To The Moon

Summary of Previous Session

The major stock indexes closed largely unchanged in the previous session, despite confirmation of the disinflation trend.

DJIA: +0.16% to 38,109.43 - $S&P 500(.SPX)$ : -0.07% to 4,890.97 - Nasdaq: -0.36% to 15,455.36

The core Personal Consumption Expenditures Price Index, which excludes food and energy, rose 2.9% year-over-year in December. While inflation is nearing the Federal Reserve's 2% target, the Fed believes its job isn't done yet. Despite this news, investors were taken by surprise by several earnings reports.

Major Events of the Week

• The core personal consumption expenditures price index rose 2.9% year-over-year in December, indicating a sustained disinflation trend.

PCE

• Q4 earnings season is underway, with notable reports from American Express and Intel shaping market sentiment.

• Overall, 25% of S&P 500 companies have reported earnings, with a lower-than-average beat rate and an aggregate earnings decline of 1.4%.

The week was marked by the release of financial results from several S&P 500 companies. Of the companies that reported earnings, 69% beat analysts' estimates, below the five-year average of 77%. Aggregate results indicate a 1.4% decline in earnings for the fourth quarter compared to the expected 1.5% growth forecasted at the end of December.

Market Scenario

The market experienced mixed sentiments driven by earnings reports, economic data, and corporate outlooks $Tesla Motors(TSLA)$ . While some sectors face challenges, overall market sentiment remains positive due to favorable economic conditions and expectations of supportive monetary policy. $American Express(AXP)$ +7.1%.

Tesla fell below $Eli Lilly market cap

$TSLA/Eli

Despite some disappointing quarterly results, the stock markets ended the week on a bullish note, buoyed by a robust US economy and the prospect of further interest rate cuts. In Europe, decelerating inflation and strong earnings from major corporations contributed to market gains, while in Asia, new support measures in China helped regain ground. Risk appetite remains intact, although volatility tends to increase.

Next week, earnings from major tech companies like $Alphabet(GOOG)$ , $Microsoft(MSFT)$ , $Apple(AAPL)$ , Amazon.com, and Meta Platforms are anticipated, with hopes of reversing the current trend.

MAG7

Conclusion

In conclusion, despite some challenges such as mixed quarterly results and geopolitical uncertainties, the stock markets demonstrated overall resilience and closed the week on a positive note. Investors remain optimistic about the strength of the US economy and continue to anticipate further interest rate cuts.

However, it is important to note that markets can be volatile, and past performance is not indicative of future results. Investors are encouraged to exercise due diligence and consult with professionals before making financial decisions.

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