Jonathan Corpina, Senior Managing Partner at Meridian Equity Partners, joins Remy Blaire to discuss the ongoing volatility influenced by various factors, including geopolitical tensions, Federal Reserve policies, and economic indicators. With earnings season underway, he expressed optimism about early reports suggesting a better-than-expected outlook, while also acknowledging the pressure on the Fed to make decisions regarding interest rates.
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Earnings Season and Interest Rates: What’s Next for the Stock Market?
The Major US stock averages are mixed on this Friday morning but are set for a weekly gain.
Joining me at the end of a jam packed week is Jonathan Corpina, senior managing partner at Meridian Equity Partners.
Jonathan, happy Friday.
Thanks for joining me.
Good morning, Remy.
Happy Friday.
Well, first and foremost, it's been quite the week.
We saw Nasdaq S&P 500 hit yet new record highs again.
So where do we go from here?
That's a great question.
There's so much going on, so much that's happened already, so it's going to be interesting.
See how the rest of the month, the rest of the summer plays out.
We've seen a lot of volatility in this market.
Headlines keep dictating what's what's what's moving our markets back and forth.
We continually have our geopolitical issues and stresses that are there.
We're talking about the Fed and interest rates.
We continue to talk about headlines that come out of Washington.
It just seems to me at this point that we've come off these April lows in the market.
The market has rebounded extremely strongly to this point and It and it shrugs off any any sort of headwinds that are that's there for that's in front of us.
Who knows what's going to happen now, but we have to look forward to where we are and where we're going to go.
Earnings season is upon us.
Historically earnings season helps kind of keep the sentiment of the market.
I think some of these early reports that we're seeing as far as outlook moving forward is slightly better than expected.
We continue to trade in this interest rate environment that we're in, and we continue to talk about what the Fed is going to do and how.
They're going to do it and when they're going to do it.
We've got another meeting coming up in about 10 days from now.
A lot of debate back and forth of whether the Fed should make a move or not.
It's going to be interesting to see what they do.
I think clearly they're feeling the pressure both from the White House and from our economy that something should happen at some point, whether they flip the switch at this point, I think it might be a little premature, but as we get towards, uh, you know, September, October, probably going to have to have to make a move there.
So a lot of this has been going on in the market.
We're seeing again great returns that we've seen so far coming off this rebound and this lull.
It's going to be interesting just to see how we move things along.
Let's go back to last year.
We had a pretty ugly August and pretty significant moves in the markets then we're heading into the election, a lot that was happening there.
So with all of that off our plate coming in towards the end of the quarters and end of the year, we should see our market hopefully stay at these levels where we're at.
Yeah, and it's considerable given the gains that we've seen this year where we started out where we are right now, these sectors that are doing well Nvidia hitting new record highs.
So what are you bullish about when it comes to sectors?
I think we have to kind of take a step back and not not really look at where we were this year, but where things have been over a longer period of time.
Obviously tech has had a pretty significant move and volatility in it, but net net.
Has performed performed quite well.
Looking at the financials, I know we've just got through some of the financial reports.
We continue to see good numbers coming out of there in this high interest rate environment, this high mortgage rate environment, and credit card and auto loan environment.
I think people have become a little bit more comfortable with where we are at these levels, albeit they should be coming down at some point.
That has helped the financial sector there and I think that continues to be.
A hotter one.
How it all plays out in the in the real estate sector, we have to wait and see.
I think we were hoping for mortgage rates to swing in significantly more than what we've seen so far, so we're going to have to wait to see that one.
I'd hold off in the real estate area.
OK, Jonathan, thank you so much for joining me on this Friday morning.
A lot to digest as we head into the weekend, so have a great weekend.
Have a great weekend.
A lot to come ahead.
Yes, thank you so much, Jonathan.