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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1/15/2025 1:34 PM | Bank Stocks Surge |
1/15/2025 9:48 AM | MAYBE THE ROTATION TRADE HAS BEGUN |
1/14/2025 1:14 PM | Rebound Falters |
1/14/2025 9:48 AM | GOOD BOUNCE BACK |
1/13/2025 1:32 PM | Chipping Away |
1/13/2025 9:41 AM | THE GAME HAS BEEN ALTERED |
1/10/2025 1:10 PM | Under Pressure |
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1/8/2025 1:34 PM | Anxiety in the Air |
1/8/2025 9:50 AM | NASDAQ IS A BEEHIVE |
1/7/2025 1:40 PM | Problematic Bond Market |
1/7/2025 9:48 AM | Stocks of The Future |
1/6/2025 1:26 PM | Continuing Friday’s Momentum |
1/6/2025 9:47 AM | LET 2025 BEGIN |
1/3/2025 1:34 PM | Friday Spark |
1/3/2025 9:28 AM | CATCH THAT PIGEON |
1/2/2025 1:10 PM | Bumpy Start |
1/2/2025 9:47 AM | THE NEW YEAR |
12/31/2024 9:45 AM | HAPPY NEW YEAR |
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