Once again, economic data that misses consensus weighs on the market.  Yep, bad, and so-so news is bad and so-so news.

• It was the third straight decline in ISM read, but there were bright spots, including new orders, but still in contraction.
• Prices saw a healthy bounce much like other PMI reads and that doesn’t bode well.

Comments

• Customers’ Inventories Index remaining at ‘too low’ levels, a positive for future production.
• Panelists’ companies continue to indicate that they will not substantially reduce head counts, as sentiment is positive about the second half of the year, though slightly less so compared to January.
• Companies continue to attempt to maintain head-count levels through the projected slow first half of the year in preparation for a stronger performance in the second half.

He’s back.  Elon Musk is once again the richest person in the world. Even as he pushes the envelope in an effort to piss off everyone in the world, at least, shareholders love him again.  We are still waiting to hear comments from the Tesla (TSLA) Investor Day presentation.

This morning, Rivian (RIVN) laid an egg, and the shares are down 18%. Even larger rivals like Ford (F) are struggling with the nuance of competing in the EV space.  I think Tesla is still the name to try to beat in EV.

Alright Alright Alright

Earnings after the bell for Salesforce (CRM). The shares have been rocked four of the past five releases, and yet, this month no less five firms - BMO, Cowen, Ever-core, Wed bush and Barclays - maintained outperform or overweight ratings.

We are holding, as activist have begun to circle the name and could become aggressive with pushing reform.  It hasn’t been a good look paying Matthew McConaughey $10,000,000 as creative director when they are laying off thousands of workers.

Another software as a service player post results after hours…for a while Snowflake (SNOW) was a juggernaut, but more recently, the stock has taken it on the chin after posting result. 

The good news is earnings consensus has been edging higher and higher.

Overall, I still like the SaaS software niche in general – seems to still be growing.  These companies just need better and more consistent execution.