A Week of Good News!
By:JJ Kinahan
The stock market has experienced a robust week, driven by encouraging inflation data and high hopes for a strong earnings season.
Major indexes, including the S&P 500 and Nasdaq Composite, recorded significant gains. As we enter the earnings season, investors eagerly anticipate the financial results of companies to determine the market's future trajectory.
Recent reports on the consumer price index (CPI) and the producer price index (PPI) revealed slower-than-expected inflation growth, suggesting that efforts to contain inflation have been effective. This positive outlook was further supported by the flattening yield curve, although it remains inverted.
Additionally, indicators like gas prices, airfare and used car prices have shown signs of cooling, indicating a potential easing of inflationary pressures.
Several individual stocks have made headlines this week. Amazon's (AMZN) shares surged by almost 4% following the company's highly successful Prime Day sale, demonstrating continued strength in consumer spending.
Disney (DIS) experienced a slight increase after news of an extension of Bob Iger's tenure and the possibility of seeking strategic partnerships for ESPN and their legacy TV networks.
Google's parent company, Alphabet (GOOGL) witnessed a 5% rise with the expansion of its AI chatbot, Bard, into new markets in Europe and Brazil.
Positive market sentiment was bolstered by better-than-expected earnings from JP Morgan (JPM), Wells Fargo (WFC) and United Health Group (UNH).
Jamie Dimon, CEO of JP Morgan, emphasized the economy's resilience and consumers' continued spending, albeit at a slightly slower pace.
A notable event impacting digital assets was a favorable ruling for Ripple in a U.S. District Court in New York, resulting in increased prices for digital assets. The decision deemed Ripple's XRP tokens sold on exchanges not to be investment contracts, marking a significant victory for Ripple in the crypto space.
Additionally, the VIX (volatility index) remains at levels not seen since the beginning of 2020, indicating a lack of market concern. However, it is important to note that complacency can make markets vulnerable to unexpected news.
While stocks have made significant gains driven by positive inflation data and optimistic earnings expectations, investors should remain cautious of potential volatility catalysts in the coming week, especially as prominent companies like Netflix (NFLX) and Tesla (TSLA) report their earnings. Staying committed to long-term investment plans and objectives remains crucial to navigating the evolving market landscape.
JJ Kinahan is CEO of IG North America—which includes tastylive, tastytrade and IG's FX Business. Kinahan traded for 21 years at the Chicago Board Options Exchange. He serves on the CBOE Advisory Board and the SIFMA Options Committee.
For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.
Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.
© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved. Applicable portions of the Terms of Use on tastylive.com apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.