The man himself, the great Eric Priscolo, he is market strategist at the New York Stock Exchange.
My man, thank you for joining us as always.
Always a pleasure.
Let's talk correlations.
Oil moving up.
Wow, look at Brent almost back up to 106 on the day.
Stocks moving lower.
What did you see for today's tape?
Yes, I mean, it's just, it's more of the same, right?
Oil is higher, or at least not moving lower, right?
So that just continues to weigh on the market in general.
You're seeing interest rates continue to stay elevated.
They're not really.
Making any move lower, they've been range bound for a while.
They're kind of ticking up now again.
Gold is falling.
They're kind of moving in reverse, right?
Oil rates higher, gold lower, and then that is just weighing on some of the risk assets as well.
You see, you saw outperformance in the defensive sectors today, so Consumer staples, you know, etc.
So those names, that kind of dynamic is playing out, at least for today.
Yes, we saw Coca-Cola, for instance.
That to me is the ultimate defensive.
How does it perform in the Dow 30 relative to the benchmark indexes.
When Coca-Cola is up, it can be a little bit of trouble for the broader equities.
Warren Buffett, yes, the Berkshire crowd is happy for sure.
Software, man.
ServiceNow, IBM earnings both down after earnings.
Maybe it's muted guidance.
It's not really the numbers of the last quarter.
It's about what you project moving forward.
Are we back in this narrative of AI concerns shaking up those core products?
You're still seeing a lot of uncertainty.
I mean, the reports weren't bad.
They were, you know, the CEOs were generally optimistic, but I think you're just seeing.
Investors just not know how to value these things going forward.
There's some concern about pricing, right?
How do they price their products going forward?
Is that going to hit margins even if the total pie increases?
Are margins lower?
I don't have the answers to that, but that's kind of the questions that are happening right now.
Plus you also saw software had a rocket move higher last week.
So some of, some of this move today is also some of that froth coming down a little bit as well.
I want to ask you about semiconductors, if you can get a shot here on my screen.
This is the semiconductor.
I mean, look at this chart.
It looks near parabolic.
This is.
OXX, that's one of the many semiconductor ETFs.
These things have been ripping.
What do you see on the semi-trade as of late?
It's kind of, you know, software was kind of taking back some of that some of that froth from investors, you know, last week.
But you know, still these guys are still printing, you know, crazy numbers.
You had semi's report today, even like the non-AI companies, some of the semi-power companies, right, the ones that make the non-AI power chips, those, those names reported well.
So that whole sector is just seeing a huge demand that is, you know, even if they're not, you know, beating the numbers like they used to be, they're still putting up impressive results.
And so that's just keeping a bid in that whole sector.
Dare I ask you about ticker symbol CAR?
You knew exactly what I was going for for people who have not been following the incredible, the wild story over Avis budget down another 48%.
It sold off yesterday, 38%.
You got the hedge funds that control 70% of the shares, the short.
Sellers are very loud here.
You've done this a long time.
What do you think when you see a story like that?
Yes, I mean, it's one of these crazy things that happen every now and then in markets.
It was a very mechanical thing that happened, giant short squeeze.
Eventually those things can't run forever.
Eventually, you know, positions have to be covered.
Eventually the people that are holding the stock want to get out as well to monetize what they've gained.
So once those things kind of flip, you see, you know, everything rips higher and then everything kind of crashes lower.
That's kind of the dynamic.
That's playing out right now.
Fortunately that doesn't happen a lot, but that is just what's happening in that name in particular.
But it did impact the Dow Jones Transportation Average, which had an incredible run because basically of that one name, yes, which is of course price weighted.
And so when you got this anomalous move in the stock, it automatically kind of becomes the most weighted name more than FedEx, etc.
I hope you come back and see us next week, man.
We've got earnings on tap from big tech names, big names.
Powell on Wednesday.
It's Fed Day, dude.
This is the stuff weeks like this.
Eric Riscolo, thanks for kicking us off, brother.
Always a pleasure.
Thank you.
