It was another flat session yesterday ahead of Nvidia’s (NVDA) financial results after the close. Although they didn’t move the needle, all the ticker action was in Artificial Intelligence (AI), semiconductors, Bitcoin-related (BTC) names, and gold.

Health Care (XLV) came on strongly, followed by Energy (XLE) and Materials (XLB).

Bottom Fishing

It's an exciting market with momentum names going parabolic and with active bottom fishing in sectors like Health Care, or among formerly hot stocks that came crashing down to earth.

Year-to-date, Health Care is pulling up the rear big time.

NVDA Delivers

Nvidia (NVDA) posted financial results that crushed it in every way, only missing the whisper number. Sales grew faster in every business component than the consensus number, and demand for the Blackwell chip is off the chain.

The stock is a beast and makes its “Mag Seven” companions look like weaklings. I know picking tops is popular on Wall Street, but it’s a waste of time. On past occasions, all the great stocks everyone wished they owned, including NVDA, have gone through this treatment. 

Today’s Session

This morning the Philly Fed Manufacturing report missed consensus, but there is an interesting bifurcation between current and future activity.

Prices are elevated, but slightly lower, and employment improved markedly.