No Tears in Economic Data | January 29th, 2024

Investor optimism soared as positive economic data, including a 3.3% growth in the U.S. GDP for Q4 2023, exceeded the expected 2% gain. The core PCE price index rose 0.2% in December, signaling a strong economy with moderate inflation. The S&P 500, Nasdaq Composite, and Russell 2000 all posted gains, with Oil & Gas stocks leading the way. Notable Q4 2023 earnings growth contributors in the S&P 500 were NVIDIA, Amazon.com, Meta Platforms, Alphabet, Microsoft, and Apple, collectively expected to deliver a 53.7% surge, while excluding them indicated a -10.5% decline for the remaining 494 companies. The blog also highlighted the success of the Chicago Maroons in college basketball and anticipated lively market action with the Federal Reserve meeting and earnings reports from major companies, including Apple, Amazon, Microsoft, Alphabet, and Advanced Micro Devices. The energy sector, particularly Exxon Mobil and Chevron, faces challenges with a forecasted 30%+ earnings decline due to lower oil prices. Boeing, dealing with grounded planes and stock prices, is also set to report earnings. The Federal Reserve is expected to keep interest rates steady, but Chairman Powell's comments will be closely scrutinized for hints of potential rate cuts.

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