The Buzz on Business for April 19th 2024S

Stocks finished mostly lower on Thursday and now have given up all of their gains since at least mid-February and since peaking on April 1^st. Declines like this are so routine as to be mundane and, in and of themselves, nothing to worry about.

But this decline comes at a time of persistent and increasing inflation, interest rates that are higher than many would like and higher than many had expected by this point in the year.

Despite a seemingly healthy, if unspectacular, economic climate for the past two years or so, we find ourselves in the distinct minority of commentators who worry that the expansion may have run its course and that stocks, often a leading indicator, are signaling a general economic slowdown.

We don’t make predictions on the Buzz on Business, but if we did. . .

Stock Market Report

Stocks finished mixed, mostly lower on Thursday, continuing April’s losses.

• • The Dow Jones Industrials were the one bright spot in an otherwise dull day. They were up 22 points, less than one-tenth of 1%, and closed at 37,775.

• • The S&P 500 was down 11 points. That's two-tenths of 1%, and it closed at 5,011.

• • The NASDAQ Composite closed at 15,602, down 82 points or five-tenths of 1%.

• • The Russell 2000 was down five points, that's 0.25%, and it closed at 1,943.

Bond Market Report

• • Rates were up across the board. The yield on the 2-year Treasury closed one tick below 5% at 4.99%. That's up six basis points.

• • The 20-year was up four ticks and closed at 4.859%.

Oil, Gold, and Bitcoin

• • Oil was down again on Thursday. It was off 41 cents and closed at $81.85.

• • Gold was up $7.20, and a troy ounce now changes hands at $2395.40.

• • Bitcoin broke its recent string of down days. It was up $2463.21, and at 4:00 PM Eastern Time stood at $63,560.42.

Netflix Exceeds Expectations. Stock Falls in the Aftermarket.

Three months ago, we ridiculed those who would bid up the price of a stock based upon a reported increase in subscribers, while at the same time, in the same report, it missed on what really matters: earnings per share and revenue. Well, we were wrong.

Netflix reported blowout numbers on Thursday. The Street was expecting $4.51 per share. It earned $5.28 per share and also exceeded expectations on revenue.

Three months ago, Netflix went to the moon after missing expectations. Today, its down almost 4% on its blowout quarter. Gawd, we love this business!

Eleven S&P 500 companies reported earnings yesterday. Ten in addition to Netflix. Only one miss in the whole bunch, and that was only by a penny per share. Earnings season is looking pretty good so far.

Mixed Economic Data

Thursday morning also brought initial and continuing jobless claims and the Philadelphia Fed’s Manufacturing Index. All came in better than expected. Very good news from the labor market which has had us a little worried of late.

The Philly Fed manufacturing index was expected to come in at 1.5, which is moderately bullish. It came in at 15.5. As we've said, these numbers tend to be volatile, but a good number is always better than a bad number.

We also got existing home sales numbers on Thursday. They did disappoint, but just by a touch. The housing market does seem to be slowing down from its scorching levels over the last eighteen months. That's not a surprise, given the interest rate environment.