All major indices were lower on the day, but most put impressive moves into the closing bell.

• S&P 500 (SPX) -0.46%
• Nasdaq Composite (IXIC) -0.64%
• New York Stock Exchange (NYSE) -0.15%
• Dow Jones Industrial Average (DJI) -0.98%
• S&P Small Cap 600 Index (SML) -0.82%
• SPDR S&P Midcap 400 ETF (MDY) -0.48%
• Nasdaq-100 (NDX) -0.55%
• Volatility Index (VIX) -3.76%

Yesterday, five sectors finished higher, but Communication Services (XLC) was hammered down more than 4% and Meta Platforms (META) -10.56% had company from the cable players:

• Comcast (CMCSA) -5.82%
• Paramount Global (PARA) -3.94%
• Charter Communications (CHTR) -2.12%

Heat Map

Take a look at the green hue in the semiconductor space. Very impressive.

The VanEck Vectors Semiconductor ETF (SMH) has made a valiant rebound but is still below the 50-day moving average and key inflection line; it hasn’t completely filled that downside gap. And Adams Diversified Equity Fund (ADX) is still moving lower.

Market Breadth

Most breadth readings were negative but far less intimidating.

There were a net four new lows than new highs, and we’ll take the down on the day that could have been far worse.

Sentiment & Dry Powder

After loading up at the top, active money has beat a hasty retreat, bringing exposure near the lows of the year.

Meanwhile, retail investor bullishness is well below the historical average.

After the Close: Return of the Titans

Alphabet (GOOGL) crushed it and is now a dividend payer.  The stock was up 14% in after-hours trading.

Microsoft (MSFT) also posted impressive results. Both names reported gains aided by Artificial Intelligence (AI) (moving from picks and shovels).

Today’s Session

Equity futures moved higher as bond yields moved lower on the PCE report that was in-line monthly, but it was higher than consensus on year-to-year core.  My theory on this is the reaction to GDP sent whisper (real but non-published) estimates higher for PCE. So, when the actual figures were posted, there was a sigh of relief.  Once that game of mental gymnastics wears off, there is the realization the Fed cannot cut rates based on these numbers.

I think June and July are now officially off the table.

• Personal incomes +0.5 were in-line with consensus
• Personal spending +0.8 was higher than consensus of +0.6%

We are pulling this off by dipping into savings, which have now swooned to 3.2%.

#Madness

Comments

Awesome Charts. Mark A Peterson on 4/26/2024 1:12:43 PM

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