S&P 500

A flurry of earnings reports later this month will give a glimpse into how well companies navigated surging interest rates and recession concerns.

Bearish warnings from major banks did not spook Wall Street, with the S&P, Dow Jones Industrial Average and tech-heavy Nasdaq each notching 0.4% or more gains Monday after having their best respective performances since November on Friday. That indicates 24% downside from the index’s 3,930 mark as of Monday and would be the S&P’s lowest mark since May 2020. The energy sector, which was

"The bottom line, we don't think a 3500-3600 S&P 500 is consistent with the consensus view for a mild recession," says Morgan Stanley's Mike Wilson.

The S&P 500 at 3,900 is a "good level to be selling into again in front of what is likely to be another weak earnings season led by poor profitability and the broader introduction of 2023 guidance," said Wilson. That is one way the consensus could be right directionally, but wrong in terms of magnitude," said Wilson. However, this "ignores the ramifications of falling prices on profit margins, which is likely to outweigh any benefit from the perceived Fed dovishness equity investors are dreaming about later this year," said Wilson. The bond rally suggested investors see slowing economic growth as laying the groundwork for the Fed to claw back its aggressive interest rates increases. The equity market is vulnerable to weaker corporate earnings and a Federal Reserve that is set to stick firmly with battling inflation largely though raising interest rates. On this score, the surprise might be how much lower stocks could trade (3,000) if a recession arrives," wrote Michael Wilson, chief US equity strategist at Morgan Stanley, in a note.

Softer-than-expected average hourly earnings fueled a rally in stocks as investors believe that the unemployment rate isn't that important for the Fed if wage ...

The faster that drops towards 5.0% y/y, the better for stocks.” Overall, the S&P 500 EPS for Q4 is expected to fall by 5%, excluding Energy. The Q4 reporting season is due to start later this week with consensus looking for no earnings growth year-over-year. [S&P 500](/indices/us-spx-500) closed 1.45% higher in the first trading week of 2023 after the market interpreted Friday’s jobs report as bullish for stocks. Softer-than-expected average hourly earnings fueled a rally in stocks as investors believe that the unemployment rate isn’t that important for the Fed if wage growth is softening. [Saved Items](/members-admin/saved-items)

US equity futures have extended gains while US inflation expectations declined. With S&P 500 and Nasdaq futures clearing resistance, USD remains strained ...

[inflation](https://www.dailyfx.com/topics/inflation)expectations fall to 5% (from 5.2%) ahead of US CPI – has inflation peaked? As bulls continued to drive price action higher, SPX futures extended gains driving prices back above 3950. [Tammy Da Costa](https://www.dailyfx.com/authors/Tammy_Da_Costa) using TradingView [Economic Calendar](https://www.dailyfx.com/economic-calendar#next-seven-days) [The QuizDiscover what kind of forex trader you are](https://www.dailyfx.com/research/dna-fx) [@Tams707](https://twitter.com/Tams707) [DailyFX](https://www.dailyfx.com) provides forex news and technical analysis on the trends that influence the global currency markets. [ Recommended by Tammy Da CostaGet Your Free Top Trading Opportunities Forecast](https://www.dailyfx.com/free-trading-guides#forecastschoices=TOP) [DailyFX education section](https://www.dailyfx.com/education)to learn more about [how central banks impact forex markets](https://www.dailyfx.com/education/forex-fundamental-analysis/how-central-banks-impact-forex.html) [ Recommended by Tammy Da CostaGet Your Free Equities Forecast](https://www.dailyfx.com/free-trading-guides#forecastschoices=EQUITIES) [growth outlook](https://www.dailyfx.com/topics/gdp-news) remains under pressure, renewed hopes of a Fed pivot and lower yields assisted in driving [USD](https://www.dailyfx.com/usd) lower, fueling an equity rally. [NFP](https://www.dailyfx.com/nfp) (non-farm payroll report) was met with mixed reactions. [unemployment rate](https://www.dailyfx.com/education/macro-fundamentals/employment.html) falling to multi-decade lows at 3.5%, softer wage [growth](https://www.dailyfx.com/topics/gdp-news) and [weak ISM data](https://www.dailyfx.com/news/forex-fx-usd-us-dollar-sinks-to-support-after-pmis-cpi-data-ahead-20230109.html) indicated a slowdown in the economy suggesting that price pressures may continue to ease. [symmetrical wedge formation highlighted by James Stanley last week](https://www.dailyfx.com/news/spx-es-spy-sp-500-nasdaq-dow-jones-range-through-fomc-minutes-nfp-on-deck-20230104.html), a move above 3900 drove S&P 500 higher before peaking at 3928. [S&P 500](https://www.dailyfx.com/sp-500)futures rise above critical resistance while 4000 [psychological level](https://www.dailyfx.com/education/understanding-the-stock-market/stock-market-psychology.html)looms [Nasdaq](https://www.dailyfx.com/nas-100)100 futures boosted by tech stocks – can prices return to 11,500?

