The speaker discusses the performance of the NASDAQ, with Apple and Nvidia facing challenges. The bulk of the damage is being done by Apple, largely due to concerns about China. Nvidia, a semiconductor company, is also affected due to weakness in the semiconductor space, particularly from China. The speaker mentions that semiconductors are speaking everywhere, reiterating the weakness. Broadcom is also down, and the SMH is down near four percent.
The speaker then discusses the performance of
1. The NASDAQ has seen a slight roll over, but did not get very strong today.
2. Apple and Nvidia are experiencing some problems.
3. The bulk of the damage is being done by Apple, largely due to concerns about China.
4. Nvidia is getting caught up in the evaluation of the weakness in the semi-space, particularly out of China.
5. Broadcom's down this week, and the SMH is down near four percent.
6. Semis are down near four percent.
7. Despite the weakness in chips, there are still pockets of strength in the tech stocks, such as cybersecurity names and old tech like IBM and Cisco.
8. Oracle is basically at a high.
9. There are other names across the index, in the software space like Adobe, that are sitting close to a high.
10. The market is still in an environment that has kept it resilient.
11. The trough in earnings seems almost surely to be in the second quarter.
12. The economy appears to be expanding, with Q3 GDP probably going to be stronger than Q2, which itself is stronger than Q1.
13. Until something fundamentally changes on that front, the bias for stocks isn't going to be higher.
14. Greg Branch is going to join the discussion momentarily to make a case he has been making for months.
15. There is a lot of focus on the Federal Reserve, with a meeting in a couple of weeks.
16. The headline inflation rate's probably going to be higher for the second month in a row.
17. The FED might feel it necessary to do one more of the three key inflation gauges later this year or at least pressure to do so.
18. Two of the key three things are going in the right direction.
19. Publicly traded companies Invitation Homes and American homes for rent (INVH and AMH) own 80,500 homes and are still printing rent numbers in the seven seven and a half eight percent range.
20. If the FED continues to raise rates, it will keep leaning on the economy.
21. The answer to whether inflation has fallen from nine to four because of the FED or despite the FED is really important for investors.