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November 19, 2024
DOW: 43186.79
S&P: 5892.21
Nasdaq: 18861.25
10YR T-Note: 4.37%
Bitcoin: 91774.7
VIX: 15.98
Gold: $2627.4
Crude Oil: $69.09
Prices Current as of 11:05 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.
After last week’s sharp slide, many U.S. stocks did better to start the new week with the Dow being the only index to end lower, down by 55 to 43,389 as it did make brief forays into positive territory but could not hold itself there. Negative trading in AMGN again, CRM, SHW, GS and UNH helped keep the downside pressure on.
The S&P did better with a 23 point gain as many of the large technology stocks, which got badly beaten at the end of last week, managed to eke out some gains, with AAPL once again recovering from some sharp end of the week selling. It was the first gain in three sessions for this index.
The Nasdaq did the best of all, just as it did the worst of all at the end of last week, with a gain of 111 to 18,791 led by many big techs, with TSLA once again going positive and BKNG continuing its recent better showing. But NVDA, whose report on Wednesday evening should be the main event this week, remained down all day.
The Russell 2000 Index of small stocks, which did really badly last week, made a nominal comeback of 2 points to 2306, and the VIX also declined again down to 15.58 after its sharp gain during Friday’s market downturn.
CVS, whose stocks has been awful this year, rallied by 5% after adding four new directors to its board. The health giant did so following discussions with a major investor, hedge-fund owner Glenview Capital Management. Its CEO, Larry Robbins, is one of the new directors.
Liberty Energy also helped pull the market upward after rising 5% after the President-elect named its CEO, Chris Wright, as his Secretary of Energy.
Trading of LUV stock, meanwhile, was halted after the budget carrier reached an agreement with its debtholders on a plan to take it through Chapter 11 bankruptcy protection. The airline will continue to fly while it restructures, but it will also likely wipe out the holdings of all its current stock investors.
The market regained some momentum after giving back more than half of their post-election gains at the end of last week. Investors had sent the S&P nearly 4% higher in the days immediately following the Presidential win. Bank stocks, smaller companies and other areas of the market seen as the best winners from Trump’s preference for lower tax rates, higher tariffs and lighter regulation did particularly well.
More recently, though, investors have braced for some of the potential downsides for the market of the potential reshaping of the economy. MRNA gained 7% on Monday but is still down since word came out that Trump wants Robert F. Kennedy Jr., a prominent anti-vaccine activist, to lead the Department of Health and Human Services.
Worries about potentially higher inflation have also sent Treasury yields upward in the bond market. That could tie the Federal Reserve’s hands, when the central bank is trying to lower interest rates to ease the brakes off the economy and keep the job market moving along. While lower rates can give a boost to growth, they can also add to inflation.
Traders appear to be gauging the potential impact of a new Trump administration’s policies on the economy, and the possibility that the Fed may slow down its rate-cutting campaign, according to one market observer.
Higher rates and yields in turn mean more pressure on companies to deliver bigger profits in order to make their stock prices look less expensive. Their stock prices have already run up much faster than their earnings.
NVDA has grown into one of the most influential, with a total market value of nearly $3.5 trillion, after becoming the poster child of the rush into artificial-intelligence technology. It will need to hit analysts’ high expectations for growth during the latest quarter to justify its big stock price, which has surged 183% this year.
In the bond market, Treasury yields edged lower, which helped keep things calmer in the stock market. The yield on the 10-year Treasury fell to 4.41% from 4.45% late Friday.
In stock markets abroad, indexes ended mixed in Europe following sharper swings in Asia.
South Korea’s Kospi jumped 2.2% after Samsung Electronics, the country’s biggest company, announced a stock buyback plan.
The crypto market also got a boost today as DJT supposedly is in advanced talks to buy Bakkt, a cryptocurrency trading venue owned by Intercontinental Exchange, as it pushes to expand beyond online conversation. This resulted in other crypto stocks such as MSTR and COIN doing well.
Earnings for the third quarter are coming to an end with the following lineup this week: today – Dow component WMT and SYM higher and LOW lower; tonight - LZB; Wednesday – the big one, namely NVDA plus PANW, JACK, NIO, SNOW, WSM and TGT; Thursday – DE, GPS, INTU, BIDU, ROST, WMG.
Economic reports will have: today – October housing starts down by 3% and building permits off by 1%; Thursday – October L.E.I., weekly jobless claims; Friday – final November U. of Michigan Consumer Sentiment Survey.
