Daily Market Notes: 6-6-2023


An overbought market as indicated by the low level of the VIX last Friday in the 14 area plus the historically typical negative reaction to AAPL when it introduces a new product resulted in a nice early gain turning into a negative close yesterday.

And once again, the indices followed the recent pattern of the Dow doing the worst and the Nasdaq doing the best, with the S&P caught in the middle.

For instance, the Dow started out nominally higher and then began to drift lower as the session moved along and finally ended right at its worst level of the session with a 200 point loss down to 33,563 led by selling in BA, CAT which made a tremendous move higher on Friday, CRM, 3M and NKE which had rare up-days in Friday’s large Dow upside move, which was the second best of the year.

The S&P got to as high as a 17 point advance by the time that CEO Tim Cook began to talk after 1pm. And once again, following in the illustrious tradition of Steve Jobs when he introduced the iPhone and the iPad around 2006-7, the market went lower even after both of these items turned out to be world-changing products. So yesterday’s introduction of the $3,500 long-rumored Virtual Reality headset that will place its users between the virtual and real world when it is released early next year brought on some second-guessers. As a result, the stock fell from an intraday high gain at 185.95 to a final decline at 179.58.

The Nasdaq was ahead by 90 at that 1pm time before giving it all up and then some with a final decline of 11 down to 13,229 but the Nasdaq 100, which is where the large-cap technology stocks are concentrated, actually eked out a closing advance of 10 points due to ongoing strength in GOOG, AMZN, NFLX and TSLA.

The Russell 2000 Index of small stocks came back down by 24 to 1807 due to renewed selling in most of the regional banks stocks while the VIX rose from that low level to end nominally higher at 14.73 which is still historically very low and leaves the market subject to additional pullbacks.

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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.