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December 9, 2024
DOW: 44,618
S&P: 6,071
Nasdaq: 19,794
10YR T-Note: 4.19%
Bitcoin: 98,073
VIX: 13.69
Gold: 2,696.60
Crude Oil:68.80
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.
With the help of a benign monthly jobs report which lowered interest rates and increased the chances of further Fed rate reductions at the next meeting on December 18th, stocks rose to records Friday after data suggested that the jobs market remains sold enough to keep the economy going, but not so strong that it raises immediate worries about inflation.
But once again the Dow declined by 123 down to 44,642 led by selling in AMGN once again, VX, PG and UNH on its recent tragic situation. It also ended lower for the week.
The S&P rose again to a new record high with 15 points to 6090, as once again, some of the larger technology stocks led the way with AMZN, META, COST, NFLX all at new best levels. It was the 57th best ever level this year. The index rose for the third straight winning weak.
The Nasdaq also made a new high as well with a 159 point gain to 19,859 on gains in addition to the ones mentioned above, we can add ADBE, TSLA and BKNG at new yearly best gains as well.
The Russell 2000 Index of small stocks ended up by 13 to 2409 but also ended down for the week while the VIX broke below the 13 level to end at 12.77 and let us see if it can challenge the all-time lows in the 10 area.
The quiet trading came after the latest jobs report came in mixed enough to strengthen traders’ expectations that the Federal Reserve will cut interest rates again at its next meeting in two weeks. The report showed U.S. employers hired more workers than expected last month at 227,000, but it also said the unemployment rate unexpectedly ticked up to 4.2% from 4.1%. Average hourly earnings gained 0.4% and year over year they rose by 4%.
Expectations for a series of cuts from the Fed have been a major reason the S&P has set an all-time high 57 times so far this year. And the Fed is part of a global surge: 62 central banks have lowered rates in the past three months, the most since 2020.
So, while traders are betting an 85% probability the Fed will ease its main rate in two weeks, they are much less certain about how many more cuts it will deliver next year, according to data from CME Group.
For now, the hope is that the job market can help shoppers continue to spend and keep the economy moving along that had earlier seemed inevitable after the Fed began hiking interest rates swiftly to crush inflation.
Several retailers offered encouragement after delivering better-than-expected results for the latest quarter.
ULTA rallied 9% after topping expectations for both profit and revenue. The opening of new stores helped boost its revenue, and it raised the bottom end of its forecasted range for sales over this full year.
LULU added 16% following its own profit report. It said stronger sales outside the United States helped it in particular, and its earnings topped analysts’ expectations.
Retailers overall have been offering mixed signals on how resilient U.S. shoppers can remain amid the slowing job market and still-high prices. TGT gave a dour forecast for the holiday shopping season, for example, while WMT gave a much more encouraging outlook.
A report on Friday suggested sentiment among consumers may be improving more than economists expected. The preliminary reading from the University of Michigan’s survey hit its highest level in seven months at 74. The survey found a surge in buying for some products as consumers tried to get ahead of possible increases in price due to higher tariffs that the new President has threatened.
HPE gained 10% for one of the S&P’s larger gains after reporting stronger profit and revenue than expected. As mentioned above, tech stocks were some of the market’s strongest this week, as CRM and other big companies talked up how much of a boost they are getting from the AI boom.
In the bond market, the yield on the 10-year Treasury yield slipped to 4.15% from 4.18% late Thursday.
In stock markets abroad, France’s CAC 40 rose 1.3% after French President Emmanuel Macron announced plans to stay in office until the end of his term and to name a new prime minister within days. Earlier last week, far-right and left-wing lawmakers approved a no-confidence motion due to budget disputes, forcing Prime Minister Michel Barnier and his cabinet to resign.
In Asia, stock indexes were mixed. They rallied 1.6% in Hong Kong and 1% in Shanghai ahead of an annual economic policy meeting scheduled for this week.
South Korea’s Kospi dropped 0.6% as South Korea’s ruling party chief showed support for suspending the constitutional powers of President Yoon Suk Yeol after he declared martial law and then revoked that earlier this week. Yoon is facing calls to resign and may be impeached.
Bitcoin was sitting near $101,500 after briefly bursting above $103,000 to a record the day before.
Earnings this week will have some important earnings and the list is: today – TOL higher; tonight - CASY, ORCL, and MDB; Tuesday – AZO, SFIX; Wednesday – ADBE; Thursday – COST, AVGO.
Economic reports will see: Wednesday – November C.P.I.; Thursday – November P.P.I.
