MARKETS TODAY Jan 27 (Vica Partners)
DOW (^DJI) 33,978 (+29), S&P 500 (^GSPC) 4,071 (+10), Nasdaq (^IXIC) 11,622 (+109), Russell 2000 (^RUT) 1,912 (+9), NYSE FANG+ (^NYFANG) 5,365 (+148), Brent Crude $86.40/barrel (-$1.07), Gold $1,928/oz (-$2), Bitcoin $23.2k (+$138)
Session Overview
- Key Indexes rise
- Nasdaq closes above 200d moving average
- 6 of 11 S&P 500 Sectors lower: Consumer Discretionary and Real Estate outperforms/ Energy underperforms
- Economic data continues to be encouraging/ Core PCE is now at its lowest level since October 2021. The University of Michigan’s consumer sentiment index rose to 64.6 in January, highest since May.
- Visa & MasterCard earning beat boosts investor market sentiment
- BIG earnings missed/ Intel (INTC), American Express Co. (AXP), Chevron Corp. (CVX)
- >7% of the markets daily options trading came from Tesla (TSLA) +11% today
- Bitcoin soaring, >38% for the Month
Technicals/ Sector Performance/ Yields+
Index Moving Averages
S&P 500 Index ($SPX) close 4,071+/ 50 Day 3,943+/ 100 Day 3,868+/ 200 Day 3,958+
Dow Jones In ($DOWI) close 33,978+/ 50 Day 33,630+/ 100 Day 32,329+/ 200 Day 32,350+
Nasdaq Co ($NASX) close 11,622+/ 50 Day 10,959+/ 100 Day 10,982+/ 200 Day 11,506+
6 of 11 S&P 500 Sectors lower: Consumer Discretionary and Real Estate outperforms/ Energy and Health Care underperform
The best performing sectors were the Consumer Discretionary and Real Estate, up 1.48% and 1.26% respectively. Energy was the biggest decliner, down 1.26%.
Yields rise: US – 2yr to 4.205%+, 5yr to 3.619%+, 10yr to 3.513%+, 30yr to 3.631%+
Greed Index Rating 69/ Greed
Notable Company Earnings
- Beats / Colgate-Palmolive Co. (CL), Roper Technologies Inc. (ROP), Autoliv Inc. (ALV)
- Misses/ Intel (INTC), American Express Co. (AXP), Chevron Corp. (CVX), HCA Healthcare Inc. (HCA)
U.S Economic News
- PCE price index; the PCE Price Index rose by 0.1 percent month-over-month in December of 2022, the same as in the previous month. Services prices increased (0.5 percent vs. 0.3 percent) while those for goods declined further (-0.7 percent vs. -0.4 percent).
- Core PCE price index, year-over-year; the core PCE deflator, rose 4.4% on an annual basis in December from 4.7% in November, in line with expectations of economists. Headline/ the Core PCE, which is now at its lowest level since October 2021,
- Real disposable incomes (SAAR); disposable personal income, or personal income less personal current taxes, rose by 0.3 percent in December, matching the increase seen in November.
- Real consumer spending (SAAR); personal spending dipped by 0.2 percent in December after slipping by 0.1 percent in November. The modest decrease matched economist estimates.
- UMich consumer sentiment index; The University of Michigan’s consumer sentiment index rose to 64.6 in January, its highest since May, from 59.7 in December, with assessments of both current and future conditions improving sharply on the month.
- Pending home sales; pending home sales rose 2.5% in December, bettering expectations of a drop as mortgage rates eased somewhat, the National Association of Realtors said on Friday.
Key report activity, Monday /none
Other Asset Classes:
- CBOE Volatility Index (^VIX): -0.42 to 18.31
- USD index: +$0.09 to $101.93
- Oil prices: Brent: -1.22% to $86.40, WTI: -1.94% to $79.44, Nat Gas: +7.17% to $3.155
- Gold: -0.11% to $1,928.36, Silver: -1.42% to $23.58, Copper: -1.03% to $4.22
- Bitcoin: +0.60% to $23.2k
Business News
- Japan, Netherlands to join U.S. in restricting chip equipment exports to China, Bloomberg reports reuters
- Chevron annual profit hits record but Q4 miss hits shares reuters
- Fed seen ending rate hikes by March as inflation slows reuters
- India’s rapid take-up of electric vehicles prompts rethink about long-term fuel needs reuters
- Tesla Has Become One of the Hottest Stock-Option Trades on Wall Street wsj
Vica Momentum Stock Report
Geo Group Inc (GEO) $GEO. (Momentum Grade B+) (Value A) (Growth B) 20 Day Average +2.26%, 50 Day Average +28.75%, 100 Day Average +37.00%, 200 Day Average +91.39%
The GEO Group, Inc. is an equity real estate investment trust. It specializes in the design, development, financing and operation of correctional, detention and community reentry facilities. It has operations in the United States, Australia, South Africa, and the United Kingdom.
Market Outlook
Market Outlook and updates posted at vicapartners.com
