{"id":23235,"date":"2024-04-25T15:06:31","date_gmt":"2024-04-25T20:06:31","guid":{"rendered":"https:\/\/www.eoption.com\/market-review-april-25-2024\/"},"modified":"2024-04-25T15:06:31","modified_gmt":"2024-04-25T20:06:31","slug":"market-review-april-25-2024","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/market-review-april-25-2024\/","title":{"rendered":"Market Review: April 25, 2024"},"content":{"rendered":"\n
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Closing Recap<\/span><\/b><\/p>\n

Thursday, April 25, 2024<\/span><\/b><\/p>\n\n\n\n\n\n\n\n
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Index<\/span><\/p>\n<\/td>\n

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Up\/Down<\/span><\/p>\n<\/td>\n

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%<\/span><\/p>\n<\/td>\n

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Last<\/span><\/p>\n<\/td>\n<\/tr>\n

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DJ Industrials<\/span><\/b><\/p>\n<\/td>\n

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-375.26<\/span><\/p>\n<\/td>\n

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0.98%<\/span><\/p>\n<\/td>\n

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38,085<\/span><\/p>\n<\/td>\n<\/tr>\n

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S&P 500<\/span><\/b><\/p>\n<\/td>\n

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-23.23<\/span><\/p>\n<\/td>\n

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0.46%<\/span><\/p>\n<\/td>\n

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5,048<\/span><\/p>\n<\/td>\n<\/tr>\n

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Nasdaq<\/span><\/b><\/p>\n<\/td>\n

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-100.99<\/span><\/p>\n<\/td>\n

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0.64%<\/span><\/p>\n<\/td>\n

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15,611<\/span><\/p>\n<\/td>\n<\/tr>\n

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Russell 2000<\/span><\/b><\/p>\n<\/td>\n

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-14.19<\/span><\/p>\n<\/td>\n

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0.71%<\/span><\/p>\n<\/td>\n

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1,981<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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US equity futures took a hit overnight following disappointing guidance from META and a disappointing report from IBM. One strike not great, two strikes hmmm, three strikes buckle up for a bumpy ride. Today\u2019s third strike was a reported +3.7% US core PCE advance versus a projected +3.4%. The qtr\/qtr GDP advance was softer, at +1.6% versus the expected +2.5%, so the Fed has some thinking to do. Perhaps tomorrow\u2019s data will help. Overall, investors remain a bit more cautious with the Fear & Greed Index still in the Fear range at 37 versus 33 a week ago, but 69 (Greed) just a month ago. Separately, the AAII weekly bull-bear survey saw bulls fall from 38.3% to 32.1% last week. Neutrals jumped from 27% to 33.9%. Unsurprisingly, early breadth was heavily in favor of decliners at almost 9:2. Small caps were fairly in-line early with IWM -1.33% versus SPY -1.27% and QQQ -1.55%. Sector-wise, Communication and Technology were leading S&P sector ETFs lower while Materials and Utilities were least bad in a sea of red. <\/p>\n

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With META taking a big hit today, @bespokeinvest highlighted an interesting early divergence with QQQ -1.2% but SMH +1.6% at the time (ended -0.6% and +1.9%); not something we see often. Speaking of META, @bespokeinvest notes today is looking set to be the third time since 2018 the stock will lose over $100B of market cap in a single day. On a separate topic, @charliebilello notes the April 2024 value of $2,840 makes a new record high monthly mortgage payment required to buy the median-priced home for sale in the US, a 92% rise over the past four years. On a volatile day, @DataTrekMB points out the Nasdaq 100 relative price volatility has been climbing relative to the S&P, with the ratio between the QQQ and S&P now 37%. Investors have been relatively better rewarded for the volatility but may not want to watch the day-to-day. <\/p>\n

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Heading into the final hour of trading, stocks were off their lows and breadth had improved to about 2.7:1, still favoring decliners. Small caps had given up some relative performance and trailed both the Nasdaq and S&P with IWM -0.65% versus SPY -0.45% and QQQ -0.6%. On a sector basis, Materials (XLB, +0.70%), Energy (XLE, +0.30%), Industrials (XLI, +0.3%) and Utilities (XLU, +0.35%) had all moved into the green to lead the S&P sector ETFs. Communications (XLC, -3.725) remained the primary laggard on the back of META\u2019s -11% performance, while Healthcare (XLV, -0.7%) and Real Estate (XLRE, -0.5%) were also soft. Value outperformed but the Russell 1000 Value still faded -0.43%. Its Growth counterpart was another victim of the META slide at -0.97%, despite gains in some other large-cap tech names like NVDA, MRVL AAPL and AMD.<\/p>\n

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Economic Data<\/p>\n