Category Archives: S&P500

Wall Street ends lower after Fed holds steady on rates.

(Reuters) – Wall Street ended lower on Wednesday after the U.S. Federal Reserve held interest rates and its monthly bond-buying program steady and gave no sign it was ready to reduce its support for the recovery.

Despite the improving economy, the Fed repeated the guidance it has used since December, saying it must see “substantial further progress” towards its inflation and employment goals before stepping back from its monthly bond purchases.
“The Fed underscored a lot of uncertainty remains. In this kind of a backdrop, with inflation being transitory, they’ll continue to be pedal to the metal in terms of monetary policy,” said Kevin Flanagan, head of fixed income strategy at WisdomTree Funds.
The S&P 500 briefly rose to an intra-day record high after Fed Chair Jerome Powell said in a press conference that it was “not time yet” to discuss reducing the Fed’s support for the recovering economy.
U.S. President Joe Biden is expected to unveil a sweeping $1.8 trillion package for families and education in his first joint speech to Congress on Wednesday, senior White House officials said.

Google parent Alphabet Inc rose 2.9% and closed at a record high after reporting late on Tuesday a record profit for the second consecutive quarter and announcing a $50 billion share buyback.
In extended trade, Facebook jumped nearly 6% after the social media heavyweight reported quarterly revenue that handily beat analysts’ expectations. Investors were also awaiting Apple’s results.
The Dow Jones Industrial Average fell 0.48% to end at 33,820.38 points, while the S&P 500 lost 0.08% to 4,183.18.
The Nasdaq Composite dropped 0.28%, to 14,051.03.

Microsoft Corp’s quarterly report late on Tuesday met sales expectations and beat profit estimates, but its shares fell 2.8% and pressured the Nasdaq due to skepticism about one-off benefits included in the results and high hopes after a year-long rally.
A 7.2% drop in Amgen Inc weighed on the Dow after the biotech said its first-quarter sales and profit fell due to a 7% drop in its net drug prices and a hit from the COVID-19 pandemic.
Boeing Co fell 2.9% after posting a wider-than-expected quarterly loss and pausing 737 MAX deliveries over an electrical issue that has partly re-grounded the fleet.
Overall earnings per share for S&P 500 companies in the first quarter are expected to jump 39% from a year earlier, according to Refinitiv IBES data.

Advancing issues outnumbered declining ones on the NYSE by a 1.44-to-1 ratio; on Nasdaq, a 1.25-to-1 ratio favored advancers.
The S&P 500 posted 80 new 52-week highs and no new lows; the Nasdaq Composite recorded 113 new highs and 22 new lows.
Volume on U.S. exchanges was 9.5 billion shares, compared with the 9.9 billion full-session average over the last 20 trading days.

THE 23rd OF APRIL Market Review

GOOD AFTERNOON

The markets got off to a strong start on Thursday, with the most significant indices up nearly a full percent at the day’s peak. Better-than-expected earnings from Whirlpool, Tractor Supply Company, and AT&T boosted morale, as did a lower-than-expected jobless claims survey. As recruiting activity increased, the number of new jobless claims suddenly dropped to a new low. However, the good news was ruined later in the day when President Biden revealed a new tax package.

President Biden’s latest initiative would tax capital gains on wealthy individuals at approximately 40% to fulfil a campaign promise. The news caused the markets to reverse course, with the S&P 500 losing roughly 1.0 percent by the end of the day. If the market cannot cope with this new growth, a much deeper correction could be in store. The danger now is that stock selling will pick up on Friday, taking the index below its most recent support level.

S&P 500 flatlines while Dow and Nasdaq moderates

The Dow and the major U.S. indexes fell on Monday as the Dow technology stocks tumbled.

Major Wall Street leading indices closed lower at the close, with the Dow Jones Industrial Average (DIA) down 55.20 points, or 0.2%, at 33,745.40.

Losses were concentrated in communication services, information technology, and energy stocks. The broad S&P 500 Index (SPY) of large-cap stocks closed at 4,127.99.

The technology-focused Nasdaq Composite Index (QQQ) rose 0.5% to close at 13,900.19.

A measure of implied volatility known as the CBOE VIX (VXX) edged slightly higher on Monday. The so-called “investor fear index” reached an intraday high of 16.91 on a scale of 1-100, where 20 represents the historical average. It would eventually settle up 1.3% at 16.91.

In commodities, oil prices rose on Monday, with U.S. West Texas Intermediate futures gaining 45 cents, or 0.8%, to $59.77 a barrel on the New York Mercantile Exchange. Brent, the international futures contract, rose 40 cents or 0.6%, to $63.35 a barrel.

In precious metals, gold prices declined on Monday, as the June futures contract dipped $12.60, or 0.7%, to $1,732.20 a troy ounce on the Comex division of the New York Mercantile Exchange. Silver futures fell 48 cents, or 1.9%, to $24.85 a troy ounce.

