00:15 Josh
That is the closing bell on Wall Street and now it's market domination. Overtime, we're giving you full team coverage of all the moves to get you up to speed on the action from today's trade. Prairie operating company EVP market strategy, Lou Bassinese as well as Yahoo Finance's Jared Blikre, join us here to break down all the moves. Jared, let's start with you on that close.
00:37 Jared Blikre
Thank you, Josh. Uh we saw some positive action into the end of the day. We'll start off with the Dow, which still ended in negative territory, a whopping 25 points to the downside, but let's look at the chart here. You can see regained most of that lost territory in the final minutes. and then you take a look at the Nasdaq, which was already in the green, it added to its uh gains uh as of one hour ago and it ended up the day about 1% higher. and the S&P 500 climbing with into the end with a half point or half a percent increase. and I'll close with the Russell 2000 here. Russell 2000 small caps were not able to pull it out in the end, uh still down about 3/10 of 1%. I went over the bond moves uh in the last hour, but I just want to show the 30 year one more time. It was approaching 5% but it's down another eight basis points to 4.89%.
01:21 Jared Blikre
And with that, let's move on to the sector action where we see communication services by far and away the leader up 1 point, almost 1.7%, followed by tech up uh 60 of a percent and then trailing the S&P 500 itself, we got consumer discretionary. So if you're uh paying attention there, we got all three mega cap sectors in the green. and then to the downside, crude oil really taking a toll on the energy sector that was down over 2%. and then some of the other cyclical sectors uh also down about two/3 of a percent for materials and then half a percent for industrials.
01:46 Jared Blikre
And you take a look at the Nasdaq 100, pretty solid performance by the mega caps overall. You can see Microsoft just barely finished in the green there. Nvidia almost regained uh some of the losses that that it had earlier in the day. Alphabet though having its best day in a number of weeks up 9%. Apple also outperforming up almost 4%. That was powering the uh tech trade and also the communication services trade and not a lot of action to the downside there. and if we take a look inside the semiconductor, uh we can see a lot more red than green. So semiconductors really not pulling it out today.
02:22 Jared Blikre
But software a lot more positivity. You got Salesforce up over 1%. So was IBM, so was into it, so was SAP and workday Zoom and the list goes on. And if we take a look at the Dow, we're also seeing uh kind of a mixed board here and you can take away the mega caps and if we sort by performance, I'll just show you how the uh final split uh a little bit more red than green and not surprisingly to the downside, the biggest uh underperformer was Chevron, part of that energy trade I was talking about. Back to you, Josh.
02:51 Josh
Thank you. Appreciate it, Jared. Lou, your thoughts on the trading action today?
02:54 Lou Bassinese
Yeah, I really want to see some follow through tomorrow because this favorable ruling for Alphabet really removes a major regulatory risk from the entire big tech sector for the Mag 7. Uh want to see if that can follow through. Alphabet has more room to run. It's the cheapest of the Mag 7 stocks at about 20 times earnings. So I think this rally continues for them, but does it carry through and have a halo effect on the rest of the sector? And then energy is a key focus point for me. Oil down another almost 3% today.
03:22 Lou Bassinese
I would argue and this is a contrarian stance. Goldman Sachs is out saying oil is going south of 60. I'm telling you the sweet spot for most producers in the US is between 65 and 75. That's what they need longer term to profitable produce oil. We're going to head back there gravitationally uh in the next six to nine months, I believe. That's not priced into this market. That would be slightly inflationary. but I agree with the previous guest that AI is a huge deflationary balance to to any reinflation.
03:49 Josh
Well, it was interesting. We were talking together to Mark Newton, the great the great technician, chartist. He sounded broadly constructive, not just when he was talking about the chart, but I thought it was interesting with Mark, if I'm paraphrasing, he kind of said, listen, earnings solid, economy's hanging in there, Fed cuts on the way.
04:14 Lou Bassinese
Yeah, earnings are the most solid thing that people are underestimating. If you look, the estimates for this quarter going in right before at the start of the quarter was for about 4.9% earnings growth for the S&P 500. It came in at 11.9%. This is the second quarter in a row that actual results bested estimates by more than 2X. So I think this is a very good harbinger of the underlying strength of the economy and corporate profitability and that translates into higher stock prices.
