To The Moon

Last Week's Recap

The US Market - The $S&P 500(.SPX)$ @ 5K

• The $S&P 500(.SPX)$ ’s more than 1% gain for the week pushed the index above the 5,000-point threshold for the first time and marked its 14th positive result out of the past 15 weeks.

• The $NASDAQ(.IXIC)$ added more than 2%  while the $DJIA(.DJI)$ posted a fractional gain. Strong earnings results from selected technology companies fueled another week of equity market.

• The U.S. small-cap stocks $iShares Russell 2000 ETF(IWM)$ posted a 2.5% gain for the week, but that positive result came on the heels of a shaky start. The index dropped 1.3% on Monday, then rebounded to post daily gains the rest of the week. 

• The yield of the 10-year U.S. Treasury bond climbed on Thursday to 4.17% after a weekly report on unemployment claims underscored the recent strength of the U.S. labor market.

• Bitcoin climbed about 5% on Friday to cap a strong week in which the price of the most widely traded cryptocurrency rose 10%.

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The US Sectors & Stocks

• The Technology, consumer cyclical and communication services sectors are the Top 3 weekly winners of the S&P 500. Strong earnings results from selected technology companies fueled another week of equity.

• Still, 3 of 11 total sectors closed the week in the negative, the utilities sector was the biggest loser last week, $Duke(DUK)$ and $NextEra(NEE)$ lead the lost with 4.71% and 2.7% respectively.

• As of Friday, fourth-quarter net income was expected to rise 2.9% compared with the year-ago quarter, based on the two-thirds of S&P 500 companies that have already reported plus projections for those that haven’t yet reported.

• The top 10 gainers of $S&P 500(.SPX)$ are $Enphase Energy(ENPH)$, $Ralph Lauren(RL)$, $Monolithic Power(MPWR)$, $Lumen Technologies(LUMN)$, $Walt Disney(DIS)$, $Eli Lilly(LLY)$, $Applied Materials(AMAT)$, $Emerson(EMR)$, $WestRock(WRK)$, $Generac(GNRC)$

  Weekly Sectors Performances of SPX, Source: https://finviz.com/

Weekly Stocks Performances of SPX, Source: https://finviz.com/

Singapore Market - $Straits Times Index(STI.SI)$ ended the week higher

• Stocks in Singapore ended the week lower. Asian markets trade mixed In thin holiday trade on the contrary to the gains on Wall Street, the Straits Times Index (STI) fell by 1.3% to 3,138.3 points.

• Singapore listed companies with high gearing levels and debt are feeling the strain of a higher-for-longer interest rate environment, but the pain – including margin pressures – could be deeper for small- and mid-cap stocks compared with their larger counterparts, market watchers told The Business Times.

Australian Market - $S&P/ASX 200(XJO.AU)$ reached a new record high

• The Australian share market pullback from a new record high . The benchmark ASX 200 closed a weekly loss of 0.71% to a record close of 7644.8 points.

• Australian retail sales increased by 0.3% quarter-on-quarter in the fourth quarter of 2023. The Reserve Bank of Australia announced that it had lowered its medium-term inflation and economic growth expectations while raising its unemployment rate expectations, which paves the way for a possible interest rate cut later this year.

• As earnings season kicks off in Australia this week, investors are focused on corporate earnings reports. They are also awaiting U.S. inflation data and domestic employment data due in the coming days.

The Week Ahead

Macro Factors - Fed officials' speeches

Monday

• Treasury budget, U.S. Department of the Treasury 

Tuesday 

• Consumer Price Index, U.S. Bureau of Labor Statistics

Thursday

• Retail sales,  U.S. Census Bureau

• Business inventories, U.S. Census Bureau

• Industrial production and capacity utilization, U.S. Federal Reserve

• Export and import prices, U.S. Bureau of Labor Statistics

• Weekly unemployment claims, U.S. Department of Labor

• Housing Market Index, National Association of Home Builders 

Friday

• University of Michigan Index of Consumer Sentiment, preliminary result

• Producer Price Index, U.S. Bureau of Labor Statistics

• Housing starts, U.S. Census Bureau 

Earnings - LYFT & AIG & DASH & DE

$Lyft, Inc.(LYFT)$ is expected to post a 4% rise in quarterly revenue on Tuesday as demand for ride-hailing remains strong.

$American International Group Inc(AIG)$ is expected to report its fourth-quarter earnings on Tuesday when the insurer's premiums are expected to drive a surge in profit.

$DoorDash, Inc.(DASH)$ , on Thursday, is anticipated to post an increase in fourth-quarter revenue boosted by an uptick in delivery orders for food, convenience items and groceries.

$Marriott(MAR)$ is expected to report financial results for its fourth quarter on Tuesday. The company is expected to see a rise in revenue on strong growth in Asia-Pacific properties.

$John Deere(DE)$ will report first-quarter 2024 results on Thursday. The company is expected to see a fall in profit as farmers cut spending due to high borrowing costs.

$Biogen(BIIB)$ will report its fourth-quarter earnings on Tuesday. Investors will focus on the company's full-year profit outlook as it cuts costs to soften the hit from slowing growth for some older drugs.

$The Kraft Heinz Company(KHC)$ is expected to post a decline in fourth-quarter revenue on Wednesday, hurt by volume pressure as pricing benefits roll-off, particularly in North America.

$Airbnb, Inc.(ABNB)$ will report its fourth-quarter financial results on Tuesday. The company is expected to report higher revenue and stable occupancy levels.

$Cisco(CSCO)$, on Wednesday, is expected to post a 7% drop in quarterly revenue as businesses rein in spending on networking equipment.

$MGM Resorts International(MGM)$ will be reporting financial results for its fourth quarter on Tuesday. The company is expected to post a rise in fourth-quarter revenue, helped by a steady post-pandemic travel rebound in its key markets.

$Shopify(SHOP)$ is expected to post a rise in fourth-quarter revenue on Tuesday as more merchants join its platform to capitalize on social commerce and e-commerce trends.

$CME Group Inc(CME)$ is expected to post a jump in fourth-quarter profit on Wednesday, helped by higher clearing and transaction fees.