CPI data for the month of October came in tamer than expectations with the headline number rising by 0.0% month on month (versus expectations of 0.1%). The core measure rose by 0.2% (versus expectations of 0.3%). Although the year-on-year levels are still above the 2% targets at 3.2% and 4.0% respectively they are well off year-ago levels. The market is now pricing in 4 rate cuts in 2024.
The Russell 2000 index was the biggest mover today with a gain of 5.44%. That was the largest gain since November 10, 2022 and far outpaced the 2023 largest gain of 3.561% from June 2, 2023.
A snapshot of the closing levels for the other major indices shows:
- Dow industrial average rose 489.83 points or 1.43% at 34827.71
- S&P index rose 84.17 points or 1.91% at 4495.71
- NASDAQ index rose 326.63 points or 2.37% at 14094.37
Looking at the daily chart of the S&P index its high price at 4508.67 got within 2-3 points of the low of a swing area between 4511.99 and 4541.25 (see chart below).
S&P index tastes the low of a swing area
Looking at the NASDAQ index, it is moving closer to its next target at 14149.62. The high price today reached 14124.06.
For the Russell 2000, it moved back above its 50-day moving average at 1753.62, but remains below its 200-day moving average at 1827.65 and 100-day moving average at 18233.82. The gain in the index today took the price above its closing level from 2022.
The Russell 2000 is now up 2.10%. By comparison, the
- NASDAQ index is up 34.66%,
- S&P index is up 17.09%, and
- Dow industrial average is up 5.07%.
25 of 30 Dow stocks rose led by:
- Home Depot up 5.46%
- Walgreens up 4.56%
- Dow up 3.68%
- Goldman Sachs up 3.64%
- Intel +3.01%
The losers in the Dow included:
- Walmart -0.01%
- Procter & Gamble -0.22%
- Merck and Company -0.28%
- UnitedHealth -0.40%
- Travelers -1.39%
Some of the other big winners in the market included:
- First Solar, +11.43%
- AIRBnB +6.32%
- Tesla +6.12%
- Block +5.96%
- Goodrx +5.94%
- PNC +5.94%
- Ford, +5.86%
- Moderna, +5.54%
Some losers today included:
- Celsius -3.48%
- RTX Corp, -1.66%
- Exxon Mobile, -1.65%
- Chubb, -1.16%
- Gilead, -0.28%
- Lockhead Martin -0.19%
- General Mills -0.02%