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October 25, 2024
DOW: 42,543
S&P: 5,847
Nasdaq: 18,624
10YR T-Note: 4.19%
Bitcoin: 68,172
VIX: 18.42
Gold: $2,743.40
Crude Oil: $71.25
Prices Current as of 09:51 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.
The market ended in a mixed finish yesterday as the Dow went lower because of negative results from a few components while the Nasdaq did well mainly on the best showing for beaten-down TSLA in 11 years.
The former drifted to a 140 point lower close to 42,374, its fourth straight decline this week primarily due to high-flying IBM getting taken down for its worst one-day showing in six months after a weak earnings report, in addition to selling in HON and always volatile UNH.
The S&P gained 12 points to 5810 as it got help from TSLA, in addition to AMZN, NVDA, META and the large financial components. The Nasdaq did the best of all with a 139 point advance to 18,415 due to that tremendous upside explosion in beaten-down TSLA, in addition to some other technology leaders. Their optimistic CEO also predicted 20% to 30% sales growth next year, though its revenue for the latest quarter fell short of analysts’ forecasts.
This resulted in its break of a three-day losing streak since early September as it bounced between losses and gains through the day, and it was roughly evenly split between stocks rising and falling.
The Russell 2000 Index of small stocks got dragged higher by 5 to 2219 while the VIX eased back to 19.08 as the Middle Eastern gamblers continue to get stuck with high-priced calls as nothing there is causing this item to make a large upward move as these people hope for.
UPS rose after topping analysts’ forecasts for profit. The package-delivery company’s finances can offer a window into the strength of the economy because of how many different types of customers it serves, and its revenue edged past expectations.
NOW, whose platform helps companies automate and connect processes, was another one of the strongest forces pushing upward in the S&P. It rose 5% after delivering stronger profit and revenue than expected, driven by interest by customers to incorporate artificial-intelligence technology.
Such gains helped to offset a drop of 6% for IBM, which reported revenue for the latest quarter that fell just short of analysts’ expectations. It was the single biggest reason the Dow dragged behind other indexes.
BA was another weight and sank 1.2% after its machinists voted to continue their strike, which has crippled aircraft production. More than 60% of union members who voted on the proposed contract rejected it, keeping them on the picket lines six weeks into their work stoppage.
UNP dropped 4.4% after it reported weaker profit and revenue than expected.
Stocks have broadly regressed this week after the S&P and Dow both set records at the end of last week. They have been hurt by rising Treasury yields in the bond market, which can make investors less willing to pay high prices for stocks. Critics had already been saying beforehand that stocks looked too expensive given how much faster their prices have risen than corporate profits.
But the higher yields have forced traders to ratchet back forecasts for how deeply the Federal Reserve will cut interest rates, now that it is just as focused on keeping the economy moving as getting inflation lower. With bets diminishing on how much the Fed will ultimately cut its overnight interest rate, Treasury yields have also been given back some of their earlier declines.
The weekly jobless claims report offered a mixed picture of 227,000 on the job market. It said fewer workers applied for unemployment benefits last week, which can be a signal of relatively low layoffs. But it also said the total number of those collecting benefits rose to its highest level in almost three years.
Treasury yields, which had eased overnight, pared their losses after the release of the unemployment claims report before yo-yoing. The yield on the 10-year Treasury fell to 4.20% from 4.25% late Wednesday. It is still well above its 4.08% level from late last week.
A separate preliminary report said growth in U.S. business activity may have accelerated slightly last month, as strength for companies in services industries continue to make up for weakness in manufacturing. The report from S&P Global also showed a recovery in confidence as companies anticipate greater stability and certainty after the upcoming presidential election.
A third report, meanwhile, said sales of new homes were stronger last month than economists expected.
The third-quarter earnings season continues to roll along this week with the following: yesterday: – TSLA, NOW, TMUS, LRCX, MAT, DOW, UPS higher and LVS, HOG, LUV, UNP and Dow component IBM lower; today – AN, CL lower and BAH higher. There is also the CPRI (lower)/TPR (higher) merger blocked. Finally, there are huge numbers of out of the money calls on TSLA for today after yesterday’s upside moonshot, so we will see how this plays out.
Economic reports will see: yesterday – September new home sales dipped by 5.5%, weekly jobless claims came in lower at 227K; today – September durable goods orders were off by 0.8% and ex-transportation were 0.4% positive, final October U. of Michigan Consumer Sentiment Survey.
