EB Daily Market Report - Thursday, April 25, 2024

Dear Members.

The market is trying to absorb a weak earnings report by META as well as a weak GDP report that smacked of stagflation. The combo of the two sent the market tumbling early on and it continues to have trouble making up the losses though all of the major indexes are off their respective lows.

The GDP report was somewhat of a gut punch since it showed a slowing economy but persistent inflation. So traders did what they usually do when uncertainty prevails and thus the selling.

The VIX did move higher early on but has pulled back and is barely higher. So perhaps a sign that traders will be able to absorb the news from the past 24 hours.

Tonight we'll get another test - a big one - when both MSFT and GOOGL report their numbers. Given the negative response to META's numbers the bulls may not be feeling so confident. Thus, any positive surprises might give the bulls the jolt they are looking for.

All of the major indexes are now below their respective 20 and 50 day moving averages; not a great technical look. So unless that changes we need to remain cautious and we're likely to get more clues after the bell once MSFT and GOOGL's earnings have been released.

At your service,

John Hopkins