Dow Jones, Nasdaq, S&P 500 weekly preview: Are new highs sustainable?
The S&P 500 (SPX) hit a new record high last week after finally clearing 4,818.62 – the level set in the first week of 2022. The index gained 1.2% last week and is now likely to continue pushing toward the psychologically-important 5,000 level.
Nasdaq Composite Index (IXIC) jumped 2.3% as tech stocks continue to ride the AI momentum. The index closed the week at 15,310.97 with the record high sitting at 16,212.23. Finally, the Dow Jones Industrial Average (DJI) was up 0.7%, marginally posting a new record high as the bulls continue closing in on 40000.
This week’s economic calendar is full of important data, notably the 4Q US GDP, which is out on Thursday.
“We expect growth to be driven by consumer spending, but growth in nonresidential business fixed investment likely remained subdued,” BofA economists wrote in a note.
The December PCE inflation report is also out this week (Friday), while investors will also be closely watching updates from central banks e.g. ECB, BoJ, and BoC.
“We expect the ECB to remain on hold with no policy changes nor changes to communication, and we stick to June for the first cut. We see no changes in targets or communication from the BoJ, and we expect Norges, BoC to remain on hold this week,” BofA also said.
In other data, we will also see the latest readings on Philadelphia Fed non-manufacturing activity, Richmond Fed business conditions, PMIs, Core PCE Price Index, initial jobless claims, durable goods orders, new home sales, PCE deflator, personal spending & income, pending home sales, etc.
Earnings take the central stage
Based on the results from 10% of S&P 500 companies for Q4 2023, 62% have reported positive surprises in both earnings per share and revenue, according to FactSet.
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