The market opened higher yesterday and held on until the closing bell. Growth led the way as investors bailed on safe haven sectors and Energy (XLE). Estee Lauder (EL) led the way, over assumptions that the company was in play after Leonard Lauder's death.

Lots of consumer names fetched bids.

Lots of Green on the Screen

Those big green squares and rectangles paved the way.

Factors

Mid-and small-cap revenue stocks powered ahead of the pack, and momentum also enjoyed a solid session. The market isn’t euphoric, but yesterday, had a greater sense of urgency than I’d seen in a while. It will be interesting to see how much anxiety sets in as the S&P 500 (SPX) approaches its all-time high.

NASDAQ-100

On the other hand, there is a sense of euphoria with names in the NASDAQ-100 (NDX), which is one percentage point from testing its all-time high.

Relative Strength Index (RSI) positioning suggests this move won’t stall at a double top. It's ready to rip!

NASDAQ 10

For all the handwringing over how much the “Mag Seven” represents the S&P 500, the NASDAQ 10 Big Tech names account for 13.9% of total global stock market capitalization, up from 1.6% in 2000.

• From 2012 to 2024, they rallied 1,560%.
• These names are ‘American Exceptionalism’ personified.
• And yet, the Street keeps betting against them. Don’t.

A big slate of economic data out today will sway the action.

Today’s Session

President Trump departed from the G7, a day early, to attend to the situation in Iran as scuttlebutt grows of potential US military involvement.

Headlines:

Queuing the Bunker Buster

On October 17, 2024, the US reportedly dropped a bunker buster in an area outside of Sanaa, Yemen.  It was a heavy-handed use of force, but it was meant to do more than destroy the weapons caches of the Houthis. 

It was a warning! 

Retail Sales

The report came in below consensus in each metric, except the control group, which is the part that goes into GDP calculations.

The market is not overreacting to these headlines, but this situation is in flux and could move the needle today.

Plus, leaks out of D.C. and on-budget maneuvers are impacting the market. Solar names were crushed on the word, and all subsidies are on the chopping block.

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