The opinions expressed below are my own and do not necessarily represent those of Visdom Investment Group, LLC.
Levitating.
15% tariffs on Japan were announced as some kind of trade deal/agreement and investors breathed easy. Tariff Armageddon appears to be fading away. The S&P opened about +20 points and suffered the usual early-session weakness, taking the SPX into the +10 to +20 range. Later in the session, talk about a European Union trade deal with 15% tariffs swirled about the Street and investors breathed easier. The index rallied to about +35 and bounced around that level for the afternoon. A healthy 20-year Treasury auction helped the mood in the Treasury market although yields did climb some across the curve. 2025 Fed cuts now price at 45 bips.
Earnings reports come in droves and results continue to encourage the longs but not excite them. 28 stocks in the S&P reported between yesterday’s close and today’s. All 28 beat their publish expectations. Despite all those attaboys, 15 of those stocks fell today. Companies are overwhelmingly beating but they are not impressing anyone. It’s resulting in a broad and consistent long interest in the market. No fireworks but also no reason not to put money to work. As so we quietly climb higher.
Tonight we’ll learn from Alphabet and Tesla. They are going to get tongues wagging.
We’ll have to see whether the results and the chatter inspire the longs or the shorts.
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.
