Wednesday saw a small increase in the S&P 500 as the benchmark and the Nasdaq Composite attempted to continue their longest winning streak in nearly two years.
The overall market index increased by 0.2%. Accompanying the Dow Jones Industrial Average’s 0.1% gain was the Nasdaq.
Array Technologies’ shares fell 18% due to poor full-year projection for earnings and revenue, whereas Rivian’s shares surged 6% due to better-than-expected results and production guidance. After revealing its intention to raise money through stock and note issues, Spirit AeroSystems, a supplier to Boeing, saw a 12% decline in value.
Tuesday saw the S&P 500 gain 0.3%, marking its seventh straight positive session. For the seventh day in a row, the Nasdaq Composite increased by 0.9%. Tuesday was the longest run of positive days for both indexes since November 2021. It was a seventh successful day for the 30-stock Dow, which increased by around 0.2%.
Gains have been realised since around 80% of S&P 500 businesses have exceeded earnings estimates this season. However, just 59% of these companies have exceeded revenue expectations due to weakening demand. LSEG claims that this differential was last this large in the fourth quarter of 2015.
Since every major IT company has already released its earnings, we currently have a general idea of where everyone stands. Therefore, there really shouldn’t be too many surprises at this time, according to Mahoney Asset Management CEO Ken Mahoney.
Mahoney continued, “This sustained rally in equities, driven by large-cap technology stocks, along with somewhat restrained central bank policy, may position the market advantageously into 2024.”