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July 23, 2024
DOW: 40,472.45
S&P: 5,581.33
Nasdaq: 18,108.09
10YR T-Note: 4.23%
Bitcoin: 66,510.50
VIX: 14.45
Gold: $2,406.9
Crude Oil: $76.6
Prices Current as of 11:39 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.
Just when all the “experts” said to sell out of the high-flying technology stocks last week after three straight lower days, these issues came back with a vengeance yesterday to start the new week. This overall comeback came after the S&P and Nasdaq ended their worst weeks since last April, so some sort of comeback from an oversold condition was warranted.
The Dow added 128 to 40,415 led by AMGN, CRM and MSFT while the S&P gained a large 59 points to 5564 led by most of the technology leaders in addition to financials and industrials. It was the first gain for this index since it set an all-time high last Tuesday.
The Nasdaq was the upside hero for a change as it gained 280 points back up to 18,007 as the large former technology leaders did their thing except for AAPL and AMZN which could not hold onto nominal gains and ended a bit lower.
The Russell 2000 Index of small stocks had a nice day as well with a 36 point advance to 2220 so it was one of those rare days when all of the indices did well for a change, with little of the “rotation” that was bandied about last week and part of the week before. More than three-quarters of the stocks in the S&P were higher and this was an example of what took place. And good old NVDA was the champion here for a change.
Treasury yields mostly rose in the bond market after President Joe Biden said that he will not run for re-election. The move could cause the unwind of some of the market’s “Trump trade,” which took off after Biden’s weak performance in a debate last month raised expectations for a win by former President Donald Trump.
Bank stocks had climbed on forecasts for lighter regulations following a Republican sweep, for example, and longer-term Treasury yields climbed more than short-term ones on expectations for policies that could push up the U.S. government’s already high debt.
The yield on the 10-year Treasury rose to 4.26% from 4.24% late Friday. Shorter-term yields were relatively steady. The two-year yield was unchanged at 4.52%, where it was late Friday. Other corners of the market that could have swung sharply on uncertainty about the election were also mostly quiet. The U.S. dollar’s value was relatively steady against its biggest rivals.
In the meantime, reports on corporate profits and the U.S. economy’s growth could continue to grab the market’s spotlight. Analysts are expecting companies in the S&P 500 to deliver the strongest profit growth for the latest quarter since the end of 2021, according to FactSet.
TFC gained after the bank reported net interest income, a key underlying measure of overall profit, that analysts called stronger than expected.
Dow component VZ tumbled 6% after reporting profit for the latest quarter that matched analysts’ expectations but revenue that fell just short.
Airlines last week struggled with massive disruptions from a global technology outage, which appeared to have been largely resolved over the weekend though delays at airports continued Monday. But CRWD got blasted again to the downside as investors showed no mercy for it with a 13% declines after an 11% hit on Friday.
A faulty software update caused havoc worldwide and led to the grounding by almost all airlines of a number of flights. The vast majority of cancellations early yesterday were DAL flights and the stock lost more than 3%.
In stock markets abroad, indexes rose across much of Europe.
In Asia, Hong Kong’s Hang Seng rose 1.3%, but stocks fell 0.6% in Shanghai after China’s central bank unexpectedly lowered a benchmark interest rate for loans. The move came after the government recently reported the world’s second-largest economy expanded at a slower than expected rate in the second quarter.
Earnings this week will see (one day at a time due to so many): yesterday - today - Dow component VZ lower and IQV, CDNS and TFC higher; today - – NUE, MCO, UPS, CMCSA, NXP and Dow component V lower and CLF higher plus Dow component KO plus GM, MAT, LMT, MCO, SHW, UPS, DHR, PM; tonight – TSLA, GOOG, MSCI, TXN.
Economic reports will have: today – June existing home sales fell by 5.4%, June Richmond Fed Manufacturing Index dropped to -17 which is the lowest since 2020; 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 Survey and the always important June P.C.E. inflation report.
