(DAILY NOTION): Wall Street Ends Lower After a Great Start to the Day, Next Mover: Earnings Report, Fed Rate Decision, Biden Stimulus Package

NASDAQ 100 (as of Jan 27, 2021 at 10.35 a.m.)

Source: Yahoo Finance

SPX 500 Futures (as of Jan 27, 2021 at 10.35 a.m.)

Source: Yahoo Finance

US30 Futures (as of Jan 27, 2021 at 10.35 a.m.)

Source: Yahoo Finance

Wall Street broadly ended lower as the NAS100 fell 0.13%, and both the SPX500 and US30 slipped 0.07%. Although both SPX 500 and US30 experienced a sharp gain upwards at the start of the day, the momentum was not sustained and mostly traded flat throughout the rest of the day.

The remaining days of this week are set to be action-packed ones as earnings reports from Apple, Facebook Inc, Tesla, AT&T, and Boeing are due to be released. These companies form 12% of the SPX500. Microsoft, which released its quarterly result after closing yesterday, gloriously beat expectations by nearly $3 billion and also hit a three-month sales record. As a result, its stock leapt by as much as 6% in after-hours trading.

Traders would also be watching for updates from the U.S. Federal Reserve (Fed) and more particularly, the Fed’s benchmark rate decision and pace of bond purchases. However, it is expected that the Fed would remain a status quo stance on both these decisions.

Exactly one week after President Biden was inaugurated, enthusiasm over his staggering $1.9 trillion stimulus plan was clearly evidenced in the consumer confidence index which climbed up to 89.3 in January. The International Monetary Fund (IMF) reported that President Biden’s stimulus plan could add as much as 1.5% to the growth of U.S in 2021, and further increase economic output by 5% over the next three years.

However, this remains to be seen, as the stimulus plan is currently facing heat from the Republicans, who believe that the amount of the stimulus plan is too big. Can the Biden Plan secure enough votes in the Senate to be passed?

FOLLOWME User Sentiment (as of Jan 27, 2021 at 10.55 a.m.)

SPX500

Short – 81.01%

Long – 18.99%

NAS100

Short – 81.76%

Long – 18.24%

US30

Short – 69.90%

Long – 30.10%