Wall Street Earnings Week: Navigating Tariffs and Record Highs

Let's get to the big story breakdown.

It is a big week for Wall Street.

Major US banks coming out with earnings and industrial giants set to follow later in the week.

Key economic data, including inflation figures and retail sales are rolling in.

And in Washington, tariff watch does continue and crypto Week in the spotlight as Bitcoin earlier soared to new record highs.

And at the end of the week, we can't forget about options exploration.

Well, joining me on this Tuesday morning is Peter Tuchman, senior floor trader at Trademarks.

Peter, good morning.

For joining me.

Happy Tuesday.

Happy Tuesday.

So we usually start out the week together, but here we are on this Tuesday morning and we are looking at some key economic data as well as earnings.

So what do you make of where we are pre-market?

So you know, look, the last couple of days after hitting really record highs we saw Mr.

Trump suddenly engage the tariff question again, right?

We had not heard it.

Our, our focus had gone towards obviously the Middle East and and the wars that were happening around the world.

And so that was sort of a little bit of a reprieve.

Right.

And and the market responded accordingly, right?

As long as the tariff thing was not in our hyper focus, the markets were showing us that as long as we're not engaging that part, we really believe that the market should go higher.

You know, I've been trying to analyze how we could, how could it be that markets are trading with still a lot of uncertainty around tariffs, even though it's not our hyper focus at the moment, could be trading at record highs, and look, there's about $6 trillion on the sidelines, so there's a lot of catching up to do by large investments, mutual funds, and Hedge funds.

So that's one of the factors as well as, you know what, look, last quarter, even though we were having a lot of trouble with guidance relative to the tariffs, earnings were good and now we are starting.

You just laid out a beautiful scenario about CPI number inflation numbers that are better than expected.

You've got earnings coming out of the gate that are spectacular with the banks, right?

That is the lifeblood of this market.

It's solid earnings, especially with the banks.

Banks are the first ones to announce, and that usually gives us a sense of where the market's going.

So you know.

We had 3 or 4 days where the market was sort of a little bit sideways with a little bit of a downturn, and that was once Mr.

Trump came back in and in sort of an aggressive bullyish mode talking about tariffs again.

I believe he's matured a lot and I believe he's sort of, you know, has taken back a lot of that aggressive tactic and realizes that we're, you know, I believe that there was a lot of backdoor backroom maybe diplomacy going on while we were focused on the wars as far as deals go, you know, I think, you know, we're talking the EU, the UK, you know.

Laos, Philippines, Vietnam.

A lot of these countries are making deals, and I believe that deals are on the table, and we know that Lutnick and Bessen have been working on things a lot.

So I think we're in a good place and I think it's it's we're showing that once again after 3 or 4 days of a sideways move we're back in the positive mode and the market is reflecting.

Yeah, and Peter, last week we were talking about record highs not just for the Nasdaq and S&P 500 but also Nvidia and here we are pre-market.

We're looking at.

Shares of Nvidia rallying by 5%.

We saw Bitcoin hit new record highs yesterday.

So what do you make of what's going to happen today in terms of AI investment and Trump visiting Pennsylvania?

So I had the portionality of getting back on CNN last night after a little bit of a hiatus.

Dan Ives and I were on for a beautiful 66 weeks there and oh actually more and then we had a little bit of a break around the war area, but we met last night again on Erin Burnett's show and we talked about invi.

Now this this this story with with Nvidia and the chips, you know, Mr.

Trump had made a fairly aggressive move about 6 weeks ago when he outlawed Nvidia from selling these chips to China and you know, and that was problematic.

That was a potential loss by Nvidia of billions and billions of dollars.

But I believe that, you know, there were a number of very close conversations between Jenson Wang and the president, realizing that if they didn't sell the chips to China, then it was going to be Huawei. was going to do it and it would basically, you know, that the US would suffer financially as well as Nvidia suffering financially by not being able to sell that chip to them.

So by yesterday's move, as I said, I think we're seeing a lot of his maturing or coming off of his aggressive tone in so many ways that over the last number of months, you know, he was a contributing to that self-inflicted big sell-off that we had as well as the the rally back, but I think that he's sort of, you know, whether he's weathered.

Or tempered his approach, I think by giving Nvidia the green light to this, this is going to be super solid, good for Nvidia, good for the country, good for Mr.

Trump.

So, you know, we know by our conversations with Dan Ives, and I know you guys are going to have him on the show really soon so that there are trillions and trillions of dollars in capex spending that are on the table for AI across the board over the next couple of years.

We are in, as Dan always says, we're in the 2nd inning of a long game that's going into extra. when it comes to AI and that's the revolution that we're in the midst of.

So AI is the flavor of the moment.

It is going to contribute to billions and trillions of dollars into this market.

Yeah.

And finally, Peter, before I let you go, we have 60 seconds here.

So it is crypto Week in Washington DC.

We're awaiting any announcements that come out from the nation's capital.

What do you make of Bitcoin's rally above 123,000?

You know what I think it's extraordinary.

I think people are looking for a quick return on investment.

They're putting their money obviously in the market. because it's been acting so well, because think about it, you know, we are trading at record highs even in the eyes of a lot of uncertainty, and I think everyone's a little bit curious by that.

There are lots of reasons for it.

Once again, Bitcoin, Bitcoin is something that, you know, we thought when it came out it was going to be a hedge against the markets.

It's not the fact that basically rallies when the markets rally and so its performance is spectacular.

I think a lot of people who finally are, you know, just we're staying away from it, you know, you're always going to see that.

I think that there's a lot.

Of people and funds and portfolios that are playing catch up in the crypto space, you know, they resisted it for the longest time and they realized, look up at 100, 120,000, I've got to get involved.

And so I think you're seeing that.

So you're seeing it flush out all the naysayers and all the buyers are coming in and it's super impressive the way the market is the way cryptos and Bitcoin is acted.

Well Peter, we will have to leave it there, but we'll have you back bright and early on Friday.

So thank you so much for joining us.

Thank you so much. trading.