The Buzz on Business for August 8th, 2024

Stocks opened higher—substantially higher—on Wednesday, they quickly rallied above and beyond Tuesday’s highs and it looked to us that we were headed for a second day of substantial gains and, perhaps, a quick reversal of the market’s recent, significant losses. But, alas, it was not to be. The selling began within the first hour and by noon, red numbers were flashing all up and down the Giant Quote Machine.

There wasn’t any news to explain the reversal. Nothing on the economic calendar and the earnings reports that came out before the opening bell were generally good.

We said earlier this week that “the damage had been done.” What we meant by that is that we now may be in an environment where every nascent rally attracts sellers—weak longs—who are more afraid of further losses than of missing out on future gains.

If that is indeed the situation, and we think it is, it will probably take a while for markets to build a base and recover and in some cases, they don’t recover until there is a capitulation—a more dramatic selloff than we’ve seen thus far.

Stock Market Report

An early morning rally quickly faded on Wednesday as stocks sold off on decent volume and closed at or near their lows of the day.

• The Dow Jones Industrials were off 234 points, that 0.60% and they closed at 38,763.
• The S&P 500 was off 41 points, that’s 0.75% and it closed at 5,199.
• The NASDAQ Composite down a bit over 1.0%, that’s 171 points on the NASDAQ and it closed at 16,196.
• And the small caps got the worst of it. The Russell 2000 was off 1.40%, that’s 29 points and it starts the day today at 2,035.

Bond Market Report

Rates were mixed yesterday.

• The yield on the 2-year treasury was off two basis points and it closed at 3.962%.
• The 20-year was up 6 ticks, and it stands at 4.333%.

Oil, Gold, and Bitcoin

• Another bullish report sent oil higher. We’ve seen this before and it has always fallen back. But not yesterday. It was up $2.26, and a barrel now changes hands at $75.45.
• Gold was off a minuscule $3.20, and a troy ounce will now set you back $2,425.60
• And Bitcoin resumed its losing ways. It was down $2,100.23 and at 4:00 PM ET stood at $54,835.11.

Earnings Decent, All Eyes on the Unemployment Claims Report

Twenty public companies reported 2^nd quarter earnings on Wednesday. Four missed expectations for the bottom line. Seven missed the top line. Disney reported blowout numbers. The company had missed its topline target every quarter for the last year but green numbers for Disney on Wednesday.

We get a bunch of earnings reports today. None that are likely to move the market one way or the other.

The Jobs Report released last Friday had many analysts proclaiming that the end is neigh. Well, we get another peak inside the labor market later this morning with the release of the Initial and Continuing Jobless Claims numbers. Is the world coming to an end? Is it? If you really want to know, and you do, all you’ve got to do is keep it right here on the Buzz.