It took some time, but the S&P 500 index futures have climbed back to the same area it was in mid-December. For a refresher, the index blasted to 4180 on December 13, following a better than expected November CPI reading, only to falter when it was preceded by more hawkish talk by Jerome Powell and other Federal Reserve Bank members.
That, coupled with year-end tax selling set up the “January Effect/Rebound” that may have some momentum heading into February.
Once again, it was not a straight up affair as the index spent all of the premarket session in the red, and its gain off the opening bell of nearly 20 handles faded. However, the bears’ attempt to spoil the week was denied when the index refused to breach the premarket low heading into lunchtime.
The bears or profit takers emerged in the last 45 minutes of the session. As a result, the index backed off over 25 handles from the intraday high, with much of the retreat coming in the final ten minutes, to eke out a gain of 8.75 handles with a closing price 4084.25.
That brings the gain for the week to 95.75 handles and for the year to 225.75 handles, which are 2.4% and 5.8% respectively.
Amazon.com Inc. (NASDAQ: AMZN) was the biggest winner of the top components of the index. On the day, the issue advanced by $3.02 or 3.01% to close at $102.24. That marks the first close in triple digits since October 31.
That was roughly thirteen times better than the cash index’s advance of 0.21%.
A mixed Q4 report from Chevron Corporation (NYSE: CVX) sank the issue and took Exxon Mobil (NYSE: XOM) along for the ride to the downside. As a result, it was the biggest loser of the top components. For the session, it declined by $2.14 or 1.82% to close at $115.60.
PreMarket Prep Stock Of The Day: Chevron Corporation (NYSE: CVX)
Investors caught in a bull trap as gains from the good news on Thursday was negated by a mixed Q4 report. Read more on CVX here.