{"id":23298,"date":"2024-05-08T15:09:17","date_gmt":"2024-05-08T20:09:17","guid":{"rendered":"https:\/\/www.eoption.com\/market-review-may-08-2024\/"},"modified":"2024-05-08T15:09:17","modified_gmt":"2024-05-08T20:09:17","slug":"market-review-may-08-2024","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/market-review-may-08-2024\/","title":{"rendered":"Market Review: May 08, 2024"},"content":{"rendered":"\n
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Closing Recap<\/span><\/b><\/p>\n

Wednesday, May 08, 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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171.27<\/span><\/p>\n<\/td>\n

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0.44%<\/span><\/p>\n<\/td>\n

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39,055<\/span><\/p>\n<\/td>\n<\/tr>\n

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

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-0.03<\/span><\/p>\n<\/td>\n

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0.00%<\/span><\/p>\n<\/td>\n

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5,187<\/span><\/p>\n<\/td>\n<\/tr>\n

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

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-29.80<\/span><\/p>\n<\/td>\n

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0.18%<\/span><\/p>\n<\/td>\n

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16,302<\/span><\/p>\n<\/td>\n<\/tr>\n

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

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-9.51<\/span><\/p>\n<\/td>\n

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0.47%<\/span><\/p>\n<\/td>\n

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2,055<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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US equity futures trended mostly sideways overnight with little conviction but rolled into the open despite no meaningful economic releases. Gold and oil also moved lower ahead of the US equities cash open. Stocks quickly began to recover after the open, but sentiment remains shaky with the Fear and Greed Index showing 39 (Fear). That\u2019s up modestly from last week\u2019s 33, but still well off the 62 (Greed) reading of a month ago and 57 a year earlier. By mid-morning, large-cap indices had briefly climbed back to green, but breadth remained 3:2 in favor of decliners. SPY and QQQ each gained about +0.1% as large-caps outperformed small-caps with IWM -0.6%. S&P sector ETFs were split with Utilities, Communications, Technology and Energy all in the green, while Real Estate, Consumer Discretionary and Health Care led the laggards lower.<\/p>\n

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In items of note today, @tEconomics highlights US mortgage rates fell for the first time in five weeks with the average 30-year fixed on conforming loans slipping by 11 basis points to 7.18%. On earnings, @bespokeinvest points out the average stock reporting this week has opened higher by 0.61% but slid by 0.91% from open to close in what appears to be a continuation of trend so far this earnings season. On gold, @KobeissiLetter notes world central banks set a new net purchase record in Q1, saying central banks bought 290 tons of gold in Q1 versus the prior record of 286 tons in Q1 2023. @LizAnnSonders notes consumption is still the driving force behind rising GDP estimates (earlier Atlanta Fed GDP Now Q2 moved from 3.31% to 4.18%) and, in case anyone was confused, @RyanDetrick notes a recent poll indicating people view money as more important than ever as money climbed the list of very important \u201cvalues\u201d while patriotism, religion, having children and community involvement all declined.<\/p>\n

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Heading into the final hour of trading, major indices had once again tested a rally and were beaten back at or near the unchanged level. Breadth held at about 3:2, still favoring decliners and IWM continued to underperform at -0.6% versus SPY and QQQ both finishing flat. Growth and value were split, with value the outperformer. The Russell 1000 Value was +0.07% versus its Growth counterpart -0.19%. Sector-wise, Utilities (XLU, +1%), Financials (XLF, +0.5%) and Technology (XLK, +0.25%) were the big S&P sector ETF gainers, while Real Estate (XLRE, -0.75%), Consumer Discretionary (XLY, -0.35%) and Materials (XLB, -0.43%) were leaders to the downside. We continue to work through a volatile earnings season but have heard from the majority of the larger non-retail names. In the short term, all eyes will be on next week\u2019s CPI and potential impacts on Fed policy. Currently, the market is pricing in a 90% probability of no change in rates in June, with about a 30% probability of a cut in July.<\/p>\n

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Economic Data<\/p>\n