Another awful day when once again, the markets could not hold onto early strong gains and withered away as the session moved to the close.

The Dow had achieved a strong gain of 331 points at 11am and sure enough it began to deteriorate from there and was barely able to eke out a nominal gain of 22 up to 37,775 led by TRV which had gotten sold off the day before and UNH which had also sold off earlier in the week on earnings.

And one could almost see this coming as the S&P turned a nice gain of 34 at the same time into going negative at 1:10pm and that was all she wrote for the fifth straight lower session which is the longest since last October to end at 5011 for a loss of 11. It was hurt by declines in the two biggest influencers, namely AAPL which has just been awful and by MSFT which suffered a large loss again and is starting to roll over. The index is now 4.6% below its record high set late last month and it and the Dow are undergoing their worst week of the year.

And sure enough, the Nasdaq was the villain as it turned a morning gain of 103 into a loss at 12:50pm, the first one to go negative and when this split between itself and the Dow becomes apparent, the market always goes in favor of the Nasdaq which is what pulled everything else lower and it in fact turned that weaker gain relative to the other indices into a closing decline of 81 down to 15,601. This index is having its worst week since September 2022.

The Russell 2000 Index of small stocks, which has had little going for it this week and is now down for the year, meekly followed the others lower to end down 5 points to 1942 while strangely enough for the second day in a row, the VIX actually declined down to 18, and this should reverse today assuming the market goes down on the new tensions in the Middle East with the Israeli attack on Iran.
 

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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.