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July 17, 2024
DOW: 41,122.68
S&P: 5,600.50
Nasdaq: 18,055.92
10YR T-Note: 4.17%
Bitcoin: 65,011.80
VIX: 14.14
Gold: $2463.95 Crude Oil: $82.38
Prices Current as of 10:00 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.
This word gets repetitive, but yesterday was another astounding day after a series of them recently, as the Dow exploded to the largest gain of the year to a new record all-time high with 742 to 40,954 led by large gains in AXP, BA, CAT, GS, HD, MCD and a huge one from UNH, the highest priced Dow stock that added more than 100 points just by itself.
The S&P also did well with a 36 point advance to 5667 for its 38th record high this year and where almost 90% of stocks in this index gained, and that excluded most of the heaviest weighted ones such as MSFT, NVDA, GOOG, AVGO and META which went lower.
The Nasdaq ended higher by 36 to 18,509 as it felt like this index sort of got dragged higher by strength in the Dow as many of its main components were lower as just mentioned.
And how about the unstoppable Russell 2000 Index of small stocks which has now gained more than 1% for five straight days for the first time since 1979, and how do you like that?
And how about the VIX, which once again had the nerve to gain a bit up to 13.19 and this correctly predicted the large declines in the S&P and Nasdaq today.
As mentioned, UNH drove the market after reporting better profit than analysts expected, despite losses it took due to a massive cyber-attack. Its stock rose 6.5%, and the health care company reported growth in the number of people served at both its Optum and UnitedHealth businesses.
BAC also did well after it likewise reported stronger profit for the latest quarter than forecast, with strength in its investment banking business. The technology declines were just a minor pullback compared with how much the chip company’s stock rocketed earlier this year amid investor frenzy around artificial-intelligence technology. NVDA shares are still up 155.2% for the year so far.
Plus, some market watchers have been hoping for just such a broadening of the stock market’s performance, because a market with many stocks rising is seen as healthier than one driven by just an elite few stocks.
Only 24% of companies in the S&P had been beating the index so far this year, which is down from last year’s already low tally of 26%.
The Russell 2000 index of smaller stocks jumped 3.5%, nearly six times the S&P’s gain. It is coming off its best week since November, as stocks from other beaten-down corners of the market also rally following signals that the U.S. economy remains solid and that easier interest rates may soon be on the way.
In the bond market, some of the prior day’s moves also reversed themselves. Longer-term yields sank more than shorter-term yields after a report showed that sales at U.S. retailers were steady last month despite economists’ expectations for a decline.
The yield on the 10-year Treasury dropped to 4.16% from 4.23% late Monday. It has fallen from 4.70% in April, which is a major move for the bond market and has given a solid boost to stock prices.
Yields have eased on rising expectations that inflation is slowing enough to convince the Federal Reserve to start lowering interest rates soon. The Fed has been keeping its main interest rate at the highest level in more than two decades in hopes of slowing the economy just enough to get inflation fully under control.
Tuesday’s stronger-than-expected data on retail sales may give Fed officials some pause, because too-strong activity could keep upward pressure on inflation. But traders are still betting on a 100% probability that the Fed will cut its main interest rate in September, according to data from CME Group. A month ago, they saw a 70% chance.
In stock markets abroad, indexes were lower across much of Europe. Asian indexes were mixed, with the 1.6% drop for Hong Kong’s Hang Seng a big mover.
The bulk of the second-quarter earnings season starts this week and the lineup is too long so we will list them two days at a time and yesterday we saw: BAC, UNH, MS higher and SCHW lower; today – JBHT, IBKR, UAL, ASML lower and Dow component JNJ higher; tonight – DFS and STLD; Thursday – NFLX, CTAS, TSM.
Economic reports will see: yesterday – June retail sales were unchanged and up 0.4% higher excluding gasoline sales, June import prices were unchanged and export prices were lower by 0.5%; today – June housing starts rose to 1.35 million, June industrial production rose by 0.6% and capacity utilization rose to 78.9, Fed Beige Book at 2pm; Thursday – weekly jobless claims, June L.E.I., July Philadelphia Fed Economic Outlook.
