Wednesday, February 1, 2023

SPX Closes Higher after Fed Hikes 25bps as Expected...Technology, Discretionary, Communication Services Lead Sectors...After-hours META, ALGN Soar...


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-The SPX +42.61 opened lower and closed higher after the FOMC announcement.
-AMD, ODFL, SYK gained 9%+ after positive EPS reactions.
-VIX closed lower at a 52-week low.
-After-hours: META +30.87, +20.16%, on positive EPS reaction,
 ALGN +42.47, +15.03%, on positive EPS reaction.
-FOMC announcement was as expected a 25-bps hike.

 

 

GLD and TLT closed higher, while DXY, /CL and TNX moved lower.

Mega caps NVDA, TSLA, META, MSFT, AMZN, GOOGL, AAPL, rose.


iBB:  In our model account we maintain a net long position.  We rolled most of our 3 Feb exposure to 10 Feb before the FOMC announcement, added an earnings strangle on META and increased our 10 February exposure through new entries.


Day 13 of Q4 Earnings Season today, 170 SPX companies have reported as of the close:

First day reaction: Q4 through Feb 1…Positive reactions continue to lead…
Positive: AMD, ODFL, SYK, EW, MO, TMO, OTIS, BSX, MSLZ, TMUS, AOS, IP, PHM, PNR, GM, DOV, NVR, MSCI, UPS, MCO, NXPI, XOM, ARE, PFE, WHR, BEN, AXP, LHX, RHI, V, WY, TSLA, STX, STLD, URI, NUE, PKG, LVS, TSCO, VLO, NOW, AAL, LRCX, CCI, MMC, ROK, AMP, MKTX, COF, T, USB, PGR, TDY, FCX, ELV, HES, PCAR, TRV, RTX, VZ, LMT, DHI, GE, SIVB, NFLX, PPG, STT, RF, CMA, MTB, TFC, FITB, KMI, JBHT, PLD, MS, SBNY, WFC, JPM, BAC, BK, C, FRC = 83
Neutral: HUM, BXP, WM, MPC, SYY, PFG, HCA, CMCSA, ALK, DOW, XEL, TER, ADM, TXT, BA, APH, MSFT, FFIV, TEL, JNJ, HBAN, SLB, DFS, BLK = 24
Negative: WRK, EA, CB, MTCH, IEX, ABC, JCI JNPR, FTV, AMGN, WDC, PSX, GLW, CAT, MCD, KLAC, INTC, EMN, CL, CVX, CHTR, RMD, WRB, ROP, AJG, SHW, MKC, IBM, NOC, RJF, LUV, CSX, TROW, MA, NEE, NDAQ, ISRG, NSC, ADP, GD, KMB, ABT, TXN, MMM, UNP, IVZ, DHR, HAL, BRO, ZION, BKR, SYF, NTRS, KEY, PG, FAST, PNC, UAL, SCHW, GS, CFG, DAL, UNH = 63
Non-SPX = SNAP

109 SPX companies report EPS this week:
Monday:  BEN, ARE NXPI, PFG, WHR
Tuesday:  AOS, CAT, DOV, GLW, GM, IP, MCD, MCO, MPC, MSCI, NVR, PFE, PHM, PNR, PSX, SYY, UPS, XOM, AMD, AMGN, BXP, CB, EA, EW, IEX, JNPR, MDLZ, MTCH, SYK, WDC
Wednesday:  ABC, BSX, FTV, HUM, JCI, MO, ODFL, OTIS, TMO, TMUS WM, WRK, AFL, ALGN, ALL, CHRW, CTVA, EBAY, GL, HOLX, MAA, MCK, MET, META, PTC, QRVO
ThursdayAME, APD, APTV, AVY, BALL, BDX, BMY, CR, CAH, CMS, COP, DGX, EL, GWW, HON, HSY, ICE, ITW, LLY, MRK, PH, SNA, SWK, TECH, TT WEC, AAPL, AMZN, CLX, CPT, CTSH, F, GEN, GILD, GOOG, GOOGL, HIG, MCHP, NWSA, QCOM, SBUX
Friday:  AON, CBOE, CHD, CI, LYB, REGN, ZBH

SPY up 4.32 at 410.80, on 101.4 million shares, above average volume, up on higher volume.
VIX down 1.53 at 17.87, a 52-week low.
QQQ up 6.30 at 300.92

INTC, CRM, MSFT, NKE led the DJIA, 18 advancers, -8
SYK, KMX, AMAT, EW led the SPX, 363 advancers
AMD, DDOG, ODFL, NVDA led the NDX, 89 advancers.

The two-year trend term is sideways.  The one-year trend down.

Up:  QQQ, SPY, IWM, DIA,
Down:

Nine of eleven sectors were higher, and one was unchanged on Wednesday, led by XLK, XLY and XLC.

The SPY MFC green line is pointed up at 87 and is short-term bullishSPY opened lower and closed higher.

Uptrend sectors:   XLC, XLRE, XLB, XLY, XLF, XLK, XLI, XLE, XLU, XLV, XLP,
Neutral sectors:
Down trend sectors:

The 6-month intermediate trend is sideways.  The ten-day trend is up.

3-month Intermediate Term Market Trend: Up
3-day Short Term Market TrendUp


89 of 100 NDX stocks closed higher on Wednesday.

83 NDX stock are above their 30 DMA:   AVGO, ALGN, BKNG, META, SGEN, CMCSA, PDD, PYPL, SBUX, EBAY, IDXX, MU, NFLX, WBD, BKR, CHTR, AMAT, ASML, CTSH, FANG, LRCX, ODFL, TMUS, ADBE, ANSS, CDNS, MELI, ADSK, AMZN, ISRG, NXPI, QCOM, ABNB, AMD, FISV, LCID, MAR, NVDA, TEAM, CPRT, GOOG, GOOGL, VRTX, AAPL, BIIB, COST, CPRT, DLTR, FAST, ILMN, INTU, MCHP, MRVL, MSFT, PANW, TXN, WDAY, VRSK, ZS, ADI, FTNT, GFS, PCAR, REGN, TSLA, MNST, ROST, CSCO, DDOG, OKTA, ZM, CSGP, ATVI, CRWD, INTC, RIVN, AEP, CSX, CTAS, JD, KLAC, LULU, MDLZ, PAYX, WBA,

NDX Stocks to Watch on Thursday:
Moving Above 30 DMA = 9
AEP, CSX, CTAS, JD, KLAC, LULU, MDLZ, PAYX, WBA,


Moving Below 30 DMA = 1
EA,



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