The Nasdaq Composite posted the biggest advance of 0.5%, pushed up by a nearly 6% rally in Tesla stock. The S&P 500 followed with a 0.1% gain. The Dow Jones ...

[Read the full story here.](https://www.cnbc.com/2023/01/09/brazil-stocks-set-to-slide-as-world-leaders-condemn-pro-bolsonaro-riots.html) The [iShares MSCI Brazil ETF (EWZ)](/quotes/EWZ/) also dipped more than 1%. [stormed Brazil's Congress, Supreme Court and presidential palace](https://www.cnbc.com/2023/01/08/bolsonaro-supporters-invade-brazils-congress-supreme-court-in-brasilia.html) in Brasilia on Sunday. [Bed, Bath & Beyond](/quotes/BBBY/) — Shares of the beleaguered retailer jumped nearly 26% in the premarket. [S&P 500](/quotes/.SPX/) rose again on Monday, the fifth trading session of 2023, bringing the gains over the first-five-day period to 2.6%. [Brazilian real](/quotes/BRL=/) fell against the U.S. The [S&P 500](/quotes/.SPX/) gained 0.2%. Global Jets ETF (JETS)](/quotes/JETS/): +2.1%. Investors are watching Tesla and [Apple](/quotes/AAPL/) for insights into how some of the biggest technology names will fare after the industry was beat down last year. [Friday's rally](https://www.cnbc.com/2023/01/05/stock-market-futures-open-to-close-news.html) was propelled by jobs data that showed wages increased less than expected despite employment being the opposite. Horton](/quotes/DHI/) to market perform from an outperform rating after the stock's 32% jump in the fourth quarter of 2022. [Nasdaq Composite](/quotes/.IXIC/)'s 0.7% advance.

US equities face much sharper declines than many pessimists expect with the specter of recession likely to compound their biggest annual slump since the ...

A strong labor market is supporting the U.S. economy and sustaining consumer spending. Given that the Fed remains committed to keeping high rates until there is ...

That is one way the consensus could be right directionally, but wrong in terms of magnitude,” the strategists added. This is in stark contrast to the other popular narrative we hear from the buy and sell side—i.e., that higher inflation is good for nominal GDP and, therefore, revenues and profits,” they wrote in their regular weekly note to clients. “Back in August, we first warned that peaking inflation is a positive for bonds, but it's also very negative for profitability. Given that the Fed remains committed to keeping high rates until there is clear evidence inflation is going back to its long-term target of 2%, the markets welcomed the slowdown in wage growth. [S&P 500](/indices/us-spx-500) closed over 2.2% higher last week, buoyed by softer-than-expected wage growth in the U.S. [Saved Items](/members-admin/saved-items)

The S&P 500 and NASDAQ's upbeat momentum is continuing on Monday after China reopened its borders bolstering the outlook for the global economy.

The lone loser is the Healthcare Sector, down 0.02%. The biggest gainer is the Technology Sector, up 2.37%. The agreement still represents a big discount to the heights that Duck Creek had previously reached. [ the blue chip Dow Jones Industrial Average](https://www.fxempire.com/indices/us30-usd) is trading 33823.03, up 192.42 or +0.57%. This, along with data pointing to a U.S. The major indexes are being boosted by investors scaling back expectations for U.S.

The S&P 500 index erased early gains to close nearly flat on Monday as expectations that the Federal Reserve will become less aggressive with its interest ...

