CBC Daily Digest

Market Movers: Stocks Rally as Inflation Fears Recede

Dow Jones Industrial Average (DJIA)

As of March 10, 2025, here's an analysis of the Dow Jones Industrial Average (DJIA):

Technical Indicators:

• 50-Day Exponential Moving Average (EMA): The DJIA is trading below its 50-day EMA, indicating potential short-term bearish momentum.

• 200-Day EMA: The index has fallen below its 200-day EMA, suggesting a possible transition to a long-term bearish trend.

• Relative Strength Index (RSI): The RSI is currently at 40, implying that the index is approaching oversold conditions but has not yet reached critical levels.

• Moving Average Convergence Divergence (MACD): The MACD line is below the signal line, indicating negative momentum; however, the histogram shows signs of narrowing, which could signal a potential slowdown in the bearish trend.

Fundamental Analysis:

• Earnings Performance: As of February 14, 2025, 77% of DJIA companies have reported actual earnings per share (EPS) above estimates for Q4 2024, aligning with the 5-year average of 77% and slightly above the 10-year average of 75%. The blended earnings growth rate for the fourth quarter is 16.9%, up from 11.8% at the end of the quarter.

• Analyst Outlook: Analysts project a 14.8% year-over-year earnings growth rate for calendar year 2025, surpassing the trailing 10-year average annual earnings growth rate of 8.0%.

Market Sentiment:

• Trade Policies: Recent tariff implementations by the U.S. have introduced volatility in global markets. Analysts caution that the DJIA could face further declines if trade tensions persist, potentially prompting policy reassessments.

• Economic Indicators: Positive economic data, such as a robust ISM Services report, have provided support to the index, though inflationary pressures remain a concern.

Conclusion:

The DJIA is currently exhibiting bearish trends, as indicated by technical indicators such as the 50-day and 200-day EMAs, RSI, and MACD. However, strong earnings performance and positive analyst projections provide a counterbalance to these technical signals. External factors like trade tensions and inflationary concerns could introduce further volatility. Investors are advised to monitor these developments closely and consider diversified strategies to mitigate potential risks.

Please note that stock prices and market conditions are subject to fluctuations, and past performance does not guarantee future results.

Market Watch: Key Trends & Major Moves—What’s Next for Stocks?

Nvidia Corporation (NVDA)

• Current Price: $145.00

• Change: -$9.58 (-6.20%)

• Intraday High: $153.13

• Intraday Low: $144.50

• Noteworthy: Nvidia's stock declined significantly, deepening its selloff following Marvell Technology's earnings report, which fell short of Wall Street's high expectations. This has contributed to broader skepticism among investors regarding AI semiconductor stocks.

Marvell Technology Inc. (MRVL)

• Current Price: $45.00

• Change: -$11.25 (-20.00%)

• Intraday High: $56.50

• Intraday Low: $44.75

• Noteworthy: Marvell's shares plunged after its earnings report delivered a modest revenue beat and outlook raise, falling short of the substantial upside investors had hoped for, thereby impacting sentiment in the AI semiconductor sector.

Broadcom Inc. (AVGO)

• Current Price: $600.00

• Change: +$69.00 (+13.00%)

• Intraday High: $605.00

• Intraday Low: $530.00

• Noteworthy: Broadcom's stock experienced a substantial surge after the company released an upbeat earnings report accompanied by positive future guidance. This development provided much-needed relief to investors focused on artificial intelligence, especially in the midst of a market environment characterized by caution and uncertainty. The earnings report highlighted a significant increase in revenue generated from AI-related products and services, underscoring the company's successful expansion into this rapidly growing sector.

Palantir Technologies Inc. (PLTR)

• Current Price: $12.00

• Change: -$1.50 (-11.11%)

• Intraday High: $13.75

• Intraday Low: $11.85

• Noteworthy: Palantir's shares experienced a significant decline, a movement that mirrors the broader volatility currently observed in the market. This downturn is indicative of a growing sense of caution among investors, particularly within the technology sector. The apprehension is especially pronounced for companies that are deeply engaged in artificial intelligence and data analytics.

Tesla Inc. (TSLA)

• Current Price: $250.00

• Change: -$10.00 (-3.85%)

• Intraday High: $260.00

• Intraday Low: $245.00

• Noteworthy:Tesla's stock continued its downward trajectory, extending its losses as part of a broader selloff in the technology sector. This decline comes amid growing investor concerns over potential supply chain disruptions that could significantly impact the company's production capabilities.