April 28, 2023
Good morning,
U.S. equities put in a strong day yesterday with the S&P 500 Index (SPX) gaining +1.96% and the tech heavy Nasdaq Composite advancing +2.8%. News agencies attributed the big jump in the indexes to the earnings beat by Meta Platforms (formerly named FaceBook), which was up +15% on the day. That seems like an exaggerated move in the indexes on one company’s earnings report. I believe the record short mentioned last week contributed to yesterday’s seemingly outsized move up. Regardless of the reason, one day does not make a rally. Bulls will need some follow through today and into next week before they can get too excited. They may get it, but for now, Futures are off -.40% pre-market. The S&P 500 Index is still in the red for the week, so it looks like there is work to be done for bulls this morning.
Be well,
Mike