We Make Investing Easy

Forecast Future Price Action

Navigating A Week of Central-Bank Meetings & Corporate Earnings: Yield on 10-Year U.S. Treasury Note & S&P500 Earnings In Focus


This week investors are carefully navigating a week of central-bank meetings and corporate earnings. The yield on the benchmark 10-year U.S. Treasury note ticked up to 3.551% Monday morning after ending a three-week losing skid last week.[0] The 10-year yield climbed 7 basis points to 3.56%, while the 2-year yield rose 3 basis points to 4.16%.[1] The U.S. dollar index ticked up 0.06% to $101.99.[2]

On the economic front, the Commerce Department’s personal-consumption-expenditures price index rose 0.1%, cooling the annual inflation rate to 5% from 5.5%.[3] The core Personal Consumption Expenditures (PCE) prices, not including food and energy, increased by 0.3%, causing the yearly core inflation rate to drop to 4.4% from 4.7[3] The Bureau of Economic Analysis reported that fourth quarter GDP grew at a 2.9% annual rate, topping views, but almost half that gain was due to a buildup in inventories amid slower consumption.[4] In December, personal spending decreased by 0.2%, marking the second consecutive month of a decrease, as consumers became more wary.[4]

Meanwhile, collective S&P 500 earnings are expected to fall 2.9% from last year to a share-weighted $443.4 billion, before recording a modest 0.1% expansion over the three months ending in March. To date, 143 companies have reported their earnings for the S&P 500, and the collective total is expected to be $443.6 billion, which is a 2.9% decrease from last year.

At the start of the trading day on Wall Street, futures tied to the the S&P 500 are priced for a 29 point opening bell decline while those linked to the Dow Jones Industrial Average are set for a 180 point decline.[5] The Nasdaq, which has a focus on technology, was down 120 points.[6]

Intel (INTC) stock plunged 6.4% today after the chipmaker said fourth-quarter earnings fell 92% year-over-year to 10 cents per share, well below the 20 cents per share analysts were expecting.[7] Revenue fell to $14.0 billion, representing a decrease of 32% from the same period last year, and was lower than expectations.[8] For Q1, the company projected earnings and revenue to be lower than expected.[8]

0. “Stocks Close Higher, With Earnings and Economic Data in Focus” The Wall Street Journal, 26 Jan. 2023, https://www.wsj.com/articles/global-stocks-markets-dow-update-01-26-2023-11674735172

1. “Nasdaq pops on Tesla bump; S&P, Dow pare back gains after positive GDP data” Seeking Alpha, 26 Jan. 2023, https://seekingalpha.com/news/3928229-nasdaq-sp500-dow-jones-stock-market-earnings-gdp

2. “Stock market news live updates: Stocks fall to start blockbuster week” Yahoo News, 30 Jan. 2023, https://news.yahoo.com/stock-market-news-live-updates-january-30-2023-124137866.html

3. “U.S. stocks open mostly lower as investors digest PCE inflation data” MarketWatch, 27 Jan. 2023, https://www.marketwatch.com/story/us-stocks-open-mostly-lower-as-investors-digest-pce-inflation-data-2023-01-27

4. “Market Rally Powers Higher Amid Big Earnings: Weekly Review” Investor’s Business Daily, 27 Jan. 2023, https://www.investors.com/news/stock-market-rally-powers-higher-amid-big-earnings-from-tesla-boeing-microsoft-american-express

5. “Stock Market Today: Stocks Lower Ahead of Fed, ‘Tech Super Bowl’, And Jobs Data Week” News-Daily.com, 30 Jan. 2023, https://www.news-daily.com/arena/stock-market-today-stocks-lower-ahead-of-fed-tech-super-bowl-and-jobs-data-week/article_f4b2f0e2-b395-5c1c-9ce6-a7a8058c380a.html

6. “Stocks Move Lower, Microsoft, Tesla, Boeing, Fox In Focus – Five Things To Know” TheStreet, 25 Jan. 2023, https://www.thestreet.com/markets/stocks-move-lower-microsoft-tesla-boeing-fox-5-things-to-know

7. “Stocks Close Higher as Price Pressures and Inflation Expectations Ease” Barchart, 27 Jan. 2023, https://www.barchart.com/story/news/13672297/stocks-close-higher-as-price-pressures-and-inflation-expectations-ease

8. “Stock Market Today: Stocks End the Week on a High Note” Kiplinger’s Personal Finance, 27 Jan. 2023, https://www.kiplinger.com/investing/stocks/stock-market-today-012723-stocks-end-the-week-on-a-high-note

Forecast Future Price Action
This div height required for enabling the sticky sidebar
Ad Clicks : Ad Views : Ad Clicks : Ad Views : Ad Clicks : Ad Views : Ad Clicks : Ad Views : Ad Clicks : Ad Views : Ad Clicks : Ad Views :