The market pulled back yesterday, but it was hardly “rattled,” as one media outlet flashed on its screen all day. The tariff levels for nations that go into effect on August 1^st mostly reflect the administration’s efforts to block China’s moves to circumvent U.S. duties.

It’s been an obvious tactic, and this is the obvious action that must be taken. The Vietnam deal gives a 20% tariff rate, but on goods known to be originating from China, that rate jumps to 40%.

For me, the market looked lethargic.

There is not a lot going on in the economic or earnings calendar this week. The S&P 500 (SPX) closed at the second-highest level in history on lackluster volume.

Eclectic Leaderboard

Everyone loves Utilities (XLU) these days.

Other advancers:

Widespread Weakness

There weren’t any extended factors that served as a good foxhole, but small-caps were particularly vulnerable.

And extreme greed lasted just one session – but it was fun while it lasted.

Today’s Session

This week is being paced by notes, letters, resignations, and revolution.

This morning, Bank of America raised its year-end target to 6,300 from 5,600 and its monthly target to 6,600.  Their top analyst (and one of my favorites) Savita Subramanian, offered a mea culpa for ignoring their advice on Liberation Day, stating:

"It's dangerous to underestimate Corporate America.”

Goldman Sachs also hiked targets for the S&P 500.

2025 – 6,600

2026 – 6,900

Goldman cited “earlier & deeper Fed easing and lower bond yields than we previously expected, continued fundamental strength of the largest stocks, and investors' willingness to look through likely near-term earnings weakness.”

I wrote yesterday, and in this week’s Payne’s Perspective, that Wall Street firms would have to start lifting their targets for the market.  Interestingly, we are seeing them adjust for this year, next year, and even 2027. 

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