U.S. Stocks 

Fundamental Analysis: 

U.S. stock indexes closed sharply higher on Monday, 23rd January 2023, driven by a surge in technology stocks as investors kicked off the week with renewed enthusiasm for the market-leading momentum stocks that took a beating last year.

A large number of companies are scheduled to report earnings this week.

All three major stock indexes extended Friday’s gains, with the tech-heavy Nasdaq leading the way, buoyed by semiconductor stocks.

Of the 11 major sectors in the S&P 500, all but energy stocks closed higher, with technology stocks posting the largest percentage gain, up 2.3% on the day.

The fourth quarter earnings season has been the biggest driver, with 57 of the S&P 500 component companies having reported results.

According to Lufthansa, 63% of those earnings were better than expected.

Fourth-quarter earnings for S&P 500 component companies are now expected to fall 3% year-over-year, nearly double the 1.6% decline estimated at the start of the year, according to Lufthansa.

This week, Microsoft Corp. and Tesla Inc. and a host of heavyweight industrial companies, including Boeing, 3M, Union Pacific and Dow, will report quarterly results. Tesla jumped 7.7% after CEO Musk testified in a fraud trial related to a tweet that said he had supported taking the electric car maker private.

Oilfield services company Baker Hughes fell 1.5% after the company missed quarterly profit estimates due to inflationary pressures and ongoing disruptions caused by Russia’s war against Ukraine.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow today pays attention to the 33584-line. If the Dow runs stably above the 33584-line, then pay attention to the suppression strength of the 33949 and 34221 positions.

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