May 1, 2024

Wall Street stocks wavered on the first trading day of a new month before surging higher for a brief period but ended the day mixed. Disappointing earnings from the likes of CVS Health (CVS) and Starbucks (SBUX) were concerning while economic data coming in weaker-than-expected had market participants on edge. Predictably, Fed Chairman Jerome Powell left key interest rates unchanged while stripping the idea of a future rate hike altogether, despite citing a ‘lack of progress' on inflation. The blue-chip Dow, which popped nearly 500 points after Powell's speech, gave up most of the gains and faded the Powell induced rally. Market sectors ended the day mixed with leadership being exhibited by Utilities (XLU), Communications Services (XLC) and Materials (XLB) settling in the green. Energy (XLE) and Technology (XLK) finished in the red. The DJIA edged higher by 87.37 points (+0.23%) and settled at 37903.29. The S&P 500 was lower by 17.30 points (-0.34%) and settled at 5018.39. The NASDAQ fell by 52.34 points (-0.33%) and finished the session at 15605.48.  

Breadth was positive with advancing issues beating declining issues by 607 units on the NYSE and 3:2 on the NASDAQ. The advancing volume was 54% on the NYSE and 58% on the NASDAQ. VIX lost 0.25 points (-1.60%) and settled at 15.39. Crude oil declined by -2.67 (-3.26%) and the June contract closed at $79.26 a barrel. Gold prices rose 34.00 points (+1.48%) and finished at $2336.90 an ounce. Bitcoin (BTC) finished the day at 57280.54.  

Cyclical areas of the market that were gaining relative strength just last week are now struggling to regain key moving average levels at their 50-day MA following the April selloff. One of those important sectors is the Financial (XLF) sector, which recently recorded an all-time high before falling below its 50-day MA. XLF finds itself at a critical juncture where its 21 and 50-day moving average are converging at the same price, near $40. Typically, the next day's session is when investors fully price in the prior day's Fed meeting minutes, but today, we may have gotten our answer in the last hour of trading.  

Earnings releases to watch for on Thursday include: Amgen (AMGN), Apple (APPL), Booking Holdings (BKNG), Cigna (CI), Conocophillips (COP), Intercontinental Exchange (ICE), Linde (LIN), Regeneron Pharmaceuticals (REGN) and Shell PLC (SHEL). 

Thursday Market Moving Economic Calendar: PMI Manufacturing, International Trade in Goods and Services, Productivity and Costs and Fed Balance Sheet 

By Richard Cuvilly