Stocks bolted out of the gate yesterday morning with buying across the board and technology leading the way. Followed by the Supreme Court’s decision to not only take on the Trump administration’s travel ban but also (in a 9-0 agreement) decided that most of the ban should be implemented. 

This is a clear victory for national security and President Trump. It is also a clear loss for those that have adamantly opposed the ban, including Silicon Valley.  All of the big-name tech names that signed that amicus brief against the temporary travel ban in March and April saw their shares finish lower after gapping higher at the open.  After the bell, Western Digital Corp (WDC) posted and raised earnings well above consensus, but shares were lower in after-hours trading.

I suspect the tantrum seen in tech names will be a one-off event. Investors are going to become more wary of these sudden downward reversals in tech that have seemingly come out of left field. This is really what consolidation is all about. These stocks are up huge, whether it’s measuring for 2017, the last 52 weeks, or the last several years. 

Meanwhile, I continue to love the action in materials and industrial names. I have mentioned this over and over; Martin Marietta Materials (MLM) and Vulcan Materials (VMC), both up big yesterday, along with United Rentals (URI) and Snap-on Tools (SNA) also put in solid sessions as well. 

Stay cool, stay balanced, and keep your head on a swivel for fresh opportunities - I’m still looking to buy the dips.

Today, the market deals with a parade of Fed speakers, including Janet Yellen, who will speak in the middle of the session. The Street will be eager to find out if the monetary policy will be based on the economy or skewed views from their ivory-tower.  The notion that some recent weakness is only transitory may not jibe with reality.

For sure, the Fed cannot talk about deflationary data out of one side of their mouths and rate hikes out the other.

Those lazy-hazy days of summer are setting in; just don’t let a dull market or market consolidation lull you into investing mistakes.

Today’s Session

The market is looking to open mixed with continued pressure on tech pushing the NASDAQ lower. Overnight, the EU is leveling a record of $2.7 billion fine against Google.  The fine was expected, although conventional wisdom had the number closing to one billion dollars.  This saga will probably continue to be played out for months or even years. 

The growing anxiety around tech is normal but uncomfortable for investors- especially those that have only gone long the sector recently, I wouldn’t panic.  Moreover, Western Digital (WDC) is opening lower after guidance on revenue came in slightly less than the street, but earnings per share is significantly higher.  The company which still pursuing Toshiba’s chip business, is causing some selling pressure too.

Still watching the senate healthcare bill spinning its wheels, I will have an update in the note.