[(.SPLRCT)](https://www.reuters.com/quote/.SPLRCT) gained as Treasury yields fell. [(.DJI)](https://www.reuters.com/quote/.DJI) fell 112.96 points, or 0.34%, to 33,517.65, the S&P 500 [(.SPX)](https://www.reuters.com/quote/.SPX) lost 2.99 points, or 0.08%, to 3,892.09 and the Nasdaq Composite [(.IXIC)](https://www.reuters.com/quote/.IXIC) added 66.36 points, or 0.63%, to 10,635.65. A consumer prices report due Thursday could be key for rate expectations, said Quincy Krosby, chief global strategist, LPL Financial in Charlotte, North Carolina. [(M.N)](https://www.reuters.com/companies/M.N) fell 7.7% and Lululemon Athletica Inc [(LULU.O)](https://www.reuters.com/companies/LULU.O) dropped 9.3% after both retailers issued disappointing holiday-quarter forecasts. [(AVGO.O)](https://www.reuters.com/companies/AVGO.O) fell in late trading to end down 2% after Bloomberg, citing people familiar with the matter, [reported](/technology/apple-drop-key-broadcom-chip-2025-in-house-design-bloomberg-news-2023-01-09/) that Apple Inc [(AAPL.O)](https://www.reuters.com/companies/AAPL.O) plans to drop a Broadcom chip in 2025 and use an in-house design instead. [(TSLA.O)](https://www.reuters.com/companies/TSLA.O) shares rose 5.9% after the electric-vehicle maker indicated [longer waiting times](/business/autos-transportation/tesla-delivery-time-is-longer-some-china-models-after-discounts-2023-01-09/) for some versions of the Model Y in China, signaling the recent price cuts could be stoking demand. Consumer discretionary stocks [(.SPLRCD)](https://www.reuters.com/quote/.SPLRCD) also rose, with Amazon.com Inc [(AMZN.O)](https://www.reuters.com/companies/AMZN.O) up 1.5% after Jefferies said it saw cost pressures easing for the e-commerce giant in the second half of the year. [The Thomson Reuters Trust Principles.](https://www.thomsonreuters.com/en/about-us/trust-principles.html) [(.IXIC)](https://www.reuters.com/quote/.IXIC) ended well off the day's highs. [(.SPX)](https://www.reuters.com/quote/.SPX) erased early gains to close nearly flat on Monday as expectations that the Federal Reserve will become less aggressive with its interest rate hikes were offset by lingering worries about inflation. Register for free to Reuters and know the full story NEW YORK, Jan 9 (Reuters) - The S&P 500 index

12:07pm: Jobs report "ticked every box," analyst says At midday, the Dow was up 242 points, 0.7%, to 33873, the Nasdaq Composite added 222...

“This week also marks the start of the earnings season, with proceedings being opened by the likes of Bank of America, Citigroup and JP Morgan,” Hunter continued. “If Friday’s price action tells us anything it’s that investors really want to believe the peak inflation narrative that has helped support the rebound in equity markets that we’ve seen so far this year,” said Michael Hewson, chief market analyst at CMC Markets UK. "Jobs growth was good but not too much, participation improved, wage growth moderated and revisions to the November data eradicated any fears that the report initially triggered. According to online retail trading platform, Capital.com, bullish market sentiment on Tesla stock appears to be on the rise, reflected by the surge in trading volumes and the growing number of long CFD positions in the stock in the past week. The embattled retailer warned recently that it could go bankrupt. In between was the S&P 500 which ended little changed. Stocks ended the week in the green, with the S&P 500 closing 2.8% higher at 3,895, the Nasdaq Composite up 2.6% at 10,569, and the DJIA rounding out the pack with a gain of 2.1% to close at 33,631. "Last week's jobs report ticked every box," said Craig Erlam, senior market analyst, UK & EMEA, at OANDA . Just after the market opened, the Dow Jones Industrial Average had added 162 points or 0.5% at 33,793 points, the S&P 500 was up 25 points or 0.6% at 3,920 points, and the Nasdaq Composite had gained 111 points or 1% at 10,5673 points. Stocks on the move included Tesla Inc. At midday, the Dow was up 242 points, 0.7%, to 33,873, the Nasdaq Composite added 222 points, 2.1%, to 10,792 and the S&P 500 improved 49 points, 1.3%, to 3,944. At the close the Dow Jones Industrial Average was down 113 points, or 0.33%, to 33,518, the S&P 500 fell 3 points, or 0.08%, to 3,892 but the Nasdaq Composite jumped 66 points, or 0.63%, to 10,636.

