Morning Commentary
There was so much excitement yesterday ahead of Nvidia's (NVDA) financial release that it lost steam, and the market noticeably stumbled after the Federal Open Market Committee (FOMC) minutes were released.
Several red flags for investors were present, including ‘various’ Fed officials mentioning raising rates if inflation warrants it.
At the very least, officials are more unified about holding rates steady (high) if inflation doesn’t fall.
Market Blinks
Consequently, the market finished lower, with only three sectors achieving slim gains. Traditional safe havens fell, but the eye-popping decline in Energy (XLE) was most unnerving. Something is wrong if that is a proxy for the domestic or global economy.
The Greed Train Stalls
The needle on the Fear & Greed Index raced toward ‘extreme greed’ but slipped backward yesterday into the shadow of neutral.
It is Better “To Be Loved”
Someone to kiss
Someone to miss
When you're away
To hear from each day
To be loved, to be loved (To be loved, to be loved)
Oh, what a feeling to be loved
[Bridge]
Some wish to be a king or a queen
Some wish for fortune and fame
But to be truly, truly, truly loved is
More than all of these things, oh, oh
-Jackie Wilson
Wall Street’s love for big tech (XLK) is evident with the lack of sell ratings on key names (many have none). The main problem with this is the only change in these ratings is in the other direction.
Over the past year, tech has also garnered an overwhelming share of fund flow.
NVDA Delivered
The company beat on the top and bottom, raised dividends, and offered strong guidance.
NVDA Looking Ahead
“The next industrial revolution has begun — companies and countries are partnering with NVIDIA to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center — AI factories — to produce a new commodity: artificial intelligence.”
-CEO Jensen Huang
Earnings will feel anticlimactic today, but we, and more retailers, will continue to inform on the actual state of the American consumer.
Comments |
I too am puzzled around energy at this time of year. Saw an article yesterday that the administration was releasing 1M barrows of gasoline from the N.E. Reserve in order to reduce price expectations ahead of this holiday weekend. Might make for great political headlines, but just a drop in the bucket against demand going forward. Terry Dowler on 5/23/2024 9:51:24 AM |
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