The Buzz on Business for June 24th 2024

Monday was another mixed day on Wall Street. And it’s clear that the cause is NVIDIA and the chip stocks. The Dow had a decent enough day. The Russell 2000 was up. The NASDAQ and S&P 500, not so much. NVIDIA, which is down over 15% from its all-time high set just last week, is a member of neither the Dow nor the Russell.

Advancing stocks actually led decliners by two-to-one, although on falling volume.

Often, when one sector, like semiconductors, falters after having supplied market leadership, another sector will emerge to lead stocks higher. This is known as sector rotation, although figuring out who is rotating out and what is rotating in is more art than science. And by “art” I mean guessing game.

But, it’s a real thing. Could it be the financials? The retailers? Manufacturing? (Be still my heart.) So far, it’s none of the above, but we will be keeping an eye out!

Stock Market Report

The major indexes finished mixed on falling volume. As we said, NVIDIA and the chips stocks deserve most of the blame.

• The Dow Jones Industrials had a pretty good day. They were up 261 points. That’s seven-tenths of one percent and they closed at 39,411.22.
• The S&P 500 was off three-tenths. That’s seventeen S&P points and it starts the day today 5,448.
• The NASDAQ Composite had a tougher go of things. The techs were off 1.10%, 193 points and closed at 17,497.
• The small caps bucked the trend. The Russell was up four-tenths, or nine points and they closed at 2,031.

Bond Market Report

Rates were lower on Monday but very nearly flat for the second session in a row as the market awaits the PCE data due out later this week.

• The yield on the 2-year treasury fell by one basis point and closed at 4.726%.
• The 20-year was off three ticks, and it now yields 4.472%

Oil, Gold, and Bitcoin

• Oil had another strong day. It was up another $1.13, and a barrel now changes hands at $81.66. Oil is up almost 9% after it sold off following the OPEC meeting two weeks ago.
• Gold was up $9.60, and a troy ounce will now set you back $2,344.60
• And Bitcoin had a rough day. It was down $4,912.62 YIKES! And at 4:00 PM ET stood at $59,343.34

Sector Rotation Taking Place?

Five weeks ago, the Dow began a bit of a sell off – it ended up losing around 5% in about two weeks while the NASDAQ and the S&P 500 were making a series of new, all-time highs. Now, it appears that the script has flipped. The S&P and the NASDAQ have had three straight losing days, days where they closed at or near their low for the day, while the Dow has rallied and is now within striking distance of a new all-time high of its own.

Regular listeners know that divergences, of any kind, but especially when the Dow, which is just thirty stocks is making highs while the broad market is selling off worry us. A lot.

But it is often said that stocks climb a wall of worry. If that aphorism is true, and we suspect it is, all is well on Wall Street.

Nothing on the Economic calendar either yesterday or today. Inflation data is due out on Thursday and Friday.

Don’t worry. But keep it right here on the Buzz.