U.S. stocks book best day in nearly 2 weeks as Dow snaps 3-day losing streak after big tech rally
(Thursday market close) Major U.S. stock indexes bounced back from a two-day losing...
(Thursday market close) Major U.S. stock indexes bounced back from a two-day losing streak to post firm gains Thursday after a rally in semiconductor shares and an analyst upgrade-driven climb in mega-cap Apple (AAPL) helped lift theNasdaq Composite® (COMP) to its highest close of the year so far.
Semiconductor strength was led by Taiwan SemiconductorManufacturing (TSM), which jumped nearly 10% and ended near a two-year high after reporting stronger-than-expected quarterly earnings earlier today. Beyond the major indexes, the broader market was mixed, with investor enthusiasm tempered by further gains in Treasury yields and a Federal Reserve official's comments that indicated any interest rate cuts wouldn't happen until the second half of the year.
Despite recent strength in so-called mega-cap stocks, whose outsized gains were responsible for much of the market's strong 2023, signs of erosion are increasingly emerging in the market's "internals," according to Joe Mazzola, director of trading and education at Schwab.
Mazzola noted that the Nasdaq managed to post a gain Thursday despite declining stocks in the index outnumbering gainers by a 1.5-to-1 margin. Every week, decliners on both the Nasdaq and the S&P 500® index (SPX) outnumber advancers by about a 3-to-1 ratio.
"Mega caps are doing the heavy lifting today," Mazzola said. "But below the surface, we're starting to see some cracks in the bulls' case," which suggests the market may struggle to push to new highs. Here's where the major benchmarks ended:
The S&P 500 index rose 41.73 points (0.9%) to 4,780.94; the Dow Jones Industrial Average®(DJI) gained 201.94 points (0.5%) to 37,468.61; the Nasdaq Composite increased 200.03 points (1.4%) to 15,055.65.
The 10-year Treasury note yield(TNX) rose nearly 4 basis points to 4.142%.
The Cboe Volatility Index® (VIX) fell 0.66 to 14.13.
Energy stocks opened around the flatline, weighing moderately higher S&P 500 futures and oil prices that are inching higher, while natural gas futures remain in the red. News flow continues to be light as quiet periods are in full force ahead of the oncoming earnings train. Kinder Morgan unofficially kicked off the earnings season, posting a lower-than-expected profit for the fourth quarter, as higher interest expenses and weakness in the natural gas pipeline segment hurt margins during the period.
Oil prices rose on Thursday as the IEA joined producer group OPEC in forecasting relatively strong growth in global oil demand this year, with price impetus also coming from disruption to U.S. output and geopolitical risks in the Middle East. The IEA has again raised its 2024 global oil demand growth forecast. However, its projection remains lower than OPEC's expectations and said the market looked well supplied because of strong growth outside the producer group.
Natural gas futures are lower by a nickel, continuing to pull back from two-month highs reached last week as moderating forecasts for next week across much of U.S. weigh on near-term demand expectations.
Renewables make near-zero input to Texas grid this week
As Texas continues to suffer extreme cold conditions, an update to the app operated by the Electric Reliability...
As Texas continues to suffer extreme cold conditions, an update to the app operated by the Electric Reliability Council of Texas showed on Monday that solar power did not contribute to the grid, power storage contributed 0.8%, and wind power contributed 6.8%. Energy generated from fossil fuels accounted for 84.9% of total input, with 67.2% coming from natural gas.
Iran says it’s not backing down. Tensions in the Middle East are certainly not easing,...
Iran says it’s not backing down. Tensions in the Middle East are certainly not easing, and Iran’s foreign minister insisted yesterday that Iranian-backed groups won’t stop launching attacks as long as the Israel–Hamas war continues. The official’s statement came one day after the US redesignated the Iran-supported Houthis who have been attacking ships in the Red Sea as global terrorists. This week, Iran also fired missiles at targets in Pakistan, Iraq, and Syria.
Apple watches with blood oxygen sensors banned again. Your next Apple Watch probably...
Apple watches with blood oxygen sensors banned again. Your next Apple Watch probably won’t be able to measure your blood oxygen level after a federal appeals court yesterday reinstated a ban on importing the Series 9 and Ultra 2 watches that were found to infringe on health-tech-maker Masimo’s patent. But Apple already has a workaround: making the watches without the allegedly infringing feature. And Apple didn’t lose entirely—the ruling wasn’t about whether it violated the patent, just whether Apple could import the watches while it continues to fight in court.
Maine should keep former President Donald Trump on its primary ballot—unless the Supreme Court deems him ineligible, a state court ruled. Meanwhile, in New York, a federal judge threatened to kick Trump out of the courtroom for making audible comments as E. Jean Carroll testified against him in her defamation case. Trump responded, “I would love it.”
Sheryl Sandberg, a former Facebook exec, said she plans to leave Meta’s board after 12 years.
Boeing suffered another embarrassing oopsie yesterday when the 737 meant to shuttle US Secretary of State Antony Blinken home from Davos had a critical failure, leaving him stranded until he changed planes. But the company’s stock actually ticked up.
The British royals are having some medical issues: The Princess of Wales (better known as Kate Middleton) is in the hospital after a planned abominable surgery, and King Charles will undergo a procedure for an enlarged prostate next week.
Coachella has unveiled its lineup, including a No Doubt reunion we won’t speak about.