Still, markets continue to be supported near all-time highs despite Monday’s modest pullback. Investors are pushing up share prices on optimism the U.S. economy is regaining momentum.

The CBOE VIX Volatility Index rose on Monday.

A slight increase in volatility was reported on the VIX index on Monday.

On Friday, the CBOE VIX (VXX) edged higher as the S&P 500 Index paused following a record-breaking rally.

In an intraday high, VIX, a Chicago Board Options Exchange volatility index, reached a level of 17.91 out of 100, where a 20 represents the historical average. VIX would ultimately fall 1.3% to 16.91.

In stocks, the large-cap S&P 500 Index (SPY) flat-lined on Monday.

iPath S&P 500 VIX Short Term Futures ETN: (NYSEARCA: VXX) Designed to offer exposure to the S&P 500 VIX Short Term Futures Index Total Return. The Index uses CBOE Volatility Index futures by way of a long position in the first and second-month VIX Futures contracts. VXX declined 1.5%.

ProShares Short VIX Short-Term Futures (SVXY) to track the S&P 500 VIX Short Term Futures Index’s inverse daily performance. SVXY advanced 0.9%.

ProShares UltraShort Term VIX Futures: UVXY expects to return 1.5X (leveraged) the S&P 500 VIX Futures Index today. Those are the two months of the UVX futures contract. UVX dropped 1.7%.

It is said that the U.S. economy is slowly starting to recover from the COVID-19 pandemic. Over the past week, more than 31 million people have fallen ill with the disease.

MONDAY, APRIL 12th Markets Review

With the S&P 500 ending Friday’s session at a new all-time high and near the high of the day and the week, the U.S. stock market closed out the third week of gains on a high note last week. The tech sector led the move even though the NASDAQ continues to lag behind the broader market. Both the Dow Jones Industrial Average and the Transports moved past new all-time highs. Expectations for robust earnings in Q1 drove the markets; however, some suggest that The Q1 earnings are already priced.

As Earnings season starts this week, about 3.0% Of the S&P 500 companies have reported calendar Q1 earnings, and the results have exceeded expectations. Answering the question is whether or not this trend will continue and by what margin. S&P 500 companies that fail to impress could cause the market to correct. Global economies are still being affected by COVID, so there is no certainty, which does not bode well for the stock market.

Earnings and economic data will be in focus as Wall Street opens lower

The S&P 500 and the Dow retreated from record levels, while earnings and data were emphasised.

By Reuters

In the wake of a critical inflation report this week, Wall Street main indexes dropped on Monday, with the S&P and Dow both retreating from record levels.

At the open, the Dow Jones Industrial Average dropped 25.54, or 0.08%, to 33,775.06. While the Nasdaq Composite started lower by 45.75 points, or 0.33%, to 13,854.44, the S&P 500 opened lower by 4.09 points, or 0.10%.

The S&P500 and Nasdaq surged while the Dow Jones staggered.

The S&P 500 and Nasdaq surged on Wednesday while the Dow Jones staggered.
The Dow staggered the broader U.S. stock market on Wednesday, as sinking energy and financials shares weighed on the benchmark index.
Wall Street’s leading indices closed mixed, with the Dow Jones Industrial Average (DIA) declining 85.41 points, or 0.3%, to 32,981.55.
The broad S&P 500 Index (SPY) of large-cap stocks gained 0.4% to close at 3,973.33. Five of the 11 primary sectors ended in the negative area, with information technology climbing 1.5%. Consumer discretionary shares rose 0.8% as a collective.
Meantime, the technology-focused Nasdaq Composite Index (QQQ) advanced 1.5% to settle at 13,246.87.
A measure of indicated volatility recognised as the CBOE VIX (VXX) fell on Wednesday, reversing some of its early-week gains. The so-called “market fear index” moved an intraday low of 18.85 on a scale of 1-100, where 20 outlines the past average. It would ultimately settle down 1.6% at 19.30.
In commodities, oil prices settled on Wednesday, with U.S. West Texas Intermediate futures tumbling $1.21, or 2%, to $59.34 a barrel on the New York Mercantile Exchange. Brent, the international futures contract, fell 60 cents or 0.9% to $63.54 a barrel.
In precious metals, gold prices bounced sharply on Wednesday, as the June futures contract rose $21.40, or 1.3%, to $1,707.40 a troy ounce on the Comex division of the New York Mercantile Exchange. Silver futures climbed 30 cents, or 1.3%, to $24.44 a troy ounce.
The conclusion: U.S. stocks resume to trade near record highs, encouraged by optimism that the economy is healing from the Covid-19 pandemic. More than 30.4 million Covid cases have been listed in the United States, though the infection pace continues to decline from earlier levels.