The opinions expressed below are my own and do not necessarily represent those of Visdom Investment Group, LLC.
Jittery.
Headlines didn’t rattle markets today but the equity market was unsure how to move after the last two days of drama and with the Fed announcing in the afternoon. The market ended up dropping some, nothing major. Nvidia and all the concerns surrounding the DeepSeek news continue to grab investor attention, although it seems that rumors and speculation are the primary content of chatter on the Street. The Fed made no changes to policy, which was expected. The press conference was as plain vanilla as they come and for a Fed day, the market was very quiet. Chairman Powell avoided saying anything to roil investors. Once the press conference concluded, investors could get busy waiting for the first Mag 7 earnings reports of the season.
These firms report after the close.
They represent 11% of the market cap of the S&P 500 and they hold special positions in investor minds as crown jewels of US equity markets.
There’s no sense in me speculating what these stocks will report. It’s a high probability that they beat, but investors already expect that. What matters is their guidance. Will they bump their guidance higher?
If yes, the whole market is going up.
If no, the whole market is going down.
It’s a simple situation. All stocks are long the Mag 7 guidance and we learn about three of them shortly.
See you tomorrow.
-Mike
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