Stocks started off mixed (^DJI, ^IXIC, ^GSPC), with the Nasdaq Composite Index up nearly 0.5% off the opening bell. The biggest story for markets and investors this week will be the release of Personal Consumption Expenditures (PCE) data on Friday, the Federal Reserve’s preferred inflation metric.
Morning Brief’s Shauna Smith and Brad Smith provide an overview of market activity at the open on Tuesday, while Senior Market Reporter Jared Brickle compares the tech sector’s morning rally to the trajectory of market growth, including the S&P Equal Weight Index (^SPXEW).
For more expert insights and the latest market trends, click here to listen to this entire episode of Morning Brief.
This post Luke Carberry Morgan.
Video Transcript
The main average values are displayed on the screen.
However, only two of the three major U.S. stock indexes are actually rising.
The Dow is a loan laggard.
However, the S&P 500 is currently down about 2/10ths of a percent, while the NASDAQ is up slightly, with the S&P 500 up about 2/10ths of a percent compared to the NASDAQ Composite Tech Average.
Here we see an increase of about half a percent on that day.
And of course, more earnings will be announced later this week.
Perhaps there is a tendency to change things.
There are some big name actors appearing this week.
I’m really excited.
Shauna Nike, FedEx paycheck, General Mills Carnival.
It arrived this morning.
McCormick, we had people reporting back this week who season their steaks as they prepare them for grilling.
Plus Walgreens Boots.
salon.
OK, let’s think seriously about the consumer again.
We also have the Consumer Confidence Index due to be released in the next hour at 10 am Eastern time, which will give us a better look at what spending levels and spending ability are doing in terms of commentary.
But it’s also important to see how NVIDIA performs at the open, as it has recovered from three days of losses and is now set to rise a little over 2.5%.
Jared B is on hand with a closer look at some of today’s action.
Jared: Well, the Dow and Nasdaq are heading in opposite directions again today.
However, they were replaced.
The Dow fell about 64 points today.
The Nasdaq rose about 0.5 percent.
But let me show you a comparison of the Nasdaq and the Dow over the last five days.
And the Nasdaq is in the positive.
Here we see the Dow in the red, and the S&P 500 bifurcating based on market cap and equal weighting, depending on how it’s calculated.
So, the equal weight has skyrocketed and yesterday was a big day.
Meanwhile, the S&P 500 fell during this period.
It’s an interesting trend that we’ve been tracking here.
So let’s take a look. This is the NASDAQ 100, by the way.
I’ll explain that later.
First, I want to look at the leading technology sector here: XL K.
That’s a 6/10th of a percent increase.
In fact, it’s the only sector leading today.
Well, everything else is delayed.
Communication services stocks are up slightly, but materials and industrials are trending lower, suffering the biggest losses and giving back to the Nasdaq.
NVIDIA just ended a three-day losing streak, but is up about 2% and swapping places with Apple as I speak.
But I wanted to focus on Amazon for a little while.
I would like to show you a five-year chart.
So we’re back at the Rubicon here, trying to get out of here, trying to get out of the foundations we’ve had for the last several years.
And if that were possible, it would create a lot of upward momentum.
Well, there’s just something to be aware of.
We’re not quite there yet, but it could be something to keep an eye on.
Finally, I would like to talk about biotechnology.
IBB has been riding high on biotech stocks amid a rally over the past three days.
Let’s see if we can find the chart.
It has risen 3.1% in the past few days.
Here’s the 5 year chart again:
We have just surpassed this potential resistance.
What’s noteworthy about biotech is the upside momentum above this resistance area.
Now, that’s what we’ll be focusing on for today’s trading day.
Thank you so much, Jared.
