The opinions expressed below are my own and do not necessarily represent those of Visdom Investment Group, LLC.
On to tomorrow.
Little news broke and our market didn’t move much either. The S&P bounced around a little on normal capital flow and Treasury yields climbed small. The big events on the horizon are Amazon’s quarterly results ($1.47 EPS, $187 billion revenue) after today’s close and the January nonfarm payrolls data (+173k est vs +256k prior) tomorrow morning. Amazon is the second to last Mag 7 stock to report.
Nvidia will be the last Mag 7 to report. That event comes at the end of February.
Considering the importance of the Amazon data and the nonfarm payrolls, it makes some sense that equities would stay in a holding pattern today.
In ’23 and ’24, markets tending to run-up in advance of these releases because the market was confident that he results would be spectacular, and they usually were. The hesitation today suggests that markets are not confident. Maybe the results will still turn out to be wonderful but the perception of Mag 7 invulnerability is gone. Also the perception that the Fed will help the stockholder seems to be gone as well.
It’s overstatement to say the market fears the Fed or thinks the Fed is bearish, but it is accurate to say the market doesn’t view the Fed as a bullish agent anymore.
This leaves us waiting and seeing, a common situation.
So let’s see what happens.
See you tomorrow.
-Mike
IMPORTANT INFORMATION
This is general educational information and market commentary and is intended for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction.
All market and economic data herein is as of the date hereof and sourced from Bloomberg unless otherwise stated. The information is subject to change without notice and we have no obligation to update you.
This general market commentary is intended for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. The views and opinions expressed constitute the author(s) judgment based on current market conditions, are subject to change without notice, and may differ from those expressed by other employees of Visdom Investment Group LLC ("Visdom") and Visdom. Past performance and any forward-looking statements are not guarantees of future results. It is not possible to invest directly in an index.
We believe the information contained in this material to be reliable and have sought to take reasonable care in its preparation; however, we do not represent or warrant its accuracy, reliability or completeness, or accept any liability for any loss or damage (whether direct or indirect) arising out of the use of all or any part of this material. Any securities referenced are shown for illustrative purposes only, and are not intended as a recommendation or endorsement by Visdom or by the author(s) in this context. The information presented is not intended to be making value judgments on the preferred outcome of any government decision. This information does not constitute Visdom research, nor should it be considered a recommendation of a particular investment strategy or an offer or solicitation for the purchase or sale of any financial instrument. Investing involves market risk, including the possible loss of principal. You should speak to your financial advisor before making any investment decisions. Visdom and its affiliates do not provide legal, tax or account advice so you should seek professional guidance if you have questions.
