Story
Investors Buy the Dip
March 27, 2024
Wall Street stocks snapped a three-session losing streak and surged higher, with the Dow a chip shot away from a fresh new high. In the early hours, news that the Japanese yen sagged to its weakest print since 1990, while the U.S. dollar held steady was a positive for market bulls. Key secondary indexes such as the Russell 2000, DJ Transportation and Philadelphia Semiconductor Index all managed to post significant gains during the session. Further evidence of a broadening rally lies in the S&P 500 Equal Weight ETF (SPXEW) jumping to an all-time high. Market sector laggards became leaders today as Utilities (XLU), Real Estate (XLRE) and Industrials (XLI) surged to more than +1.6% as value names were playing some catch up. The DJIA gained 477.75 points (+1.22%) and settled at 39760.08. The S&P 500 was higher by 44.91 points (+0.86%) and settled at 5248.49. The NASDAQ gained 83.82 points (+0.51%) and finished the session at 16399.52.
Breadth was positive with advancing issues beating declining issues almost 5:1 on the NYSE and by 3:1 on the NASDAQ. The advancing volume was 84% on the NYSE and 73% on the NASDAQ. VIX fell by 0.46 points (-3.47%) and settled at 12.78. Crude oil was higher by 0.10 points (+0.12%) and the May contract closed at $81.72 a barrel. Gold prices were higher by 15.90 points (+0.72%) and finished at $2215.10 an ounce. Bitcoin (BTC) finished the day at 68913.12.
Market breadth, which exhibited a slight contraction during the three-day pullback, surged higher as the NYSE A/D Line posted a fresh new high during today's session. Short-term dips continue to be bought in 2024 as the bulls continue to run and therefore makes it difficult to make the case for major downside. Tomorrow marks the end of a shortened week and the end of a robust quarter. Core PCE, the Fed's preferred inflation gauge, is due on Friday, but volume is likely to get a boost from end of the quarter 'window dressing' ahead of the holiday shortened week.
Earnings releases to watch for on Thursday include: Walgreens Boots Alliance (WBA)
Thursday Market Moving Economic Calendar: Jobless Claims, GDP, Chicago PMI, Pending Home Sales, Fed Balance Sheet, and Michigan Consumer Sentiment.
By Richard Cuvilly