FinMar News’ Post

EZBites for the week ending July 5, 2024 DOW:-0.1% (YTD:+3.8%) NASDAQ:+0.2% (YTD:+18.1%) S&P:-0.1% (YTD:+14.5%) The week that just concluded had its share of surprises The good included the following: The 2-yr, 5-yr, and 7-yr Treasury note auctions all had strong demand, reducing upward pressure on interest rates. Carnival's (CCL) positive earnings report; FedEx’ (FDX) surging after its positive earnings report; Amazon.com (AMZN) eclipsing a $2 trillion market capitalization; All 31 large US banks passing the Federal Reserve’s annual stress test; A Personal Income and Spending report for May that hit the right soft landing notes, which included gains in personal income and personal spending to go along with a moderation in the PCE Price indices. The bad included: A lack of broad-based participation in the market gains - the equal-weighted S&P 500 declined 0.8% for the week; A massive 20% decline in Dow component Nike (NKE) after it issued a greatly disappointing FY25 sales outlook; Micron’s (MU) losing nearly 8% after failing to live up to investors' high guidance expectations; Walgreens Boots Alliance’s (WBA) missing earnings expectations, cutting its FY24 guidance, and announcing plans to close a significant number of underperforming stores; Reports of tension rising between Israel and Hezbollah; Continuing jobless claims hitting their highest level since November 2021; New home sales sliding 11.3% M-o-M in May to a seasonally adjusted annual rate of 619,000 units.

"The rally came after several positive developments before Thursday’s open, including July retail sales which came in much stronger than forecasted, weekly initial unemployment claims which were lower than expected and strong earnings from Walmart, the U.S.’ largest public company by revenues. The “blowout” retail sales “should lay to rest all of the doom and gloom that was expressed at the beginning of this month,” said Chris Zaccarelli, Independent Advisor Alliance’s chief investment officer, in emailed comments. The chilling losses from a few weeks back are hardly evident across the three major indexes, with the S&P up 8% from its Aug. 5 low, the Nasdaq up 11% from its August bottom and the Dow up 5% from its nadir this month, gaining about 1,900 points." The article began: "The stock market rebound continued Thursday thanks to the latest batch of data depicting a healthier U.S. economy than feared, as major stock indexes almost entirely wipe out losses from the brutal selloff which occurred at the start of August. The blue chip Dow Jones Industrial Average rose 390 points, or 1%, by about 10 a.m. EDT, while the benchmark S&P 500 gained 1.1% and the tech-concentrated Nasdaq rallied 1.7%."

US stocks to open higher Three rate cuts to come in 2024 Levi Strauss up 12% 8.31am: Wall Street to open higher as Fed quells rate cut concerns  US stocks are expected to open higher on Thursday after Fed chair Powell quelled fears surrounding a lack of interest rate cuts. The Dow Jones is set to lift 127 points at 39,579 when the markets open. The Nasdaq is expected to jump 93 points to 18,454, while the S&P 500 is touted to begin trading 19 points higher at 5,283.  Investors had shown concern through much of the week about whether the Fed would wait longer to cut rates and whether it would stick to three cuts.  It led to subdued trading throughout much of the week, with markets down on Monday, Tuesday and the start of Wednesday.  More at #Proactive #ProactiveInvestors http://ow.ly/6le9105or83

The Dow Jones Industrial Average faced significant downward pressure on Tuesday, primarily driven by declines in key stocks. The index showed widespread losses, with only a third of its components registering gains. Home Depot Inc. (HD) notably dropped by approximately 4% to $337.70 per share, followed by Walmart Inc. (WMT), which fell 2.78% and dipped below $67.00 per share. Boeing Co. (BA) and Nike Inc. (NKE) also slid about 2.33% each, trading at $53.35 and $95.11 per share, respectively. Conversely, Tuesday's gainers were scarce, with Amazon.com Inc. (AMZN) and Apple Inc. (AAPL) managing modest increases of just over 1% each. Amazon rose to $187.64 per share, while Apple edged above $210.00 per share, recovering from Monday's drop below $208.00. Technically, the Dow Jones appeared set to conclude the day notably lower, marking its most significant single-day decline since late May, with a slump of three-quarters of one percent. Although there was some intraday recovery, its impact was limited, pulling bids up from the day's low at 38,982.37. On the daily charts, the index continued to trade slightly above the 50-day Exponential Moving Average (EMA) at 38,864.49, with stronger technical support from the 200-day EMA at 37,455.71. Despite these supportive levels, the Dow Jones has struggled to regain ground decisively following a retreat of -5.15% from its peak above 40,000.00 reached in mid-May.

