Stocks and a retreat from record highs in the premarket. Amex, nike, and apple are all leading the dow lower. Plus, a big change at the top of American Express. Ken shenalt is stepping down after 17 years at the helm and 30 years later, lessons for black monday for todays stock market as stocks continue to break new ground we are set to open lower after wednesdays rally, in which the dow closed above 23k for the first time in the meantime, two dow components out with Quarterly Results this morning verizon posted revenues above consensus, helped by some Strong Performance in smartphones travelers, better than expected results, although it did suffer 700 million in catastrophic losses related to the hurricanes, harvey and irma. This nike downgrade, guys, is going to take some wind out of the sails, too you know, its funny. I question the value add of the downgrade. Which is, by the way, goldman. And the reason i question the value added, theyve got a big Analyst Meeting come up. Its all
You. Thank you. So, when you were with us on august 7th, you said the market is fully valued. From then until then the Dow Jones Industrial average is up 6 , the s p up 4 we overvalued now . Not yet, no i would say that, you know, basically bull markets ended over valuation and i dont think were overvalued use whatever adjective you want to describe it the market is not cheap and its not expensive. So as i think ive been saying, i think were kind of approaching normalization, and to me normalization is a 17 multiple on earnings and the trick is what is the earnings youre looking at . You know President Trump and the republicans get their way, and we have a tax package, you can see earnings next year in the s p about 150 and the 17 multiple and 150, i think its 2550 that would be fair value, full value but fair values, and, you know, most bull markets end over valuations so took another 10 to 15 to that number. The trend is favorable and the conditions that normally lead to a big market
Thats exactly what happened today. Where the dow advanced 86 points, while the s p backslid the nasdaq tumbled 6. 3 . With a session like this one, all sorts of people will come out of the woodwork and say the rally in the tech stocks, the clear market leaders is now over youre going to hear some commentary, some very scary commentary about how everything thats expensive is now out, and everything thats cheap is in. Because after all, the best performers this year with a handful of exceptions were slaughtered today. And the worst ones, especially the oils, rallied. I expect there will be a ton of bears trying to make you feel like an idiot for owning the best performing stocks im talking about stocks like that of amazon, which is trading down tonight after reporting disappointing earnings, even as the revenues were super. Theyll say this is 2000 all over again if you havent heard that already and that you need to get gains right now or go home is what do you do . Should you jump on the
Courtney reagan who is in for sara today who is on assignment. Good morning. Good morning. Lets get straight to the market action. Rallies across the board. Record highs across the board yesterday as we said already. The dow, s p, the nasdaq, russell 2000, s mid caps and th dow all hitting fresh highs yesterday. Extraordinary stuff. Broadness of the rally. The dow called higher this morning by 42 points. S p by 3. Nasdaq by 3. 5 points. U. S. Equities doing well. We also saw equities in europe do well yesterday. Lets look at what the euro did over the last 48 hours or so. It moved very sharply. Initially going about a percent higher. When the decision from the ecb was announced, the market was focusing on the fact that the monthly size of purchases was reduced, there fourth euro rallying on the expectation, that meant stimulus was being withdrawn. About an hour later, when the press conference began, the euro fell sharply. About a percent and a half down for the day. That was when mari
The market pretty much yawned after the inauguration. Okay, dow edged up 95 points. S p advanced just 0. 34 . Nasdaq gained only 0. 28 . You know why . Because weve heard it all before. Yep, weve been living with trumps presidency in waiting for nearly three months, and i cant think of a previous elected official who has given you more of a progrowth game plan than donald j. Trump. Hes been giving a dry run for ages now, which is why ive been so flummoxed by the endless pundits who keep saying, look out. Here comes a real swoon. Now, look, swoons can happen. I think swoons, though, come out from left field. Huge selloffs come from viciously overbought markets that are jarred by the unknown. Like if trump had ordered all the democrats off the stands, or he said he needs to challenge the checks and balances in the constitution in order to make America Great again. We didnt get that. His inaugural entrance was pretty much the same thing we heard when he was stumping around the country. Wh