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DOW: 44197.8
S&P: 6068.89
Nasdaq: 19948.76
10YR T-Note: 4.29%
Bitcoin: 101,357.25
VIX: 13.78
Gold: $2707.8
Crude Oil: $69.69
Prices Current as of 9:50 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 two awful days, the market was ripe for a nice rebound and we certainly got one yesterday, with the Nasdaq making a new all-time high and the S&P getting close to one of its own.
And naturally, the Dow declined once again for the seventh time in the past eight sessions with 99 points lower to 44,148 as selling once again in AMGN, JNJ, MCD and UNH added to the downside misery even as the rest of the averages were higher.
The S&P put in a very strong performance with a 49 point upside moonshot to 6084 but it did sort of lose steam in the last hour or so which is setting things up for a negative opening today. And to no one’s surprise, it was the large technology issues that led the way with META, NFLX, GOOG and TSLA all making new highs on their own. And after eight straight higher days, AAPL finally ran out of steam after making a new record high on its own to start out.
The main hero was the Nasdaq which closed at its best ever level at 20,034 with most of the aforementioned technology leaders making huge upside gains. The Russell 2000 Index of small stocks got dragged along to the upside with an 11 point advance to 2394 while the VIX dropped down to 13.58 on the higher stock S&P which once again leaves it close to the 13 and below area which should prevent further immediate upside.
The main upside motivation was the important November C.P.I. clearing the way for another interest rate cut by the Fed this coming Wednesday.
Traders are betting on a nearly 99% probability of that, according to data from CME Group, up from 89% a day before. If they are correct, it would be a third straight cut by the Fed after it began lowering rates in September from a two-decade high. It is hoping to support a slowing job market after getting inflation nearly all the way down to its 2% target.
As mentioned above, the biggest boosts for the index yesterday came from NVDA and other large tech stocks. Their massive growth has made them the biggest stars for years, though other kinds of stocks have recently been catching up somewhat amid hopes for the broader U.S. economy.
TSLA jumped again to a level that Elon Musk made famous in a 2018 tweet when he said he had secured funding to take Tesla private at $420 a share.
Beaten-down SFIX soared from very low levels after the company that sends clothes to your door reported a smaller loss for the latest quarter than analysts expected. It also gave financial forecasts for the current quarter that were better than expected, including for revenue.
GEV also rallied for one of the biggest gains in the S&P, as the energy company that spun out of General Electric said it would pay a 25 cent dividend every three months, and it approved a plan to send up to another $6 billion to its shareholders by buying back its own stock.
On the losing end was PLAY which tumbled after reporting a worse loss for the latest quarter than expected. It also said its CEO Chris resigned, and the board has been working with an executive-search firm for the last few months to find its next leader.
ACI fell after filing a lawsuit against KR, saying it did not do enough for their proposed $24.6 billion merger agreement to win regulatory clearance. The former said that it is seeking billions of dollars in damages from the latter, whose stock rose.
A day earlier, judges in different cases in Oregon and Washington nixed the supermarket giants’ merger. The grocers contended a combination could have helped them compete with big retailers like WMT, COST and AMZN, but critics said it would hurt competition.
After terminating the merger agreement ACI said it plans to boost its dividend by 25% and increased the size of its program to buy back its own.
After cutting some of its financial forecasts for the full year of 2024, including for how much profit it expects to make off each $1 of revenue, long suffering M fell once again.
In the bond market, the yield on the 10-year Treasury rose to 4.27% from 4.23% late Tuesday. The two-year Treasury yield, which more closely tracks expectations for the Fed, edged up to 4.15% from 4.14%.
So when one sort of “knew” that things would go up yesterday after two poor days, one could also imply that things will start out lower today after yesterday’s tremendous upside for the S&P and the Nasdaq, and sure enough the P.P.I. came in a little higher than expected to start out lower and hopefully we can improve from there.
Earnings this week will have some important reports and the list is: yesterday – GME higher and PLAY lower; today – ADBE lower and tonight - COST, AVGO.
Economic reports will see: yesterday – November C.P.I. came in as expected with a gain of 0.3% monthly and 2.7% year over year while ex-food and energy it was also higher by 0.3% and 3.3% year over year; today - November P.P.I. rose by 0.4% month over month and 3% year over year while excluding food and energy were 0.2% and 3.4% year over year , weekly jobless claims rose to 242,000 thousand.
