With few economic indicators in sight, the stock market took a breather today alongside the dollar, crude oil, and interest rates, which eased back from recent multi-month highs. Yesterday's cautious comments from the Federal Reserve, coupled with disappointing earnings reports from Travelers (TRV) and U.S. Bancorp (USB), kept many investors on the sidelines. Technology (XLK), Real Estate (XLRE), and Industrials (XLI) led the decline, with seven out of eleven sectors posting losses. Currently, ten out of eleven sector ETFs are trading at or below their 50-day moving averages.
The Dow Jones Industrial Average slipped by 45.66 points (-0.12%) to close at 37,753.31, while the S&P 500 fell by 29.20 points (-0.58%) to settle at 5,022.21. The NASDAQ experienced a sharper decline, tumbling 181.88 points (-1.15%) to finish at 15,683.37.
Market breadth was predominantly negative, with declining issues outpacing advancing ones by 76 units on the NYSE and by a ratio of 3:2 on the NASDAQ. Although the advancing volume was 50% on the NYSE, declining volume slightly exceeded advancing volume on the NASDAQ at 51%. The VIX, a measure of market volatility, dipped by 0.20 points (-1.03%) to settle at 18.21.
Crude oil prices retreated by 2.47 points (-2.89%), with the May contract closing at $82.89 per barrel. Gold prices also stumbled, losing 19.40 points (-0.81%) to finish at $2,388.40 per ounce. Bitcoin (BTC) ended the day at $61,316.64.
Stocks reaching new 52-week highs have seen a significant reversal over the past week, with new 52-week lows taking the lead on both the NYSE and NASDAQ. A visual representation of this shift can be observed by clicking on the Market-At-Glance link on the Home tab, where the New Low line has crossed above the New High line, indicating a strengthening downtrend. New 52-week highs have returned to levels last seen in late October 2023, just before the current bull run began.
Earnings reports to keep an eye on for Thursday include: ABB Ltd. (ABBN), Blackstone (BX), D.R. Horton (DHI), Infosys LTD (INFY), Intuitive Surgical (ISRG), Netflix (NFLX), and Marsh & McLennan Companies (MMC).
Key events on Thursday's economic calendar include the release of weekly jobless claims data and speeches from Federal Reserve officials.
