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November 20, 2024
DOW: 43,268
S&P: 5,916
Nasdaq: 18,987
10YR T-Note: 4.43%
Bitcoin: 94,268
VIX: 16.72
Gold: 2,640.10
Crude Oil:70.08
Prices Current as of 09:27 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.
In one of the most dramatic upside turnarounds ever, the market ended mainly higher after a very depressing sharply lower opening supposedly based on worries about escalations in the Ukraine- Russia war. Indexes sank across Europe after Russia said Ukraine fired six U.S.- made ATACMD missiles at it. Earlier in the day, Russian President Putin supposedly lowered the threshold for Russia’s use of its nuclear weapons. This sounded like an empty threat which the market eventually came to realize.
After a sharply lower opening of around 400 points, the Dow was able to do better as the session moved along with a closing loss of “only” 120 down to 43,268 as selling in CAT, GS, HD and of course UNH prevented things from doing better and this was the fourth straight decline for this index.
The S&P made an astounding closing gain of 23 to 5917 after collapsing by 38 points early. It finally turned positive at 11am and battled its way back as the session moved along and these gains were helped by a huge gain in NVDA ahead of its earnings tonight.
Its gain of 4.9% accounted for the vast majority of the index’s gain. The chip company’s stock rallied ahead of its profit report for the latest quarter, and increased its gain for the year to nearly 197% thanks to the craze around AI technology.
Activity in the options market suggests its profit report may be the most anticipated event for the rest of the year, beating out the upcoming jobs report and even the next meeting of the Federal Reserve on interest rates, according to some observers who said that it is a “a testament to the outsized impact of AI, and the apparent resurgence of upside chasing by” smaller-pocketed, everyday investors known as retail traders.
The early worries also sent investors into Treasury bonds, which are seen as some of the world’s safest investments. The rise in their prices in turn lowered their yields, and the 10-year Treasury yield fell to 4.39% from 4.41% late Monday.
Gold also rose and recovered some of the losses it sustained following the recent Presidential victory which is supposedly going to make the U.S. dollar stronger.
Early in the day, such cautiousness overshadowed optimism coming from reports by big U.S. retailers showing fatter profits for the summer than analysts expected as Dow component WMT climbed 3% after topping forecasts for both profit and revenue. The nation’s biggest retailer said it saw broad-based strength across its categories, including sales made both online and in stores. It also said it served more upper-income households, while raising its forecasts for sales and profit for the full year. It was also reported that two-thirds of the company’s merchandise is made in the U.S., which could negate the potential negative effects of higher prices for Chinese goods if the proposed tariffs go into effect.
LOW likewise delivered bigger profit and revenue for the latest quarter than analysts expected, but its stock nevertheless dropped 4.6%. A report in the morning said construction crews broke ground on fewer new homes last month than economists expected.
Beaten-down SMCI leapt 31% after it filed a plan to keep its stock listed on Nasdaq’s exchange. It hired an independent auditor, BDO USA, which can help it file financial statements needed in order to comply with Nasdaq’s listing requirements.
The company’s stock has been on a wild ride. It more than quadrupled in the first two and a half months of this year because the company makes servers used in AI. But it gave up all that and more, with losses accelerating after Ernst & Young resigned as its public accounting firm. A special committee of the company’s board later said that a three-month investigation found “no evidence of fraud or misconduct on the part of management or the Board of Directors.” The stock collapsed from as high as 123 in March to last week’s low of 17 before bouncing up to its current level of 28.
INCY sank by 8% after the biopharmaceutical company said it is pausing enrollment in its ongoing study of a potential treatment for hives in chronic spontaneous urticaria. It also said data from another study evaluating a potential treatment for cholestatic pruritus does not support further development.
In stock markets abroad, indexes in Asia were more stable than in Europe. They rose 0.7% in Shanghai and 0.4% in Hong Kong, rebounding from early losses.
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; today – TGT, NIO down and WSM higher; tonight - the big one, namely NVDA plus PANW, JACK, SNOW; 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.
