The market got a good jump out of the gate on Monday, but more evidence that consumers are bracing for higher prices took the wind out of the sails.

Interestingly, market breadth was overwhelmingly bullish, especially for the NASDAQ Composite.

Market Breadth	NYSE	NASDAQ
Advancers	1,460	2,266
Decliners	1,326	1,988
New Highs	153	149
New Lows	18	89
Up Volume	2.86 billion	3.31 billion
Down Volume	1.38 billion	1.15 billion

Nothing To Fear

Meanwhile, after camping in the ‘fear zone’ for a couple of weeks, the Fear & Greed Index gauge is zipping through ‘neutral.’

Only two of eleven sectors were higher on the day.

The market has become so stock-specific that despite having the top two advancers in the session, the Health Care (XLV) sector finished lower.

Watching Transportation

C.H. Robinson Worldwide (CHRW) led truckers, leading transportation stocks higher. The Dow Jones Transportation Average Index (DJT) surged above the 50-day moving average.

Interestingly, the Truck Tonnage Index (TRUCKD11) is a long way from its 2019 high.

The market is marking time for this week’s economic data, but the bias has turned higher.

Today’s Session

PPI +0.5% against consensus of +0.2% should have sent the stock market spiraling, but the street is rationalizing revisions to shift the narrative that this report is a nothing-burger.

This is not good news no matter how much the financial media circles the wagons.

Home Depot Misses…So What

Home Depot

• Revenue $36.42 consensus $36.60
• Earnings per share $3.63 consensus $3.60
• Comp store sales -3.2% consensus -2.4%

Management:

“Customer is extremely healthy financially; not the case of not having the ability to spend. They’re just deferring projects given higher rates, it doesn’t seem the right moment to execute.”

"...the quarter was impacted by a delayed start to spring and continued softness in certain larger discretionary projects..."

Shares are slightly higher, maybe because the stock has been hammered since mid-April.

Watching the S&P Retail ETF

The XRT is on fire.  It fills the gap above $78.00, then it breaks out above $79.00.

Comments

Honestly, with the next CPI number coming out, along with others this week, just taking wait & see approach around the market reaction. Have a couple of GTC/60-Day buy orders setting out there around a technical support/pullback level seen before. Additionally, keeping some powder dry at this point in the event the market presents a better buy-in opportunities after or just freaks out so to speak. Not trying to suggest anything, this is only my strategy for the time based on my circumstances. Others should have their own based on the factors/timelines specific to them. Terry Dowler on 5/14/2024 11:54:53 AM

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