The Dividend Cafe - The Dividend Cafe Thursday - April 25, 2024

Episode Date: April 25, 2024

Links mentioned in this episode: DividendCafe.com TheBahnsenGroup.com

Welcome to the Dividend Cafe, weekly market commentary focused on dividends in your portfolio and dividends in your understanding of economic life. Welcome to Dividend Cafe this Thursday, April the 25th for your daily market recap. Quite a down day today. The Dow actually closed lower by 375 points, although we were down over 700 points earlier about mid-morning. So we actually made back a little. We regained a bit from the sell-off. The S&P and the NASDAQ were both down half of a percentage point, roughly, something like that. So the Dow actually was down a little more, almost 1% on the day. The best performing sector was materials, still having a positive return, sort of in the commodity complex, really. It was up 0.69%. Communication services had a big down day. Again, there's a lot of earnings coming out right now. So a lot of this stuff matters,

but it was down about 4% on the day, almost. So a decent down day in markets. The 10-year yield on the Treasury closed at 4.70. That was up five basis points on the day and is right about the high here for the year. So we're creeping up on rates. And the reason for all this in the economic news was that we got the first read of real GDP in Q1. So this nets out inflation and it was a little weaker than expected. We got 1.6% growth for the U.S. economy versus a 2.2% number expected. And again, actually, believe this or not, but the number being a little lower than expected,

I think initially wasn't a bad thing. Because again, we want to see things slowing a little bit for the Fed to start to move on rates. But the reason the market sold off was that inside of the number, the GDP deflator was quite higher than expected, meaning that the inflation numbers that we looked at today that caused that number, the GDP number to be lower are what drove markets lower. Tomorrow, keep in mind, we have an inflation read on PCE that'll be widely anticipated and very much watched. So depending on where that comes in here, we can see a change in the direction we got today. Initial jobless claims for the day came out at, or for the week came out at 207 versus 212 expected. for the week came out at 207 versus 212 expected. And with that, your daily market recap.

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