Here's a concise overview of the week's economic updates: Bank of America predicts S&P 500 hitting 5,000 in 2024, HP's earnings meet estimates, oil prices dip on OPEC+ meeting concerns, and EUR/USD faces pressure below 1.0900 due to a stronger US Dollar.
Stay tuned for these key developments in the financial world!
Bank of America forecasts S&P 500 to reach record 5,000 in 2024
The stock market has had a stellar run in 2023, and the equity strategy team at Bank of America expects another strong year in 2024 will send the S&P 500 to a record high of 5,000.
In a note to clients published Tuesday, Savita Subramanian and her team at Bank of America argued the coming year will be a "stock picker's paradise" as markets move past the "maximum macro uncertainty" investors faced this year.
The firm's forecasted year-end target for the S&P 500 implies the benchmark index will rise about 10% from current levels. The firm had a year-end price target for 2023 of 4,600 on the S&P 500.
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HP earnings match estimates. The company sees PC recovery ahead
In its fiscal fourth quarter, $HP reported revenue declines in personal systems and printing but managed to record adjusted earnings of $0.90 per share. This figure aligns with earlier forecasts, and the company reported a total revenue of $13.82 billion for the quarter.
Despite the cautious forecast, HP shares saw a positive response from investors. After the earnings announcement on Tuesday evening, the stock rose by 2.8%, reaching $28.6 at the time of this publication.
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Oil slips 1% on concerns over delayed OPEC+ meeting
Oil prices dipped about 1% on Thursday, extending losses on expectations that OPEC+ might not deepen output cuts next year after the producer group postponed its policy meeting.
Brent Crude futures were down 68 cents, or about 0.8%, at $81.28 a barrel by 2024 GMT, after falling as much as 4% on Wednesday. U.S. West Texas Intermediate crude slid 75 cents, or 1%, to $76.35 after dropping as much as 5% in the previous session.
Trading activity was muted because of the U.S. Thanksgiving public holiday.
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EUR/USD slips below 1.0900 as US Dollar gains strength
The EUR/USD pair dropped below 1.0900 in Asian trading today due to a stronger US dollar, boosted by higher US Treasury yields. Technical indicators suggest that if it falls below the nine-day moving average at 1.0867 and other key levels like 1.0850 and 1.0842, it could face more downward pressure towards 1.0800.
On the positive side, the euro still shows some strength with the RSI above 50 and the MACD indicating upward momentum. This suggests a potential recovery, targeting recent highs near 1.0950 and possibly testing resistance at 1.1000.
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This concludes our weekly recap. Have a great weekend and see you next week! 👋
