00:00The S&P 500 and the Nasdaq notched record-high closers on Monday, lifted by Alphabet and other mega caps ahead of several earnings reports this week,
00:09while investors bet on potential trade deals to blunt economy damage from the Trump administration's global tariffs.
00:15Google parent Alphabet rallied ahead of its quarterly report on Wednesday.
00:19Tesla also reporting on Wednesday kick-off earnings from the so-called Magnificent 7,
00:24and their results may set the tone for other heavyweight companies reporting in the next several days.
00:30Apple and Amazon each gained help lift the S&P 500,
00:34very generally after the telecommunications company boosted its annual profit forecast.
00:39Analysts on average expected S&P 500 companies to report a 6.7% increase in earnings for the second quarter,
00:47with big tech driving much of that gain.
00:49The stock market today seems to be running on hopes that we get some moderation in tariffs,
00:58and also that we've had decent earnings.
01:01Earnings are coming in okay.
01:03We're still very early in second quarter earnings season.
01:06Just about 12% of the S&P 500 is reported.
01:10But the bank earnings look to be pretty solid with good capital markets gains.
01:15And then we've had sporadically good news from some of the airlines as well as the telecommunication companies
01:22that activity is holding in there okay, and the market seems to be cheering that.
01:27On the market side, we are still glass half full, and that really comes from, one, a solid labor market.
01:34Two, corporate earnings are looking really fairly solid for the year.
01:37And three, inflation, even though it's elevated and may creep a little higher, is not threatening the consumer at this point.
01:45So we think this is an economy that can survive, and the markets appear to be doing that as well.
01:51So we may be heading into a bit of a stronger patch as we look down the road.
01:57Certainly there are risks, and we're concerned about them.
02:00But that consumer resilience, low unemployment rate, high wage growth are all helping this economy survive.
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