Only two sectors finished in the plus column yesterday, but it was enough to nudge the S&P 500 (SPX) into the green on the session. It was all about software (IGV) at the expense of hardware. It was also mostly about momentum and growth, although as the session went on, mid-cap quality and small-cap revenue caught bids.

Software has smashed above the 200-day moving average, as ‘shorts’ and ‘longs’ scrambled.

Coming into yesterday’s session, the software-as-a-service (SaaS) rebound was very selective.

Bull Market At Crossroads?

Over the weekend, Carson Research published data on the historic length of the bull market, and chief investment strategist Keith Fitz-Gerald took a step forward.

This shatters the narrative that the rally is in imminent danger. 

I will be the first to admit some of the parabolic moves are reminiscent of the dot.com stuff we used to cheer about, until we didn’t. Those ‘scares’ never go away completely, but this time is different. These are real numbers that are poised to get even better.

Even without Octane AI, this could continue for another 3.5 years.

The data center boom is at the heart of the great numbers on Wall Street and rising optimism on Main Street.

Another Earnings Grand Slam

Hewlett-Packard (HPE) Enterprise posted jaw-dropping financial results. The company crushed revenue, beat earnings by $0.26, and blew away all metrics.

• Earnings Guidance of $3.35-$3.45 vs. $2.42 consensus
• +148% Networking to $2.7 billion
• +233% Data Center Network to $320 million

Also, after the close, Microchip Technology (MCHP) announced that its data center solutions business would grow 65% this year to $500 million, up from $302 million last year.

Mountains of Cash Needed

After the close, Google (GOOG/L) announced it was raising $80 billion to scale artificial intelligence (AI) and global compute. This company is a cash machine but needs to borrow to keep up the pace.

The stock was lower on the news, but a year ago, it would have been throttled.

Berkshire Hathaway (BRK.B) is taking a $10.0 billion piece of the action. This is newsworthy, considering they have been sitting on $400 billion for a long time, and are now putting it back to work.

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