US Stocks Set To Gain For 7th Session On Small-Caps Strength, But Traders Wary Of Volatility From 'Quadruple Witching'
Portfolio Pulse from Shanthi Rexaline
US stocks are set for a seventh consecutive session of gains, with small-cap stocks showing strength. The market is cautious due to the upcoming 'quadruple witching' which could introduce volatility. Economic data on manufacturing and industrial production will be watched to assess the Federal Reserve's soft-landing approach. Energy stocks led Thursday's gains, while defensive utilities fell. Analysts predict the S&P 500 Index to end 2024 between 4,700 and 4,800, with small-cap stocks potentially outperforming. In premarket trading, SPY and QQQ ETFs rose, while individual stocks like COST, LEN, and SCHL showed varied movements. Alibaba and JD.com rallied on Chinese stimulus hopes. DRI is set to report earnings, and global markets are generally up, with oil prices increasing.
December 15, 2023 | 12:35 pm
News sentiment analysis
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NEGATIVE IMPACT
Lennar Corp. (LEN) declined more than 3% despite reporting better-than-expected quarterly earnings, indicating a potential disconnect between earnings performance and stock price movement.
Despite positive earnings, LEN's stock price dropped, which could be due to market expectations or other external factors affecting sentiment.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 70
NEGATIVE IMPACT
Scholastic Corporation (SCHL) plunged nearly 13% following disappointing quarterly results, signaling a negative short-term impact on its stock price.
SCHL's significant premarket drop is a direct reaction to its poor earnings report, suggesting a negative short-term impact on its stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 90
NEUTRAL IMPACT
Darden Restaurants, Inc. (DRI) is set to report its quarterly results, which could lead to volatility in its stock price depending on the outcome.
DRI's stock price impact will depend on its earnings report, which is yet to be released, making the short-term impact uncertain.
CONFIDENCE 70
IMPORTANCE 80
RELEVANCE 70
POSITIVE IMPACT
Alibaba Group Holding Ltd. (BABA) rallied on stimulus hopes set in motion by mixed Chinese economic data, indicating a positive short-term impact on its stock price.
BABA's rally is driven by stimulus expectations, which could outweigh the mixed economic data from China, leading to a positive short-term impact.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Costco Wholesale Corporation (COST) saw its stock rise over 1.30% in premarket trading after announcing strong quarterly results and a $15 per share cash dividend.
COST's positive earnings report and dividend announcement are significant drivers of investor sentiment, likely leading to a positive short-term impact on its stock price.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
JD.com, Inc. (JD) also rallied on the back of Chinese stimulus hopes, suggesting a positive short-term impact on its stock price.
Like BABA, JD's stock price is positively influenced by the prospect of Chinese economic stimulus, indicating a potential short-term gain.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Invesco QQQ ETF (QQQ) gained 0.33% in premarket trading, reflecting a positive outlook that aligns with the tech-heavy Nasdaq's performance.
QQQ tracks the Nasdaq-100 Index, and its premarket rise suggests investor confidence in the tech sector, likely leading to a positive short-term impact.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
SPDR S&P 500 ETF Trust (SPY) rose 0.24% in premarket trading, indicating positive sentiment and potential gains in line with the broader market's upward trend.
SPY is directly tied to the performance of the S&P 500, which is expected to continue its upward trend, suggesting a positive short-term impact.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80