Yesterday, eight of eleven sectors lagged, and only two made more than a fractional move higher, yet the S&P 500 (SPX) closed nearly unchanged for the session.

Return of the Generals

Once again, growth and momentum picked up the rally baton, reminding naysayers not to count them out too soon.

Momo

Momentum (MTUM) held at the 50-day moving average. While this exchange-traded Fund (ETF) shares common characteristics with growth names, its more eclectic mix of names serves it well when there is downside pressure.

Growth

Unlike momentum growth, which has not broken below its 50-day moving average and below 300, this ETF is seriously vulnerable to testing its 200-day moving average.

The iShares Russell 1000 Growth (IWF) ETF is full of “Mag Seven” and mega-cap names.

NVDA to the Rescue?

Nvidia (NVDA) posted an earnings beat that was less than I expected, but comments about blazing sales for the company’s Blackwell chip attracted after-hours nibbles.

Market Bully

The stock market can be the world’s biggest bully because even folks who are not directly invested pay attention when the market falls. There is a debate on Wall Street that there is a point on the downside that would grab President Trump’s attention and even get him to abandon or moderate his more aggressive plans.

The S&P 500 is at 5,600. I don’t think Trump blinks, but I would not be surprised to see an effort to scare the White House into panic mode.

Today’s Session

Intriguing economic data came out this morning.

Initial jobless claims:

-242,000 actual

-222,000 consensus

Continuing claims:

-1,862,000

Initial Claims

4-week moving average

GDP

The highlight was the spike in consumer spending. This is a quarterly number, we get the monthly update tomorrow morning.

Comments

After new year's happy indulgence, now it's time for the headache. Larry Minter on 2/27/2025 10:35:38 AM

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