Friends
Microsoft had good earnings after the close yesterday and the shares did well today. That’s where the good news ends. Google/Alphabet looked to have decent numbers at first glance yesterday but the fear that the behemoth is losing ground in the AI race sent the shares tumbling and the Nasdaq with it. To add a little fuel to the fire, interest rates moved back up again today giving back some of the bond gains earlier in the week. All in all, a bad recipe for stocks today.
By the close, the Dow Jones Industrial Average was down 105 points to finish the day at 33,035. The S&P 500 was down 60 points to close at 4,186. The Nasdaq Composite Index was down 318 points to close at 12,821. Gold was up $5 to trade at $1,991 per ounce, while oil was up $1.53to trade at $85.27 per barrel WTI.
So the leaders, and the only reason the market averages are higher for the year, stumbled mightily today. Will bargain hunters step in to stem the tide in these behemoths? Can the market rally into year-end without these behemoths? More than 25% of the S&P 500 has reported so far and 78% have exceeded earnings expectations. You wouldn’t know in terms of price action. We still have Meta, Amazon, and Apple yet to report and remember Microsoft was great. Stay tuned.
Have a nice evening everyone.
