Earnings season continues.
BA will be front and center today, a name that has led the DOW for a long time. It is down $14…about 80 or so DOW points.
Yesterday was weird. While the Dow moved higher, growth names turned south, with some slammed. With the Dow up almost 200, the RUSSELL was down over 1%, mid-caps not much better…and the a/d more than 2-1 negative on the NASDAQ. A/D on the NYSE was also to the negative.
AUTOS also hit this morning as market does not like FCAU and GM numbers.
Want to make note that the prez now bails out farmers because of the tariffs the prez has put in place. I am vehemently against these tariffs…but if they can move the needle, I will applaud the prez. So far, no one is laying down. Hopefully that changes.
Some random thoughts and markets:
USA TODAY front page article: “CLIMATE CHANGE LINKED TO SUICIDES!” I guess you know what we think of these headlines. Do these people just make it up as they go along?
S&P futures down a wee bit…NDX a little bit more.
RACE down $7 as CEO looks like he is stepping down for health reasons.
LPNT up big on a buyout.
After the close:
Before tomorrow’s open:
MMM, UTX, VZ from the DOW. Also, BIIB, HOG, PCAR, SHW, JBLU, KMB, CNC, DGX.
Last week, the market simply sat. There is nothing wrong with the market sitting quietly, even into earnings season. But one thing that sticks out for us is that while the normal bulls are still out, we are surprised by how many bears are out there. One hedge fund announced they sold all longs. We are constantly reading how the economy is topping, the yield curve is going to invert, earnings are peaking. tariffs are going to kill the goose…the list goes on an on. But quite surprising and maybe a good thing that so many are bearish.
For sure, plenty of areas are still not working. We have highlighted all those areas for you. But for the most part, major indices act ok…a lot of range-bound action but for the most part, act ok.
The NASDAQ/NDX/RUSSELL remain the strongest. The S&P less so. The DOW remains the weakest.
TRANSPORTS, FINANCIALS, INDUSTRIALS, MATERIALS again range-bound.
Most EMERGING MARKETS are another story. While improving off lows, still relatively weak.
Sit, relax as markets wind their way through this action. So far, it has been nothing more than a working off of the move from the election to the highs of January. This is quite normal if the market is going to break out again in the future. Of course, if the long-term lows that were tested recently give way, we will have another story for you…but as we have told you, we do not expect that to happen at this time.