S&P 500 (SPY) Report – 11/17/23

Good morning traders!

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

Stock futures trade higher this morning, as investors look to keep this month’s gains going. This growth seemed to be building on the gains made earlier in the week. The market appeared optimistic, partly influenced by developments in retail and oil prices, which suggested a slowing economy might lead to less aggressive interest rate hikes by the Federal Reserve.

Retail updates played a significant role in market perceptions. Companies like Gap, Walmart, and Target hinted at a potential decline in holiday sales, impacting their stock forecasts. Additionally, oil prices, specifically West Texas Intermediate and Brent crude futures, dropped to their lowest in months, suggesting a broader economic slowdown. This bearish trend in oil prices came just before a significant OPEC+ meeting, further influencing market sentiments.

The global market also had its impact, particularly with Chinese e-commerce giant Alibaba. The company’s decision to halt the spin-off of its cloud unit due to U.S. chip restrictions highlighted ongoing tensions between the U.S. and China. This move led to a significant drop in Alibaba’s shares in New York, erasing a substantial amount of its market value.

Despite these varied influences, the stock market seemed to maintain a positive outlook. All major U.S. indexes were heading towards weekly gains, fueled by more controlled U.S. inflation data and hopes that the Federal Reserve might soften its stance on rate hikes. This optimism was cautious, with the question remaining whether such positive sentiment could be sustained through the rest of the month, considering the gains already made in November.

Friday Economic Events:
Housing Starts and Permits 8:30am ET – High Volatility Expected
Quarterly Services Survey 10:00am ET
Baker Hughes Rig Count 1:00pm ET

Fed Speaker Scheduled:
Michael Barr 8:45am ET
Susan Collins 8:45am ET
Austan Goolsbee 9:45am ET
Mary Daly 10:00am ET
Susan Collins 10:15am ET

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