WBA - Wall Street Eyes Muted Open As Caution Prevails Before Key Inflation Data: Analyst Sees Buying Opportunities In Any Pullback | Benzinga
Following Wednesday’s late surge that pushed the S&P 500 Index to a record high, the market sentiment has shifted to cautious. Stock futures on Thursday indicate a flat open on Thursday as traders likely seek to lock in profits before Friday’s release of the key personal consumption expenditure (PCE) data, the Federal Reserve’s preferred inflation gauge. However, it’s important to note the market is closed on Friday due to the Good Friday holiday.
Cues From Previous Session
U.S. stocks ended their three-day losing streak on Wednesday. The Dow Jones Industrial Average and the S&P 500 hovered near flat levels throughout the day. The technology sector displayed hesitation, with the Nasdaq Composite giving up early gains and fluctuating near the unchanged line until a late-session rally propelled it to a solid close.
The S&P 500 closed at a new record high but fell short of surpassing its intraday peak. Notably, all 11 S&P sector classifications finished positive, with real estate and utilities leading the gains.
Small-cap stocks displayed noteworthy outperformance, with the Russell 2,000 Index surging over 2% for the session. Commenting on this strength, Ryan Detrick of Carson Group said: “Historically cheap valuations, improving confidence, and strong EPS/revenue expectations (thanks to a healthy economy) are all other reasons we expect to see a big rally in ’24 from this area.”
Index Performance (+/-) Value
Nasdaq Composite +0.51% 16,399.52
S&P 500 Index +0.86% 5,248.49
Dow Industrials +1.22% 39,760.08
Russell 2000 +2.13% 2,114.35
Insights From Analysts:
Not deterred by the extended runup, an analyst recommends staying invested in stocks. “The S&P 500 remains in a strong uptrend, supported by broad participation and cyclical leadership. While stocks are extended to the upside, this backdrop suggests pullbacks should be used as buying opportunities,” said LPL Financial’s Chief Technical Strategist Adam Turnquist.
“Improving relative strength in industrials, financials, and ...