📣 S&P 500 Approaches Record ! US stocks rose on Tuesday after better-than-expected retail sales figure, signalled consumer spending remained relatively robust. The S&P 500 gained 0.4%, leaving it just 0.5% shy of its record high. The Dow added roughly 100 points, hitting a new all-time high, while the Nasdaq climbed 0.8%. Retails sales in the US unexpectedly edged up 0.1% in August, compared to forecasts of a 0.2% fall, and following an upwardly revised 1.1% surge in July. Meanwhile, the FOMC's two-day meeting begins today, with traders anticipating that tomorrow the Fed will announce its first interest rate cut since 2020. Still, investors remain divided on the size of the reduction, with the odds for a jumbo 50bps cut currently standing above 60%. Consumer discretionary, tech and communication services were the top performing sectors. Also, Microsoft was up 1.5% after the company raised its quarterly dividend. Tesla gained 2.4% and Intel surged 2.5% following the chipmaker's new business partnership with Amazon.

💢 - Rate Cut Hopes Dwindle Batten down the hatches and get ready for a wild ride through the financial seas! With markets rebounding, rate cut hopes adjusting, and key earnings on the horizon, there's a lot to navigate this week. TLDR; 📉 US and UK markets closed for regional holidays. 📈 US stocks rebounded Friday on positive consumer inflation outlook. 📊 Nasdaq hit an all-time high (ATH) for the fifth straight week. 📉 Dow snapped a five-week win streak. 📅 Markets now expect one rate cut in 2024, down from six earlier. 📅 Key earnings to watch this week: CAVA (Mon), Salesforce, HP (Wed), Costco, Dell, Dollar General, Kohl's (Thu). 🌍 Market Overview: Regional Holidays: Both US and UK stock markets were closed yesterday for regional holidays, giving traders a brief respite. Rebound Rally: On Friday, US stocks bounced back on news that consumers have a more optimistic outlook on inflation. Nasdaq's Streak: The Nasdaq rose for the fifth consecutive week, reaching an all-time high (ATH). A remarkable achievement in a volatile market! Dow's Dip: In contrast, the Dow snapped its five-week win streak, taking a breather after a solid run. Rate Cut Expectations: Markets are now pricing in only one rate cut in 2024, a sharp decline from the six anticipated earlier this year. 📅 Earnings to Watch This Week: Monday: CAVA Wednesday: Salesforce, HP Thursday: Costco, Dell, Dollar General, Kohl's #spx #markets #trading #investing #stocks #stockmarket

A great week in Wall Street even with the pull back yesterday:  1. Market Recap:   Yesterday, the US stock market experienced a pullback despite the Dow Jones Industrial Average (DJI) briefly touching 40,000 for the first time ever. The Dow closed at 39,869, down 0.1%. The tech-heavy Nasdaq Composite (IXIC) fell about 0.3%, and the S&P 500 (GSPC) dropped around 0.2%. The S&P had recently surpassed 5,300 for the first time. This pullback was influenced by comments from three Fed officials who warned of higher-for-longer interest rates. 2. Interest Rate Concerns:   Cleveland Fed President Loretta Mester, New York Fed President John Williams, and Richmond Fed President Thomas Barkin expressed caution about inflation. Mester stated that maintaining a restrictive stance on interest rates is prudent while they gain clarity on inflation trends. These remarks dampened the recent rally in stocks. 3. Bond Market and Yields:   Investors reacted to the interest rate concerns by moving into bonds, causing the 10-year Treasury yield (TNX) to drop to near one-month lows at around 4.33%. However, yields ticked up slightly on Thursday, with the 10-year trading around 4.38%. Keep an eye on bond yields as they impact stock market sentiment. 4. Corporate News:   Walmart (WMT) reported strong quarterly profits, revenue, and same-store sales, beating Wall Street estimates. Shares of Walmart surged more than 7%. Additionally, Warren Buffett's Berkshire Hathaway (BKR-B) revealed a $6.7 billion stake in Chubb (CB), ending months of suspense. Chubb's shares closed about 5% higher on Thursday. #markets #wallstreet #stocks #yields #usa

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The Dow Jones Industrial Average is not typically known for growth stocks, but thanks to changes in the index, it contains stocks that could still experience considerable gains. #stocks #investing

Stock market:   All three major indexes — the S&P 500, Nasdaq and Dow — surged to record highs Wednesday. This comes after the latest Consumer Price Index showed that prices were up 3.4% for the 12 months ended in April, easing from 3.5% the month before. Investors believe that the cooler inflation reading, coupled with a separate report showing weak retail sales in April, increases the likelihood that the Federal Reserve will cut interest rates this year. While the new report shows elevated housing costs and high gas prices are weighing on Americans, the data provided welcome news on another staple spending area: Grocery prices fell for the first time in a year, dropping 0.2% from March.