Market Analytics and Considerations
Key Notes
As traders came back again from long holiday weekend and awaited more corporate earnings releases, U.S. stock futures dipped on Tuesday
Nasdaq 100 futures NQ00, -0.48percent ) of the respondents sank 48 points, or 0.4%, to 11561 S&P 500 futures ES00, -0.37percent fell 12 points, or 0.3%, at 4006 Dow Jones Industrial Average futures YM00, -0.26% dropped 76 points, or 0.2%, to 34340
The S&P 500 SPX, +0.40percent grew 16 points, or 0.4%, to 3999 on Friday. The Nasdaq Composite COMP, +0.71percent climbed 78 points, or 0.71%, to 11079. The Dow Jones Industrial Average DJIA, +0.33% jumped 113 points, or 0.33%, to 34303. For the Martin Luther King Jr. holidays, marketplaces were closed on Monday.
What is fueling the markets
As American investors got back from a lengthy weekend, the year’s solid start started to lose some of its luster.
During the first 2 weeks of 2023, the S&P 500 increased 4.2 percent with investor confidence supported by expectations that declining inflation will lessen the requirement for the Federal Reserve to raise borrowing prices significantly.
The year has off to a solid start for the markets.
Although this may be a precursor to a long-term uptrend, a rise of this nature within the first two weeks after a challenging year isn’t unusual.
The difficulty spikes in the 3rd week of the calendar year after a -10percentage – point year, though. When the first 2 weeks are positive, as they are presently, the median week 3 return is -1.03%, negative 7 out of ten times, while the typical week 3 back is -0.63percentage points following -10percent annual years.
As the 4th quarter earnings cycle gathers up steam, the market’s attention may temporarily shift away from economic fundamentals like perceptions of the Fed’s monetary track and toward the microeconomic.
Goldman Sachs GS, +1.10 percent of the respondents and Morgan Stanley MS, +1.25percent are 2 businesses who will be releasing their reports on Tuesday. S&P Global Market Intelligence expects a 2.3% decline in the fourth quarter’s overall earnings for the S&P 500.
Tuesday’s U.S. economic reports would include Empire State Manufacturing Index, which will be announced at 8:30 a.m. Est.
