It’s hard to say yesterday’s session was a rebound, but the brakes were applied, and perhaps this will be the base for the next leg higher.

Market breadth was mostly bullish, except for that glaring red flag: new lows on the NASDAQ Composite. When the bull market hits rough patches, it’s easy to think it is meandering. There is carnage for unlucky stocks that trigger any reason to sell.

Green Day

Energy (XLE) had a solid session, but Industrials (XLI) was in the red. I need that to be a leadership sector.

We can call it bottom fishing, as Super Micro Computer (SMCI) led the way, hoping the company avoids the delisting of its shares.

Earnings: The Mother’s Milk of Rallies

Earnings estimates continue to drift lower, which is important because a lot of the rallies assume strong earnings gains in 2025.

Housing Data Today:

There will be lots of influential Artificial Intelligence (AI) names that will be presenting at the Microsoft (MSFT) Conference, so we’ll look for news.

Today’s Session

The drumbeat of war drowned out everything else this morning.  As expected, Ukraine has fired US-made long-range missiles into Russia for the first time. According to Russian officials, six rockets were fired, and five were intercepted. Meanwhile, Putin has signed a new nuclear doctrine, making it easier to retaliate with tactical nuclear missiles. 

Big Box Stores Rule

Walmart (WMT) and Lowes (LOW) both beat and hiked guidance this morning.  Walmart (WMT) is crushing it on all sides and prepares for a strong holiday shopping season.

All eyes are back on NVIDIA (NVDA), which reports tomorrow.