Morning Commentary
The market has nestled into the ‘fear zone’ for the past six trading days, even with yesterday’s bounce.
For all the excitement of the first few months, it turns out that right now, this is just a ho-hum market, history norm in election years.
However, even as the market displays weakness not seen in months, there isn’t a big rush to ‘short’ the SPDR S&P 500 ETF Trust (SPY) or Invesco QQQ Trust (QQQ).
I suspect a lot of hard lessons have been learned since October 2022, when the narrative said that the market was going lower; the U.S. economy was going into a recession, and to paraphrase Jay Powell, it was all going to be ‘pain.’
Yesterday wasn’t painful, with all eleven S&P 500 sectors finishing in the plus column, but there was also a lot of joy, too.
It was a garden variety bounce that couldn’t seduce enough buyers off the sidelines to make a statement.
Persistent Inflation
The Cleveland Fed updated its inflation “nowcasts,” and if it's correct, the Personal Consumption Expenditures (PCE) annualized rate of inflation is still far from the Fed’s 2.0% target.
Big Earnings Day with all eyes on Tesla (TSLA) after the close today.
Today’s Session
Strong financial results from older established companies (age of companies in parentheses) helped to push major indices higher this morning.
One younger name (SPOT) is also enjoying a strong reaction to its financial results and guidance. But this market is enamored with the hot newer names that are powering the Fourth Industrial Revolution. But this morning, we are reminded there is still money to be made selling internal combustion vehicles, aerospace, household products, housing and beverages.
We have a sizable cash position and are eager to put it to work but mindful of how much more precarious the market has become in the past two weeks.
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5/3/2024 1:41 PM | Cheering the News |
5/3/2024 7:33 AM | TIM COOKS THE (RECORD) BOOKS |
5/2/2024 1:54 PM | Holding Up |
5/2/2024 9:41 AM | COOL HAND POWELL |
5/1/2024 1:22 PM | Which Powell? |
5/1/2024 9:40 AM | MAY DAY, MAY DAY, MAY DAY |
4/30/2024 1:02 PM | Complete Flop |
4/30/2024 9:48 AM | CHIPS TAKE THE LEAD |
4/29/2024 1:39 PM | Musk Rides Back to the Mag Seven |
4/29/2024 9:50 AM | DIE BY THE SWORD, PROSPER BY THE SWORD |
4/26/2024 1:46 PM | Full Steam |
4/26/2024 9:39 AM | BIG TECH STEPS UP |
4/25/2024 1:16 PM | Don't' Bury me, Yet! |
4/25/2024 9:27 AM | THERE CAN ONLY BE ONE |
4/24/2024 1:30 PM | Earnings Flood In |
4/24/2024 9:26 AM | BUYING THE DIP |
4/23/2024 1:25 PM | Bloom Off Rose |
4/23/2024 9:32 AM | WHAT HAPPENED TO THE BRAVADO? |
4/22/2024 1:22 PM | Pins and Needles |
4/22/2024 9:30 AM | LIVE BY THE SWORD … |
4/19/2024 1:20 PM | Fair Chunk of Rotation |
4/19/2024 9:35 AM | DON’T OVERREACT |
4/18/2024 1:37 PM | Didn’t Break Down |
4/18/2024 9:40 AM | MARKET OFF SCRIPT |
4/17/2024 1:59 PM | Facing Pressure |
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