Equities gave back some recent gains on a day where NVDA stock posted new all-time highs on a gain > 9%. That drove leadership for the Nasdaq which slipped -18bps while the S&P 500 was off -74bp and the Dow brought up the rear down -1.53% as the broad market responded to hawkish comments in the Fed’s latest meeting minutes. JP Morgan was out with a bearish warning of potential declines on sustained volatility, which may have added to the selling. Futures for Friday are little changed as of this writing, but some profit taking should be expected with equities at recently triggering near-term overbought readings recently.
A busy economic calendar on Friday features University of Michigan consumer surveys as well as Durable and Capital goods data releases. The earnings calendar is light with ADSK reporting among S&P 500 constituents.
Eco Data Releases | Friday May 24th, 2024
| Date Time | Event | Period | Survey | Actual | Prior | Revised |
| 05/24/2024 08:30 | Durable Goods Orders | Apr P | -0.80% | — | 2.60% | 0.90% |
| 05/24/2024 08:30 | Durables Ex Transportation | Apr P | 0.10% | — | 0.20% | 0.00% |
| 05/24/2024 08:30 | Cap Goods Orders Nondef Ex Air | Apr P | 0.10% | — | 0.10% | -0.20% |
| 05/24/2024 08:30 | Cap Goods Ship Nondef Ex Air | Apr P | 0.10% | — | 0.00% | -0.10% |
| 05/24/2024 09:00 | Bloomberg May United States Economic Survey | |||||
| 05/24/2024 10:00 | U. of Mich. Sentiment | May F | 67.7 | — | 67.4 | — |
| 05/24/2024 10:00 | U. of Mich. Current Conditions | May F | 68.8 | — | 68.8 | — |
| 05/24/2024 10:00 | U. of Mich. Expectations | May F | 67 | — | 66.5 | — |
| 05/24/2024 10:00 | U. of Mich. 1 Yr Inflation | May F | 3.40% | — | 3.50% | — |
| 05/24/2024 10:00 | U. of Mich. 5-10 Yr Inflation | May F | 3.10% | — | 3.10% | — |
| 05/24/2024 11:00 | Kansas City Fed Services Activity | May | — | — | 9 | — |
S&P 500 Constituent Earnings Announcements by GICS Sector | Friday May 24th, 2024
ADSK is emblematic of the software industries recent struggles.
- ADSK (200-day m.a. | Relative to S&P 500)
- Chart is a longer-term UW, with price consolidating below the 200-day m.a. Relative curve has made a fresh multi-year low.
Factor Friday:
Ambiguity surrounding the forward prospects on inflation have Growth vs. Value and High Beta vs. Low Vol. factors in consolidation. NVDA’s big beat is a win for Momentum stocks and rates moving lower in the near-term has also been a tailwind there. While there is potential for near-term profit taking with the market just off all-time highs, the longer-term trend is undeniably bullish, and it would not be surprising to see Technology shares continue to lead with Growth edging out Value in the near term and a lack of upwards pressure on interest rates.
- S&P 500 High Beta/ Low Vol.
- S&P 500 Momentum Index / S&P 500
- Mega Cap. Growth / Value
- Mid-Cap. Growth / Value
- Small Cap. Growth / Value
Source: Bloomberg