The S&P 500 index erased early gains to close nearly flat on Monday as expectations that the Federal Reserve will become less aggressive with its interest ...

A rally in stocks fizzled out after two Federal Reserve officials signaled that interest rates could top 5%, throwing some cold water on several traders who ...

Morgan Stanley analysts have warned the U.S. stock market could plunge by another 22% this year because investors are underestimating corporate earnings.

This "ignores the ramifications of falling prices on profit margins, which is likely to outweigh any benefit from the perceived Fed dovishness equity investors are dreaming about later this year," he wrote. "On this score, the surprise might be how much lower stocks could trade (3,000) if a recession arrives." Stocks have rallied in early 2023, with the S&P up about 2% on Monday following the better-than-expected December jobs report that showed wage growth slowed markedly last month. [slowdown in inflation](https://foxbusiness.com/category/us-economy) weighs on corporate earnings, according to Wilson. Michael Wilson, the chief U.S. [expectation of a recession](https://foxbusiness.com/category/recession) in the first half of the year, investors may be underestimating the risk posed by weaker corporate earnings and a Federal Reserve committed to crushing inflation.

Kitco News collects and features the top financial, economic and geopolitical news from around the world. Kitco's aggregated sources include some of the top ...

Treasury yields declined, while the Nasdaq led the rise among the major indexes. A consumer prices report due Thursday could be key for rate expectations, said Quincy Krosby, chief global strategist, LPL Financial in Charlotte, North Carolina. [(.DJI)](https://www.reuters.com/quote/.DJI) fell 9.63 points, or 0.03%, to 33,620.98, the S&P 500 [(.SPX)](https://www.reuters.com/quote/.SPX) gained 17.57 points, or 0.45%, to 3,912.65 and the Nasdaq Composite [(.IXIC)](https://www.reuters.com/quote/.IXIC) added 138.83 points, or 1.31%, to 10,708.12. [(M.N)](https://www.reuters.com/companies/M.N) and Lululemon Athletica Inc [(LULU.O)](https://www.reuters.com/companies/LULU.O) fell after both retailers issued disappointing holiday-quarter forecasts. [(TSLA.O)](https://www.reuters.com/companies/TSLA.O) climbed after the electric-vehicle maker indicated [longer waiting times](https://www.reuters.com/business/autos-transportation/tesla-delivery-time-is-longer-some-china-models-after-discounts-2023-01-09/) for some versions of the Model Y in China, signaling the recent price cuts could be stoking demand. [(.SPLRCD)](https://www.reuters.com/quote/.SPLRCD) also rose sharply, with Amazon.com Inc [(AMZN.O)](https://www.reuters.com/companies/AMZN.O) up after Jefferies said it saw cost pressures easing for the e-commerce giant in the second half of the year. [(.SPLRCT)](https://www.reuters.com/quote/.SPLRCT) led the gains among S&P 500 sectors as U.S. [(.IXIC)](https://www.reuters.com/quote/.IXIC) and S&P 500 [(.SPX)](https://www.reuters.com/quote/.SPX) indexes rose Monday afternoon, led by technology shares, on growing expectations that the Federal Reserve will become less aggressive with its interest rate hikes. The S&P 500 posted 13 new 52-week highs and two new lows; the Nasdaq Composite recorded 114 new highs and 23 new lows.

Wall Street forecasts for the S&P 500 to see single-digit profit growth in 2023-24 seem 'woefully myopic,' warns Lisa Shalett, chief investment officer at.

