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Market Edge® Daily Market Update Monday, May 05, 2025 Market Recap (5/05/2025)
Dow, S&P 500 Snap Nine-Day Win Streak After a drop at the opening bell, the major averages did a steady climb into the afternoon before sliding back again the last hour of trading. Economic data was mixed with the ISM Services Index showing expansion at 51.6 vs. 50.4 estimated, but the prices paid component was higher than expected showing inflation remained sticky. Earnings were also mixed with Cummins (CMI) beating estimates, while Onm Semiconductor (ON), Tyson Foods (TSN) and Zimmer Biomet Holdings (ZBH) disappointing. The DJIA was able to trade positive for part of the session after Secretary Treasury Scott Bessent commenting that there could be some trade deals announced as early as this week and that tax relief could act as stimulus for the economy. He also mentioned that the White House was hoping to get back to 3% growth by the end of the year. Crude oil prices dropped after OPEC+ voted to ramp up production and output pulling oil related stocks lower. The Energy (XLE) sector was the worst performing market group. Communication Services (XLC) and Industrial (XLI) were the strongest sectors. At the bell the DJIA was off 98.60 points (-0.24%) at 41218.83, while the S&P 500 lost 36.29 points (-0.64%) and settled at 5650.38. The NASDAQ dropped 133.49 points (-0.74%) finishing at 17844.24. Breadth was negative with declining issues beating advancing issues almost 2:1 on the NYSE and 1.8:1 on the NASDAQ. Declining volume was 61% on the NYSE and 57% of the NASDAQ. The VIX increased 0.96 (+4.23%) and closed at 23.64. Crude oil prices lost 1.27 (-2.18%) and the June contract closed at $57.02 a barrel. Gold prices jumped 94.60 (+2.92%) and finished at $3338.20 an ounce. Bitcoin (BTC) closed the session at $94,400. Investors were cautious ahead of this week's FOMC Meeting leaving the major averages with modest losses. The yield on the 10-year Treasury ticked higher after the ISM Services Index but market participants are expecting the Federal Reserve to leave rates unchanged at Wednesday's announcement. Despite today's weakness the market remains overbought and due for more consolidation with the market Edge/S&P short Range Oscillator (SRO) closing the day at +8.02%, the most overbought reading since late January. Earnings releases to watch for on Tuesday include: American Electric (AEP), Datadog (DDOG), Ferrari (RACE), global Payments (GPN), Lear (LEA), Waters (WAT), Advanced Micro Devices (AMD), Arista Networks (ANET), Devon Energy (DVN), Powell Industries (POWL) and Wynn Resorts (WYNN). Tuesday's Market Moving Economic Calendar: FOMC Meeting Begins. International Trade in goods and Services. By David L. Blake, CMT Significant Numbers To Watch DJIA
S&P 500
NASDAQ
Trade Trigger Stocks (5/05/2025) Trade Trigger Stocks are stocks which are breaking through significant resistance (bullish) or support (bearish) areas. The 'Entry Price' is the level that needs to be penetrated to qualify as either a buy or short sale breakout. Below is a selection of the 14 Trade Trigger stocks for today. Buy Candidates
Short Sale Candidates
Market At-A-Glance Charts (5/05/2025)
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