The start of 2024 was a little chilly for most of the mega-cap stocks, but things have warmed up nicely for them the past few weeks. The end result has been a record high for the S&P 500, which was extended in yesterday’s trading.
NVIDIA hasn’t been warm, however. It has been red hot. Entering today, NVIDIA is up 20.5% this month alone. That includes a stumble out of the gate in which it lost as much as 4.5% in the first two trading sessions of 2024.
Things are cooling off just a little bit this morning, but we wouldn’t call it a cold front after the warm streak.
Currently, the S&P 500 futures are up 10 points and are trading 0.2% above fair value, the Nasdaq 100 futures are up 58 points and are trading 0.4% above fair value, and the Dow Jones Industrial Average futures are down 29 points and are trading fractionally below fair value.
There has been a large slate of earnings results from blue chip companies that have generally been met with mixed reactions.
3M (MMM), Lockheed Martin (LMT), General Electric (GE), and D.R. Horton (DHI) are among the post-earnings losers; meanwhile, Verizon (VZ), United Airlines (UAL), Procter & Gamble (PG), and Johnson & Johnson (JNJ) are among the post-earnings winners.
On a related note, Netflix (NFLX) and Texas Instruments (TXN) headline the earnings-reporting bill after today’s close.
The earnings news will be the focal point today. There is no U.S. economic data of note, although the economic calendar will steal some of the spotlight as the week progresses. The Advance Q4 GDP report is out on Thursday, and will be followed by the December Personal Income and Spending Report, which features the Fed’s preferred inflation gauge in the form of the PCE Price Index, on Friday.
Other items of interest this morning include a Wall Street Journal report that China is considering a nearly $280 billion stock market stabilization package, a decision by the Bank of Japan to leave its key policy rate unchanged at -0.10% and to lower its core CPI forecast for FY24 to 2.4% from 2.8%, and polls showing Donald Trump with a large lead over Nikki Haley ahead of today’s New Hampshire Republican Primary.
Treasuries are a bit softer, but not giving in to any concerted selling pressure. The 2-yr note yield is up one basis point to 4.39% and the 10-yr note yield is up three basis points to 4.12%. There is a $60 billion 2-yr note auction today. Results will be announced at 1:00 p.m. ET.
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Originally Posted January 23, 2024 – Cooling off, but not cold, after blue chip earnings
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