Broker Check

Weekly Market Update for Week ended February 16, 2024

February 20, 2024

Weekly Market Update February 16, 2024

 

 

Close

One Week

YTD

Dow Jones Industrial

38,628

-0.1%

+2.5%

Standard & Poor’s 500

5,006

-0.4%

+4.9%

Nasdaq Composite

15,776

-1.3%

+5.1%

 

This past week saw the inflation monster rearing its head yet again with both CPI (Consumer Price Index) and PPI (Producer Price Index) readings that came out hotter (higher inflation) than expected.  These readings have caused market participants to rethink their forecasts for when and how many interest rate cuts we'll see in 2024. 

 

Remember that while the inflation readings weren’t as low as expected, the overall inflation trend is moving in the right direction.

 

 

The market will turn its attention this week to earnings from some bellwether names from the S&P including (but not limited to):

Tuesday: Home Depot

Wednesday: Walmart, Nvidia

Thursday: EOG Resources

Friday: Warner Brothers Discovery

 

According to Factset, thus far 79% of companies in the S&P have reported.  Of these companies, 75% have reported a positive earnings per share upside, and 65% have reported a positive revenue surprise.

 

 

The S&P continues to show resilience in the face of renewed inflation concerns.  This is largely due to the solid earnings reports during this reporting season.  Keep an eye on this week’s earnings reports and especially Thursday’s earnings from Nvidia to gauge the short-term market direction for the rest of February.

 

Have a great week,