Daily Market Notes | 5-minute read

June 6, 2024

By Donald Selkin | Chief Market Strategist

DOW: 38,871.53

S&P: 5351.51

Nasdaq: 17,158.57

10YR T-Note: 4.29%

Bitcoin: 71684

VIX: 12.63

Gold: $2391.90

Crude Oil: $75.71

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.

Unlike the prior three days when the market started out lower and then made strong late closing rallies, yesterday saw the old-fashioned scenario where things open higher and then just kept going into the close, and in the process both the S&P and the Nasdaq made record finishes, so how do you like that?

The Dow, as usual, was the least dynamic performer of all, with a gain of 96 to 38, 807 led by nice advances in GS and MSFT and it was actually lower for a few times during the session. The S&P really felt the wind at its back with a strong 62 point gain to a best-ever 5354 as NVDA overtook AAPL for second place on the most valuable company at over $3 trillion despite the latter’s eight- day winning streak.

The Nasdaq was the real upside hero and ended 330 points up to a new high of 17,187 as the usual big tech leaders did their thing and they got help from the likes of AVGO and ASML as the chip stocks followed NVDA higher. The Russell 2000 Index, which had lagged lately, joined in the upside party with a 30 point advance to 2063 while the VIX dropped as one would expect down to 12.63, right on near-term support levels.

Better than expected earnings from HPE helped as well with an 11% advance after saying strong sales related to artificial-intelligence systems helped it deliver better results than expected. It also raised its financial forecasts for the year.

Companies have so far been meeting sky-high hopes for how much money AI technology will generate. That has helped to catapult stocks almost regardless of what the broader economy and interest rates are doing.

NVDA is leading the way because its chips are powering much of the rush into AI, and it brought its gain for the year to more than 147%. The chip company also joined MSFT and AAPL as the only U.S. stocks to ever top $3 trillion in total value.

Cybersecurity company CRWD climbed 12% after delivering better profit and revenue for the latest quarter than expected.

The gains for tech stocks helped offset a 5% drop for DLTR, which matched analysts’ expectations for profit but fell just shy for revenue. The retailer also said it is considering selling or spinning off its Family Dollar business.

The broad retail industry has been highlighting challenges for lower-income U.S households, which are trying to keep up with still-high inflation.

Treasury yields fell in the bond market following some mixed data on the economy, as the report from the Institute for Supply Management also said prices rose at a slower pace in May than a month before.

Treasury yields sank after the weaker-than-expected economic reports raised expectations for coming cuts to rates by the Federal Reserve. They eased more on Wednesday. The yield on the 10-year Treasury fell to 4.28% from 4.33% late Tuesday and from 4.60% a week ago.

In stock markets abroad, indexes rose across much of Europe ahead of a decision on interest rates this morning by the European Central Bank. Investors expect it to cut rates amid worries about the continent’s economy.

Earnings this week include: yesterday – CRWD, HPE, CPB, PVH higher and DLTR lower; today – LULU, SJM higher and FIV; tonight – DOCU, MTN.

Economic reports will see: yesterday –April ISM Services Component reached 53.8 which was the highest in two years; today – weekly jobless claims rose to 229K, April trade deficit narrowed to 74.6 billion; Friday – the big one with May non farms payroll report for which the estimate is 180,000 compared to 175,000.

Economic reports will see: yesterday – April construction spending declined by 0.1%, April ISM Manufacturing Index slipped to 47.8, the 18th lower number in the last 19 months; today - April final durable goods orders gained 0.6% and ex-transportation were ahead by 0.4% , April factory orders rose 0.7%, April JOLTS job openings report came in below consensus at 8.06 million; today – April ISM Services Component reached 53.8 which was the highest in two years; Thursday – weekly jobless claims, April trade deficit; Friday – the big one with May no farms payroll report for which the estimate is 180,000 compared to 175,000.

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