The new trading day is going to be volatile. Wall Street investors are wavering between optimism and pessimism, unable to clear up sentiment due to mixed factors. InstaForex analysts have already assessed all risks and opportunities. The New York session on Wednesday created confusion on Wall Street. As expected, the benchmark stock indices were subdued by glitch consequences and negative corporate news. The Dow Jones again was the only in dex to close a bit higher. It rose just 9 points or 0.03% to close almost flat. The Nasdaq shed 0.18% or 20 points. The S&P 500 inched down by 0.02% to close at 4,016.
The major indices opened on Thursday on an optimistic note. The benefactor of intraday optimism was Tesla whose stock jumped by more than 7%. This enabled stocks of other top companies to regain their footing. Futures on Wall Street indices went up in sync. The stock indices traded higher before the publication of crucial economic data. The S&P 500 is expected to trade in the corridor between 3,970 and 4,090.
The three stock indices rebounded in the second half of the day and closed far from their intraday lows. The reasons behind pessimism yesterday were a corporate report by Microsoft, a failure in its cloud services, and concern fueled by a glitch on the New York Stock Exchange.
Later yesterday, Wall Street was inspired by other high-tech giants, Tesla and IBM.

The report by Tesla showed that sharp price cuts boosted demand for its e-cars. Besides, Elon Musk tried to dispel fears that the ailing economy will weaken demand for e-vehicles.

The company’s revenue and income surpassed Wall Street forecasts despite a steep decline in production costs. According to Refinitiv, Tesla’s revenue in the final quarter of 2022 equaled 24.32 billion dollars, higher than the expected 24.16 billion dollars.

Elon Musk did not achieve his ambitious goals of car sales in recent years. He said that car deliveries could be as high as 2 million cars in 2023 unless there are no bottlenecks. He also expects a tough recession this year, but demand for Tesla cars will be strong despite some contraction in the car market.

Tesla shares logged a slump last year due to worries about demand and the Twitter takeover deal. The quarterly results helped the shares to recover by 7% intraday.

IBM also revealed upbeat financial records. The company reported the strongest annual revenue in a decade by 5.5%. According to Refinitiv, the total income stood at 16.69 billion dollars, more than the median forecast of 16.40 billion.

IBM announced that it had fired 3,900 employees. Its shares dropped by 2%, having erased previous gains.

All in all, 5 from the 11 sectors in the S&P 500 closed in the red yesterday. The utility sector incurred the heaviest losses.

Today, market participants are focused on the preliminary US GDP data for the fourth quarter. The US economy grew by 2.9% sequentially in the final quarter following a 3.2% increase in the third quarter. The reading is stronger than the forecast for a 2.6% growth. The US economic output expanded by 2.1% for the whole of 2022 following a 5.9% expansion in 2021.

The US economy retained a decent pace of growth in the fourth quarter because of robust consumer activity. Nevertheless, it could be the last positive and upbeat quarterly report because recent macroeconomic data indicates that the US economy has been losing momentum.

For example, retail sales fell sharply in the last two months. The manufacturing sector and the housing market are losing steam. On the plus side, durable goods orders came in beyond market expectations.The volume of durable goods orders jumped by 5.6% on month in December. It is the sharpest growth since July 2020 and much stronger than the consensus which suggested a modest growth of 2.5%. Durable goods orders ex transport dipped by 0.1%.

The stock market was discouraged by the stubbornly resilient labor market.
The number of initial unemployment claims still signals steady demand for the workforce. First-time jobless claims dropped by 6,000 last week to 186,000, whereas the forecast was 205,000.

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00:00 INTRO
00:23 S&P500
01:36 USA
02:19 QUOTES
03:54 FLASH US GDP, Q/Q Q4 2022
04:51 US DURABLE GOODS ORDERS, M/M (DECEMBER)
05:17 US INITIAL UNEMPLOYMENT CLAIMS
05:48 USDX
07:26 USD | CAD
08:39 OIL
08:54 BTC | USD