The Buzz on Business for February 14th, 2024

One headline we saw right after the close on Wednesday said, “Calm, returned to the markets.” I suppose that's right if by calm you mean staying home, head under the covers, and quaking with fear.

If we were writing the headlines, they would have read. Don't try to catch a falling knife.

Stock Market Report

Well, maybe if you've got some experience catching knives.

The market actually didn't look too bad on Wednesday, to our surprise. All the indexes were up. Interest rates were down. Advancers led decliners. The only trouble spot for us? Volume was way off yesterday's and last week's level. If the strength shown by the market yesterday was likely to follow through, it would have come on increased volume as bargain hunters rushed. At least most of the time.

• The Dow Jones Industrial Average closed the day Wednesday at 38,424. That was up 152 points, or four-tenths of a percent.
• The S&P 500 added back 48 of the 70 points it lost on Tuesday. That was good for almost a full percent, and it closed back above 5,000 at 5,001
• The NASDAQ Composite had a pretty good day. It was up 1.3%, that's 204 points, and closed at 15,859.
• The Russell 2000 was up 2 1/2 percent, 48 points, and closed at 2,014.
• The RSP was up nine-tenths of a percent.
• The SOXL was up 6.2% on the session.

Bond Market Report

Bonds likewise clawed back some of their Tuesday losses as interest rates were down across the board.

• The yield on the 2-year treasury closed at 4.578%, off 8 basis points.
• The 20-year was off 3 ticks and closed at 4.563%.

Oil, Gold, and Bitcoin

• After seven consecutive up days, oil gave back a fair amount of its recent gains. It was off $1.27 and closed at $76.50 a barrel.
• Gold was all also down. It closed at $2003.40 off $3.80 a troy ounce.
• Bitcoin had a really good day. It was up almost 4 percent, $1,940, and closed at $51,650.

Q4 Earnings Coming in Above Expectations

Twenty public companies reported earnings during the day on Wednesday. Sixteen green numbers on the Giant Quote Machine. No household names in the group, and none are likely to move the markets one way or the other.

But, so far, fourth-quarter earnings have been shaping up to be very good indeed. Listeners may recall we were skeptical at the outset of earnings season. There had been a number of downgrades and lowered expectations throughout the last three months of 2023. It looked to us and others that year-over-year earnings growth might come in at 1% or less. We were wrong. There's still a ways to go, but so far, indications are that fourth-quarter earnings, versus the same period in 2022, will be up about 8%. Eight percent is excellent.

Raft of Economics News on Tap

8:30 AM this morning brings us initial and continuing jobless claims, the Retail Sales complex rolls out, the New York State Manufacturing Index for February, the Philadelphia Manufacturing Index for February, and Industrial Production. A number we have been and will be watching closely.

Everyone here at the Ministry of Truth will be reading the tea leaves so we can bring it all to you tomorrow, wrapped up in a bow. All you need to do is keep it right here.