Weekly Stock Market Update & SPY Technical Analysis
This week may be the most closely watched of the quarter as investors await earnings from multiple large-cap companies and key economic reports.
Earnings this week include reports from Google, Microsoft, Meta, Apple, and Amazon, five of the “Magnificent Seven” stocks that have propelled the market to all-time highs this year. Traders will be on edge as they await the outcomes, with many hoping these companies will replicate Tesla’s momentum from last week. All five companies have ambitious targets to meet, and while they’re likely to meet them, investors will want updates on artificial intelligence. It has been a few quarters since many of these companies began rolling out AI initiatives, so it’s time to present some KPIs related to them.
Outside of Big Tech, Big Oil will also report this week, with Chevron, Exxon, and BP sharing their results. Energy stocks have lagged behind the broader market rally, but earnings could finally act as the catalyst for a breakout or breakdown. Oil prices have remained stable in recent months as the elections approach, but they may increase afterward. Investors will especially focus on the guidance and forecasts these companies provide for 2025.
On the economic front, the Personal Consumption Expenditures (PCE) inflation report is set to be released this week. Year-over-year PCE is expected to decline from 2.2% to 2.1%, the closest to the Fed’s 2% target in years. The Fed and the IMF both declared “victory” on inflation in recent weeks, so any unexpected increase may reignite concerns. Also under watch this week are the third-quarter GDP report and the Unemployment report. GDP is anticipated to grow from 3% to 3.2%, marking a notable improvement from Q1’s 1.6%, while unemployment is expected to remain steady at 4.1%.