Wall Street Strategies
Hello! Sign in or Register

Morning Commentary


By Charles Payne, CEO & Principal Analyst
3/2/2023 9:17 AM

 It was one of those sessions yesterday where the finish didn’t reflect the anxiety of the session, but it was reflected in market breadth metrics.

Market Breadth









New Highs



New Lows



Up Volume

1.86 billion

1.86 billion

Down Volume

2.29 billion

3.09 billion

There was lots of crimsons on the screen, with oil names standing out.

S&P 500 Map

Sector Performance

Energy (XLE) was one of only three sectors that finished higher on the session.


West Texas Intermediate (WTI) has traded in a very tight range but could be ready to make a substantial move in either direction, although it seems more likely it would be higher. A close above $80.00 brings $89.00 into play.


Hover Pad

Servais LeRoy, Keansburg's Monarch of Magic | Monmouth Timeline

The S&P 500 has levitated above the 200-day moving average like a magic show attraction created by Servais Le Roy (see below):

Servais Le Roy (4 May 1865 – 2 June 1953 was a Belgian magician, illusion designer and businessman. He is known for the act Le Roy, Talma, and Bosco and as the inventor of the classic levitation illusion Asrah the Floating Princess.

I must say it’s very impressive, and if the market somehow turns higher from here, the legend of the 200-day moving average as a resistance and support point would take on a legendary status.


If the 200-day moving average gives way, we see 3,800 as the next downside test.


Today’s Calendar

It’s all about the Initial Jobless Claims this morning.

Graphical user interface, text, application, emailDescription automatically generated

CRM Scores

Salesforce.com (CRM) beat the Street on revenue and earnings, but that was only the beginning of the fun. Margins climbed higher. A cynic would question two things on margins:

Again, you want to see this as a shareholder along with strong free cash flow.

Chart, bar chart, line chartDescription automatically generated

Chart, bar chartDescription automatically generated

Guidance was amazing… it beat the consensus for the quarter and a full year.

TableDescription automatically generated


I admit I got the urge to sell when I saw the cover of their presentation (a little corny), but hard to argue the strong quarter, guidance, and $20 billion buyback.

I’m sure the activists will demand more, but even they should be thrilled this morning.

A picture containing text, toyDescription automatically generated

Portfolio Approach

We took profits on a position in Consumer Discretionary in our Hotline Model Portfolio.

Today’s Session

Data out this morning is sending bond yields higher and pressuring stocks, especially high Beta names that generally struggle during higher interest rate spikes.

Initial Jobless Claims

Coming in at 190,000 against consensus of 195,000

Labor Productivity

Four quarter productivity in 2022 stumbled badly as unit labor costs climbed much more than anticipated.

This is backward-looking, but the trend doesn’t help the narrative of a Fed pause.  

Meanwhile, Macy’s (M) beat, and the stock is spiking.  The consumer is on borrowed time but will spend big time until they can’t spend anymore, which could take some time.


Log In To Add Your Comment

Home | Products & Services | Education | In The Media | Help | About Us |
Disclaimer | Privacy Policy | Terms of Use |
All Rights Reserved.