This week, top US companies reported upbeat corporate earnings. More reports are yet to come but the market response will be subdued by the Fed’s policy meeting that will take place next week. It means that the risk appetite will be dampened for a while. What sentiment is prevailing in the stock market on Friday and what high-impact events will follow later? InstaForex analysts know all the answers.

As expected, yesterday’s New York trading session was lucky for the stock market. The benchmark indices logged solid gains driven by the high-tech sector. The Dow Jones closed with modest growth of 205 points or 0.61%. The Nasdaq logged the strongest growth and climbed 200 points or 1.76%. The S&P 600 also recovered by 1.10% to close at 4,060.
The major stock indices traded cautiously in the New York pre-market. They are able to extend growth later today. The intraday corridor for the S&P 500 is determined between 3,980 and 4,090.
The reason behind high volatility yesterday was a series of macroeconomic data and mixed corporate reports.
Tesla served as a catalyst for the growth on Wall Street. Its shares spiked by 11% in light of its financial records. Other high-tech giants quickly followed suit, propelling growth of the Nasdaq and the S&P 500.
Chevron stock encouraged growth in the energy sector, tracked in the S&P 500. The oil giant announced that it would triple the budget for share buybacks. As a result, Chevron shares rose by 4.9%.

Among weak performers were IBM whose stock lost 4.5% after the news on cutting its assets and lay-offs as a result of the failure to reach the revenue goal in 2022. Bed Bath & Beyond tumbled by 22.2% after the retailer received a default warning from JPMorgan. Intel shed 6% because the company reported lower-than-expected revenue.

Payment giants also presented their reports. Mastercard stock slipped by 1.3% in response to the market disappointment about the revenue forecast for 2023. On the other hand, Visa stock climbed by 2% because of an increase in quarterly profit amid steady consumer spending.

Luxury fashion house Louis Vuitton discouraged traders. The company which owns dozens of elite brands reported that its sales expanded by 9% in the fourth quarter because buyers in Europe and the US were eager to spend during Christmas. Still, sales were weaker than expected. Its shares first tumbled and later gained 0.6%.

Almost all of the 11 sectors in the S&P 500 went up, except the consumer goods sector. The energy sector showed the biggest gains on the back of a rally in oil prices.

As for the economic calendar, some crucial reports proved that the US economy operated stronger than expected. Besides, the labor market remained tense despite massive lay-offs.

This gave food for thought both for optimists who think that an economic slowdown may soften the Fed’s rhetoric and also for pessimists who believe that economic growth is too robust for the moderation in the Fed’s rate hikes.

Today investors are evaluating consumer activity. The data provided grounds for optimism. The core prices excluding food and energy rose by 0.3% in December in line with the consensus, slightly up after a 0.2% increase last month. The annual rate that is a preferred inflation barometer of the Federal Reserve dipped to 4.4% from 4.7% in December. Personal spending fell by 0.2% on month, worse than the expected 0.1% downtick. Lower spending is recorded both for consumer goods and services which is caused by tight financial conditions.

The sentiment on Wall Street is sensitive to a report by Chevron. The company reported a record high profit of 36.5 billion dollars for 2022. This figure is twice as big as the profit made a year ago but it does not match Wall Street estimates.

The adjusted net profit of the second-largest US oil producer beat its previous record set in 2011, being 10 billion dollars higher. The US dollar index eventually climbed above 102, having added 0.12%. The greenback remains under pressure of the stock market’s optimism and the consensus of a rate hike by 25 basis points. The US dollar is likely to trade in the intraday corridor between 101.2 and 102.3.

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00:00 INTRO
00:46 S&P500
01:29 USA
02:49 QUOTES
04:36 CORE PCE PRICE INDEX, M/M (DECEMBER)
04:57 PERSONAL SPENDING, M/M (DECEMBER)
05:48 USDX
07:47 USD | CAD
08:06 OIL
09:02 BTC | USD