S&P 500 (SPY) Report – 12/20/23

Good morning, traders!

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

U.S. stock futures experienced a slight downturn on Wednesday, following a significant rally that concluded the year 2023. The S&P 500 futures dipped by 0.2%, mirroring a similar decline in Nasdaq 100 futures. The Dow Jones Industrial Average futures also saw a minor drop of 56 points, or 0.2%. This shift comes after a period of robust performance in the stock market.

Throughout December 2023, all three major stock indexes have been on an upward trajectory, contributing to a prosperous year for stocks. The S&P 500 has seen a 4.4% increase in December and a 24.2% rise year to date. Similarly, the Dow and Nasdaq have shown significant gains. However, Kevin Gordon from Charles Schwab warns investors against excessive enthusiasm, suggesting the possibility of a short-term market pullback.

One notable development in the market was FedEx’s 11% drop in premarket trading. This decline was triggered by the company’s disappointing revenue forecast for the fiscal year and underwhelming results for its fiscal second quarter, which fell short of Wall Street’s expectations. Despite this, the overall market trend has been positive. On Tuesday, major stock indexes like the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all experienced gains, with the Dow reaching a new record high and the Nasdaq closing above 15,000 for the first time since January 2022.

In other economic news, the focus remains on upcoming earnings reports from companies like General Mills and Micron Technology, along with key economic data releases including consumer confidence for December and existing home sales for November. Investors are also anticipating the personal consumption expenditures price index due on Friday. Meanwhile, despite signals from the Federal Reserve suggesting a cautious approach to rate cuts, the U.S. stock market continues to hold its gains, with investors seemingly optimistic about the future. The market is also keeping an eye on oil prices, especially in the context of recent events affecting trade routes in the Red Sea.

Wednesday Economic Events:
MBA Mortgage Applications 7:00am ET
Current Account 8:30am ET
Consumer Confidence 10:00am ET – High Volatility Expected
Existing Home Sales 10:00am ET – High Volatility Expected
EIA Petroleum Report 10:30am ET – High Volatility Expected
20-Yr Bond Auction 1:00pm ET

Fed Speaker Scheduled:
Austan Goolsbee

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