The Asian markets were mixed,HK +1.77%, Shanghai -0.77% and Japan +1.00%. The PBOC made no change in interest rates.
European markets were up, Euro STOXX +0.38% and DAX +0.70%. A Consumer Confidence Survey was -14.7 from -14.9.
In the U S, the only report was the Chicago Nat. Activity Index, +0.15 from 0.05%. This is a large universe. It is the equivalent of a PMI going from 51 to 53.
S&P 500 +43.37, +0.87% to 5,010.60.
It opened up at 5.998 and drifted to 4,975 by 11 am. A reversal climbed to 5,037 by 3 pm.
The last hour eroded to 5,011 at the close.
The market was strong out of the gate. This brought in small scale selling. There was one strait up rally. The single day option traders dominated the trading pattern. At 11 am they got together and started buying as a group. this pressured the market up. Around 3 pm they had to cash in driving the market down in the last hour.
Bargain hunters were around after the sharp losses last Friday. NVDA was a leader. The most shorted category of stocks was up over 3%. The indexes the most down were the most up today.
The DJIA added 0.67%. The NASDAQ gained 1.11% and the QQQ 1.01%. The IWM rebounded 1.02%.
WTI was soft, -$0.32 to 81.90. The Middle EAST has quieted down. The XOP was +0.8% and the XLE 0.9%.
The 10 yr T bond rate just churned, ending up 0.4 of a bp to 4.619%. The banks continue the run, the KBWB +2.0% !! The XLU rose 0.65%.
The VIX plopped 9% to 16.94, nice. The advances led, the NYSE 3.0 to 1 and the NASDAQ 1.8 to 1. The volume was average.
I mentioned yesterday, a favorable turn in the some data could be a big help in stabilizing the situation. An example would be gradual improvement in the Middle East causing declining oil prices.
After the close Cadence reported earnings and trimmed the out look. This was 325 several weeks ago. It fell after the close, -16 to 266. This is a superior company. It use AI. It may take time to perfect the uses, yet costs go up from the costly chips. It seemed like a minor miss. But it has an extreme valuation and a stock crowded with aggressive high expectation holders.
This week MSFT, META and GOOG report earnings starting Wednesday. All are expected to have good very good earnings. We will see if this can provide a boost. to the market.
Blub
Jerry
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