Yesterday was another rocky session that saw continued pressure on Technology (XLK) and mega-cap names, but there were other stories, including more signs of a wobbly consumer.

Home Depot Drags

• Revenue $41.35 billion consensus $40.91
• EPS $3.74 consensus $3.83
• Operating Income $5.35 billion consensus $5.60 billion
• US Comp +0.1% consensus +1.25

Third-quarter transactions were the lowest in five years.

Amazon (AMZN) joined Home Depot (HD) among the biggest decliners after a $15 billion bond sale.

Losing Streak

I usually think stuff like a four-day “losing” streak is trivia, considering yesterday marked the fourth day in a row of declines in the S&P 500 (S&P). 

It's the longest such streak since April; it is fascinating and puts into perspective just how much the market was on autopilot. But it's not the end of the world, as this has occurred 20 times since the rally began in October 2022.

Market breadth wasn’t awful, except for one glaring issue – new lows.

Market Breadth	NYSE	NASDAQ
Advancers	1,475	2,385
Decliners	1,291	2,279
New Highs	37	54
New Lows	168	386
Up Volume	2.71 billion	4.53 billion
Down Volume	1.70 billion	3.3 billion

New lows mounting underscore how vulnerable individual names are, but also hint at the start of an oversold condition.

His company sports the largest market cap in history, and he is certainly no Mighty Mouse, but Jensen Huang has been tasked with saving the day when Nvidia (NVDA) posts quarterly results after the closing bell.

I think he can pull it off, but this is a fickle market ready to move lower. By the same token, the biggest bubble is the talk of an “AI Bubble.”

 

Today’s Session

The anxiety cons, and even in pre-opening trading we can see it capping, or curbing, attempts to move higher. At one point this morning, Micron (MU) was trading at $233.00 but has since reversed lower.

Of course, the real action happens after the close when Nvidia (NVDA) posts its results. Last night, Jensen looked calm, cool, and collected, hanging out at the White House. It's almost time to pounce.

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