The S&P 500 “Rotate portfolios toward fixed income, value-style stocks, global dividend payers, early cyclicals, enterprise technology and emerging market equities.” “On a four-quarter basis, S&P 500 operating margin, at 11.6%, is still near its 13.1% all-time high,” she wrote. Operating margins for companies in the S&P 500 index remain “rich,” according to the note. “Yes, margins have begun to come down from their 2021 peak, but that doesn’t mean that they are not vulnerable to aggressive monetary tightening.” stock-market benchmark’s historically high operating margins being a “material risk,” according to Morgan Stanley’s wealth-management division.

Morgan Stanley analysts have warned the U.S. stock market could plunge by another 22% this year because investors are underestimating corporate earnings.

The S&P 500 and the Nasdaq opened lower on Tuesday as concerns about interest rate hikes persisted after Federal Reserve Chair Jerome Powell's comments did ...

It is expected to show some moderation in year-on-year consumer prices in December. [(AVGO.O)](https://www.reuters.com/companies/AVGO.O) fell 3.3% on a report that Apple Inc [(AAPL.O)](https://www.reuters.com/companies/AAPL.O) [plans](/technology/apple-drop-key-broadcom-chip-2025-in-house-design-bloomberg-news-2023-01-09/) to replace the former's chip from its devices with an in-house design in 2025. [(.DJI)](https://www.reuters.com/quote/.DJI) was up 111.74 points, or 0.33%, at 33,629.39, the S&P 500 [(.SPX)](https://www.reuters.com/quote/.SPX) was up 16.52 points, or 0.42%, at 3,908.61, and the Nasdaq Composite [(.IXIC)](https://www.reuters.com/quote/.IXIC) was up 74.50 points, or 0.70%, at 10,710.15. Labor Department's consumer prices report on Thursday. [(BA.N)](https://www.reuters.com/companies/BA.N) dipped 1.3%, pressuring the Dow Jones [(.DJI)](https://www.reuters.com/quote/.DJI), on a report that Morgan Stanley downgraded the U.S. [(.SPLRCT)](https://www.reuters.com/quote/.SPLRCT) 0.3%, while a 1.6% rise in Amazon boosted the consumer discretionary sector [(.SPLRCD)](https://www.reuters.com/quote/.SPLRCD). Advancing issues outnumbered decliners by a 1.32-to-1 ratio on the NYSE and by a 1.75-to-1 ratio on the Nasdaq. [(MSFT.O)](https://www.reuters.com/companies/MSFT.O) rose 1.2% after a [report](/technology/microsoft-talks-invest-10-bln-chatgpt-owner-semafor-2023-01-10/) stated the software company was in talks to invest $10 bln in ChatGPT creator OpenAI. "He (Powell) hasn't disrupted the market in any way and the fact that he stresses the need for political independence while tackling inflation, that's a definite positive for the markets," said Peter Cardillo, chief market economist at Spartan Capital Securities, New York. Register for free to Reuters and know the full story The comments had dampened hopes that inflation in the United States had peaked and the Fed may soon signal an end to its rate hiking cycle, bolstered by data last week that showed a moderation in wage increases. Jan 10 (Reuters) - Wall Street's main indexes edged higher on Tuesday, boosted by gains in Microsoft and Amazon, as investors assessed commentary from Federal Reserve Chair Jerome Powell that steered clear of the monetary policy outlook.

6.30am: Fed hawks weigh on equities Wall Street is expected to open down as traders await more comments from US Federal Reserve Chair Jerome...

“With the banks kicking off the season in earnest, there will inevitably be focus on any worsening of demand, particularly in the housing sector, alongside any increase in bad debts as the consumer comes under additional economic pressure.” “But restoring price stability when inflation is high can require measures that are not popular in the short term as we raise interest rates to slow the economy.” “Those Consumer Inflation expectations yesterday fell short of expectations, hinting that the Fed might have a little more wiggle room than had previously been thought, so Fed Chair Powell’s speech shortly before the opening bell today will be under close scrutiny for any further clues over policy.” Powell is scheduled to speak at a banking conference in Stockholm before US markets open. “The onset of the reporting season in the US this week will add further colour to the performance of the economy on the ground,” added Richard Hunter, head of markets at interactive investor. “Price stability is the bedrock of a healthy economy and provides the public with immeasurable benefits over time,” he said.

