December 4, 2024
DOW: 44,928
S&P: 6074
Nasdaq: 19,674
10YR T-Note: 4.19%
Bitcoin: 94,534
VIX: 13,14
Gold: $2675
Crude Oil: $69,34
Prices Current as of 12:10 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.
For the second session in a row, the market was dominated by the traditional leading large technology stocks to the upside and finished neutral as the Dow once again suffered under some selling in CAT, HON, JNJ, PG, UNH and V. As a result, it ended lower by 76 down to 44,705.
The S&P ended 3 points higher to a new record of 6050 as most of the stocks in this index were down but the predominant weight of the large cap technologies was so strong that the index itself eked out a gain as another new high in AAPL and META carried the day along with AMZN which has suddenly got hot again. It was the 55th record high close during 2024 and is up for 10 out of the last 11 days.
The Nasdaq ended with the best performance as a 77 point gain, which kept getting stronger into the close, saw those strong technology leaders do the best despite a lower day in TSLA.
And once again, the dominance of the most heavily-weighted ones saw the Russell 2000 Index of small stocks suffer again with an 18 point decline down to 2416 while the VIX is getting lower each day with the gains in the S&P and is now down to 13.30 and let us see if it can break below the support level of 13 and head lower if the market can keep moving to the upside in terms of the averages.
The S&P 500 edged up by 2 points, or less than 0.1%, to set an all-time high for the 55th time this year. It’s climbed in 10 of the last 11 days and is on track for one of its best years since the turn of the millennium.
T rose after it boosted its profit forecast for the year. It also announced a $10 billion plan to send cash to its investors by buying back its own stock, while saying it expects to authorize another $10 billion of repurchases in 2027.
On the losing end was X, which fell by 8%. The new President said on social media that he would not let Japan’s Nippon Steel take over the iconic Pennsylvania steelmaker.
It was announced by Nippon Steel last December to buy the Pittsburgh-based steel producer for $14.1 billion in cash, raising concerns about what the transaction could mean for unionized workers, supply chains and U.S. national security. Earlier this year, President Biden also said that he was against the acquisition.
TSLA sank after a judge in Delaware reaffirmed a previous ruling that the electric car maker must revoke Elon Musk multi-billion pay package. The judge denied a request by attorneys for Musk and Tesla’s corporate directors to vacate her ruling earlier this year requiring the company to rescind the unprecedented pay package.
In the bond market, Treasury yields held relatively steady after the October JOLTS report showed that employers were advertising slightly more job openings of 75.5 million than a month earlier. Continued strength there would raise optimism that the economy could remain out of a recession.
The yield on the 10-year Treasury rose to 4.23% from 4.20% from late Monday.
Yields have seesawed since Election Day amid worries that Trump’s preferences for lower tax rates and higher tariffs could result in higher inflation along with economic growth. But traders are still confident the Federal Reserve will cut the funds rate again at its next meeting in two weeks. They are betting on a nearly three-in-four chance of that, according to data from CME Group.
In financial markets abroad, the value of South Korea’s currency fell 1.1% against the U.S. dollar following a frenetic night where their President declared martial law and then later said he’d lift it after lawmakers voted to reject military rule. Stocks of Korean companies that trade in the United States also fell, including a 1.6% drop for SK Telecom.
Japan’s Nikkei 225 jumped 1.9% to help lead global markets. Some analysts think Japanese stocks could end up benefiting from Trump’s threats to raise tariffs including goods coming from China.
Trade relations between the U.S. and China took another step backward after China said it is banning exports to the U.S. of gallium, germanium, antimony and other key high-tech materials with potential military applications.
The counterpunch came swiftly after the Commerce Department expanded the list of Chinese technology companies subject to export controls to include many that make equipment used for computer chips, chipmaking tools and software. There are 140 companies newly included in the so-called “entity list” are nearly all based in China.
In China, stock indexes rose 1% in Hong Kong and 0.4% in Shanghai amid unconfirmed reports that Chinese leaders would meet next week to discuss planning for the coming year. Investors are hoping it may bring fresh stimulus to help spur growth in the world’s second-largest economy.
In France, the CAC 40 rose 0.3% amid continued worries about politics in Paris, where the government is battling over the budget.
Earnings this week will see: yesterday – ZS lower and CRDO higher; today – Dow component CRM sharply higher, in addition to PSTG, OKTA, MRVL, DLTR while BOX, FL and CPB are down; Thursday – DG, ULTA; Friday – KIRK.
Economic reports will have: yesterday – October JOLTS job openings report showed a gain of 74.4 million; today - October durable goods orders rose by 0.2%, October factory orders later; Thursday – October trade balance, weekly jobless claims; Friday – November jobs report for which the estimate is 190,000 compared to the prior month’s 12,000 and an unemployment rate of 4.2%, initial U. of Michigan Consumer Sentiment Survey for December.