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Morning Commentary


By Charles Payne, CEO & Principal Analyst
5/30/2024 9:47 AM

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Legendary clothing designer Bill Blass was not a stock market investor. Interestingly, when the market becomes a sea of red, it is ominous in the near-term, but the longer it continues, the more optimistic it becomes in the long-term. Right now, it is not a cure for sadness. 

Heat Map & Breadth

They say a picture is worth a thousand words and sometimes billions in lost market capitalization. However, yesterday, Nvidia (NVDA) stood out, and there are growing bets on Apple (AAPL) coming on stronger with an aggressive Artificial Intelligence (AI) strategy. 

S&P 500 Map

Thrashing Tide

Market breadth is becoming more worrisome, particularly on the NASDAQ Composite, with a 3.53 billion down volume. Decliners dwarfed advancers on the New York Stock Exchange (NYSE) and the NASDAQ.

Market Breadth









New Highs



New Lows



Up Volume

568.37 million

2.34 billion

Down Volume

2.18 billion

3.53 billion

In addition to dealing with more Treasury supply, the Beige Book was also problematic. 

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Technical View

There are three areas of support on the S&P 500 Index (SPX): 5,250, 5,178, and filling the gap at 5,075.


The Russell 2000 (IWM) closed below its 50-day moving average and must hold if it fills the gap at 200. 


Late Earnings

After the close, there were huge (mostly) adverse reactions to financial releases, including Wall Street’s darling Salesforce.com (CRM). The stock was hammered down more than 16.0%.  

Today, we get Best Buy (BBY), Costco (COST), Dell Technologies (DELL), and Ulta Beauty (ULTA) (the worst-performing stock in the S&P 500 this year).


Today’s Session

First quarter GDP was revised lower which was factored into consensus but still not great. Final sales to domestic purchasers were lowered to 2.8% from the initial read of 3.1%.

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Also pulling back this morning is investing bullishness.

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Looks like the waiting game is now for the PCE, tomorrow morning.

Is the expectation of the fed-r propelling the market gains around cuts, are finally falling apart? Or just that maybe before the economic reports come to light today and in the upcoming days? That the focus has changed to more of the gov. issued bond debt replacing interest rate cuts as a big driver of concern?

Terry Dowler on 5/30/2024 9:15:59 AM

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