The S&P 500 opened lower by 3.52 points, or 0.09%, at 3888.57, while the Nasdaq Composite dropped 27.93 points, or 0.26%, to 10607.72 at the opening bell.

[Sensex](https://economictimes.indiatimes.com/indices/sensex_30_companies)and [Nifty](https://economictimes.indiatimes.com/indices/nifty_50_companies)Track [latest market news](https://economictimes.indiatimes.com/markets/stocks), [stock tips](https://economictimes.indiatimes.com/markets/stocks/recos)and [expert advice](https://economictimes.indiatimes.com/markets/expert-view)on [ETMarkets](https://economictimes.indiatimes.com/markets). It is expected to show some moderation in year-on-year consumer prices in December. For fastest news alerts on financial markets, investment strategies and stocks alerts, [subscribe to our Telegram feeds](https://t.me/joinchat/J60pKE7SOStsj5sI8nDmHQ).) Labor Department's consumer prices report on Thursday. At 10:18 a.m. Advancing issues outnumbered decliners by a 1.32-to-1 ratio on the NYSE and by a 1.75-to-1 ratio on the Nasdaq. Broadcom Inc fell 3.3% on a report that Apple Inc plans to replace the former's chip from its devices with an in-house design in 2025. [Dow Jones](/topic/dow-jones), on a report that Morgan Stanley downgraded the U.S. "He (Powell) hasn't disrupted the market in any way and the fact that he stresses the need for political independence while tackling inflation, that's a definite positive for the markets," said Peter Cardillo, chief market economist at Spartan Capital Securities, New York. Money market bets of a 25-bps hike to in the Fed's upcoming policy meeting were unchanged at 75%, with the terminal rate seen slightly below 5% by June. The comments had dampened hopes that inflation in the United States had peaked and the Fed may soon signal an end to its rate hiking cycle, bolstered by data last week that showed a moderation in wage increases. [Wall Street](/topic/wall-street)'s main indexes edged higher on Tuesday, boosted by gains in Microsoft and Amazon, as investors assessed commentary from Federal Reserve Chair Jerome Powell that steered clear of the monetary policy outlook.

Paul Tudor Jones was optimistic on the stock market Tuesday morning, saying the Federal Reserve likely would not break the economy, halting rate hikes before it ...

[Oak Street Health](/quotes/OSH/) – Shares of Oak Street Health surged 36% after a [Bloomberg report](https://www.bloomberg.com/news/articles/2023-01-09/cvs-is-said-to-explore-acquisition-of-oak-street-health?sref=ctSjKj2N) that [CVS](https://www.cnbc.com/quotes/CVS/) is exploring options to buy the health care company for more than $10 billion. Federal Reserve](https://www.cnbc.com/federal-reserve/) Chairman Jerome Powell's speech later in the day, after hawkish comments from two Fed officials on Monday. [Sotera Health](/quotes/SHC/) – Shares soared more than 58% in the premarket after the company announced its subsidiaries came to agreements to settle more than 870 cases relating to the exposure of ethylene oxide, a carcinogen, from its Willowbrook facilities. Coinbase laid off 18% of its workforce in June in preparation for a potential recession and crypto winter, saying that it had grown "too quickly" during the bull market. The National Federation of Independent Business's Small Business Optimism Index fell to 89.8 in December from 91.9 a month prior. Boeing shares fell more than 2% in the premarket. That follows a beating in 2022, when Bed Bath & Beyond plummeted 82.8% over the course of the year. ](https://www.cnbc.com/squawk-box-us/) "Where is the selling going to come to offset that that demands coming from buybacks, from the corporate line items, from some combination of buybacks and M&A? "Price stability is the bedrock of a healthy economy and provides the public with immeasurable benefits over time. "In recent months, we've seen a decline in some measures of inflation but we have a lot more work to do, so I expect the [Federal Open Market Committee] will continue raising interest rates to tighten monetary policy." [Dow](/quotes/.DJI/) led the way, up just under 0.2%. The Nasdaq has rallied in recent days as optimism over cooling inflation pushed investors to beaten-up technology stocks.

Stocks ended mostly lower Friday, with the Dow Jones Industrial Average and S&P 500 fumbling strong gains while the Nasdaq Composite managed to hang on for ...