Morning Commentary
The 50-Day Moving Average
I have to say that Tuesday was the best (down 300 points) Dow Jones Industrial session I’ve seen in a long time. The headlines will speak of a market drubbing for a variety of concerns (see above). I see the resolve in the face of a variety of concerns that would have sent the market into a death spiral not too long ago. The session saw a battle to hold above the 50-day moving average. The drama was in place for the closing bell when buyers materialized and spiked major indices above that important technical indicator. I don’t think it was “dumb” money that showed up into the close.
DJIA
S&P 500
Sector Review
The biggest losers included industrial and energy names, which are more sensitive to the fragility of the global economy than other sectors. Momentum stocks also took it on the chin as big money fled to safe havens, including utilities, real estate, and health care names. The Fifth Third Bank (FITB) posted solid results, but it’s not large enough a company to carry the financial sector.
S&P 500 Index |
-1.42% |
Communication Services (XLC) |
-2.07% |
Consumer Discretionary (XLY) |
-1.50% |
Consumer Staples (XLP) |
-0.92% |
Energy (XLE) |
-2.18% |
Financials (XLF) |
-1.15% |
Health Care (XLV) |
-0.69% |
Industrials (XLI) |
-2.07% |
Materials (XLB) |
-1.38% |
Real Estate (XLRE) |
-0.18% |
Technology (XLK) |
-1.68% |
Utilities (XLU) |
+0.19% |
After the close, IBM posted results that saw a review decline from a year ago, but it is better than Wall Street consensus. The only red flag is free cash flow, which probably will come in below the Street’s estimate.
Portfolio Approach
We took no actions yesterday, although we were tempted to ring the register a few times. This looks like what could be a significant breakout where current winners could significantly outperform.
Communication Services |
Consumer Discretionary |
Consumer Staples |
2 |
4 |
1 |
Energy |
Financials |
Healthcare |
1 |
1 |
1 |
Industrial |
Materials |
Real Estate |
3 |
4 |
0 |
Technology |
Utilities |
Cash |
1 |
0 |
2 |
Today's Session
The major indices have opened higher lead by IBM and United Technologies (UTX), both raised guidance. All 11 S&P sectors are in the green. Consumer staples and industrials are among the top performers.
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4/22/2024 1:22 PM | Pins and Needles |
4/22/2024 9:30 AM | LIVE BY THE SWORD … |
4/19/2024 1:20 PM | Fair Chunk of Rotation |
4/19/2024 9:35 AM | DON’T OVERREACT |
4/18/2024 1:37 PM | Didn’t Break Down |
4/18/2024 9:40 AM | MARKET OFF SCRIPT |
4/17/2024 1:59 PM | Facing Pressure |
4/17/2024 9:37 AM | POWELL STILL WANTS TO HELP |
4/16/2024 1:35 PM | Muted |
4/16/2024 9:42 AM | FEAR ARRIVES |
4/15/2024 1:17 PM | Making a Statement |
4/15/2024 9:45 AM | Equal Opportunity Drubbing |
4/12/2024 1:37 PM | Pressure Overall |
4/12/2024 9:42 AM | WHO YA GONNA CALL? |
4/11/2024 1:38 PM | No Urgency |
4/11/2024 9:27 AM | Tough Sledding |
4/10/2024 1:22 PM | Hang In There |
4/10/2024 9:51 AM | HERE COMES THE LATEST RATIONALE FOR PERSISTENT INFLATION |
4/9/2024 1:56 PM | Fighting the Trend |
4/9/2024 9:46 AM | NEXT TIME, MAKE IT A HOLIDAY |
4/8/2024 9:45 PM | Cautious Feel |
4/8/2024 7:19 AM | IT’S ECLIPSE DAY |
4/5/2024 1:51 PM | Higher and Cheaper |
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