The S&P 500 index futures achieved a six-day winning streak, but the path was not without challenges for the bulls.
The day was shaped early on by economic data releases, including a stronger-than-expected preliminary Q4 GDP report at 3.3% (annualized) as well as initial jobless claims for the past week at 214,000 which was above expectations. Following the release of this data at 8:30am EST, the bulls initiated a rally, pushing the index futures up by approximately 20 handles by the regular session open. However, this initial surge lacked continuity, leading to a period of indecision and choppy trading.
A decline ensued around the start of the lunch hour, but the bears’ efforts to drive the market significantly lower were thwarted as the bulls mounted a defense around yesterday’s closing level. This rebound brought the index futures back to the morning highs, and the session closed just shy of the intraday high.
The day’s N-shaped trajectory concluded with a gain of 21 handles, ending at 4919, marking yet another new closing high for the move.
Alphabet Inc. (NASDAQ: GOOG), in the midst of a steady upward trend for January, reached new all-time highs during the session and emerged as the biggest winner. The tech giant’s stock increased by $3.17 or 2.13%, closing at $151.87.
That outperformed the cash index’s advance of 0.54%.
On the other hand, Tesla, Inc. (NASDAQ: TSLA) continued its downward spiral, becoming the session’s most significant loser among the top components. The electric vehicle manufacturer’s recent Q4 report failed to inspire confidence, resulting in a steep loss of $25.20 or 12.13%, closing at $182.63. Since December 28, the stock has seen a total decline of over 30%, putting its status as a top component in jeopardy.
