Only five sectors were higher yesterday, but smaller sectors, including Industrials (XLI), were under pressure.

The internals weren’t great during the session.

The market breadth was bearish primarily except for up-to-down volume on the NASDAQ. The message is that investors want to own the winners and do bottom fishing.

Market Breadth	NYSE	NASDAQ
Advancers	1,241	1,888
Decliners	1,559	2,311
New Highs	75	100
New Lows	30	72
Up Volume	1.32 billion	4.10 billion
Down Volume	1.35 billion	1.78 billion

The S&P 500 (SPX) consolidates gains, which are fine above the 50- and 200-day moving averages.

This is still one of the best years on record, but it's hitting speed bumps.

Components of the S&P 500 trading above their 20-day moving average have swooned from 90% to 54%.

Heat Map

At its worst, the NASDAQ was down 13% this year, and the average member was down 45%. The story's moral is that while there may be more volatile companies, those with the goods will see their shares rebound.

Richmond Fed

The manufacturing index for the US Fifth District was -14, better than -21 in the prior month. Most components also had negative readings.

Wages were favorable but continued to retreat from the 2021 peak.

Meanwhile, the composite and wages are in freefall.

Today’s Session

We are watching a lot, especially spying shares of Texas Instruments (TXN) which indicates it will open 3.0% higher.

After eight straight quarters of sales declines, the CEO is talking optimistically.

Other chip names are grabbing the coattails. For all the excitement over Nvidia (NVDA), semiconductor stocks are mostly underperforming.

Comments

The US LEI signaled recession again in September, but the economy may only slow ahead. P. Krueger on 10/23/2024 11:39:49 AM

the last session of congress in 2022 Dems attached to a bill allowing a higher amount of SS to be taxed but effective date to start was 2025; dems had control of senate, house, & president william k slutz on 10/23/2024 12:04:25 PM

Tweet

 

Home | Products & Services | Education | In The Media | Help | About Us | Disclaimer | Privacy Policy | Terms of Use | All Rights Reserved.