December 5, 2024
DOW: 44914.43
S&P: 6078.67
Nasdaq: 19719.68
10YR T-Note: 4.20%
Bitcoin: 101630.36
VIX: 13.61
Gold: $2664.1
Crude Oil: $68.9
Prices Current as of 11:05 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.
Once again, the newfound strength in the large technology leaders helped propel the S&P and Nasdaq to further new records yesterday. And for the first time this week, the Dow finally contributed to the upside with a large gain of 308 to 45,014 motivated by a huge earnings-related move in CRM, plus nice gains in AMZN, IBM, MSFT and NVDA and notice what group these ones belong to.
The S&P kept rocking to the upside for the third straight day this week with a 36 point gain up to a new record of 6086 led by the usuals for the 56th straight record high of 2024 and is now up for 11 of the past 12 days.
The Nasdaq also exploded higher for a 254 point gain to a new record 19,735 led by the usuals plus ADBE as well while even the recently weak Russell 2000 Index of small stocks got dragged up by 10 to 2426.
And the VIX hit as low as 12.89 in the morning and instead of declining further as the indices extended their gains in the afternoon, it actually had the nerve to end a bit higher at 13.45 which means that the 13 support level is holding for the time being.
As mentioned above, Dow component CRM led the market higher after delivering stronger revenue for the latest quarter than analysts expected, though its profit fell just short. CEO Mark Benioff highlighted the company’s artificial-intelligence offering for customers, saying “the rise of autonomous AI agents is revolutionizing global labor, reshaping how industries operate and scale.” The stock price of the company, which helps businesses manage their customers, jumped 11%.
MRVL leaped even more after delivering better results than expected, up by 23%. Its CEO said the semiconductor supplier is seeing strong demand from AI and gave a forecast for profit in the upcoming quarter that topped analysts’ expectations.
All the optimistic talk helped NVDA, the company whose chips are powering much of the move into AI, rally 3.5%. It was the strongest force pushing upward on the S&P because it is the heaviest weight in the index.
They helped offset a 9% drop om FL, which reported profit and revenue that fell short of analysts’ expectations. Its C.E.O. said the company is taking a more cautious view, and it cut its forecasts for sales and profit this year. She pointed to how keen customers are for discounts and how soft demand has been outside of Thanksgiving week and other key selling periods.
Retailers overall have offered mixed signals about how resilient U.S. shoppers can remain. Their spending has been one of the main reasons that the economy has avoided a recession, but now shoppers are contending with still-high prices and a slowing job market.
Fed Chair Jerome Powell said that the central bank can afford to cut rates cautiously because inflation has slowed from its peak two years ago and the economy remains sturdy.
The latest ISM services sector report came in lower than expected at 55 which lowered bond yields and this led to expectation of the next rate coming up soon.
One respondent from the construction industry told the survey from the Institute for Supply Management that the Fed’s rate cuts haven’t pulled down mortgage rates as much as hoped and “the unknown effect of tariffs clouds the future.”
In the bond market, the yield on the 10-year Treasury fell to 4.18% from 4.23% late Tuesday.
CPB sank by 6% for one of the S&P’s sharper losses despite increasing its dividend and reporting a stronger profit than analysts expected. Its revenue fell short of expectations, and the National Football League’s Washington team hired the C.E.O. as its team president.
Gains for airline stocks helped offset that drop after JBUE said it saw stronger bookings for travel in November and December following the presidential election. It also said it is benefiting from lower fuel prices, as well as lower costs due to improved on-time performance.
In stock markets abroad, South Korea’s Kospi sank 1.4% following a night full of drama in Seoul as President Yoon Suk Yeol was facing possible impeachment after he suddenly put into effect martial law on Tuesday night, prompting troops to surround the parliament. He revoked the martial law declaration six hours later.
In the crypto market, bitcoin climbed near $99,000 after Trump said he would nominate a cryptocurrency advocate, to chair the Securities and Exchange Commission.
Earnings this week will see: yesterday – Dow component CRM sharply higher, in addition to PSTG, OKTA, MRVL, DLTR while BOX, FL and CPB were down; today – PVH, AEO lower while FIVE and DG are up; tonight - ULTA; Friday – KIRK.
Economic reports will have: yesterday – October durable goods orders rose by 0.2%, October factory orders rose by 0.2% for the first gain in three months; today – October trade balance fell to $73.85 billion, weekly jobless claims rose to 224K; 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.