Let's get to the big story breakdown.
Stock futures mixed this morning ahead of the open.
While Wall Street saw all stock averages close out yet another winning week.
The Dow is up 12% year to date.
The S&P 500 up more than 16% year to date, and the Nasdaq up over 22% year to date.
And this does come with Nvidia hitting a $5 trillion market cap.
And November could add fuel to the rally.
Historically it's the strongest month of the year for S&P 500, averaging about a 1.8% gain since 1950.
Well, joining me here on the trading floor this morning is Peter Tuchman, senior floor trader at Trade Boss.
Happy Monday.
Happy November to you, Peter.
Yes, yes, these numbers you're throwing around are just astronomical.
Absolutely.
And we're hearing about deal making this morning and this does come on the heels of a strong October.
So how are you heading into the month of November, Peter?
You know what, look, you actually just mentioned that.
It is at $5 trillion you realize that there are only two countries in the world whose whole GDP is $5 trillion or more.
The United States and China, there's not a country in the world with the same valuation as Zia.
How crazy is that?
So how am I coming into this?
Look, I think everyone got caught off guard.
We've been trying to figure out whether, where is the pullback?
Is there any resistance up against these technical levels or anything?
Anything that can be thrown thrown at this market that's going to cause a pullback, and there isn't, right?
I mean, we've seen, we saw that Friday that Friday with a 2.7% pullback around, you know, the Chinese in the United States throwing a little shot across the bow around rare earth minerals.
By Monday we were back in back in town right with a 100 point rally in the S&P.
Earnings have been super strong across the board, as you said, the S&P and the Dow are hitting record highs each day.
And so you know, and then finally the one thing that you and I going back to February, March, and April that you know that was the most necessary thing to turn this market around from back then was the deal with China and it seems like we're getting that.
So everybody's playing nice, earnings have been super solid and so you know we're all amazed and as you said, November is historically one of the stronger months so we can't even talk about seasonality now.
We do know one thing that that We are in the midst of an interest rate cutting cycle, and when that happens historically, the net year over year you end up having as much as a rise as much as 16%.
Historically and so that we have to look forward to.
I know Mr.
Powell said that you know that December is not a surety.
My gut is that I think he was poking the bear a little bit.
It's not something he often does, you know, and my gut is he's been under so much pressure by Mr.
Trump to like cut rates.
We know there was some dissension amongst the ranks in that last meeting with two people called for 50 basis points, one called for none.
But you know what I mean, I'm I'm looking for a continuation.
I'm looking.
For a 7 in front of the S&P 500, I'm looking for 50,000.
I'm going to have to print up all brand new hats for the Dow, and I think we're off to the races.
Yeah, I'm glad you brought all those points up because right now we are looking at a 67.3% of a rate cut in December for the Fed.
And the good thing is this week not only do we get earnings, but we do get a handful of economic data points and this does come amidst the government shutdown.
So what sectors are you most foolish about right now?
You know, it's really hard to say.
I don't think there was any particular sector that really got hurt as far as earnings and guidance has been solid.
We know the banks, I mean some of the regional banks had a little bit of a pullback showing, let's be clear, the economy. is faltering a little bit.
There is a little bit of softness.
It was brought up by Mr.
Mr.
Powell in his meeting.
There are some employment things.
Obviously, you know, the government, the government needs to get back up and going.
I mean, you know, we're kind of detached from it here and perhaps around the country, but there are people who are really starting to suffer.
We are seeing people who are on food stamps or not.
There are people who aren't getting paid, people who are going to work, and so, you know, to make a judgment about oneself.
Sector, you know, look, I would say that we have to go stay in our lane and realize that that retail, luxury retail on a solid economic, on a year where the market has been so robust, people have a little more money, people with money have more money, right?
And those money that those people are going to be spending it around the holidays, right?
I mean, that's what we've seen historically and so I would look at luxury retail, you know, I would look at I would look at travel.
I think that I think that there's money to be put to work.
The market is up.
People with money are making money, and so I would really look at it, you know, you're seeing, you know that this is Thanksgiving, the beginning of the holidays, and so I think that's where the money is going.
Well, Peter, we'll keep a close eye on this week's economic data releases.
We'll have a better idea of how some parts of the economy are doing this week.
So I look forward to joining you at the end.
Thank you so much, Peter.
Sure, happy training everybody.
