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November 8, 2024
DOW: 43,871.01
S&P: 5980.09
Nasdaq: 21,101.17
10YR T-Note: 4.30%
Bitcoin: 76178
VIX: 14.86
Gold: $2696.85
Crude Oil: $71.14
Prices Current as of 9:30 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.
Once again, this upside rally continued for the third day yesterday with the S&P and Nasdaq achieving further new record highs once again.
The Dow sort of lagged with an unchanged close at 43,729 due to large selling in the major financials such as GS, JPM and V, all of which exploded to new highs the prior day after the Presidential election.
The S&P did its upside things once again with a 44 point gain to 5973 as those large technology issues led the way and the Nasdaq also exploded to the upside with a 285 point advance to 19,260 also on the back of really strong gains in META, AVGO and TSLA once again.
The Russell 2000 Index of small stocks finally took an upside rest with a 10 point decline to 2382 while the VIX continued its downward journey to 15.20 after the relentless pushing of negative upside calls due to Middle Eastern tensions that do not for the time being have any lower effect on the market here so far.
And for once in a long while, the market basically stayed just about where it was for a change as the Federal Reserve made the announcement that it was easing its main interest rate caused few ripples in the market because even the precise size of it was so well anticipated by investors.
The central bank began easing rates in September and indicated more cuts were likely to come, as it focuses more on keeping the job market steady after helping get inflation nearly down to its 2% target. But what is less certain in the minds of investors now is how much the new administration may upset the Fed’s plans.
They are pushing for tariffs and other policies that economists say could force inflation higher, along with the economy’s growth. Traders have already begun paring forecasts for how many cuts to rates the Fed will deliver next year because of that. While lower rates can boost the economy, they can also give inflation more fuel.
For now, Fed Chair Jerome Powell said, nothing is changing. “In the near term, the election will have no effects” on interest-rate policy, he said.
With any president, Powell said the Fed looks at possible policy changes and simulates how they could affect the economy. Only after looking at the overall effect of all the policies do Fed officials decide how that should shape where interest rates go. And at this point, Powell said it is still not clear what the policies will be after Trump returns to the White House.
“We don’t guess, we don’t speculate and we don’t assume,” he said.
Healthcare services company MCK helped drive the market by jumping 11% after reporting a stronger profit for the latest quarter than analysts expected.
LYFT moved up 23% after the ride-hailing app breezed past sales and profit expectations, and RL rose after customers in Asia and Europe helped it deliver a bigger profit than expected.
They helped make up for bank stocks, which gave back some of their stellar gains from the day before. Other “new administration trades” that had rocketed higher after the election also lost some of their juice.
JPM fell, a day after banks decisively led the market on expectations that a stronger economy and lighter regulation would mean fatter profits. It and GS were the biggest reasons for the Dow Jones Industrial Average’s slight loss.
Smaller U.S. stocks also lagged the market, with the RUT Index down 0.4%. A day before, it more than doubled the S&P’s gain on expectations that Trump’s America-First priorities would most benefit smaller, more domestically focused companies.
The stock that has become most synonymous with the president-elect, DJT, fell 23%, leaving hundreds of thousands of bullish option call buyers with nothing to show for their optimism here and of course regular holders of the stock scratching their heads, but the problem here was the awful earnings update for this one.
In the bond market, the yield on the 10-year Treasury eased to 4.33% from 4.44% late Wednesday. It gave back a chunk of its surge from the prior day, driven by expectations that the plans for higher tariffs, lower tax rate and lighter regulation could lead to bigger economic growth, U.S. government debt and inflation.
Weekly jobless claims rose a bit to 221,000, although the number remains relatively low. A separate report suggested U.S. workers improved their productivity during the summer, which can help keep a lid on inflation, but not by quite as much as economists expected.
In stock markets abroad, London’s FTSE 100 fell 0.3% after the Bank of England cut its own interest rate by a quarter of a percentage point.
In Asia, Japan’s Nikkei 225 slipped 0.3% amid worries about the potential for a revival of trade tensions under the new administration.
Stocks rallied 2% in Hong Kong and by 2.6% in Shanghai rallied after the Chinese government reported exports jumped in October at the fastest pace in more than two years.
Our new government here has promised to slap blanket 60% tariffs on all Chinese imports, raising them still more if Beijing makes a move to invade the self-governing island of Taiwan. That would add to the burdens China is facing as it struggles to revive slowing growth in the world’s second-largest economy.
Earnings this week will see: yesterday - LYFT, QCOM. UAA, WBD, APP, APC, MCK, RL, Z, MRNA higher and ABM, DJT, HSY, TDG, XRAY, MTCH lower; today – RIVN, BLK, EXPE higher and ANET, FTNT, ABNB, DKNG, AKAM, BAX lower.
Economic reports will see: yesterday - Federal Reserve interest rate cut (see above), weekly jobless claims rose a bit to 221,000; today – mid-month U. of Michigan Consumer Sentiment Survey.
