US Stocks Poised To Extend New Year Slump As Focus Shifts To December Jobs Data: Analyst Sees S&P Testing 4,800 On This Condition
Portfolio Pulse from Shanthi Rexaline
US stocks are expected to continue their decline as investors await the December jobs report. Technology stocks are particularly affected by the current risk aversion. The jobs report will be crucial in determining market direction, with a stronger-than-expected report potentially pushing yields higher and exerting further downward pressure on the market. Analyst Louis Navellier suggests the S&P could test 4,800 if earnings growth projections for 2024 hold. Premarket trading saw SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ ETF (QQQ) fall slightly. Stocks like Palantir Technologies (PLTR) and Medical Properties Trust (MPW) saw premarket movement due to an analyst downgrade and rent deferral news, respectively. Peloton Interactive (PTON) rose after a partnership announcement. AngioDynamics (ANGO), Constellation Brands (STZ), and Greenbrier Companies (GBX) are set to report quarterly results.
January 05, 2024 | 12:36 pm
News sentiment analysis
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NEGATIVE IMPACT
Medical Properties Trust plunged 15% after announcing rent deferral for its largest tenant, which could significantly impact the stock negatively.
Rent deferrals can affect a REIT's revenue stream and investor confidence, likely leading to a negative short-term impact on the stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 95
NEGATIVE IMPACT
Palantir Technologies declined over 3% in premarket trading following an analyst downgrade, which could negatively impact the stock in the short term.
Analyst downgrades typically lead to negative sentiment among investors, potentially causing a short-term decline in the stock's price.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
NEGATIVE IMPACT
Invesco QQQ ETF moved down 0.32% in premarket trading, with technology stocks facing the brunt of the market's risk aversion.
QQQ, which tracks the Nasdaq-100 index, is sensitive to movements in the technology sector, currently experiencing heightened risk aversion.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
NEGATIVE IMPACT
SPDR S&P 500 ETF Trust fell 0.23% in premarket trading, indicating a potential continuation of the recent market slump, especially if the jobs report is stronger than expected.
SPY is directly impacted by the overall market sentiment and the jobs report is a significant economic indicator that can influence market direction.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
NEUTRAL IMPACT
AngioDynamics is set to report quarterly results, which could influence the stock's short-term performance depending on the outcome.
The impact of earnings reports on stock price is uncertain and depends on whether the results meet, exceed, or fall short of expectations.
CONFIDENCE 70
IMPORTANCE 80
RELEVANCE 70
NEUTRAL IMPACT
Greenbrier Companies is scheduled to report earnings, potentially affecting its stock price based on the financial performance disclosed.
The short-term impact of earnings reports on a stock's price can be significant, but it is dependent on the actual versus expected performance.
CONFIDENCE 70
IMPORTANCE 80
RELEVANCE 70
NEUTRAL IMPACT
Constellation Brands is among the companies reporting quarterly results, which could sway the stock price in the short term.
Earnings releases are pivotal events that can cause stock price volatility, but the direction of the impact is contingent on the report's content.
CONFIDENCE 70
IMPORTANCE 80
RELEVANCE 70
POSITIVE IMPACT
Peloton Interactive rose about 3% after a nearly 14% rally on Thursday due to a new partnership, suggesting positive short-term momentum.
Partnership announcements can create positive investor sentiment and drive up stock prices in the short term.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90