“Without any government-supporting data, which is actually pretty nice and refreshing, that we’re actually trading companies on what they’re worth.” – 01:39
Remy Blaire welcomes Matt Cheslock, an equity trader at Virtu Financial, to discuss the current state of the U.S. stock market as it enters a busy week for earnings reports. The episode begins with an overview of the market’s performance, highlighting that major stock averages are climbing back to record highs, with the Dow surpassing the 47,100 mark. Despite some volatility, indicated by the VIX hovering around 18, there is a sense of optimism among investors.
Remy and Matt delve into the ongoing earnings season, noting that nearly 80 companies in the S&P 500 have reported higher-than-expected results. Matt points out a shift in focus from tariff discussions to a broader analysis of the economy, citing significant moves from companies like GM and 3M that have positively impacted market indices. He emphasizes that investors are now looking beyond AI trends and are starting to engage with traditional stocks, including a resurgence of interest in meme stocks.
The conversation also touches on the recent pullback in precious metals, particularly gold, which, despite its decline, remains up 55% year-to-date. This resilience is contrasted with the performance of major stock averages and cryptocurrencies, indicating a complex market landscape.
As they look ahead to the upcoming Consumer Price Index (CPI) report, Matt expresses that the data will be heavily analyzed, but the overall sentiment from companies like Netflix and 3M suggests a stable economic footing. He notes that even with concerns about consumer demand, the forecasts from these companies remain positive.
Remy and Matt also preview earnings reports from notable companies such as IBM and Tesla, discussing the potential for a rotation of investment into established names as year-end portfolio adjustments approach. They consider the implications of the upcoming Fed meeting and the APEC summit on market dynamics.