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Morning Commentary


By Charles Payne, CEO & Principal Analyst
7/2/2024 9:42 AM

They have come and gone
And still the days, those lonely days, they go on and on
And guess who sighs his lullabies

Through nights that never end
My fickle friend, the summer wind

The summer wind
Warm summer wind
The summer wind

Despite the changing calendar pages, the stock market remains resilient. While a few names have soared, the majority have faced the unpredictable winds of circumstances. However, yesterday, the market continued to attract investment, particularly in large-cap growth.

Yesterday was also a day of triumph for the Technology (XLK) and Consumer Discretionary (XLY) Sectors, which have seen a significant rise, while seven other sectors have experienced a decline.

Where’s the Action?

Nvidia (NVDA) was the most active and finished higher after spending most of the session in red ink. They were followed by two names (Tesla (TSLA) and Apple (AAPL), with a history of attracting a crowd – especially the momentum trading crowd.

Amazon (AMZN) is emerging as a value play, a stock that appears to be undervalued by the market and, therefore, a good investment opportunity.

There was some bottom fishing in Nike (NKE) and more selling in Walgreens Boots Alliance (WBA).

Mother Nature Calls Time Out

The biggest decliners in the session were cruise liner operators Norwegian Cruise Line (NCLH) and Carnival (CCL) Sled (I wanted to type ‘sank,’ but that would have been distasteful) as the earliest-ever Category 4 hurricane made landfall, causing a significant drop in their stock prices.

Despite the pullbacks, I remain confident that these are buying opportunities, presenting a chance for profitable investments.

What’s Going on with Industrials?

Construction spending missed the consensus again, as manufacturing is taking all the action. It was up 1.3% from April and +20.3% from a year ago.

These Industrial stocks are screaming buys. 

Be that as it may, this is the stock market these days. A few stocks rock, and the rest are getting rocked.

A few stocks fly to the moon, and the rest meander in the summer wind.

Today’s Session

Anxiety is gripping the market into the open, as Jay Powell is speaking this morning, and investors search for the next spark for the market.

The Stock gauge has moved to its best reading since May 31, just in time, but there isn’t a bullish wave of excitement.

I continue to grapple with Friday’s session that began with a bang for stocks and then evaporated into a sea of red.  The impulse of the stock market comes from the bond market, which saw a huge gap opening for the ten-year yield.  But why?

Crude Awakening

West Texas Intermediate (WTI) continues to move higher after picking up steam through its 200-day moving average.

I like that the move has come without a bunch of cheerleading from the street.

They have been devastated
They need food and water

Colette on 7/2/2024 9:58:51 AM
Earliest ever Cat 4! The Saffir-Simpson scale was developed in about 1973-74, so the earliest Cat 4 in 50 years. Not saying much. Don't fall for the climate BS.

Chuck Lucente on 7/2/2024 10:09:56 AM
The expectation of higher productivity offered by AI Mag 7 pioneers has yet to be delivered. Thatís why better companies with higher earnings arenít yet seeing increases in their prices.

Michael Beres on 7/2/2024 4:19:06 PM

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