The power of expectations continues to lift Wall Street

The S&P 500 index on Wall Street continued to increase and set a new peak on Tuesday (January 23), when the group of technology stocks maintained the attraction of expectations and business results reports. The fourth quarter is still in good shape.
The power of expectations continues to lift Wall Street More than 75 companies in the S&P 500 and accounting for more than 70% of the market capitalization will report earnings this week, including several large technology companies. In particular, Netflix shares increased by 3.2% after service subscriptions in December increased by 13.1 million, the highest level in a month ever. Another giant, Verizon, increased 5.6% after forecasting positive profits and announcing the number of fourth-quarter subscribers increased to the highest level in nearly two years.
Among S&P 500 companies that have reported results so far, 86.6% have exceeded profit expectations, compared with 93.1% from a week ago, LSEG data showed.
In addition, many investors expect that positive fourth quarter 2023 financial reports of 7 large-cap technology companies will be the key to determining whether the market's recent rally can maintain or lose momentum. . This group is called the “Magnificent 7”, which includes Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla. All eyes will now be focused on the personal consumption expenditures (PCE) index - the Fed's preferred inflation measure; the S&P Global PMI index and this week's fourth quarter GDP report will be key. assess the central bank's next policy decision when it meets on January 31.
Closing session on January 23: Dow Jones index decreased 96.36 points (-0.25%), down to 37,905.45 points. The S&P 500 index increased 14.17 points (+0.29%), to 4,864.60 points.
The Nasdaq Composite Index increased 65.66 points (+0.43%), to 15,425.94 points. European stocks fell, as investors were cautious ahead of the European Central Bank's (ECB) policy meeting later this week, while a rise in mining stocks helped limit the main index's decline. At the close, the pan-European STOXX 600 index fell 0.28% to 471.53 points, with interest rate-sensitive utilities and real estate stocks down 0.8% and 1.3%, respectively. while healthcare stocks also fell 0.9%. On the other side, a 2% gain in mining stocks supported the market, helped by mostly rising base metals prices, while copper prices were boosted by hopes that top metals consumer China will unleash more stimulus to boost the economy. Luxury companies with exposure to the Chinese market including LVMH, Kering and Richemont all rose between 1.1% and 1.7%. Ahead of the ECB's interest rate decision, data released on Tuesday showed euro zone consumer confidence fell 1.0 points in January compared to the December figure. "We suspect this decline is the start of a new trend and expect a more sustainable recovery to occur soon, as inflation due to regular purchases is falling sharply," said Melanie Debono, analyst. said senior European economist at Pantheon Macroeconomics.

While a pause in interest rate hikes is almost certain at the upcoming ECB meeting, traders predict a cut of around 1.3% this year, with a nearly 97% chance of a cut. the first time in June. Closing session on January 23: London's FTSE 100 index decreased 1.98 points (-0.03%), to 7,485.73 points, DAX index on Frankfurt floor decreased 56.27 points (-0.34%). , to 16,627.09 points, Paris's CAC 40 index decreased 25.21 points (-0.34%), to 7,338.04 points. Oil prices fell slightly, as traders focused on the recovery of crude output in some parts of the US, along with increased supply in Libya and Norway, rather than supply risks due to conflicts in Europe. caused by Europe and the Middle East.
At the end of the session on January 23, the US benchmark WTI crude oil price decreased by 0.36 USD/barrel (-0.5%), to 74.37 USD/barrel. Brent crude oil price decreased by 0.51 USD/barrel (-0.6%), to 79.55 USD/barrel. ​