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December 6, 2024
DOW: 44,812
S&P: 6,097
Nasdaq: 19,843
10YR T-Note: 4.15%
Bitcoin: 99,382
VIX: 13.10
Gold: 2,660.20
Crude Oil:67.03
Prices Current as of 10:37 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 huge rally for stocks lost momentum on Thursday as investors waited for the big jobs report that is coming at 8:30am today. The crypto market had more action, and bitcoin briefly broke to a new intraday record of $104,550 before pulling back to end slightly lower.
The Dow once again was the weakest component with a 248 point decline to 44,765 led by selling in UNH after the tragic incident there on Wednesday when it actually rose, AMGN once again, CAT, SHW and HON.
The S&P declined more slowly with an 11 point lower ending down to 6075 as some of the prior technology leaders took a break such as NVDA, AVGO. COST, GOOG and META after its 56th record high the day before.
The Nasdaq dropped by 35 down to 19,700 mainly because some of the larger tech stocks could not get it together for a day.
The Russell 2000 Index of small stocks continued its relatively weak pattern with a 30 point decline down to 2396 on some selling in smaller banks and the VIX did little at a small gain to 13.54 as it struggles at these lower levels.
Bitcoin powered above $100,000 for the first time the night before, after the President-elect chose a person who is seen as a crypto advocate, as his nominee to head the Securities and Exchange Commission. The cryptocurrency has climbed dramatically from less than $70,000 on Election Day, but it fell back as Thursday progressed toward $98,000, according to CoinDesk.
Sharp swings for bitcoin are nothing new, and they took stocks of companies enmeshed in the crypto world on a similar ride. After rising as much as 9% in early trading, MSTR, a company that has been raising cash just to buy bitcoin, swung to a loss of 20 after being up by 45 points in the morning but then started to drop even as bitcoin itself reached its record high in the early afternoon. Same things for Crypto exchange COIN which also sold off sharply after likewise erasing a big early gain.
And once again, stock index higher calls which have no chance of being reached in one day traded a lot for people who are willing to throw their money away on hopes that these stocks will parallel the price of the item itself.
Stocks of airlines helped lead the way following the latest bumps up to financial forecasts from carriers.
Beaten-down AAL made a large jump after saying it is making more in revenue during the last three months of 2024 than it expected, and it will likely make a bigger profit than it had earlier forecast. The airline also chose C to be its exclusive partner for credit cards that give miles in its loyalty program. That should help its cash coming in from co-branded credit card and other partners grow by about 10% annually.
LUV also rose after saying it is seeing stronger demand from leisure travelers than it expected. It also raised its forecast for revenue for the holiday traveling season.
On the losing end was SNPS which tumbled by 12%. The supplier for the semiconductor industry reported better profit for the latest quarter than analysts expected, but it also warned of “continued macro uncertainties” and gave a forecast for revenue in the current quarter that fell short of some analysts’ estimates.
AEO fell even more after the retailer said it is preparing for “potential choppiness” outside of peak selling periods. It was reminiscent of a warning from FL earlier in the week and raised more concerns about how resilient U.S. shoppers can remain.
Solid spending by U.S. consumers has been one of the main reasons the economy has remained relatively solid after the Federal Reserve hiked interest rates to crush inflation. But shoppers are now contending with still-high prices and a slowing jobs market.
Expectations are high that the Fed will cut its main interest rate again when it meets in two weeks. The Fed began easing its main interest rate from a two-decade high in September, hoping to offer more support for the job market.
In the bond market, the yield on the 10-year Treasury edged down to 4.17% from 4.18% late Wednesday.
In stock markets abroad, indexes were mostly calm in Europe after far-right and left-wing lawmakers in France joined together to vote on a no-confidence measure that will force Prime Minister Michel Barnier and his Cabinet to resign. The CAC 40 index in Paris added 0.4%.
In South Korea, the Kospi fell 0.9% to compound its 1.4% decline from the day before. President Yoon Suk Yeol was facing possible impeachment after he suddenly declared martial law on Tuesday night. He revoked the martial law declaration six hours later.
Earnings this week will see: yesterday – PVH, DG, AEO, SIG, AVAV, SNPS lower while FIVE was higher; today – LULU, ULTA, VSCO, GLTB, RBRK, ASAN, DOGE, KIRK higher and IOT lower.
Economic reports will have: yesterday – October trade balance fell to $73.85 billion, weekly jobless claims rose to 224K; today – November jobs report came in at 227,000 and the two-month lower revision was 56,000. The unemployment rate inched up to 4.2% and average hourly earnings gained 0.4% and year over year was ahead by 4%. This should assure a rate cut in a couple of weeks by the Fed; initial U. of Michigan Consumer Sentiment Survey for December later.
