Morning Commentary
Greed is back, and that’s excellent news, as there was a lot of green on the screen.
Mid-caps had the edge yesterday, which isn’t surprising. Deep-pocketed investors want to move down in size but focus on better quality in mid-cap versus small-caps (especially in the Russell 2000).
Green Shoots
Almost all the red specks on the Heat Map had stories or downgrades attached. These are the kind of green shoots investors need to see. On that note, investors are still most comfortable when Technology (XLK) leads the parade.
Broadening Out
The move-in Materials (XLB) encouraged me as we have been hammered. Yesterday's moves were significant, indicating how oversold many of these names have become (think of stretching a rubber band—the further apart, the faster the snapback).
We are still buried in the Albemarle Corp (ALB) stock, but moving in 7% chunks helps.
We have been primarily focused on cash, but I admit to apprehension. Everyone is ‘long’ as the S&P 500 has rallied nine straight sessions. It's easy to think some money can come out of the high-flyers and rotate into the other 490 stocks in the market. But the fork in that road is the money that seeks shelter on the sidelines. I don’t know, but it's critical to understand what you are holding.
Consumer Price Index (CPI Time)
We get the latest read on inflation this morning, just after Jay Powell spent the last two days hinting he will take his cue from the jobs market before the Fed cut rates.
Expectations.
Potential Reactions.
Today’s Session
CPI comes in below consensus on a monthly and yearly basis.
Shelters remain elevated, and sadly, medical care commodities continue increasing.
Stock of the Day
Delta (DAL) missed the top and bottom line, and while results were narrowly less than expected, guidance sent shares spiraling ahead of the open.
Some of this is a supply issue, but the real story is the great demand many have held up as proof of a strong consumer, which has been driven by intensifying discounting.
According to booking app ‘Hopper,’ the summer forecast shows airfares down six percent through August – the first summer decline since 2020.
Airfares have come down four consecutive months and have plummeted since peaking in June 2022.
This trend is not the sign of a “strong” consumer.
Comments |
Charles I feel your pain...I have ALTM, Ric Walter Ric Walter on 7/11/2024 9:54:20 AM |
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7/3/2025 9:45 AM | NICE & STEADY AS SEMIS CONTINUE TO CHIP IN |
7/2/2025 1:44 PM | Materials' Strength Continues |
7/2/2025 9:38 AM | BARNBURNER |
7/1/2025 1:29 PM | Rotation |
7/1/2025 9:45 AM | FEAR OF MISSING OUT IS CREEPING IN |
6/30/2025 1:24 PM | Steady As She Goes |
6/30/2025 9:54 AM | SUMMER RALLY STARTS |
6/27/2025 1:35 PM | Reaching New Heights |
6/27/2025 9:39 AM | THERE'S MORE! |
6/26/2025 1:10 PM | S&P Approaches Record |
6/26/2025 9:51 AM | CHIPS MOMENTUM CONTINUES |
6/25/2025 1:42 PM | Tech Stocks Power Nasdaq 100 |
6/25/2025 9:47 AM | CLIMBING MOUNTAINS OF WORRY |
6/24/2025 1:47 PM | Peace Rally |
6/24/2025 9:48 AM | PEACE THROUGH STRENGTH: THE MARKET LOVES IT |
6/23/2025 1:47 PM | Getting Some Resolve |
6/23/2025 9:51 AM | BRACING |
6/20/2025 1:29 PM | Second Triple Witching |
6/20/2025 9:38 AM | POWELL BLEW IT |
6/18/2025 12:41 PM | FED Day |
6/18/2025 9:45 AM | ROOM WITH A VIEW |
6/17/2025 1:26 PM | Tension Continues |
6/17/2025 9:50 AM | THE BIG TECH TEN & CO |
6/16/2025 1:34 PM | Fears Subside |
6/16/2025 9:44 AM | DRUMBEATS OF PEACE |
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