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March 27, 2025
Dow: 42,493
S&P: 5710
Nasdaq: 17,781
10-YR T-Note: 4.39%
Bitcoin: 83,000
VIX: 18.48
Gold: $3,080
Crude Oil: 69.50
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.
After two higher days in this overall negative market, the chickens came home to roost yesterday as once again, large declines overtook the former high technology leaders once again and this dragged the entire market lower as the Dow tried to stay positive for much of the morning.
As a result, after a gain of as much as 243 in the morning, once again we saw that long-standing phenomena where when the Dow is positive and the Nasdaq is negative, the battle is almost always unfortunately goes in the direction of the more populated Nasdaq because of the ratio of 30 stocks to around 3,000. So sure enough, by 12noon this situation naturally went in the negative direction as the Dow declines and remained negative for the rest of the afternoon before ending with a closing loss of 137 down to 42,454. And once again, it felt like the 1960’s as the only stocks in this group that showed some life were CVX, MCD, PG, SHW and naturally PEP rose as well.
The S&P showed only a brief upside fast gain which disappeared almost immediately and it felt the pressure of the weak former high technology leaders which came down badly, with NVDA getting slammed after a brief positive effect from its snazzy leader with the black leather jacket, in addition to TSLA which got blasted after a four-day gain on upside motivation from the Commerce Secretary, Others of this sort also sold off and as a result it ended with a large decline of 64 down to 5762.
The Nasdaq was the real loser with a large 372 point selloff due to what has been mentioned above and ended at 17,899 while the Russell 2000 Index of small stocks lost 21 down to 2074 while the VIX loved the downside action with a gain up to 18.33.
The group of dominant stocks known as the “Magnificent Seven” has been at the center of the U.S. stock market’s recent sell-off, which earlier this month took the S&P 0% below its all-time high for its first correction since 2023.Big Tech had rocketed in earlier years amid a frenzy around AI technology, and critics said their prices rose too quickly compared with their already rapidly growing profits.
NVDA fell 6% to bring its loss for the young year so far to 15.5%. It is the single heaviest weight on the S&P by far. Others that got hurt were server-builder SMCI, which fell by 9% and power companies hoping to electrify AI data centers.
One stock that has been contending with additional challenges, including worries that political anger at its C.E.O., Elon Musk, will hurt the electric-vehicle maker’s sales. TLSA dropped 5.6% to extend its loss for 2025 to 32.6%.
Other U.S. automakers went on their own sharp swings after the White House said in the afternoon that the President would announce tariffs on auto imports after trading ended for the day on the U.S. stock market.
U.S. auto giants have already spread their production around North America following prior free-trade deals encompassing the United States, Canada and Mexico. GM sank 3%. F ended virtually unchanged.
The stock market had been steadying somewhat following its drop into a correction, with a three-day winning streak running through Tuesday. But strategists have warned the sharp swings likely aren’t over yet, with a bunch of U.S. tariffs scheduled to arrive next week. Even if those end up less painful for the global economy than feared, all the talk about tariffs has already soured confidence among U.S. consumers and companies.
So far, the economy and job market have appeared to remain solid despite the worsening moods of shoppers and businesses, and economists are looking for signals about whether the hit to confidence is translating into actual pain for the economy.
Durable goods orders unexpectedly grew last month by 0.9% when economists were forecasting a contraction. But a subset of the data seen as an indicator for investment by businesses flipped from growth to contraction. That could be a signal businesses are holding back on spending to see how tariffs play out.
Treasury yields in the bond market, which often move with expectations for the U.S. economy’s strength, swiveled up and down following the report. The yield on the 10-year Treasury ended up rising to 4.34% from 4.31% late Tuesday.
GME jumped by a hard to believe 12% after the video-game retailer reported better results for the latest quarter than analysts expected. It also said it would begin investing part of its treasury in bitcoin, of all things.
Another gainer was DLTR, which rose after it said it is selling Family Dollar to a pair of private equity firms for $1 billion after a decade of trying to make its acquisition of the bargain chain fit. DLTR reported stronger profit for the latest quarter than analysts expected.
CTAS climbed after the provider of work uniforms, restroom supplies and other equipment reported stronger profit for the latest quarter than analysts expected.
Earnings this week will see: yesterday – GME, CHWY, DLTR, CTAS higher; today – JEF lower, tonight - WGO, LULU.
Economic reports will have: yesterday - February durable goods orders rose by 0.9%; today – weekly jobless claims fell to 224K, final look at 4Q G.D.P. came in at 2.3%, February pending home sales gained 2%; Friday – the always important February P.C.E. Index, final March U. of Michigan Consumer Sentiment Index.
