LEIBOVIT VR NEWSLETTERS – ‘TURNAROUND TUESDAY’ – APRIL 9, 2024

Following the substantial volatility seen over the final two sessions of the previous week, stocks turned in a relatively lackluster performance during trading on Monday. The major averages spent the day bouncing back and forth across the unchanged line before eventually closing narrowly mixed.

While the Nasdaq crept up 5.44 points or less than a tenth of a percent to 16,253.96, the Dow edged down 11.24 points or less than a tenth of a percent to 38,892.80 and the S&P 500 slipped 1.95 points or less than a tenth of a percent to 5,202.39.

The choppy trading on the day came as traders seemed reluctant to make significant moves ahead of the release of closely watched inflation data later in the week.

Some investors may also have been away from their desks as they traveled to other parts of the country to get a better view of today’s total solar eclipse.

The Labor Department is scheduled to release its reports on consumer and producer inflation in the month of March on Wednesday and Thursday, respectively.

Economists currently expect consumer prices to rise by 0.3 percent in March following a 0.4 percent increase in February.

Core consumer prices, which exclude food and energy prices, are also expected to climb by 0.3 percent in March after rising by 0.4 percent in February.

The annual rate of consumer price growth is expected to accelerate to 3.4 percent in March from 3.2 percent in February, while the annual rate of core consumer price growth is expected to slow to 3.7 percent for 3.8 percent.

Producer prices are expected to rise by 0.3 percent in March after climbing by 0.6 percent in February, while the annual rate of producer growth is expected to jump to 2.3 percent from 1.6 percent.

The inflation data could have a significant impact on the outlook for interest rates, as Federal Reserve officials have repeatedly said they need greater confidence inflation is slowing before cutting rates.

Wednesday will also see the release of the minutes of the Fed’s latest monetary policy meeting, which could also shed additional light on officials’ thinking on rates.

Sector News

Most of the major sectors ended the day showing only modest moves, contributing to the lackluster close by the broader markets.

Airline stocks showed a strong move to the upside, however, with the NYSE Arca Airline Index jumping by 1.8 percent.

Significant strength was also visible among steel stocks, as reflected by the 1.8 percent gain posted y the NYSE Arca Steel Index.

Banking stocks also turned in a strong performance on the day, while gold stocks gave back ground following recent strength.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Monday. Japan’s Nikkei 225 Index jumped by 0.9 percent and Hong Kong’s Hang Seng Index inched up by 0.1 percent, although China’s Shanghai Composite
Index bucked the uptrend and slid by 0.7 percent.

The major European markets also moved to the upside on the day. While German DAX Index advanced by 0.8 percent, the French CAC 40 Index climbed by 0.7 percent and the U.K.’s FTSE 100 Index rose by 0.4 percent.

In the bond market, treasuries extended the notable downward move seen last Friday. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 4.6 basis points to 4.424 percent.

Looking Ahead

A lack of major U.S. economic data may lead to another choppy trading session on Tuesday ahead of the inflation data due later this week.

 

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