Now Nvidia just made history, becoming the first company to hit a $4 trillion market value.
The AI chip maker briefly touched that milestone Wednesday morning, outpacing tech giants like Apple and Microsoft.
It closed just shy of the mark at $162.88 a share is still worth as much as the 214 smallest companies in the S&P 500 combined.
Yesterday we also saw Nasdaq and Bitcoin hit new record highs.
Now joining us.
Talk about those highs as Jay Woods, chief global strategist at Freedom Capital Markets.
Jay, great to have you here.
Thanks for joining me.
So we've been seeing record highs for some key names as well as for the Nasdaq.
So what's going on here?
Yeah, this is, this is great.
This is a bull market and what happens to bull markets?
We make new highs, especially in sectors like semiconductors, technology, industrials, and watch the financials.
The XLF making a new high as well as we head into earnings.
So to me, This is positive.
The worst case scenario has been erased from our memory.
Well, not our memory.
We'll never forget that chart and Liberation Day, but we moved beyond that and now we're waiting and seeing what the next tariff implication will be, but the market's kind of shaking it off like, all right, we've seen this show before and you know it's the boy who cried wolf, is that it?
The boy who cried wolf?
Yeah, so the market thinks that whatever these tariff implications are, they're not going to have a huge impact.
And we're starting to see that one earning, but Delta gave guidance just today, so that was fantastic to see.
Yeah, we saw that Delta surge this morning on the heels of their earnings report.
They're also reinstating guidance and it's really interesting because there's still uncertainty, correct?
And even Delta wasn't certain about where things were going, and that guidance is a little lower than what they started the year, but at least they could provide guidance.
They sounded a little more upbeat and confident.
So yes, stocks are soaring above the. day moving average or breakout.
It should have room to run and this bodes well for the travel sector, discretionary stocks, and it kind of lessens those fears that, OK, maybe inflation is going to get out of control because the consumers out there, they're still spending while these aren't numbers to like knock it out of the park.
It's enough to say all right, maybe the worst case scenario is behind us and we will grow going forward.
Some key terms that you just threw out there, Jay, and that is consumer discretionary.
Inflation because next week we get inflation figures out here in the US.
We also get retail sales figures and of course earnings season kicks off and we hear from the banks as well as some key names.
So what are you looking out for next week?
Yeah, there's so much coming up next week.
That's why it's good to rest and get prepared for right now.
Let's talk earnings first and foremost.
I think that will set the tone for what's going on.
I think this Delta announcement and that guide is something that is not being made enough of right now.
Financials kick us off.
JPMorgan, Goldman Sachs, Morgan Stanley, BlackRock, Bank of America, Wells Fargo, OK, I'm showing now, but yeah, we know the financials report next week and the financials, that's one sector we want to see lead and two, we want to see now that 22 of the biggest banks passed that stress test a week ago, what are they going to do with that money now that things are a little more, you know, lax for them and then regulations coming down?
Let's see if there's any, any M&A activity, increased dividends.
Watch Goldman Sachs.
That stock has never split in its entire. going back to 1999, kind of have some history there, so I know this for a fact, but that is the leading stock in the Dow and it's getting very pricey, so it wouldn't shock me to see some sort of announcement there.
So earning guidance that will be number one, tariff concerns, the word uncertainty was overused.
84% of the companies that reported between March and May last quarter, 84% used the word uncertainty.
There's only one other quarter in the last decade where they used it more.
That was during COVID shocker.
I mean.
Wasn't certain who was certain during COVID.
Nobody.
So let's see what the message is going forward and then watch biotech stocks and healthcare stocks because we saw a deal with Merck yesterday.
A lot of these patents are it's the patent cliff, as I just learned.
A lot of these patents are coming to unwind and they won't have exclusivity on some of these big drugs like Merck and Keytruda.
So watch J&J.
They report and a few others, so it's going to be interesting.
Yeah, and that has some key implications. what you mentioned about Pharma, especially since we're not quite sure how the tariffs are going to affect the US as well.
But one name that I think it's important to bring up is Nvidia hitting all new record highs yesterday.
We had that chart for MVDA.
I was going to say that for our Fordham family out there watching that there should be one for FCRH, but there isn't just yet.
So tell us what's going on with Nvidia.
Yes, Nvidia, we've talked about this.
This is a stock that couldn't get a.
Above that 150 level, so as a technician, I look at price action, and to me once we broke above it, it was smooth sailing and I think we're still going to smooth sail into earnings in the middle of August where all of a sudden we got through that sell zone, that resistance area, and now things are turning around.
Microsoft had made new highs.
Meta made new highs, and now Nvidia joining the party.
So that is the leadership we want to see, and I think this stock could be a $200 stock by the end of the year.
I know it's $4 trillion.
Market cap.
OK, so it can go to 5.
The numbers are there to justify the valuation.
It's trading at a multiple of 33, which sounds like a lot, but when you live through the dot com era, those frothy numbers, forget about it.
I mean, tell me what Tesla's PE is and try to make sense of that.
So I don't give too much credence into it when people push back and they say, well, it's got a high multiple.
Historically it doesn't.
So I think there's a lot of room to run and then watch for their cap X spending when they do announce earnings.
So I'm sure I'll be back to talk about it, but This is going to be something we haven't seen in quite some time because we thought people were pulling back.
They didn't, and then they had a cute little robot.
I want to hear more about that and Jay, last but not least before I let you go, the S&P 500 closed at record highs before the 4th of July holiday weekend.
We thought the Nasdaq closed at record highs yesterday.
So what levels are you watching from here?
What levels?
I'm watching for anything on a pullback.
I think these pullbacks should be bought when you get tariff news and it doesn't really cause fear or panic.
With the VIX trading at 16, maybe even lower as we speak, that doesn't really exude much to give credence to a sell-off.
So I think we've cleared all the technical hurdles.
Any pullback should be bought.
We go down 5%.
We're still above the 50 day moving average.
So 6000, 5960 if you want an exact level would be where I would really want to dig in if we get a sell off.
But I think it's going to be slow, steady, and possibly boring climb higher, much like the first year of the Trump administration was back in 20.
I think all the noise is starting to die down.
The companies are leading us as we saw from Delta today, and we should slow and steady continue to climb here until the end of the year.
Of course there are going to be some crazy times in between, some nice big headlines, but I think the direction in the worst case is over and we'll rely on earnings growth to take us higher.
OK, Jay, well, as you mentioned, the VIX is below 16 today, so we'll keep an eye on what happens with those key levels there.
Thank you so much for joining me.
Thank you.
