconductor industry. SMIC’s revenue and net income have fallen sharply, underperforming analysts’ expectations and leading to a drop in its Hong Kong-listed shares. This highlights the broader challenges faced by the semiconductor industry in the current economic climate.

Friday Economic Events:
Consumer Sentiment 10:00am ET
Inflation Expectations 10:00am ET
Baker Hughes Rig Count 1:00pm ET
Treasury Statement 2:00pm ET

Fed Speaker Scheduled:
Lorie Logan 7:30am ET
Raphael Bostic 9:00am ET
Raphael Bostic 3:30pm ET

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