Daily Market Notes | 5-minute read

July 9, 2024

By Donald Selkin | Chief Market Strategist

DOW: 39238.72

S&P: 5577.99

Nasdaq: 18429.96

10YR T-Note: 4.32%

Bitcoin: 57112.59

VIX: 12.48

Gold: $2357.70 Crude Oil: $81.94

Prices Current as of 11:33 am

Source: CNBC

40+ Years on

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.

Another day, another dollar as the unstoppable S&P and Nasdaq ended higher again, the former for the 35th time this year, while the Dow turned a large 279 point opening gain into a closing loss of 31 hurt by declines in CRM, MCD, hopeless NKE and V.

The S&P sort of bounced around all session in a slightly positive manner and then added to its moderate gains with another very late upside rush to a 5 point gain to 5572. It was led on the upside by chip stocks after a strong early gain from TSM helped the shares of AMD and CRM to nice gains.

And as to my comments that once the S&P approaches 5600, sure enough in the morning, another house raised its price target to 5900, which once again proves my contention that these so-called “experts” just follow the market along to the upside as it grinds inexorably higher all year.

The Nasdaq also ended at a higher level from where it was trading at most of the session with a 51 point close to 18,405 led by the two aforementioned issues plus AAPL at a new all-time high as well.

The lifeless Russell 2000 Index of small stocks followed along with a 12 point advance to 2038 while the VIX declined again to 12.37 in one of its most listless periods in history, which shows that there is not much volatility in the market.

Specialty glassware maker GLW rose by 12% for the biggest gain in the market after raising its sales forecast.

Troubled airplane maker BA also gained after agreeing to plead guilty to a criminal fraud charge stemming from two crashes of 737 Max jetliners that killed 346 people. The government determined the company violated an agreement that had protected it from prosecution for more than three years.

Entertainment giant PARA slid 5% for the biggest decline among S&P stocks after it agreed to merge with Skydance. This was a pathetic performance after years of sinking inexorably lower for the longest time.

The second-quarter earnings season could have an effect later in the week with some important companies reporting (see below).

Federal Reserve Chair Jerome Powell addresses Congress today and Wednesday. The central bank has kept its benchmark interest rate at its highest level in more than two decades in an effort to tame inflation. His prepared remarks said that the labor market has cooled somewhat but remains strong and that inflation readings have shown progress.

The central bank will get more updates on inflation with June C.P.I. on Thursday morning and economists expect it to show inflation easing to 3.1% in June from 3.3% in May.

A report for inflation at the wholesale level, before costs are passed on to consumers, namely the June P.P.I., is expected Friday.

Inflation is seemingly stuck at around 3% by most measures. That has prompted more caution from the Fed and dampened expectations for the number of anticipated rate cuts this year. Most experts are expecting one rate cut from the Fed this year, but not until September. The Fed holds its next policy meeting later this month at which time they will do nothing.

Treasury yields were relatively stable in the bond market. The yield on the 10-year Treasury fell to 4.27% from 4.28% late Friday.

European stocks were mixed after France’s elections left its legislature divided among left, center and far right, with no single political faction getting close to a majority.

Second-quarter earnings season kicks off this week with the following: today – HELE lower; Wednesday – WD40; Thursday – CAG, DAL, PEP; Friday – C, FAST, JPM, WFC, BNY.

Economic reports will see: Thursday – June C.P.I., weekly jobless claims; Friday – June P.P.I., preliminary U. of Michigan Consumer Sentiment Survey.

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