US Markets – 2024 Week4 Update/Recap
Summary of the week:
US Markets Update – Overall, last week i.e. 4th week of 2024 also closed at very positive note for US Markets mainly for Tech and Large Cap Stocks. S&P 500 touched life time high of 4906 level this week. NASDAQ Composite also touches 52-week high level 15269 this week.
Among Global indexes, at broader level all the indices posted gain.
NASDAQ Composite rose by 0.943% for the week.
S&P 500 rose by 1.057% closed at record higher level confirming next bull market is not far.
RUSSELL Index pack also rose higher this week.
RUSSELL3000 (RUA) Global index rose by 1.07% ,
RUSSELL1000 (RUI) Large Cap index rose by 1.034% and
RUSSELL2000 (RUT) Small Cap index rose by 1.746% during the past week.
Dow Jones Industrial Average also posted an upward change of 0.649% on weekly basis.
Key heavy-weight stocks that ROSE on weekly basis:
- AXP (American Express Company) rose by staggering 18.26USD (9.969%) to close at 201.43$ per share, after AMEX reported robust earnings.
- GOOGL (GOOGLE) up by 5.81 USD (3.966%) to close at 152.185 $ per share
- MRK (MERCK&CO) up by 1.93 USD (1.623%) to close at 120.82 $ per share
- MSFT (MICROSOFT CORP.) up by 5.26 USD (1.319%) to close at 403.93 $ per share
- AAPL (Apple Inc.) up by 0.86 USD (0.449%) to close at 192.42 $ per share
Among the heavy-weight stocks that FALL on weekly basis are:
- TESL (TESLA INC.) fell by 28.94 USD (13.639%) to close at 183.25 $ per share
Weekly change summary in Major Indices (2024 Week4)
DJIA (US30) rose by 245.83 points i.e., 0.649%.
NASDAQ COMP rose by 144.39 points i.e., 0.943%
S&P500 (SPX) rose by 51.16 points i.e., 1.057%
RUSSELL3000 (RUA) Global rose by 29.69 points i.e., 1.070%
RUSSELL2000 (RUT) Small Cap rose by 33.94 points this week i.e., 1.746%.
RUSSELL1000 (RUI) Large Cap rose by 27.43 points i.e., 1.034%
YTD change on key Indices
On YTD basis, major indices risen sharply from their 2023 closing levels except for small caps:
- Nasdaq Composite 444 Pts i.e. 2.958% Up at 15,455.36 (2023 Closing level 15011.35)
- Dow Jones 419 Pts i.e. 1.114% Up at 38109.43 (2023 Closing level 37689.54)
- S&P500 (SPX) 121.14 Pts i.e. 2.54% Up at 4890.97 (2023 Closing level 4769.83)
- Russell3000 (RUA) 55.2 Pts i.e. 2% Up at 2803 (2023 Closing level at 2748.21) rep. Global US stocks.
- Russell1000 (RUI) 59 Pts i.e. 2.26% Up at 2,653.99 (2023 Closing level at 2622.14) rep. Large Cap stocks.
- Russell2000 (RUT) 48 Pts Down at 1978.33 (2023 Closing level 2027.07) rep. Small Cap Stocks.
US Bond Yields
10 Years, 20 Years and 30 Years maturity bond yield all rose little more this week to stay above 4% creating a consistent pressure on Fed to deal with Interest rates since the 2024 year beginning.
Yield Curve Trend in 2024 (Courtesy: ustreasuryyieldcurve.com)
What’s the buzz this week and for next week?
S&P U.S. Manufacturing Purchasing Managers Index (PMI) published by Markit Economics on 24 Jan 2024 Wednesday improved the market mood. The actual number read at 50.3 versus forecast of 47.9 that shows higher level of purchasing activities in the Manufacturing sector. This is considered as a leading indicator of overall economic performance.
S&P U.S. Services Purchasing Managers Index (PMI) also got published by Markit Economics and the actual number read at 52.9 versus forecast of 51.0 that shows higher level of purchasing activities in the Services sector that includes transport and communication, Financial Intermediaries, Business and Personal services, IT services, Hotels and Restaurants.
U.S. Core PCE Price Index reading was published on 26th Jan 2024 that was slightly in line to the forecasts. This index doesn’t include the highly volatile seasonal food and energy prices.
AirBNB (NASDAQ: ABNB) rose sharply and ended at 149.62 USD per share i.e. 9.90% higher at YTD since 2024 begin. The company revealed its plan to increase fees for cross-currency bookings on its Online accommodations platform. Internationally, the company enjoys huge business volume in cross-border nights (growing at 17%) and looking further to expand into new markets.
Intel (NASDAQ: INTC) lost 6.6 USD per share (13.13% ) on YTD basis in 2024 after the company gave Q1 outlook below expectations, raising concerns over company’s growth path. Intel announced its Q4 earnings on 26th Jan which were broadly above market expectations but could not impress stock traders. Intel shares closed at 43.65 USD during the last trading day of 26th Jan 2024.
American Express Company (NASDAQ: AXP) reported not only great set of earnings but also issued very good guidance for future growth plan. Key takeaways from the reported earnings are:
- Its revenue reached nearly $16 billion in the Quarter4, contributing to a total of $61 billion for the year.
- Net income surpassed $8 billion, with an EPS of $11.21.American Express aims to deliver annual revenue growth of 10% plus and mid-teens EPS growth.
- The company plans to increase the quarterly dividend to $0.70 per share.
What’s will be the key indicators to watch in next week?
In the next week 4 (29 Jan-02 Feb, 2024), critical indicators to influence market mood will be:
U.S. Conference Board Consumer Confidence indicating level of consumer confidence in economic activity.
ADP National Employment Report to show Nonfarm Employment Change in private employment.
Most important event would be Fed Interest Rate decision and FOMC Statement for communicating the monetary policy on 01st Feb 2024.
Credit: Investing.com: Economic-Calendar
