2/9/2024

S&P 500 was close to 5000 points

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Key points:

  • S&P 500: Slight gains after 5,000, but not lasting.
  • Energy sector: up 1.1% on rising oil prices.
  • Earnings season is expected to be crucial on the market’s future direction.

On Thursday, the S&P 500 index, considered a benchmark, experienced a slight increase after hitting the 5,000 milestone. Unfortunately, this upward movement proved to be temporary. During this period, individuals involved in the financial markets, including investors and traders, were examining financial performance reports and statements from authorities regarding potential reductions in interest rates.

Out of the 11 primary sectors within the S&P 500, the energy sector concluded with a 1.1% gain due to elevated oil prices.

More than half of the S&P 500 companies have already reported profit

Small-cap indices outperformed their large-cap counterparts in the stock market. One notable performer was ARM Holdings, a chip designer, whose shares surged by 47.9% following its optimistic projection of robust demand for developments linked to artificial intelligence.

Walt Disney also experienced a noteworthy uptick, with its shares rising by 11.5%. This surge came on the heels of the media giant surpassing Wall Street estimates, revealing a $3 billion share buyback initiative, a 50% dividend increase, investments in the gaming industry, and outlined plans for the ESPN streaming service.

Meanwhile, Spirit Airlines witnessed a 3.3% increase in its shares after announcing expectations of positive cash flow in the second quarter, despite reporting a smaller-than-expected loss.

Conversely, PayPal faced a setback, with its shares declining by 11.2% due to a projection of stagnant adjusted earnings growth for the current year.

Over half of the S&P 500 companies disclosed their quarterly profits, and an impressive 80.6% surpassed expectations. This outperformed the long-term average of 67%, according to LSEG.

The S&P 500 registered 56 new 52-week highs and 7 new lows, while the Nasdaq reported 249 new highs and 109 new lows.

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