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1/29/24 Weekly Market Commentary

1/29/24 Weekly Market Commentary

January 29, 2024

What happened last week…         

The S&P 500 continues its strong streak of gains, now positive for three straight weeks and green in 12 of the past 13 weeks. The index finished up 1.06% for the week and is now up 2.54% on the year.

 

To comply with a new European law, Apple (AAPL) for the first time will open its app store in Europe to allow developers to use alternative means for users to download services. It will also let app developers charge fees directly to consumers, skirting Apple’s system which takes a 15% to 30% cut of total sales.

 

The GDP growth rate (first estimate) for Q4 2023 beat expectations (2.0%) but decreased to 3.3% from the previous quarter’s reading of 4.9%, which was the highest reading since Q4 2021.

 

New home sales for December beat expectations (645,000) as it increased to 664,000 from the upwardly revised 615,000 (from 590,000). The peak reading over the previous 12 months is 728,000 from last July.

 

According to FactSet, as of January 26, 25% of S&P 500 companies have reported earnings with 69% having a positive EPS surprise and 68% having a positive revenue surprise. The blendedearnings decline for the S&P 500 is -1.4%, which would be the fourth time in five quarters the index reported a year-over-year decline. The blended revenue for the index is 3.2%, which would be the 13th straight quarter of growth.

 

Happening this week…

The following companies report earnings this week: NUE, DHR, GOOG, MSFT, PFE, UPS, ADP, MA, PSX, TMO, AAPL, AMZN, DOV, ITW, MCHP, META, MRK, ABBV, XOM.

 

On Wednesday, the Federal Open Market Committee will announce its first interest rate decision of the year. The market expects rates to remain at 5.25% to 5.50%. 

 

On Thursday, the manufacturing PMI for January is expected to decrease to 47.3 from 47.4, which marked the 14th straight contractionary reading (below 50).

 

On Wednesday, the ADP employment change may decrease to 135,000 from 164,000. On Friday, the unemployment rate is expected to increase to 3.8% from 3.7%, nonfarm payrolls are forecasted to decrease to 173,000 from 216,000, and average hourly earnings month-over-month are expected to decrease to 0.3% from 0.4%.


Thanks for reading!


- The Rockline Team


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.

The S&P 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

All investing involves risk including loss of principal.