Dow Jones, Nasdaq, S&P 500 weekly preview: Big Tech takes the stage
S&P 500 hit fresh 15-month highs last week before the bulls managed to secure the first close above the 4,500 mark for the first time since March 2022. The index rose 2.4% as Big Tech stocks continue to lead the way higher.
Nasdaq Composite Index surged 3.3% last week to also print 15-month highs amid increasing investor optimism surrounding the generative AI revolution. Dow Jones Industrial Average rose 2.3% as it still attempts to break the 3,4500 near-term resistance.
The U.S. equity markets received another boost last week after June’s CPI report showed inflation rose just 0.2%, less than expected. Compared to a year-ago period, prices jumped 3%, which is the lowest YoY increase since March 2021.
Excluding food and energy, core CPI increased 0.2% and 4.8%, respectively.
For the week ahead, the focus will be on tomorrow’s Retail Sales report. The market expects retail sales to jump 0.5% MoM in June.
Q2 earnings season in full swing
About 6% of S&P 500 companies have reported actual results so far, with 80% of them having reported a positive EPS surprise and 63% of S&P 500 companies reported a positive revenue surprise, according to FactSet.
Analysts expect to see a 7.1% earnings decline for the S&P 500. On June 30, the estimated earnings decline for Q2 2023 was -7.0%.
JPMorgan Chase & Co (NYSE:JPM) and Wells Fargo (NYSE:WFC) shares rose last week after strong results, while UnitedHealth (NYSE:UNH) and PepsiCo (NASDAQ:PEP) also saw their stocks surge higher on better-than-expected results.
Looking forward to this week, Bank of America (NYSE:BAC) and Morgan Stanley (NYSE:MS) will continue the bank earnings season tomorrow while Goldman Sachs (NYSE:GS) reports on Wednesday. Lockheed Martin (NYSE:LMT) is also due to
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