Stocks attempted to break a two-day losing streak on Tuesday, with the S&P 500 and Nasdaq Composite both dropping under 0.5%. Economic data released included Durable Goods orders up 1.4% month-over-month and Consumer Confidence slightly weaker than expected. Despite a strong economy, there seems to be a sense of doubt in the market rally. Individual stocks in the news included Reddit, GameStop, Krispy Kreme, International Paper, Johnson and Johnson, Shockwave Medical, and Merck, which won approval for a new drug. The economic calendar is light, with the Personal Consumption Expenditures Index due on Friday.
As the quarter wraps up, stocks are on track for the fifth consecutive month of gains, with the S&P 500 up more than 20% and the Nasdaq Composite up over 25% since October. Top-performing stocks this year include Super Micro Computer, Nvidia, Constellation Energy Corporation, Meta Platforms, and Decker’s Outdoor Corporation. Bottom-performing stocks include MarketAxess Holdings, Charter Communications, Warner Bros. Discovery, Boeing, and Tesla, with shares down 30%. The Japanese Yen is at a 34-year low, prompting Japan’s central bank to consider intervention, and Chinese President Xi met with business leaders, including Apple’s Tim Cook.
Looking ahead, investors should anticipate some choppy trading as Friday will be closed for trading, with economic data being released and the end of the quarter and expiration for quarterly options. It’s important to stick with investing plans and long-term objectives during this time. It appears that there is a lack of euphoria in the market rally, even though stocks continue to climb. As we near the end of the quarter, it will be interesting to see how stocks perform in the coming months. Stay tuned for more updates on market trends and individual stock performance.
