There is nothing like a failed rally attempt to unnerve investors. Yesterday began with much potential, but the rally faded. Buyers emerged, and it looked like it could be one of those sessions that sparked interest. Instead, limping into the close only added to reticence.

Low volume was the only place investors found comfort.

It’s Clobbering Time

President Trump reassured everyone that tariffs on Canada and Mexico were still “rapidly” approaching during his afternoon presser around 3:30 with French President Macron. Markets sold off into the close.

Defensive Moves

Classic defensive sectors, Consumer Staples (XLP), and Health Care (XLV) rallied, but Utilities (XLU) sold off as they traded closely with Technology (XLK) as Artificial Intelligence (AI) plays. There was serious bottom fishing in broken names, with Walgreens (WBA) leading.

Bad News is Bad News

Earnings Revisions are Taking a Toll

Estimates for the current quarter have declined tremendously.

Buffet Red Flag?

Warren Buffett went out of his way to say he still loves stocks, but taking positions takes time. I do not believe his pile of cash is a negative, especially since he’s banking billions in interest payments.

Lots of economic data is out this week beginning today – buckle up.

Today’s Session

Futures are a bit bumpy in pre-market trading.

DeepSeek-R2 originally planned to be released in May, it is now aiming for an early launch. This comes as the new version of Grok was released earlier this month, showing wide improvements.

Shares of Home Depot (HD) are slightly higher in pre-market trading, even after guidance missed consensus, and management warned the housing market may not improve. Home Depot (HD) has long been a class in retail excellence, but it is starting to lose some of its shine.

Tweet

 

Home | Products & Services | Education | In The Media | Help | About Us | Disclaimer | Privacy Policy | Terms of Use | All Rights Reserved.