About 30% of S&P 500-listed firms have reported their earnings this quarter, with an impressive 77% surpassing analyst expectations, according to data from FactSet. As the earnings season continues, notable performances include Intel and Apple, whose shares rose over 3% after exceeding expectations for their respective quarters. Atlassian also reported strong results, with its shares soaring more than 16%. On Friday, attention will shift towards the personal consumption expenditures price index for December, the Federal Reserve's preferred gauge of inflation. This data will be vital for traders as they navigate the final day of a turbulent January.
The Dow Jones Industrial Average is on track to finish the week higher, with a notable 5.5% increase. In contrast, the S&P 500 and Nasdaq Composite are set to close the week with declines of 0.5% and 1.4%, respectively. Despite the mixed performance across indexes, futures indicate a cautious optimism. Futures tied to the S&P 500 ticked higher by 0.1%, while Nasdaq 100 futures gained 0.3%.
Friday marks a significant day for traders as this volatile month draws to a close. With earnings season in full swing, investors eagerly await results from Chevron and Exxon Mobil, expected before the bell on Friday. The performance of these energy giants could further influence market sentiment.
Jay Hatfield, CEO of Infrastructure Capital Advisors, remains optimistic about the current earnings season. He stated:
"Usually, it pays to be long during earnings, so we would continue to be bullish into February." – Jay Hatfield, CEO of Infrastructure Capital Advisors.
The blue-chip index has experienced a modest rise of about 1%, despite broader market challenges. As investors focus on the impending inflation data, they remain alert to the potential impacts on Federal Reserve policy decisions.