Daily Market Notes | 5-minute read

May 29, 2024

By Donald Selkin | Chief Market Strategist

DOW: 38,510.42

S&P: 5275.32

Nasdaq: 16,953.21

10YR T-Note: 4.62%

Bitcoin: 67303

VIX: 14.03

Gold: $2363.1

Crude Oil: $79.19

Prices Current as of 11:50 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.

What kind of gave things away to some extent was the fact that even as the major indices all opened higher, except for the Dow, the VIX immediately jumped positive and went higher as the session moved along even as things sort of ended mixed to steady at the end.

It was a volatile trading day as the Dow opened lower and never had a chance due to weakness in AMGN, CRM ahead of its earnings tonight, MCD, MRK, PG, UNH and V. It got down to a decline of as much as 363 just before 3pm before cutting that loss by the close to 216 at 38, 852.

The S&P started out higher by 10, then also fell to a decline of 24 at the same time before then coming back to end with a nominal 1 point gain to 5306. It was led by you guessed it, NVDA on its strong earnings report, its upcoming 10 for 1 stock split and upcoming dividend increase. But the majority of stocks in this index fell, so the close might have been unrealistic.

The Nasdaq did the best of all with a final advance of 99 to 17,019 led by you know who, plus AVGO, COST ahead of its earnings tomorrow night, AMD, ADBE and NFLX. It was the third record high close as this one is really in an upside groove.

The Russell 2000 Index of small stocks lost 3 to 2067 while the aforementioned VIX ended with a gain up to 12.92 and is now above its recent support level of 12.40 which it probably feels comfortable with now.

As mentioned above, NVDA led the way and jumped 7% to bring its gain for the year to a whopping 130%. It is still riding a wave created by its latest blowout profit report last week, which calmed some of the worries that the frenzy around artificial-intelligence technology has inflated expectations and prices beyond reasonable levels.

USM climbed 12% after T-Mobile said it will buy nearly all of the company. The deal is valued at $4.4 billion and includes up to $2 billion in assumed debt. Shares of T-Mobile US added 0.8%.

GME jumped by 25% after it said it raised $933.4 million in cash through a previously announced sale of stock. This one, which collapsed from around $70 last week on the rumblings of the former meme-stock enthusiast who came out of the woodwork after a 3.5 year hiatus, said that it could use the cash for acquisitions, investments or other general corporate purposes. But it is already down in the pre-market.

These gains in some issues helped offset drops for health care stocks, which came down and affected the Dow as mentioned above.

The majority of other stocks also fell, feeling the effects of a modest rise in Treasury yields as the 10-year Treasury climbed to 4.54% from 4.47% late Friday. It had been lower in the morning but began trimming its losses after a surprising report showed that May Consumer Confidence grew to 102, much better than expected.

Strong spending by U.S. consumers has been one of the main reasons the economy has managed to defy predictions of a recession, at least so far, but some cracks have begun to show as lower-income households in particular have started to buckle under the pressure of still-high inflation.

Yields climbed further Tuesday afternoon following the auction of Treasurys by the U.S. government. The day’s gains cut into the recent easing of Treasury yields, which fell most of this month on hopes that a resumption in the cooldown in inflation will allow the Federal Reserve to cut its main interest rates at least once later this year.

Earnings this week will include: today – ANF, CHWY, DKS higher and CAVA lower; tonight - Dow component CRM plus A, OKTA, HP; Thursday – BBY, COST, DELL, DG, KS, MRVL, NTAP, ZS.

Economic reports will see: yesterday – May Consumer Confidence came in higher at 102, Case-Shiller Home Price Index gained1.6%; today – Fed Beige Book; Thursday – weekly jobless claims, second estimate of 1Q G.D.P,; Friday – April which is important to the Fed.

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