You do you reach for the stock equivalent of comfort food something that tastes just like the great bull markets of thats right you reach forfang, my acronym for facebook, amazon, netflix and google this session its more like fang because microsoft has become red hot. Netflix suffered a rare decline. The tech stocks led us higher. With the s p rising 1. 67 , and the nasdaq zoom being 2. 80 , it was a matter of time before we return to the tried and true this market has been going through groups like theres no tomorrow first we had the rally in the defensive Consumer Staples during the work from home nuclear winner the stocks rebounded we started reopening hospitals for nonessential medicine a run up in the big box retailers. That group seems a tad exhausted. Weve seen a surge in the Semiconductor Stocks as demand picks up from china and 5 g. Build out looks good continue with analog devices, amdi a decent quarter. A run in industrials as people bet the economy might be coming back as a
Global trade war all of this comes together and says you should probably be selling industrials and autos. I dont think these are just oneday quick trades but do think the response from markets today was very interesting think of the rotation weve had over the last month and think of the reaction weve had in the last three days. It is beginning to build back on, hey, lets take back much of what we lost that is how we appear to be ready to open up tomorrow. The first leg lower in the markets happened when President Trump was in front of the u. N. And talked tough on china, mark and the results from nike this afternoon would probably give some investors some hope that perhaps there are companies that could buck the trend is nikeidiosyncratic. Its been the consumer that has driven the market and the entire world not just the u. S. Is relying on the consumer the consumer has been strong and rye sell yents in the u. S. A lot of these consumer names are still strong a lot of them are hitting
Usually, but i had to take one i kept reminding you that good things can still happen. Sure enough today we got a confluence of great news that made people want to buy hand over fist. Buy, buy, buy, buy, buy, buy. S p up 1. 3 and the nasdaq pulled 1. 75 hallelujah. What happened what happened . Remember the consensus on wall street we were headed for recession, right well, then we learned that the white house has restarted trade talks with china we got some strong Economic Data terrific jobless claims number wrap it up i should have gotten a bow, wrap up a box and you have all the ingredients for a spectacular rally. So where do we go from here . Isnt that what matters . That was history before i break down my current world view let me give you some anecdotal evidence about where we are or at least where we thought we were until today. Im walking down the street going over to my small mexican place san miguel, you know what im talking about. A very nice neighbor stopped me and said, wi
Level, i was president thinking about the fed like everybody else i was thinking that stel, yes, stel is a wonderful thing. Hallelujah. What do i mean by scale a company with scale is a company thats big enough and powerful enough to control its own destiny. A company that scales is one that survives and then thrives in even the toughest environment that a fed chief is worried about or anybody else. Just listen to nothing but washington scale, scale simply being bigger than the other guy, a lot bigger is an enormous advantage we saw the benefits play out today. Exhibit a, amazon. It crossed the trillion dollar threshold this morning amazon didnt become this unstoppable behemoth because jeff bezos is brilliant, which he is. It got here by leveraging scale. Amazon is dominant because its so big they use that scale to get better price from the suppliers to pass on to you. We have antitrust law because when you get big enough, well, no one can compete against you bezos saw how he could use
Candidates couldnting more different, and the polls are very close. So the level of uncertainty is much greater than if we had a runaway frontrunner. Does the fear make sense . Should the averages have been merciless . Frankly, i dont want to make any determinations because at the end of the day, this is a political question, and that means its up to you. My expertise is picking stocks, not politics. There, even for one evening. But i just cant ignore the elephant in the room because that would mean ignoring whats driving the market, and thats whats coming up at 9 00 p. M. On cnbc. The first of the president ial debates between donald trump and Hillary Clinton. Im tuning in. I hope you do too. So where do we begin . Lets talk about what business thinks first of this election. As the wall street journal reported in an amazing story last week, and i quote, no fortune 100 ceos back republican this kind of tsunami support for clinton explains one of the major reasons for todays decline. It