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September 25th Market Overview
September 25th Market Overview (no fluff)
J.L. Bernstein
September 25, 2024
Happy Wednesday, everyone.
I’m keeping it short and sweet today, we have a hurricane brewing off the west coast of FL and its nasty weather outside.
I’m keeping eyes on $MU in after hours on their ER. I think $NVDA latest price action will have an influence on how the market will react to that ER… good or bad news. I think I may do a special newsletter soon on how the Chinese rate cuts could affect some big names in our market.
A personal ask from me - each someone checks out today’s sponsor it buys me a sip of coffee and keeps this free brief rolling every market session.
Lets dig in…
Executive Summary
S&P 500 ▼0.1% and Dow ▼0.6%, retreating from record highs
Tech sector shows resilience: $NVDA crosses $3 trillion market cap
Energy stocks drag as crude oil futures fall over 2%
$AMGN drops 5%+, contributing significantly to Dow’s decline
Market Overview
The S&P 500 edged down 0.1% while the 30-stock Dow slipped 253 points, or 0.6%, dragged down by a more than 5% drop in $AMGN. Both indices hit fresh records in early trading before retreating. The Nasdaq traded near the flat line. Seven of the 11 sectors of the S&P 500 were in negative territory, led lower by energy as U.S. crude futures fell more than 2%.
Key Market Drivers
Profit-taking after recent record highs
Concerns over economic slowdown following Fed rate cut
Weakness in energy sector due to falling oil prices
Strength in tech stocks, particularly those related to AI
Auto industry facing headwinds from Morgan Stanley downgrades
Stock Spotlight
$NVDA: ▲2%, pushing market cap above $3 trillion
$HPE: ▲4%+ following Barclays upgrade citing strong AI data center demand
$AMGN: ▼5%+ after disappointing HORIZON Phase 3 study results
$GM: ▼5% after Morgan Stanley downgrade
$F: ▼4% following Morgan Stanley downgrade
$FLTR: ▲6%+ on announcement of $5 billion share buyback program
Other Magnificent 7 Updates
$TSLA: Continued positive momentum, benefiting from AI sentiment and elevated demand
$META: Meta unveils $299 Quest 3S VR headset, Orion AR glasses prototype
Other Notable Company News
$CVX: ▼2% as energy sector faces pressure
$COIN: ▼1% in early trading, ending six-day rally
$BKNG: On radar this week due to continued growth in travel bookings
Sector Watch
Sector | Symbol | % Change |
|---|---|---|
Consumer Discretionary | XLY | -0.37% |
Consumer Staples | XLP | +0.13% |
Energy | XLE | -1.96% |
Financials | XLF | -0.63% |
Healthcare | XLV | -0.93% |
Technology | XLK | +0.29% |
Communication Services | XLC | +0.25% |
Utilities | XLU | +0.44% |
Industrials | XLI | -0.39% |
Materials | XLB | -0.61% |
Real Estate | XLRE | -0.34% |
Bond Market
Slight movements noted, reflecting market sentiments surrounding the Fed’s recent rate cut and future interest rate expectations.
Policy Watch
Federal Reserve’s recent rate cut continues to influence market sentiment. Analysts indicate that additional easing measures may be crucial to stabilizing the labor market amid recent weaker economic data. The Fed’s efforts will play a key role in shaping expectations for various asset classes moving forward.
What to Watch
New Home Sales Data: August figures due out tomorrow. Watch for impact on homebuilder stocks like $KBH, which dropped 6% after hours on weaker-than-expected earnings.
Weekly Jobless Claims: Thursday’s report will provide insights into labor market health, crucial for gauging economic stability and potential Fed actions.
$NVDA’s Performance: As it crosses the $3 trillion market cap, monitor for any profit-taking or continued momentum in the AI-driven tech sector.
Energy Sector: Keep an eye on crude oil prices and their impact on energy stocks, particularly if the downward trend continues.
Auto Industry: Watch for ripple effects from $GM and $F downgrades across the automotive and related sectors.
P.S.
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Thank you for reading,
- JB
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