{"id":23319,"date":"2024-05-14T15:08:41","date_gmt":"2024-05-14T20:08:41","guid":{"rendered":"https:\/\/www.eoption.com\/market-review-may-14-2024\/"},"modified":"2024-05-14T15:08:41","modified_gmt":"2024-05-14T20:08:41","slug":"market-review-may-14-2024","status":"publish","type":"post","link":"https:\/\/www.eoption.com\/market-review-may-14-2024\/","title":{"rendered":"Market Review: May 14, 2024"},"content":{"rendered":"\n
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Closing Recap<\/span><\/b><\/p>\n

Tuesday, May 14, 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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126.60<\/span><\/p>\n<\/td>\n

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0.32%<\/span><\/p>\n<\/td>\n

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39,557<\/span><\/p>\n<\/td>\n<\/tr>\n

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

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

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0.48%<\/span><\/p>\n<\/td>\n

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5,246<\/span><\/p>\n<\/td>\n<\/tr>\n

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

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

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0.75%<\/span><\/p>\n<\/td>\n

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16,511<\/span><\/p>\n<\/td>\n<\/tr>\n

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

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

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1.13%<\/span><\/p>\n<\/td>\n

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2,085<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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One down, one to go as major averages finish higher (Nasdaq near record highs) ahead of key consumer prices (CPI) inflation and retail sales data Wednesday (5\/15) morning. The first of two inflation reports this week was released today, as the April Producer Price Index (PPI) showed a \u201chotter\u201d reading on a month-over-month (M\/M) basis, but markets rebounded quickly after a brief drop after the Y\/Y comparisons came in-line with expectations as prior month revisions were lower. Still, markets remain uncertain about the Fed\u2019s next move on interest rates, and tomorrow\u2019s CPI report, which carries more weight than the PPI, could hold the key to either new all-time highs for U.S. stocks (SPX 20 points from records), or a market reversal after a strong start to May. Federal Reserve Chair Jerome Powell also said the PPI report was more "mixed" than "hot" given that prior data was revised lower. The other story outside of inflation data (amid a very quiet time of stock news\/earnings, lack of M&A stories), has been the recent 2-day spike in short interest related stocks. Prior to today\u2019s PPI inflation data, Barron\u2019s noted a simple \u201cX\u201d post (formerly Twitter) from user Roaring Kitty, followed by a series of memes from movies that amount to a hype video, galvanized the long-dormant army of retail investors, and sent shares of GameStop and AMC into the stratosphere – what does it all mean? Barron\u2019s suggested it suggests financial conditions are still too loose, and that interest rates need to stay even higher for even longer. That\u2019s not what the market wants. Meanwhile Fed Chairman Powell spoke earlier today, with the WSJ\u2019s Nick Timiraos noting there was \u201cno meaningful change in the economic outlook since Powell’s last comments means no meaningful change in Powell’s outlook today: The key line: "We\u2019re just going to have to see where the inflation data fall out.\u201d Note stocks still pushing higher as the Nasdaq 100 (QQQ) now within $3 of all-time highs ($449.34 on 3\/21) and over $30 off the April 19th "bottom" of $413.07 (QQQ up for the 8th time in 9-days).  Absolutely no fear for major averages, holding near or making new highs heading into the inflation report as the SPY posts 9th<\/sup> straight day of gains.<\/p>\n

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Economic Data<\/p>\n