MARKET WRAP

Stocks rebounded today as investors looked past hotter-than-expected inflation data.

The S&P 500 rallied back into record territory, closing the day 0.5% higher. The Nasdaq Composite was up 0.6% and the small cap Russell 2000 index was up 1.2%.

The Russell 2000 was up 5% this week, to it’s best run of the year, signaling a rotation out of tech and broadening of the rally.

CNBC noted that housing stocks as measured by the XHB ETF saw its best week since late 2022. Stocks like Mohwawk, DR Horton, Lennar, PulteGroup and Lowe’s were among the top-performing stocks in the S&P on the week.

Netflix, Meta and Chipotle were the worst-performing stocks in the index on the week, down 6%, 7% and 8% respectively.

MRKT MATRIX: July 12, 2024

Today’s Top Stories:

• Dow jumps to record as investors see bull market broadening beyond tech (CNBC)

• Citi, Wells and JPMorgan Fall After Results (WSJ)

• These stocks reporting next week have earnings momentum (CNBC)

• UBS downgrades Tesla to sell rating, warns that AI fervor could wane (CNBC)

• AI's problem: The missing revenues (Axios)

• Traders Start to Bet on a Supersized Fed Rate Cut in September (Bloomberg)

• BofA Sees Traders Flocking to Risky Stocks as Fed Interest-Rate Cut Bets Build (Bloomberg)

• US Consumer Sentiment Falls to Eight-Month Low on High Price (Bloomberg)

Today’s On The Tape is Presented by CME Group and iConnections

Truth or Consequences with Lori Calvasina

Guy Adami, Danny Moses, and Dan Nathan delve into recent economic trends, including potential Fed rate cuts, inflation, and CPI updates. They analyze key sectors like consumer goods, airlines, and tech stocks while discussing current valuations and earnings reports. The gang also discusses their favorite car manufacturer/future robotaxi company Tesla.

Special guest Lori Calvasina, Head of U.S. Equity Strategy at RBC Capital Markets, shares her insights on the equity market landscape, the Russell 2000 index performance, and her revised S&P 500 price target of 5,700. The conversation also covers labor market trends, the impact of presidential election years, and the transformative potential of generative AI. The episode blends deep analytical insights with light-hearted pop culture references.

Further Reading

• Home Insurance Premiums Are Surging—and States Are Allowing It (WSJ)

• Citadel Securities Crafts Plan to Shake Up Banks’ Trading Desks (Bloomberg)

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