Wall Street Strategies
Hello! Sign in or Register

Morning Commentary


By Charles Payne, CEO & Principal Analyst
5/31/2024 9:27 AM


Suddenly, fear creeps into the Fear & Greed gauge. However, there might be more trepidation about the transition as the rally baton is handed off to 493 stocks that have mostly watched the action over the last two years. But yesterday, large-cap growth and core names took it on the chin. 

What Could Be?

Yesterday, the much-maligned Real Estate (XLRE) Sector led the way, followed by Utilities (XLU), which now enjoy the benefits of being in the Artificial Intelligence (AI) conversation and the traditional foxhole during times of heightened concern. 

A red and green pie chartDescription automatically generated

This year, the ‘Mag Seven’ was already losing some oomph, but it remains to be seen if there could be a sustained rally without these names leading the parade. 


Market Breadth 

Market breadth was impressive, especially on the New York Stock Exchange (NYSE), where advancers outnumbered decliners by almost a 3:1 ratio.  

Market Breadth









New Highs



New Lows



Up Volume

1.9 billion

3.9 billion

Down Volume

1.07 billion

2.04 billion

The NASDAQ Composite is a long way from a gut check.


After Close Fireworks

Yesterday, we issued an alert that we were closing out Dell Technologies (DELL) for a hefty profit. Emotions have been losing influence on the market, putting more onus on fundamentals.  

The thing about the AI revolution is that the hype is far ahead of reality for every stock except Nvidia (NVDA).

Dell came up a little short, and the shares were down 12% in after-hours trading. 


In the movie classic “Blazing Saddles” former NFL star Alex Karras played a character named Mongo, who knocked out a horse with a punch to the face in a famous scene. 


After the bell, software maker MongoDB (MDB) saw its shares hit the ground after posting financials.  The moral of this story is that super-hot story stocks can make monsters move in both directions. 

A graph showing the price of a stock marketDescription automatically generated

Today’s Session

This morning’s critical economic data came in as expected.  The pace of inflation from a year ago is lower, but still sideways and well above the Fed’s inflation target of 2.0%.

A graph showing the price of foodDescription automatically generated

The standout for me is spending declined to +0.2% after back-to-back months of +0.7%.

A white sheet with black textDescription automatically generated

The message from consumers.

It's clear we are spending money on essentials:

We are spending less, even adjusted for inflation:

A graph of a number of individualsDescription automatically generated with medium confidence

Overall, the news has those hoping for rate cuts feeling better, but they need negative surprises to change the narrative, which is now one or two cuts.

The good news for investors is that earnings season is over, and we have data and reactions that will help inform us of our next moves. 

Congratulations Charles on the ten year milestone! Thank you for doing your part to keep the American dream alive and helping others to achieve it!

Jack Lucas on 5/31/2024 9:16:19 AM

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.