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July 22, 2024
DOW: 40,281.13
S&P: 5535.32
Nasdaq: 17,882.21
10YR T-Note: 4.26%
Bitcoin: 67073
VIX: 15.62
Gold: $2387.2 Crude Oil: $79.8
Prices Current as of 11:50 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 disruptive technology outage on Friday was the last thing that an already weakened market needed as the Dow fell by 377 points to 40,287 led by the financials on poor earnings with AXP, HON, MSFT, TRV and V all lower.
The S&P ended its worst week since April with a 39 point drop down to 5505 as all the large technology stocks plus the weak financials and industrials dragged it lower.
And the Nasdaq also got blasted to the downside with a 144 point decline down to 17,726 point drop as all of the large technology stocks (with the exception of AAPL) sold off once again after a weakish showing from NFLX, which did not help.
And even the Russell 2000 Index, which had been on a nice upside run earlier in the week, ended down by 14 to 2184 while the VIX rose to its highest level since last October at 16.52.
It was only on Tuesday that the S&P set its latest all-time high. At first, pressure built on the big tech stocks that have been the largest winners, amid criticism they simply grew too expensive. NVDA is still up 138% this year amid the buying over artificial intelligence technology, even after falling 2.6% Friday and 8.8% over the week.
Gains for previously unloved areas of the market had helped to offset some of those declines: Smaller stocks and companies whose profits are closely tied to the economy’s strength were rising, which sparked hopes for a market where more stocks are rising, rather than just a handful of dominating elites, which market watchers say would be healthier.
But hopes for those beaten-down areas of the market may be sputtering. The Russell 2000 index of smaller stocks fell 0.6% Friday for its third straight drop, following its huge five-day run where it shot up 11.5%. Three out of every four stocks in the S&P also sank.
Friday’s moves came as a major outage disrupted flights, banks and even doctors’ appointments around the world. Cybersecurity firm CRWD said the issue believed to be behind the outage was not a security incident or cyberattack and that it had deployed a fix. It fell by 11% for the incident. The company said the problem lay in a faulty update sent to computers running Microsoft Windows.
Its stock trimmed its loss somewhat through the day, but it still turned in its worst performance since 2022. But stocks of other cybersecurity firms climbed, such was PANW.
The outage hit check-in procedures at airports around the world, causing long lines of frustrated fliers. That initially helped pull down U.S. airline stocks, but they quickly pared their losses. United Airlines flipped to a gain of 3%, for example. It said many travelers may experience delays, and it issued a waiver to make it easier to change travel plans.
CMA dropped by 10% for one of the market’s sharper losses, even though it delivered better earnings for the spring than analysts expected. The bank said it received a preliminary notification that it won’t continue as the issuer of the Direct Express debit card for about 4.5 million federal benefit recipients, a program it’s had since 2008.
Dow component AXP fell by 3% after its revenue for the latest quarter fell short of analysts’ forecasts. It was one of the largest reasons for the Dow’s drop, despite reporting stronger profit than expected.
HAL dropped by 5% after the provider of services to the energy industry matched analysts’ expectations for profit last quarter but missed for revenue. But rival SLB rose after reporting stronger profit than expected.
In markets abroad, indexes were mostly lower in Europe and Asia.
Stocks fell 2% in Hong Kong and rose 0.2% in Shanghai after Chinese officials briefed reporters in Beijing on the outcome of a top-level meeting of the ruling Communist Party. They provided some details of the sweeping blueprint it endorsed for making China a leader in technology, building its financial markets and raising living standards.
Earnings this week will see (one day at a time due to so many): today - Dow component VZ lower; tonight – NUE, CLF; Tuesday – TSLA and GOOG
Economic reports will have: Tuesday – June existing home sales; Wednesday – June new home sales; Thursday – weekly jobless claims, June durable goods orders, first look at 2Q G.D.P.; Friday – July personal income and spending, July final U. of Michigan Consumer Sentiment June P.C.E. inflation report.
