The dow coming off its first close ever above 30,000. Still down 180 a lot of focus continues to be on the socalled cyclical trade, energy, banks, airlines all pacing for their best month ever rob, its good to see you again. I come to you first because your note to our producer today really piqued my interest. The last three weeks, you say, were transformational. How so i think going into this, scott, we did not have a prospect for a stimulus plan it pivoted focus to the virus and the virus count really, really increasing. Since then youve had three months of very, very positive news on the virus front. Youve had an election outcome that appears to be more and more benign with the actions of the with the actions of our president elect. Specifically nominating janet yellen it looks like it was an outcome that was squarely middle of the fairway that was not too far left, not too far right. Really goldilocks like from my perspective. Now youre at a place where when you look at major pivot
Small caps having a pretty good day as well. The commentary seems to be the market feels a little tired. Is that how you see it yes i do suspect that the market is fatigu fatigued certainly on monday mornings consecutively weve been greeted with excellent news for society as it relates to the vaccine but markets dont seem to be responding as positively as they did two weeks ago. Scott, you began the show by suggesting that we have a potential end of year run. For there to be an end of year run, we are going to need a catalyst and i suspect its not the vaccine, its not earnings, and it really falls back to washington, d. C. And the ability to try and offer some form of fiscal bridge to get us to the other side in the absence of that, i would just highlight december 15 the and 16th, you have a Federal Reserve meeting. Theres a wild card scenario there where the Federal Reserve steps in and enhances some of the landing programs and provides the bridge in the absence of fiscal policy maker
Leventhal and liz young. Liz, is this all about stimulus or are were genuinely concerned about these cases were seeing in europe . And, by the way, were doing a lot of cases here every day, too. I dont think its all about stimulus but were in the middle of a really heavyweight news cycle and its not allowing us to look out any further than about 30 days at a time. Ultimately in 30 days time the market is lower than today just on monday the s p was up 5 month to date. That didnt make common sense. Were in the middle of a highly c contentious market season and were still waiting for stimulus in the short term i think we should see a pull back here but in the longer term and even in the next three to four months, some of the fear around a blue wave has been a little overblown and the market has to weigh the two sides. On one side we might see higher tax ees and stronger regulation and on the other side some of the tariffs may be rolled back as an investor, even if we have a pullback in th
S p 30,038 russell out performing everything today lets begin our conversation, joe. Really want to use these last days of june to discussion where the money is going to be made in the next six months. First half is going to be in the books in a couple of days. Its been a turbulent one. We know that what do you think is in store for the next six lets talk about the last couple of days so we can look toward the final six months. A lot of complexity here first of all, you have the russell rebalance. You have a 10 decline in the last five days for facebook and the immediate question for me is does that have an impact on the Technology Sector. If i look at the sectors, technology is the only leading sector in the month of june. Are we going to get weakness here out of the Technology Sector i think that extrapolates further to more weakness throughout the summer for technology and there in lies your opportunity to take advantage of that orrection. How about the performance for the emerging
Industrial average is up more than 760 points. Steve weiss, i go to you first is this how a bottom, at least a near term bottom, is made . Does it feel like we are trying to do that today right friday we started trying to do it, towards the last hour of trading powell came out and talked i dont think there is any surprise to what he said i put some exposure on then. Put more on this morning feeling good about the market. But i think it is going to be shortterm heres why the u. S. , as of friday, performed 500 covid19 tests right . Putting that in perspective, the uk performed 8,000, south korea performed 65,000 the point is that once we start ramping up those tests and pence said we would have 5,000, you are going to see in my view more major outbreak in the u. S. You think the numbers are going to go way up. Dramatic and that will put pressure on the market last week alone i spoke to five Tech Companies you hear them saying 50, 60 are back to work when you ask them to break down the n