After a couple of sluggish lower days, the market re-ignited its old bullish self once again yesterday and in the process both the S&P and Nasdaq closed at all-time record highs as February became the fourth straight winning month.

The Dow was actually the laggard to some extent as it dipped to a decline of 140 just around 12noon before sort of getting dragged higher by the other indices to end with a 47 point advance to 38,996 led by gains in CAT, CRM after its earnings report, MSFT and AMZN. It was restrained by selling in AMGN and UNH in that really weak healthcare group this week, in addition to BA, GS, and V.

The S&P also ended higher than it has ever been with a 26 point advance to 5096 led by strength in many technology leaders while the Nasdaq finally broke through its former record high from 2021 with a 144 point advance to 16,091.

The Russell 2000 Index came along for the upside ride with a 14 point advance to 2054 while the VIX dropped on the higher market down to 13.40.

In the bond market, yields eased after the closely followed P.C.E. report showed prices across the country rose pretty much as expected last month. That calmed worries that had built recently that the inflation data could show a discomforting reacceleration after both the C.P.I. and P.P.I. from a couple of weeks ago had shown prices rose more than expected.(see below for details)

The report kept intact hopes that the Federal Reserve may begin cutting interest rates in June. Such a move would relax the pressure on the economy and boost investment prices, and the Fed has indicated that three cuts may be coming this year.

The Fed’s main interest rate is sitting at its highest level since 2001 in hopes of grinding down inflation by dragging on the economy through more  expensive mortgage and credit card payments.
 

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Donald M. Selkin

Chief Market Strategist

 

Don Selkin is the Chief Market Strategist at Newbridge Securities Corporation, member FINRA/SIPC and provides the Fair Value analysis for CNBC each morning. The commentary provided in this Market Letter is intended to provide our current or potential customers with timely market analysis and should not be considered a research report. This Market Letter may contain, and is limited to: Discussions of broad based indices; Commentaries on economic, political or market conditions; Technical analysis concerning the demand and supply for a sector, index or industry based in trading volume and price; Statistical summaries of multiple companies’ financial data, including listings of current ratings; and, recommendations regarding increasing or decreasing holdings in particular industries or securities. This Market Letter does not make a financial or investment recommendation or otherwise promotes a product or service of the firm. This Market Letter contains only news, facts, and commentary on information previously reported from a news source believed to be accurate and reliable by the author. These news sources include the following: {Bloomberg Financial, Reuters, and Associated Press}. It is possible that at any given point in time, the author, Newbridge Securities, or one or more of its employees or registered individuals associated with Newbridge Securities, may hold a position, either long, or short, as well as options, bonds or other instruments in the companies mentioned in this report.