CEO sightings

Market Resilience: S&P 500 and Nasdaq Extend Gains Amid Election Uncertainty

By:JJ Kinahan

Amazon hits record highs and new fashion venture sparks optimism, but Nike and Walgreens disappoint

  • The S&P 500 and Nasdaq extended gains despite election ambiguity.
  • Nike and Walgreens report miss, affecting market sentiment and investor confidence.
  • Amazon's new fashion service has propelled its stock to an all-time high.

Stocks continued their upward trend for the third consecutive day, with the S&P 500 gaining 0.1% and the Nasdaq Composite rising by 0.3%. The day appeared relatively subdued, which I attribute to traders awaiting the aftermath of the previous night's presidential debate and the release of the morning's personal consumption expenditures (PCE) index report.

Elections can significantly influence markets because of the impact an administration’s priorities have on various industries. However, last night's debate left many uncertainties regarding the upcoming administration. Neither candidate presented a compelling performance in this unusually early debate for the election season. It was akin to preseason form rather than contenders. This could heighten the significance of future debates as the stakes amplify exponentially.

A crucial development this morning was the PCE index report, aligning closely with analysts' expectations: core PCE prices rose 2.6% year-over-year and 0.1% month-over-month. This data maintained a 64% forecast for a rate cut in September, unchanged from before the report's release, signaling stability in market expectations.

Individual stocks

Turning to individual stocks, Nike (NKE) saw a stark decline of 16% following disappointing earnings, accompanied by a downward adjustment in forward-looking guidance citing uncertainties in consumer spending. Nike attributed a 2% revenue decrease, contrary to a projected 1% increase, to softness in the Chinese market.

Similarly, Walgreens Boots Alliance (WBA) reported dismal metrics and revised guidance, resulting in a 22% drop in its shares by the end of yesterday.

Contrasting with these setbacks, stock in Amazon (AMZN) soared by 4% during the week, reaching an all-time high of $197.85 by yesterday's close. Amazon's strategic move involves launching a new low-cost fashion wear service directly shipping from Chinese warehouses to compete with privately-held e-commerce giants like Shein and Temu.

The crystal ball

Looking ahead, the markets face challenges in interpreting the PCE report's implications. Investors anticipating weaker figures that could boost prospects for an interest rate cut might be disappointed. Despite slower price growth reported in yesterday's GDP data, marking the economy's slowest expansion since mid-2022, I advise maintaining focus on long-term investment strategies amid fluctuating short-term trends.

In summary, the market's recent trajectory reflects cautious optimism despite uncertainties stemming from electoral dynamics and economic indicators. As investors navigate earnings surprises and strategic shifts among major corporations, the broader economic context remains pivotal in shaping market sentiments and decisions.

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. @thejjkinahan

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 brokeropen 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.

Related Posts

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.