Not even a one dollar increase dny. The fed out with its alphabet soup of programs. Index isays highyield barely visible, but has come down quite substantially if you yield to worst settings re. The lets get some insight on the markets. Banks set to kick off earnings season. We are joined by tom lee, Fundstrat Global Advisors managing partner and head of research. You are not one to shy away from a particular point of view. Tell us where you see the markets headed. I think the markets have absorbed an incredible amount of news and seem to move very quickly, but just as quickly as weeks, i3 over six think the vshaped rebound weve 2800. E saw last week that was a 20 retracement of that entire climb. If we look at the major declines of markets, once the market is able to absorb or recover half of those losses, it is often a good sign that the market is shifting in favor of buyers. So i am kind of constructive. I think youve got to be buying this dip, but the focus is going to shift away f
Morgan stanley also taking down its price target on home depot by 10. Of course, the big event tomorrow in london and england is the u. K. Election. Guy, your outside with the lovely febrile room of st. Paul in the background lovely cathedral dome of st. Paul in the background. Narrowingthe gap between Boris Johnson and competing parties such as labour. Guy exactly. The big news over nice was that the latest poll basically cut Boris Johnsons lead in half to where it was only a few weeks ago. That really is the big story we are watching now. Does this continue into the election . Theres been a lot of talk about the fact that a Hung Parliament cannot be taken off the table. We are going to find out tomorrow at 10 a clock p. M. London time, when the first exit poll is going to come out. Basically, counting ourselves into the election, polls are going to open. The u. K. Is going to vote all day in probably one of the biggest and most significant elections we had for quite some time. As you
Italy at a record low. We will be going to italy in the next little bit to talk to maria tadeo about those talks. The lira down 6 10 of 1 . 8 10 of 1 germany lower. On a flurry of geopolitical headlines, we are joined by tom globalndstrat advisors head of research. Anything in the last couple of weeks to do with the fed, to do with earnings, that has changed your outlook fundamentally on yearend s p 500 . Tom i think theres been a lot of stresses to our base case. Our base case is assuming there is going to be china trade tensions and there isnt going a fed change. Vonnie how much is that a problem . Clearly we are seeing business spending cut back. We are also seeing businesses blame china, like autodesk, for example. How much is it actually impacting the economy . Tom i think the Downside Risk is really escalation. If we are talking about what was implement it even just in the past week, i think the levels of tariffs are still something businesses can work around. I think theyve prov
Action with abigail. Abigail lets stick with this roller coaster theme and ask the question did amazon have a capitulation bottom . Overnight, the futures were actually higher, then down, down, down, almost down to present as you all were talking about earlier today, then up, almost. 1 31 of the most bullish reversals since 2017, that big selloff. S p 500 andbout the perspective on the 50day moving average. Started lasttility winter, we saw the best case for the s p 500 to weave up and down around the 60day moving average. Lots of volatility, however, in the fourth quarter, sharply lower. This does not look like a capitulation bottom, joe, i will toss it back to you. Joe great chart. Thank you ray much am abigail. Still with us, tom lee of Fundstrat Global Advisors and Gina Martin Adams of bloomberg intelligence. Whether it is the september fed decision or the trade war front or anything else, what would you like to see, or is there anything particular you need to see that will help yo
Oracles cloud revenue surging by growing ai needs. The boeing challenge citing delayed aircraft deliveries, rethinking the 2024 financial forecast. Lets begin with the Market Reaction to cpi. We mentioned a tenth hot at. 4. Shelter and gas 60 of that. Surprises in here, mike. Apparel up. 6 , a topic of discussion. Yes. I think what the market did, there was a quick reflection when they said, okay, this is hotter than expected. Stocks back up. Then the rethink was, well, the things that matter and that will translate into what the pce inflation number is going to say combined with how high a threshold was set by powell last week for changing their premise that they are preparing for likely rate cuts in the summer. I think all that fit together. The core services, stubbornly firm, inflation readings there, dont translate that the pci will go in the same direction. Thats part of the mix. We are also geared for shelter being stubborn. You didnt see the uptick like we saw in january. All th