Market Review 9th July 2024
Simplify the craziness
DAILY REVIEW
N
3 min read
INDEX:
S&P, Nasdaq & VIX Market Summary
Current & Upcoming Fed News/Economic Data
US Bonds and Treasury Yields
Futures, Crude Oil, Gold, & Other Commodities
Crypto: Bitcoin, Ethereum, and Alt Coins
Notable Earnings
1. S&P, Nasdaq & VIX Market Summary
S&P 500: The S&P 500 has shown a slight decline, closing down by 0.3% as investors weigh concerns over potential economic slowdowns and upcoming earnings reports. Defensive sectors such as utilities and consumer staples have performed relatively better, while technology and consumer discretionary sectors have seen more significant declines.
Nasdaq Composite: The Nasdaq has been more volatile, closing down by 0.5%, influenced by the performance of major tech stocks. Despite recent sell-offs, some analysts remain optimistic about long-term growth in the tech sector.
VIX: The Volatility Index (VIX) has risen slightly, indicating increased market uncertainty. It currently stands at around 17, reflecting cautious investor sentiment amidst mixed economic signals and global geopolitical tensions.
2. Current & Upcoming Fed News/Economic Data
The Federal Reserve's recent minutes reveal a cautious approach to further interest rate hikes, citing mixed economic data and persistent inflation concerns. The market anticipates a possible pause in rate increases, but the outlook remains uncertain as the Fed monitors labor market conditions and consumer spending patterns.
Upcoming economic data to watch includes the Consumer Price Index (CPI) and Producer Price Index (PPI) reports, which will provide further insights into inflation trends. Additionally, the next Federal Open Market Committee (FOMC) meeting in late July will be closely watched for any policy changes.
3. US Bonds and Treasury Yields
US Treasury Yields: The yield on the 10-year Treasury note has remained relatively stable at around 3.7%. Bond markets are reflecting the uncertainty in equity markets, with investors seeking safe-haven assets amidst global economic concerns.
Analysts are keeping a close eye on yield curve movements, as an inversion could signal potential recessionary risks. The spread between the 2-year and 10-year Treasury yields continues to be a key indicator to watch.
4. Futures, Crude Oil, Gold, & Other Commodities
Crude Oil: Crude oil prices have seen a slight uptick, with WTI crude trading around $76 per barrel. Supply constraints and geopolitical tensions in oil-producing regions have contributed to this rise.
Gold: Gold prices have remained steady at around $1,950 per ounce, supported by safe-haven demand. Investors are turning to gold amidst concerns over inflation and economic uncertainties.
Other Commodities: Agricultural commodities have shown mixed performance, with wheat and corn prices fluctuating due to varying weather conditions and crop reports.
5. Notable Earnings & Big Movers
PepsiCo (PEP): PepsiCo reported better-than-expected earnings, with revenue growth driven by strong snack and beverage sales. The stock rose by 2% in response to the positive report.
Delta Air Lines (DAL): Delta reported strong quarterly earnings, exceeding analysts' expectations. The airline's stock surged by 4%, reflecting optimism about travel demand recovery.
JPMorgan Chase (JPM): JPMorgan is set to report earnings later this week, with analysts closely watching its performance amidst changing interest rate environments and economic conditions.
Big Movers:
Cava Group (CAVA): Cava Group saw a notable increase of 7.5%, driven by strong sales performance and expansion plans.
Tesla (TSLA): Tesla's stock increased by 3.8% following reports of record vehicle deliveries and optimistic forward guidance.
Oracle (ORCL): Oracle's stock declined by 2.9% after news that Elon Musk’s artificial intelligence startup xAI decided to bring some computing back in-house.
6. Crypto (Bitcoin, Ethereum, and other coins)
Bitcoin: Bitcoin has experienced a slight rebound, trading around $30,000. Market sentiment remains cautiously optimistic, with some analysts predicting a potential breakout if key resistance levels are surpassed.
Ethereum: Ethereum has also seen modest gains, trading at around $1,900. The upcoming Ethereum network upgrades and continued interest in decentralized finance (DeFi) applications are supporting its price.
Other Cryptocurrencies: Altcoins have shown varied performance, with some smaller-cap coins experiencing significant volatility. Regulatory developments and market sentiment continue to play crucial roles in driving crypto market movements.
Overall, the financial markets are navigating a complex landscape of economic data, corporate earnings, and geopolitical developments. Investors remain cautious but are looking for opportunities amidst the uncertainty.
Detailed References
