{"id":64302,"date":"2023-05-05T14:44:48","date_gmt":"2023-05-05T21:44:48","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=64302"},"modified":"2023-05-08T07:01:44","modified_gmt":"2023-05-08T14:01:44","slug":"apple-drags-a-mixed-up-market-higher-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2023\/05\/05\/apple-drags-a-mixed-up-market-higher-the-market-breadth\/","title":{"rendered":"Apple Drags A Mixed-Up Market Higher – The Market Breadth"},"content":{"rendered":"\n

Stock Market Commentary:<\/strong><\/h2>\n\n\n\n

In the previous week, the stock market put on a display of strength ahead of the Federal Reserve’s May decision<\/a> on monetary policy. That bravado was temporarily undermined by the final blow to First Republic Bank (FRC). After a one-day pause, presumably to contemplate the implications of the lack of a coherent policy on saving the regional banking system, sellers took the S&P 500 down 1.2%. The index lost 0.7% after the Fed decision<\/a> to hike rates yet again. The S&P 500 lost another 0.7% the following day. Yet, Apple Inc (AAPL) saved the week with a 4.7% post-earnings surge. Apple drags the market with a domineering $2.75T market cap<\/a>. In this case, Apple dragged the market higher despite another jobs report<\/a> that was strong enough to keep the Fed on-message with its hawkishness.<\/p>\n\n\n\n

The jobs report for April was so strong, that the unemployment rate for Black workers even dropped to an all-time low. So many pundits and economists have pooh-poohed the jobs reports over the past year and more as a lagging indicator of economic health. Dismissing the relevance of the jobs report was helpful when explaining why the Fed did not need to hike rates to fight inflation (Cathy Wood). Now the jobs report must be dismissed while explaining how the Fed is running the economy into the ground (almost everyone). This persistent job creation month-after-month must be particularly troubling for this crowd.<\/p>\n\n\n\n

On the other side of the gallery is a Wall Street anxiously awaiting the recession<\/a> that can convince the Fed to step down from its hawkishness. Whenever a recession finally arrives, the entire group will surely say “I told you so” even as this whole episode clearly demonstrates that conventional descriptions of the economy simply do not work in this moment. No wonder the stock market is all mixed-up.<\/p>\n\n\n\n

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YES. We still have a labor shortage. Anecdote: The line at a local Target. ONE cashier and only at self checkout. \ud83d\ude33 pic.twitter.com\/bxVcuTpzxk<\/a><\/p>— Dr. Duru (@DrDuru) May 4, 2023<\/a><\/blockquote>