Bring in Eric Criscolo, market strategist right here at the New York Stock Exchange.
So you actually told me about the Alphabet news.
I had not really seen it or paid attention to it.
What did you see around the 2 o'clock hour?
And we could kind of see, given how consolidated, how important a name like Alphabet is, put some downward pressure on some of the other MG 7 stocks, and then we saw the S&P.
We're not going to close its session lows.
But not very far off.
Yes, so the weakness today absolutely concentrated in tech, basically the semis though, the memory names, the names that have absolutely been on an incredible run the past 3 months, 6 months, names like Sandisk, which 10x this year, they're pulling back and it's really concentrated in those tech names.
In those memory names in those semiconductor names, the hyperscales were actually doing well recently.
Even Google, even Alphabet, they did have that news at 2 o'clock that took Alphabet down, but the other hyperscales were holding in there.
They were doing well.
So it's the weakness is very concentrated right now.
The S&P 500 declined, but the equal weight was up.
About 0.5%, so about a 1% difference between the equal weight and the S&P 500.
So a lot of the stocks are actually doing quite well and a lot of outperformance here.
Let's take a look.
Consumer staples, healthcare, real estate, energy.
So it's not tech doing the heavy lifting, but at least we are seeing market rotation where investors are saying, hey, we usually like these names, at least for today we don't like them as much, but we find other names that we like a little bit more.
In the short term, yes, we've been talking about rotations this entire year.
It's been a staple of the market complexion.
Flows just coming into a sector, coming into a group, rapidly coming out of it.
The flows are fast and they're big.
A lot of it was going into tech earlier.
Now it's coming out.
It's not surprising.
Like I just said, some of those names are up an insane amount over one year.
So seeing that money come out, investors booking their gains and looking for the laggards, the underperformers to move into, that's kind of the name of the game right now.
I wonder what your take.
First time really you and I are talking at length.
Cooler than expected CPI, cooler than expected wholesale inflation print.
What does the Fed do with that?
As of today we're less than 2 weeks from the July meeting.
Yes, so you've seen.
The rates on the shorter tenure kind of pulling a little bit, especially the two year, so that's kind of telling you that the market is kind of pricing out those those rate hikes that they were pricing in earlier.
However, we still don't know what those task forces that Rorsch has talked about, they're going to come back with their recommendations across the Fed operations, communications, the data they look at how they implement monetary.
Policy.
All of those task force recommendations are going to come out over the next several months.
Then maybe we'll start to see a better, we'll get a better gauge of what the Fed or what Warsh wants to do with the Fed as far as monetary policy.
Right now though, you know, it sounds like we might be in a little bit of a holding pattern for a little bit.
Yes, I want you to take on earnings.
Obviously we're through the big banks.
We've got a few other regional names set to report into next week.
How about a few of these other names.
M3 AT&T.
We've got a few Mag 7 names, Tesla and Alphabet, a bunch of the airlines kicking off.
I mean, here we go.
This is, this is the lifeblood of the corporate markets is earnings season.
What else is on your radar?
And we know investors are paying attention to a lot of these big consolidated names.
Yes, the financials, they were the leadoff hitters.
They're always the leadoff hitters, and they got on base.
They started well.
They said the market, the economy. is doing well.
They don't see any signs of credit stress.
The consumer is resilient, at least the economy is healthy, so they kind of led off.
They hit a single, set up everything else.
Now we get into the kind of the meat of the order. tech, like you said, it's going to be really interesting to hear what Alphabet has to say after they have their model delayed.
IBM is going to report their results.
They pre-announced, had a weak pre-announcement earlier.
Stock got hammered.
Everyone's going to want to.
What they say in more detail and then yes, those other names, right?
Everything else that has been doing well, right?
How do they respond?
What are they seeing?
What is 3M seeing?
It's a huge conglomerate across the globe, right?
How are they seeing the industrial economy play out?
So that's going to help kind of set the tone for that laggard trade or that everything else trade that's been happening.
Eric Riscolo, market strategist here at the Big Board, my man, come back anytime.
