Your Best Path Market Recap Feb. 5 - Feb. 9, 2024

Gordon Achtermann |
Market Recap

The S&P 500 index closed above the 5,000 level for the first time, rising 1.4% this week to a fresh record, as a round of better-than-expected quarterly results boosted investor sentiment.

The market benchmark ended the week at 5,026.61 and hit a fresh intraday high on Friday at 5,030.06. The S&P 500 has risen for five straight weeks and is now up 5.4% in 2024.

The latest round of quarterly earnings came in mostly above analysts' expectations, as 69% of the S&P 500's components topped forecasts. Companies that had large surprises to the upside included Illumina (ILMN), Uber Technologies (UBER) and Ford Motor (F).

The technology sector had the largest percentage increase of the week, up 3.2%, followed by a 1.5% rise in consumer discretionary, a 1.4% increase in health care, and a 1.2% rise in industrials. Other gainers included communication services, real estate, financials, and materials.

The technology sector's gainers included shares of Monolithic Power Systems (MPWR), which jumped 18% on the week as the semiconductor-based power electronics company reported Q4 results above analysts' expectations. The company also forecasted Q1 revenue above Street views at the time and boosted its quarterly dividend rate.

In consumer discretionary, shares of Ralph Lauren (RL) climbed 18% as the luxury lifestyle products company's fiscal Q3 results came in ahead of analysts' forecasts. The company also raised its guidance for fiscal 2024 revenue growth to the top end of its prior guidance range.

Eli Lilly (LLY) shares led the healthcare sector's advance. The company said it has a sense of "urgency" to bolster manufacturing capacity to meet the demand for weight loss and diabetes drugs after Zepbound and Mounjaro helped its Q4 revenue trounce Wall Street's expectations. Shares rose 11%.

Three sectors fell: utilities shed 2.1%, consumer staples declined 1.3%, and energy edged down 0.2%.

The utilities sector's decliners included shares of Duke Energy (DUK), which fell 4.7%. The company's Q4 adjusted earnings per share missed the Street view despite operating revenue coming in slightly above expectations.

Next week's earnings calendar features Arista Networks (ANET), Waste Management (MW), Coca-Cola (KO), Shopify (SHOP), Airbnb (ABNB), Cisco Systems (CSCO), Kraft Heinz (KHC), Applied Materials (AMAT), Deere (DE), Southern Co. (SO) and DoorDash (DASH).

Economic data anticipated next week include the January consumer price index on Tuesday and the January producer price index on Friday. Other reports will include January retail sales and industrial production on Thursday and January housing starts and building permits on Friday.


All the Best!

Gordon Achtermann, CFP®