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December 13, 2024
DOW: 43,900
S&P: 6,058
Nasdaq: 19,969
10YR T-Note: 4.37%
Bitcoin: 101,204
VIX: 13.64
Gold: 2,677.30
Crude Oil:70.70
Prices Current as of 10:27 am
Source: CNBC
Don Selkin, the creator and innovator of the "Fair Value" numbers, as its Chief Market Strategist on the Newbridge platform has given CNBC and its Predecessor, these numbers every day for the over 40 years - never missing a single day, as well as given the fair value for the Nasdaq 100 futures since their introduction in 1996 and the Dow Jones stock index futures since 1997. Mr. Selkin has also been quoted in several publications including but not limited to Bloomberg News, New York Post, Reuters, and The New York Times. Mr. Selkin's Fair Value numbers are included in the U.S.
Futures Report broadcast on CNBC every day before the market
opens attributing "Newbridge Securities" as the source. In addition, NSC provides to its professionals, their clients and the public access to Don Selkin's more in depth financial market views.
The recent corrective phase of the market continued yesterday, as various economic reports were used to explain the selloff, which was the eighth out of nine for the Dow and now the S&P is down by four of the last six sessions.
After a mixed opening, the Dow fell into its recent negative pattern, as each of the past several days, various stocks take the negative role and as a result it ended lower once again 234 down to 43,914 with selling in CAT, HD and troubled UNH leading the downside.
The S&P could never get it together as weakness in most large technology issues spearheaded the way lower to a 33 point loss to 6051, with the exception of AAPL, which ironically has been in its own bullish phase, and MSFT, which is trying to maintain itself at better levels. In addition, the energy stocks were weak as well.
The Nasdaq did an about-face from its record high from the day before with a 132 point downside session to 19,902 as the almost unstoppable TSLA finally ran into some profit-taking after its recent astounding higher move.
The Russell 2000 Index as usual had nothing going for it and ended lower again with a 33 point drop to 2631 and the VIX went a little higher to 13.92 as it tried to defend the 13 and below level.
The weak economic news was a higher than expected weekly jobless claim up to 242,000 and the November P.P.I. which came in higher than expected.
Neither report points to imminent disaster, but they dilute one of the hopes that has driven the S&P to 57 all-time highs this year. Inflation is slowing enough to convince the Federal Reserve to keep cutting interest rates.
Of the two reports, the weaker update on the P.P.I. may be the bigger deal for the market, as a surge in egg prices, of all things, prices may have been behind the worse-than-expected inflation numbers.
Traders are widely expecting the Fed will ease its main interest rate at its meeting next week. If they are correct, it would be a third straight cut by the Fed after it began lowering rates in September from a two-decade high. It is hoping to support a slowing job market after getting inflation nearly all the way down to its 2% target.
A cut next week would have the Fed following other central banks, which lowered rates on Thursday. The E.C.B. cut rates by a quarter of a percentage point, as many investors expected, and the Swiss National Bank cut its policy rate by a steeper half of a percentage point.
Following its decision, Switzerland’s central bank pointed to uncertainty about how the new President’s victory will affect economic policies, as well as about where politics in Europe is heading. He has talked up tariffs and other policies that could upend global trade.
ADBE collapsed and hurt the technology sector and was one of the heaviest weights on the market despite reporting stronger profit for the latest quarter than analysts expected. The company gave forecasts for profit and revenue in its upcoming fiscal year that fell a bit shy of analysts’.
WBD jumped after unveiling a new corporate structure that separates its streaming business and film studios from its traditional television business. Its CEO said the move “enhances our flexibility with potential future strategic opportunities,” raising speculation about a spinoff or sale.
KR rose after saying it would get back to buying back its own stock now that its attempt to merge with ACI is finished. Their board approved a program to repurchase up to $7.5 billion of its stock, replacing an existing $1 billion authorization.
In stock markets abroad, European indexes held relatively steady following the European Central Bank’s cut to rates.
Asian markets were stronger. Indexes rose 1.2% in Hong Kong and 0.8% in Shanghai as leaders met in Beijing to set economic plans and targets for the coming year.
South Korea’s Kospi rose 1.6% for its third straight gain of at least 1%, as it is doing better following last week’s political turmoil where its president briefly declared martial law.
In the bond market, the 10-year U.S. Treasury yield rose to 4.33% from 4.27% late Wednesday.
Earnings this week will have some important reports and the list is: yesterday – ADBE lower; today – AVGO, RH, COST higher.
Economic reports will see: yesterday – November P.P.I. rose by 0.4% month over month and 3% year over year while excluding food and energy were 0.2% and 3.4% year over year, weekly jobless claims rose to 242,000 thousand; November import and export prices came in a little higher than expected.
