Tech Giants Fuel Wall Street's Cautious Comeback

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00:00We had the initial trade open today, and we were kind of thinking that today would be another

00:05sell-off and we'd be down for the week. But shocked to look just ahead of our broadcast,

00:09we're actually higher on the S&P 500, a little lower on the NASDAQ composite.

00:13Is that enough to change the actual tone or direction of the markets moving into next week?

00:20Hey, Tim, you know, I think that there's a lot of nervousness about what these data releases

00:26are going to say and also about NVIDIA. Plus, there's the fact that AI, a lot of people are

00:32talking about it as a bubble, and all those things are causing people to take profits. But I don't

00:36think that there's fundamentally a shift in sentiment, which has been largely constructive

00:44for equities in the U.S. So I think what we're seeing today shows you that the dip buyers will

00:50come in. And, you know, that sentiment hasn't changed.

00:57When do the dip buyers not come in, though?

01:02Yeah, you know, we're still in a world where there are going to be pullbacks. And when those

01:09pullbacks happen, the dip buyers will come in. I think it's interesting. My colleague,

01:14Cameron Christ, on MLive, he wrote about the 1999 bubble, that we saw multiple pullbacks of 10%

01:25there, you know, as people started to digest, is this getting out of control? But, you know,

01:31people came into the market over and over again. I would say that what we're going through now,

01:37even though it's less drastic at this point, it's still that same sort of sentiment that is,

01:44is that we're in a revolution, a technology revolution, and you want to be owning these

01:50stocks.

01:54Hey, one of the things I want to ask you, Ed, and I started digging into both the NASDAQ 100

01:57and the S&P 500. If you go, okay, there's obviously the main average or the overall average,

02:03but then you look at the S&P and it's kind of an even split of names that are higher on the day

02:06and lower on the day. Same thing for the NASDAQ 100. And it made me also look at things like

02:11the AAII readings when it comes to being bullish and bearish in the market. And it looks like

02:17investors have increasingly been becoming less bullish and more bearish. So tie it all together

02:23when you start looking at different metrics, what it tells us about financial markets right now.

02:28It tells us that we're living in a very narrow market that, you know, the market is very much

02:37about AI. And to the degree that that continues to go forward, the market can go forward. But on

02:43there are many times when we see just the top seven names in the market, you know, pulling the market

02:52up, but the breadth of that move is relatively weak. So there's a lot of angst about the economy,

02:59about those numbers, and also about there being a potential bubble. But, you know, it's a very narrow

03:05market, which is unhealthy. The hope has to be that it broadens in some capacity. But I think

03:11that those those things that you're pointing to, Carol, they definitely show that there's a certain

03:16unhealthy aspect to this particular upswing.

03:22Okay, one last thing, because we can see markets swing depending on an earnings report or a big tech

03:28announcement. NVIDIA, as you mentioned, we do get their earnings next Wednesday. It's a big one.

03:32It's the nucleus, it feels like, of the AI trade. Just quickly, 30 seconds. If we get some optimism,

03:39then we're off and running again. If we don't, and they are much more guarded, although Jensen tends

03:45not to be guarded, could we see a sell-off?

03:50You know, what we've seen typically with NVIDIA is the expectations are so high that they'll beat and

03:57then the market will sell off slightly. So it's like a buy the rumors, sell the news type of event.

04:03And I don't think that this is going to necessarily be different. So my expectation is, is that they

04:08will beat, but perhaps by not enough, we'll see the sell-off. But then that's when the dip buyers

04:14will come back in, unless there's something else that happens in the interim that shakes people's faith

04:20in a, uh, in a, uh,

04:22in a, uh,

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