Market Monitor January 30th

Highlights

U.S. markets closed higher as consumer spending remained strong. The Dow Jones rose 0.4%, and the Nasdaq gained 0.3%. The U.S. economy expanded by 2.3% in Q4, slightly below the expected 2.6%, but consumption grew at its fastest pace since early 2023, driven by auto sales.

Mastercard surged 3.1% to a record $566 after reporting strong earnings. Revenue grew 14% to $7.5 billion, beating forecasts, while EPS reached $3.82. Analysts noted robust consumer spending and international transactions as key drivers.

Meta Platforms climbed 1.6% to a record $687 after reporting better-than-expected earnings. Analysts raised their price targets, with RBC Capital increasing from $700 to $800, citing AI investments and strong ad revenue growth.

IBM soared 13% past $258, benefiting from high AI demand, surpassing expectations. Meanwhile, Microsoft dropped 6.1% to under $415 due to weaker-than-expected Azure performance, though AI-driven commercial bookings surged 75%. Analysts predict future growth acceleration for Azure.

Major Index Performance:

S&P 500 (SPY):

• Closed at 605.04 (+0.54%), maintaining a strong uptrend.
• The short-term trend shows mixed performance, with a -0.77% decline over the past week but a 2.86% gain over the last month. The long-term trend remains bullish, up 22.39% over 12 months.

Nasdaq-100 (QQQ):

• Closed at 523.05 (+0.43%).
• The past week showed slight weakness (-1.8%), but the 6-month and 12-month trends remain solid at +16.56% and +21.92%, respectively.

Russell 2000 (IWM):

• Closed at 228.53 (+1.00%).
• The index is attempting a recovery, with a 3.56% gain over the last month and a 17.55% increase over the past year.

Sector Performance:

• Over the past week, healthcare, consumer staples, and financials led the market, while energy and industrials showed weakness.
• Over the past month, financials, materials, and health care were the best-performing sectors.
• Over the past three months, technology, industrials, and financials have been the strongest, while real estate remained under pressure.

All info available on our Sector Performance page

Market Breadth Indicators:

• Advancing stocks: 75.4% on January 30, showing broad market strength.
• Declining stocks: 22.5%, significantly lower than the previous days, indicating positive market sentiment.
• The 20-day SMA breadth is at 71.2%, reinforcing the bullish trend.

All info available on our Market Monitor page

Overall, the market remains in a long-term uptrend, with financials (1 week performance) Materials (1 month performance), and Technology (3 months performance) driving gains. Short-term volatility persists, particularly in small caps and cyclical sectors.