Morning Commentary
The market limped into the weekend as Nvidia (NVDA) hit a rough patch. Interestingly, the other two growth sectors led the way on Friday, reflecting that most cash inflows into equities are earmarked for growth.
Ironically, investors seeking value can find it in high-beta names outside mega-caps and the “Magnificent Seven.” Communication Services (XLC) are trading significantly below historical averages, and Consumer Discretionary (XLY) is also inexpensive based on traditional valuation metrics, but Industrials (XLI) are screaming for attention.
What’s Spooking the Market?
The market continues to toil in the fear zone even as it keeps climbing. By now, you know the narrowness of this rally is causing concern.
And now, the investors’ risk appetite is beginning to slide.
All Eyes on NVDA
NVDA has been like a black hole sucking up all the money from the rest of the market, which makes last week's stumble very compelling. If there is support around $120.00, we might consider that the stock could fill the gap at $100.00. But Wall Street is all in, so perhaps the rest of the market won’t catch a bid after all.
Today’s Session
No economic releases today, but there will be a lot of Fed Speak.
According to Apollo, the Fed started to revise higher estimates for Fed Fund rates in the long run, citing drivers from de-globalization, energy transition, more defense spending, and higher levels of government. American households seem to know this intuitively, but Wall Street keeps calling for a soft landing.
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6/28/2024 12:50 PM | Grappling The Narrative |
6/28/2024 9:52 AM | STEALTHY BUT ENCOURAGING |
6/27/2024 2:13 PM | All Eyes to PCE Reading |
6/27/2024 9:59 AM | MORE SMOKE & MIRRORS |
6/26/2024 1:34 PM | New Home Sales Plummets |
6/26/2024 10:01 AM | MAMA SAID KNOCK YOU OUT |
6/25/2024 1:27 PM | Monday’s Reflection |
6/25/2024 10:00 AM | TYING DOWN THE GIANT |
6/24/2024 1:42 PM | Mixed Day |
6/24/2024 9:30 AM | NVDA REVEALS WEAKENING RALLY FOUNDATION |
6/21/2024 1:13 PM | Fatigue |
6/21/2024 9:54 AM | NVIDIA SHRUGS |
6/20/2024 1:32 PM | Seesaw Session |
6/20/2024 10:00 AM | NEW SOURCE OF FUNDS TO BUY NVIDIA? |
6/18/2024 1:40 PM | Industrial Production Huge Beat |
6/18/2024 9:59 AM | SAME TIDE SAME STORY |
6/17/2024 1:38 PM | Getting Stronger |
6/17/2024 9:50 AM | SKINNIEST RALLY |
6/14/2024 1:06 PM | Week Ending News |
6/14/2024 10:00 AM | CHIPS & EVERYTHING ELSE |
6/13/2024 1:32 PM | Not Enough |
6/13/2024 9:51 AM | THAT WAS STRANGE |
6/12/2024 1:49 PM | Cool Inflation Summer? |
6/12/2024 7:18 AM | THE CAMPY RALLY POWERS ON |
6/11/2024 1:03 PM | Stock Market Rallying Resolve |
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