00:00 Speaker A
We, uh, managed to close up 10 points. I think investors will take that if you're looking at the Nasdaq. We'll get to that in a second, but now up about two basis points on the day, and you can see it just barely climbed into the green, the very final minutes here. Nasdaq composite, a different story. Worst day for the Nasdaq, the S&P, and the Nasdaq 100 here since August 1st. And you can see the composite down about 1.5 percentage points. S&P 500, not too bad, down 0.6 of a percent, but you can see it was down in the red most of the afternoon, deep in the red there. And then we'll also show the small caps S&P 600 managed to eke out a close, a positive close as well. I don't do this often, but I'm going to show you the Dow Jones Transportation Average. So this is the stuff, the stocks that ship the stuff. They were up 1.5%. So basically the amount that the Nasdaq lost. So interesting day of bifurcation here, some big winners, some big losers. And when we look at the S&P 500 sectors, we can see that playing out here. Real estate was up 1.81%. We saw a drop in long-term interest rates that helped that move, but we also saw staples up 1%, utilities also up nearly 1%, health care up a fraction of that, and also materials. Then tech, as I said an hour ago, that was the only underperformer of the day, next to the S&P 500. And if we take a look at the Nasdaq 100, you see a lot of red, but it's mainly concentrated in some of those bigger issues and also a lot of those higher momentum issues that have been doing well recently, like Palantir, which is down 9.35% today. If we take a look at the Dow, we also see a lot of red, but more green that I think on a percentage basis than we see in the Nasdaq 100. Home Depot, that earning story up 3%, although Boeing down 3%. So some winners, some losers there. And I'm going to just do a deep dive inside of tech real quickly. Here's what we're seeing in software. Oracle led the way down 6%. It was one of those recent high flyers. And then here the semiconductors, and here we see a lot more deep red, Nvidia, Broadcom, Taiwan Semi, AMD, all down more than 3%. So is ARM, by the way, and Marvell. Finally, a look at smaller disruptive tech, and aside from Tesla, we do see a lot of these names in deep red as well. So a lot of the fringier parts of the market and also some of the mainstream parts of the market that have done well recently got rotated out and just didn't do as well today.
04:52 Speaker B
All right. Thank you, Jared. So, your take on today's trade, what do you make of it?
05:00 Speaker C
Yeah, I think that it's a little bit of par for the course in terms of the market was right for a pullback, right? But today was actually the worst pullback that we've had since April, or the second worst I should say since April. Um, you know, between the liberation day positioning and and yesterday, MAG 7 had rallied about 40%, right? So I think a pullback is is reasonable, and I don't think we should worry about it so much. It's also healthy for markets. I'm not too worried about it today, but I do think that we're priced for perfection. And so in terms of the long-term run-up, you know, that remains to be seen kind of how much further could we go from the average levels that we were at the last couple of years.
06:03 Speaker B
I've had plenty of strategists, by the way, come on, say they think we're due for a broader pullback.
06:12 Speaker C
Yeah, I think so.
06:13 Speaker B
That makes sense to you. How do you think, let's say we see that pullback, how do you think investors respond to that? Is it just, hey, they jump right back in? What do you think?
06:24 Speaker C
Well, I think what investors do will dictate what happens in the second half of the year, right? So we saw some of the biggest names have pullbacks today. We talked about Palantir today, we talked about Nvidia. These are the these have really been the classic darlings that people have been pouring into. And so now that you have these names pulling back, particularly Palantir, if we see the buying on the dip come into play tomorrow and over the next couple of days and, you know, go back to status quo, then that tells me that, you know, investors are pretty bullish for the second half of the year on these names. If we don't see that, and then we kind of see continued momentum to the downside, then perhaps we'll have to re-evaluate there and see if there'll be, you know, kind of more diversification across breadth within.
07:23 Speaker B
Is it fair to say, correct me if I'm mischaracterizing, that even if we saw some near-term chop,
07:31 Speaker C
Yes.
07:32 Speaker B
you sound generally constructive, looking at earnings, the economy. Is that fair?
07:42 Speaker C
Yeah, I think for me, the issues that concern me are broader based issues. They're things like geopolitics, they're things like tariffs. I mean, the earnings, we talked about it before, earnings season was really good, right? You had the highest percentage of names beating on EPS, beating on revenues. We're talking about 80% of the companies reported on on both of those numbers. Um, capex is very strong, buybacks are strong, macroeconomic data is strong. It's softening a little bit, but it still remains in a good spot. And so that soft landing has come, corporations are strong. And so I think it's going to take kind of a bigger event to see a massive pullback, but that being said, you know, pullbacks of 2, 5, 10%, they happen throughout the year, even in the best of markets. So.
