Jay Woods, chief market strategist at Freedom Cap, CNBC contributor, and Eagles fan, but, but.
But a very good friend of mine also, thank you for being here.
Always good to be here.
OK, SK Heinek's debut.
Yeah, so look at the way some of these memory stocks ripped today.
Sanddisk, Western Digge, Micron, Sea Gates.
What did you see today?
What do you follow out of that story?
Yeah, well, you mentioned at the top.
Riskon is back and with this debut of SK Heineix, which is what a memory chip maker, where's it based out of South Korea.
The and Samsung basically make up the.
KS, the South Korean index.
Well, American investors are going to be allowed to start buying it tomorrow in ADRs.
And what are we seeing?
A lot of anticipation of this rallying.
And what have we seen in this market rotation?
We've rotated away from memory.
Remember Micron had earnings two weeks ago.
It was trading at 1200 all-time high, greatest earnings in the world.
The stock went back down to under 900.
Now it's getting its feet back, so.
We're seeing a lot of churning in these stocks, but with churning in these high flyers come volatility.
Now let's see how the debut of SK Heine goes tomorrow and what kind of impact that has.
Will the others sell off because they're buying this one to diversify those memory stocks, or will it lift all of them to another new high?
But for me, I think these stocks have had a tremendous run and this churning is good.
Prospectfully, that's not even a word.
Is it a word?
Is it can be.
I don't know.
All I know is it's going to go sideways for a little while in a very wide range.
This is a good thing.
Micron has had 6 18% corrections this year, 4 of them over 20%.
So 4 bear markets this year, volatility is here to stay in this sector, and I think we're going to see a lot more over the coming weeks with this addition on the ADR front.
We are pretty light on, we're very late on quarterly results this week, but the same cannot be said.
Next week we've got the big banks back at it.
Regional banks in particular.
I know are on your radar.
You like a few regional bank ETFs.
We'll get to Netflix and some other names, J and J in a second, but first with the bank's expectations, as before we know it, we're going to be here front and center, earnings Palooza back once again.
Well, you said financials leading and what have we seen in this market?
We've seen a rotation.
We've seen rotations from sector to sector, but we've also seen intra-sectional rotation, meaning within the sectors themselves, intra from the Latin meaning intra.
Within the walls, but I digress.
I'm going back to my Jesuit days.
I know.
Anyway, what we're seeing though is a lot of rotation within the financial sector, and the big banks had led for a little while.
They pulled back.
Insurance stocks breaking out, part of the financial sector.
Those credit card companies, Visa, Mastercard are now seeing a bid, and then the regional banks.
So the big banks, I expect them to have great earnings.
Will it follow through in price?
We saw that with Goldman.
We saw that with Morgan last quarter where they crushed it and then it was already.
Built into the stock, so I expect the regional banks to take the ball, take the baton, and leapfrog the big banks from a performance point of view next week when they perform.
You look at when we talk regionals, we talk stadium stocks, PNC Bank, M&T Bank, uh, at Comerica, a stadium, but part of 5th 3rd.
Now 5th Third bought Come America.
That deal closed in February.
That combined entity, now the 9th biggest bank, that stock fundamentally and technically looks very good to me as well.
So I think the regionals may outshine the big banks next week, but yes, as you said, they're on full display as we go into the heart of earnings season.
Yes, I'm sorry, Levi's and Pepsi, we didn't focus on you enough this week, although I think Pepsi would like us not to focus on them after their earnings results.
But next week will be very interesting.
Before we had a mag 7, we had a group of Fang stocks, one of which was Netflix, NFLX.
Was that the men, or was it Nvidia Netflix was part of the Fang before Nvidia was Nvidia.
And Google was an alphabet and that was the G.
There we go, G going back to my old days was Gillette back in the day.
Before that when it was Gillette, before that, the old timers said no, it's not Gillette, it was Greyhound bus.
So we've seen that G take many different meanings.
It's now gen pack, but anyway, now a path down down history as it should be.
I'm going on too many.
I'm about out of time, which is fine, but real quick, CPI, big one crossing the tape next week.
Yes, economic data will take front stage.
I know earnings are big, but CPI PPI with.
The new Fed chair, we're getting key inflationary data.
He kind of made it seem like that will be his focus.
We'll see what reaction we have to the market.
Watch that CPI 4.2% on the headline last month.
We're looking for 3.9% in June.
If oil spikes, that becomes a bigger story.
But right now we think inflation is not as sticky as it once was, and we'll start to trend lower again soon.
An Augustinian and a Jesuit walk onto the trading floor of the New York Stock Exchange together.
They make magic, my man.
Thank you for being here.
All right, always good.
