Wall Street points to green: S&P 500 prepares for new assault on 5000 points

S&P 500 futures rose 0.14% to 5,004.90. DOW Jones index futures rose 0.06% to 38,748 points, and NASDAQ 100 index futures rose 0.28% to 17,832 points.

Yesterday The S&P 500 hit an intraday high of 5,000.40 during regular trading Thursday.but ultimately closed less than 3 points below the key 5,000 threshold. The S&P 500 first crossed the 4,000 mark on April 1, 2021, so It took him almost three years to reach his last 1,000 points.. A strong earnings season, softer inflation data and a resilient economy fueled a market recovery in early 2024, with the S&P 500 up 4.8% year-to-date.

“At first glance there is no difference between 5000 and 4999, but These big round numbers have psychological significance for investors.“, indicates that Ryan Detrick, Chief Market Strategist, Carson Group. “As we have seen throughout history, those who are willing to endure during difficult times are often rewarded in the end, and this time was no exception.”

The S&P 500 rose 0.8% this week and is poised for its fifth straight weekly gain. The DOW JONES and NASDAQ 100 indexes are up 0.2% and 1.1%, respectively, this week and are also on pace for a five-week winning streak.

But even having passed the 5000 point mark, Jeremy Siegel, professor of finance at Wharton University, believes that the market does not look expensive, especially if you look at it over the long term. “There will be volatility in the long term. “I don’t recommend playing the short-term operator role,” he said in a statement to CNBC. “I don’t think the market is overvalued right now. for a long-term investor in no way.”

Without adequate mention of the macroeconomic agenda, investors’ attention today remains focused on quarterly results. The Bankinter analytical group emphasizes that a total of 332 companies from the S&P 500 list have already published their reports. average earnings per share growth of +6.5% compared to +1.5% expected before the company went public. The qualitative balance is: 79.8% exceeds expectations, 5.1% meets expectations, and the remaining 15.1% disappoints. In the most recent quarter (Q3 2023), earnings per share grew by +4.5%, compared to the originally expected decline of -0.7%.

These figures compare with the 67% exceedance rate in a typical quarter since 1994, according to LSEG.

Pinterest shares fell 9.60% in early trading on Friday after the company disappointed the market with both its quarterly results and guidance for the current quarter.

The company reported a 12% increase in revenue to $981 million, but analysts had expected $991 million. On the earnings side, the adjusted 53 cents per share was slightly higher than the 51 cents per share expected. Pinterest expects first-quarter revenue to be between $690 million and $705 million, equivalent to growth of 15% to 17% year-over-year. Half of that range, $697.5 million, is below analysts’ average estimate of $703 million.

On the bright side, shares of Cloudflare soared 26% after the networking provider posted stronger quarterly results and guidance than analysts had forecast. Adjusted earnings per share were 15 cents per share versus expectations of 12 cents, and revenue rose to $362.5 million versus expectations of $353.1 million.

Cloudflare’s full-year 2024 earnings forecast is also above consensus, although the midpoint of the earnings range falls slightly lower. The company forecast adjusted earnings per share of 58 cents to 59 cents on revenue of $1.648 billion to $1.652 billion. Analysts had expected adjusted earnings per share of 56 cents and revenue of $1.652 billion.

Pepsico will report its results before the bell rings this Friday.

In commodity markets Oil prices continue to rise after a sharp rise yesterday when Israel rejected the terms of a ceasefire agreement. West Texas crude futures rose 0.16% to $76.34 a barrel, while European benchmark Brent crude traded at $81.60 a barrel.

“The catalyst appears to be Israel refusing to agree to a ceasefire with Hamas. “There was speculation, or at least hope, that we might see a ceasefire that could help de-escalate the situation,” he explains. Warren Patterson, commodities analyst at ING Research“But obviously we’re concerned now that we’re going to see further escalation.”

The euro fell 0.06% against the dollar, leaving the exchange rate at $1.077 for each community currency.

Bond yields were little changed, with the benchmark 10-year note offering a secondary market yield of 4.1715%. The two-year bond pays 4.4651%.

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