The opinions expressed below are my own and do not necessarily represent those of Visdom Investment Group, LLC.
Continuation.
The buying continued overnight and throughout the day. Weekend news was digested without incident and S&P 500 futures traded from +10 to +20 in the premarket. The index opened at +10 and climbed quickly to the +35 to +40 range for most of the day. The market gave back most gains late but still finished higher, with a new all-time intraday and closing highs to show for it. Treasuries helped the bullish mood with yields dropping across the curve and Fed Funds cuts currently price at 46 bips for the rest of 2025.
The general narrative of the day, and presumably for the next few sessions, is the anticipation of earnings season. One hundred and seven companies in the S&P 500 report from today’s close through Friday. Last week’s results were good but they didn’t inspire the broader market. This week’s wave of results is going to make or break the mood. Currently the mood is cheerful and optimistic. I don’t think it’s likely for the results to upset the market. I think companies are ready to modestly beat their published expectations and investors are ready to give management their attaboys and then lift the offers on the stocks.
If there’s a significant surprise around the corner, it will come from the Mag 7 stocks. I think those stocks will deliver good news to their investors but their expectations have inordinate significance to the whole market, so you never know.
Alphabet and Tesla report Wednesday.
Meta and Microsoft report *next* Wednesday.
Apple and Amazon report *next* Thursday.
Get ready for those doozies. 6 of the Mag 7 reports are arriving shortly.
Also, *next* Wednesday the FOMC makes its next rate decision (2.6% chance of a cut).
Next week is going to be something. In the meantime, it feels like the bulls want to run and nobody wants to spoil the party.
See you tomorrow.
-Mike
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