The S&P 500 Index and its top ETFs, like the SPY and VOO, continued their uptrend last week and hit their all-time high after the Federal Reserve slashed interest rates and Donald Trump talked with Xi Jinping.
It has now jumped by almost 40% from its lowest level this year. Here are the top S&P 500 Index news to watch in the new week.
Micron, Costco, Cintas, and AutoZone earnings
Corporate earnings are some of the biggest catalysts that affect the S&P 500 Index and its ETFs like VOO, IVV, and SPY.
However, to a large extent, only a handful of big tech companies like Nvidia, Google, Microsoft, and top banks like JPMorgan, Bank of America, and Citi have the biggest impact on the index.
There will be some notable earnings event next week. The first important one is Micron, a large technology company with a market capitalization of over $182 billion.
Its results will provide more color on the state of the technology sector, especially in the data center industry, where its products are widely used.
Analysts expect the results to show that the revenue jumped by 43% to $11.15 billion. Its annual revenue is expected to be $37.2 billion, up by almost 50% from last year.
The other notable company that will publish its financial results is CostCo, the biggest wholesale group in the world. Its results are important because they show the health of the American consumer.
Analysts expect Cisco’s results to show that the revenue rose by 6.70% in the last quarter to $14.7 billion. Its annual revenue is expected to come in at $60 billion.
The other large companies that will publish their results are Cintas, AutoZone, CarMax, and Accenture. Accenture numbers will be key as the management will provide more information on the impact of Donald Trump’s proclamation of the H-1B visa.
US inflation data
The other notable catalyst for the S&P 500 Index and its ETFs is the upcoming US inflation report on Friday.
While the Bureau of Labor Statistics has already published the Consumer Price Index (CPI) data, the other crucial report will be the Personal Consumption Expenditure (PCE), which will provide inflation numbers on urban and rural areas inflation data.
The PCE inflation report is the most important inflation data that the Federal Reserve looks at. However, its impact on American stocks will be muted as the Fed is now focusing on the labor market. Also, the bank has already delivered its interest rate decision and hinted that it will cut rates several times in the next meetings.
Will the S&P 500 Index rising wedge break?
Meanwhile, stocks investors will also focus on its technicals as the S&P 500 Index has slowly formed one of the most bearish chart patterns in technical analysis.
As the above chart shows, it has formed a rising wedge, which is made up of two ascending and converging trendlines, with a breakdown happening when the two lines converge. Therefore, the question is whether the breakdown will happen in the new week or whether it will happen soon.
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