From Nasdaq, Inc.:

Amazon.com Inc. is replacing Walgreens Boots Alliance Inc. in the Dow Jones Industrial Average. There are concerns regarding commercial real estate; bad property debt exceeds reserves at the largest US banks. The S&P 500 graph is hovering near all-time highs, yet it is showing narrow breadth and recent weakness. NVIDIA will be announcing its earnings this afternoon, and the economy’s prospects are better than expected. The yield curve is getting less inverted, indicating that economic growth prospects are improving. Gold prices have been buoyed by inflation and geopolitical concerns.
China is proposing new ESG rules to keep up with Europe, requiring over 400 companies to publish sustainability reports by 2026. The US is investing record amounts in renewable energy, but it may not be enough to meet climate goals. The Federal Reserve is likely keeping its balance sheet shrinking while liquidity drain persists. Market speculation is now shifting toward the belief that the next Fed move may be an upward interest rate.
There are a variety of corporate, macro, and market news to be aware of. The Bank of England is likely to start cutting rates in Q3, while the Bank of Korea is poised to hold its interest rate. Germany’s economic advisers will be cutting their 2024 growth forecast, and some retailers are already reporting 5% year-on-year growth in January.

Finally, there are several notable headlines within the oil and energy sectors. The Trans Mountain expansion may not give long-term price relief to Canada’s booming oil output, and Iran is stating that Israel is responsible for a “plot” against gas pipelines. Tighter spot crude supply is widening Dubai prompt backwardation to multi-month highs, and oil products stockpiles have dropped to a four-month low as demand rises in Fujairah.



Read more: Nvidia (NVDA) Earnings in Focus