Earnings season plays a crucial role in the performance of the market. Most days, stocks fluctuate based on expectations – in earnings season they move on data.
Monday morning was dominated by the bears as the markets grappled with a slowing global economy and uncertainty over the US-China trade negotiations. The bulls propped up the afternoon on strong reported earnings. SPY finished the day slightly higher in the high-263’s.
The momentum from Monday’s gain was tempered on Tuesday as the US announced a host of charges against Chinese telecom giant Huawei. Investors anticipated that this news would impede the likelihood of productive negotiations in the upcoming round of trade talks between the US and China. SPY closed lower in the mid-263’s.
An optimistic mood described the market on Wednesday and Thursday. Strong earning from the likes of Apple and Boeing helped SPY inch forward, but news that the Federal Reserve did not raise interest rates caused a major jump up to the 270’s by the end of Thursday.
SPY’s optimistic rally hit a high point on Friday before running out of steam as traders closed their positions before the weekend. The day ended slightly lower in the low-270’s.
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