Morning Commentary
By Charles Payne, CEO & Principal Analyst
9/26/2017 9:22 AM
I’ve been talking about rotation out of winners, especially momentum stocks (also known as High-Beta) in the last couple of weeks now. Yesterday selling in names like Facebook (FB) and Amazon (AMZN) snowballed into boulders. Whenever there is this kind of selling, folks start talking about fundamental questions, but I don’t think that’s the issue.
Those names will dominate our lives for decades to come.
More importantly, where is all that cash going?
With the NASDAQ getting hammered, the small-cap Russell 2000 made another new record high. That’s mostly ‘hot money’ buying the newest breakout. Ironically, some of that cash is shifting into brick-and-mortar retailers, including three of my favorites:
- (TSCO) Tractor Supply Company
- (TJX) T.J. Maxx
- (BURL) Burlington Coat Factory
It’s early, but holiday hiring announcements are already out; 100,000 at Target and 80,000 at Macy’s underscore that perhaps it’s too soon to write off brick-and-mortar retail. We get the latest on consumer sentiment today.
Crude Awakening
Don’t look now, but crude oil has stealthily climbed to $52.00 - a critical technical point of resistance. This is where a crude rally failed back in May sending oil crashing lower, where many experts were talking about an even greater collapse.
The biggest driver for crude is a more sober OPEC and a decline in inventories in America. Although there are signs of more global demand as well, I continue to think crude at $60 is a net plus for America and those great jobs and investments.
There is a lot of economic data that is never talked about even on financial television. However, we follow closely as part of our macro inputs, and I must say that the data keeps me confident and excited about this economy and the market.
Animal spirits are alive and well.
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NFL Kneeling Controversy I wish professional athletes understood that the national anthem reflects upon the greatest country and our U.S. Constitution. In my opinion, when the national anthem is performed, athletes should swell with pride. I love the national anthem. I think of my father and so many others that put their lives on the line for this country. America is built on a system that is deliberately designed to help “we the people” to seek remedies against prejudice, unfairness, and other ills. Our U.S. Constitution even allows us to kneel, although doing it during working hours is up to employers. I say, don’t protest the symbols of that system that allows many athletes to earn millions in the first place. Voicing opinions and protesting are American rights. However, the protest shouldn’t overshadow the grievance. You shouldn’t turn potential allies into critics and foes. It’s easy for one to kneel before a game, but it takes more effort to go into communities to build schools and sponsor/invest in skills for success workshops. |
Today’s Session
Stocks looking to open higher at the open, a small bounce that will be a good test to see if sideline money will take the bait. The first 30-minutes of trading is normally not the time big money moves, unless driven by major news.
| Comments |
| I believe that the NFL was a non profit up to a few years back, the 'kneelers' are taking away from the team, fans,, and game. CK went back in time with his hair style ( like he is part of the 60's no CK your like is a dream compared, imo) so CK et al could bring these "without a voice" to a game maybe 25 at a time, talk to them on how bad USA is, and has been to him CK .OR.go build a house for a vet, sick, and helpless,, jja JJA on 9/26/2017 10:26:30 AM |
| Thank you for well reasoned comments on the indiscreet behavior of a minority of the NFL athletes and the majority of the owners. The athletes violated their contracts and the owners showed no backbone in dealing with unpatriotic behavior by those most benefitting from the blessings of this country on individuals. These athletes get paid $$$ to produce nothing for the society and then slam the society that gave them the opportunity for that career path. Their behavior is worthy of a sad shaking of the head in amazement at their immaturity. Bob G on 9/26/2017 10:54:44 AM |
| Concerned about the [lack of] reporting from Puerto Rico. Worked there for four years. Yet, we know the FAA and FEMA and others are providing assistance, but there is NO information except for Jeraldo Rivera at his hotel saying oh my god, oh my god. FEMA was there before the hurricane. We know airplanes and ships are getting through. But no information. In Florida and Texas, the governors and mayors provided daily or more often press conferences. We know stuff is getting through, but zero actual information. Al M. on 9/26/2017 11:09:38 AM |
| I don't see sympathy for their cause coming from the fans when they disrespect the flag and anthem. Last nights boo from the fans when the Cowboys knelled was loud and clear. We booed at home watching them kneel. Unless they stop their protest, we will not watch or support the NFL games from here on out. JB on 9/26/2017 11:56:31 AM |
| The NFL and other sports players need to contact their local law enforcement and politicians if they have problems in their communities. Work it out with their officials That is the positive thing to do with their time. Quit grandstanding with demonstrations. Jack on 9/26/2017 12:39:06 PM |
| Alejandro Villanueva has spent his life working as a proud American in the service of his country. I hope he continues to stand for our National Anthem. Rosemary Dunn on 9/26/2017 1:11:32 PM |
| I could not agree MORE with the "boooing" fans in Dallas at the kneeling display by Jerry Jones and his team. I agree with SO many others who read your postings each day, Charles, that an athlete kneeling causes my TV to click OFF and I will CONTINUE to display MY disapproval of this pathetic athletic display NOW and in the future. It absolutely AMAZES me that these high-paid "performers" have begun to act like their COUNTERPARTS in Hollywood with some crazy belief in the backs of their heads that we, their FANS, won't view their actions NEGATIVELY! Well...?? Sports Teams Owners....take NOTE: YES we WILL!! Continue with this nonsense and just watch how QUICKLY the American Spirit shines forth by boycotting the NFL and any OTHER sports that perpetrate such TOTAL DISREGARD for our nation's flag and anthem! James Warlin on 9/26/2017 2:41:08 PM |
| If anybody disrespects the flag on Thurs. night football my t.v. will be turned off again. John Cowger on 9/26/2017 4:02:43 PM |
| On your show today you mentioned the "establishment republicans". Can you name them so we know who are the obstructionist. Robert R on 9/26/2017 8:12:48 PM |
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