MARKET WRAP

Stocks were lower today after posting the worst session since 2022 on Wednesday.

The S&P 500 was down 0.51%, the Nasdaq fell nearly 1%, while the Russell 2000 was up 1.51%.

Today’s performance reinforces the trend on Wall Street this month, with the market experiencing a significant shift out of large-cap and growth stocks into small- and mid-cap companies and value stocks. The iShares Russell 1000 Value ETF is up 3.6% in July, while the Growth ETF is down 2.4%. CNBC notes this suggests a broader market rebalancing away from dominant tech stocks.

Wells Fargo strategists warn the S&P could drop by at least another 2% before seeing a bounce.

The so-called Mag 7 stocks closed lower on the day except for Tesla.

Energy was the best-performing sector on the day, up nearly 2%. Utilities was the worst performer, down nearly 1%

On the single-stock front, ServiceNow was the top stock in the index, up 13% for its best day in a decade after reporting stronger-than-expected earnings and raising its annual subscription revenue forecast due to strong demand for AI-driven cloud software.

MRKT MATRIX: July 25, 2024

Today’s Top Stories:

• Dow falls from highs, Nasdaq loses earlier gains as investors sell some big tech names (CNBC)

• ServiceNow raises annual subscription revenue forecast on robust demand; COO resigning after government contract complaint (CNBC)

• Edwards Lifesciences Stock Plunges 28% After Earnings. What Wall Street Thinks. (Barron’s)

• Ford shares, on pace for worst day since 2009, lead autos rout after company’s disappointing earnings (CNBC)

• Southwest Airlines Is Ditching Open Seating on Flights (WSJ)

• American Airlines Slashes Earnings Outlook, Reverses Booking Misfire; Stock Rises (WSJ)

• Viking Therapeutics stock jumps 30% after drugmaker moves weight loss injection to late-stage trial (CNBC)

• OpenAI Tests New AI Search Features in Direct Challenge to Google (Bloomberg)

• Economic Growth Quickens, Rising at 2.8% Rate in Second Quarter (WSJ)

• Markets Tear Up Popular Trades That Reached ‘Stupid Levels’ (Bloomberg)

Today’s MRKT Call is Presented by FactSet

Massive Mega Cap Reversal

Dan Nathan, Guy Adami and Carter Worth break down the top market headlines and bring you stock market trade ideas for Thursday, July 25th.

Timecodes

• 0:00 - S&P 500 + NASDAQ-100

• 17:30 - Yields + Small Caps

• 22:45 - Energy

• 30:00 - U.S. Dollar + Gold

• 34:20 - Mega Cap Reversal

• 38:40 - Audience of Q&A

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