Pre-opening Comments for Thursday January 30^th

U.S. equity index futures were higher this morning. S&P 500 futures were up 15 points at 8:35 AM EST.

S&P 500 futures were unchanged following release of the fourth quarter U.S. GDP report. Consensus was growth at a 2.7% annual rate versus growth at a 3.1% rate in the third quarter. Actual was growth at a 2.3% rate.

Meta advanced $7.51 to $684 after reporting higher than consensus fourth quarter results.

IBM gained $11.44 to $240.07 after reporting higher than consensus fourth quarter earnings.

Tesla advanced $17.90 to $407.00 despite reporting less than consensus fourth quarter revenues and earnings. The company also announced progress on its proposed Robotaxi business.

Microsoft fell $15.33 to $427.00 despite reporting higher than consensus fiscal second quarter earnings. Its cloud computing business grew at a less than consensus rate.

EquityClock’s Stock Market Outlook for January 30^th

Into the end of last year, businesses and consumers were seen front running some of Trump’s policies pertaining to tariffs and the elimination of remote work. See:

https://equityclock.com/2025/01/29/stock-market-outlook-for-january-30-2025/

Responses to FOMC Decision on interest rates

The FOMC decided to maintain its Fed Fund Rate at 4.25%-4.50%. Reponses in key markets after the 2:00 PM EST announcement were as follows:

S&P 500 Index initially dropped, but subsequently recovered after the conference call at 2:30 PM EST.

The U.S. Dollar Index initially moved higher after 2:00 PM EST, but closed at a slight gain.

Yield on 10 year Treasuries initially moved higher after 2:00 PM EST, but closed virtually unchanged

ETFs on major U.S. Banks (KBE) and regional banks moved lower after 2:00 PM EST, but recovered to close with small loses.

Response to Bank of Canada’s Decision on interest rates

The Bank of Canada lowered its interest rate to major Canadian Banks from 3.25% to 3.00%. After a press conference at 10:30 AM EST, the Canadian Dollar recovered from US69.14 cents to 69.33 cents by 4:00 PM EST.

Canada’s equal weight banks ETF (ZEB.TO) initially were unchanged after 10:30 AM EST, dipped lower on the FOMC announcement at 2:00 PM, but closed virtually unchanged.

Technical Notes

S&P/TSX Financial Services iShares $XFN.TO moved above Cdn$61.21 to an all-time high extending an intermediate uptrend.

Starbucks $SBUX a Dow Jones Industrial Average stock moved above $103.22 extending an intermediate uptrend. The company reported better than consensus fourth quarter results.

ADP $ADP a NASDAQ 100 stock moved above $308.03 to an all-time high extending an intermediate uptrend.

Brookfield $BN.TO a TSX 60 stock moved above Cdn87.67 to an all-time high extending an intermediate uptrend.

Trader’s Corner

Equity Indices and Related ETFs

Daily Seasonal/Technical Equity Trends for January 29^th 2025

Green: Increase from previous day

Red: Decrease from previous day

Source for all positive seasonality ratings: www.EquityClock.com

Commodities

Daily Seasonal/Technical Commodities Trends for January 29^th 2025

Green: Increase from previous day

Red: Decrease from previous day

Sectors

Daily Seasonal/Technical Sector Trends for January 29^th 2025

Green: Increase from previous day

Red: Decrease from previous day

Links offered by valued providers

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S&P 500 Momentum Barometers

The intermediate term Barometer dropped 3.20 to 51.40. It remains Neutral.

The long term Barometer dropped 2.00 to 61.40. It remains Overbought.

TSX Momentum Barometers

The intermediate term Barometer dropped 1.80 to 40.99. It remains Neutral. Daily trend has turned down.

The long term Barometer added 1.35 to 65.77. It remains Overbought.

Disclaimer: Seasonality ratings and technical ratings offered in this report and at

www.equityclock.com are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered in this report is believed to be accurate, but is not guaranteed

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