The great Jay Woods, chief market strategist at Freedom Capital Markets and a CNBC contributor, my man, good to see you here.
Hey, that was great applause to start your show.
That was for you, I assume.
No, no, no, I told them before the show.
I said, BNY, thanks for being here.
Jay Woods is on the broadcast.
Well, you know the significance of BNY at the New York Stock Exchange.
Let's talk about it.
It is the first stock ever listed here at the New York Stock Exchange, founded by the great Alexander Alexander Hamilton.
Yes, so not a great shot, but a great leader.
Of the Bank of New York and changed the face of the economy, if you will.
Yes, absolutely.
1792 and shout out to the archivists because down if you saw downstairs all the BNY, the old dividend stock books, it's amazing what they pulled out from the archives.
I did not for this visit we'll take the camera down later on.
Give me your take on the market today.
Investors may be a little bit too complacent about inflation related risks.
What do you see?
I definitely think we are complacent.
We have been moving.
On headlines with the Strait of Hormuz and oil price still remains elevated.
We saw in the PPI and the CPI numbers last week that yes, inflation is not just, you know, the core, it's headline risk too.
So energy is causing us the biggest, you know, tax of the consumer, but we are seeing inflation creep up across all sectors, services being one to keep an eye on, and that will focus us on the PCE next week and then of course Kevin. how he handles it when he steps into the Fed chair role officially in the coming days or weeks, depending on when he gets to put his hand on the Bible and get sworn in.
So how is Wall Street pricing geopolitical risk?
We talked a lot about it several weeks ago and then it kind of tends to fade to the background a little bit.
Well, Bruce Springsteen has a great song, One Step up and two steps back.
With this market, it's one step back and two steps up.
So when we have geopolitical headlines that Give us jitters.
We move back one step, but we rebound quickly and then in hopes that the war will end, what are we doing?
We're challenging or making new highs, and what is this?
It's a tech fueled rally.
15 of the 20 stocks, 15 of the top 20 stocks in the S&P 500 are, guess what, technology names.
And what is tech doing?
It's hitting it on all cylinders.
Nvidia, which we'll talk about in a second, had its earnings today.
They crushed it.
It yawned.
It was down a little bit.
It had a tremendous run into it, but everything they spend on, everything that spends on them is humming in all cylinders, and then quantum stocks, the hot stocks of the day, because guess what, the government is going to be putting money to invest in these quantum names as well.
Yes, that's right.
We're going to talk a little bit more about D wave quantum qubits, a few other names in the broadcast as well.
What you're seeing Nvidia earnings is this kind of routine now where hey, they make.
Crush the cover off the ball, but the sellers are a little louder the next day.
It really is.
I don't know what it's going to take for Nvidia to say, oh my God, we're going to skyrocket even higher from this $5 trillion valuation.
But when you look under the fundamental hood, and I'm a technician, I don't like to look under it, but I know price to sales, price to earnings, it's relatively cheap compared to some of its peers.
So you compare it to a Micron, even a Cisco, it's kind.
Cheap, so Nvidia not getting the love it may deserve, but it's still up there, 8% of the S&P 500.
It's been lifting us nicely, and we're seeing the technology stocks continue to fall.
It's not a bad thing.
Let me ask you while I have you about WMT, that's Walmart.
It was down 7% earlier in the session.
RSI was hovering down around 34 to 35%.
Is it just a bit of a profit taking situation or a bigger trend change?
This is a red flag.
This is a concern.
Walmart, the biggest retailer in the world, the biggest employer in the United States, by the way, they warned that inflation is a concern and they're seeing it that gas prices are affecting people coming into the stores.
They may have to raise prices.
Oh no, when the biggest retailer in the world is worried about inflation, it could have a domino effect.
Target, if you're looking at the two of them, much better quarter, better guide.
Walmart was not in the camp where we were going to guide, so I think it got undercovered by your world, not your world, because we're talking about it, but by the other networks.
Let's, you know, let's be clear, JD's on his game, but Walmart down 7% at one point today, technically broken down.
Let's watch this 220 level, see if it can hold, but is it 220 or 120?
My brain is a little fried today.
But this, this level right here is a good support level, but it is a stock to keep watching because that is really dictating what the consumer's doing.
Jay, how lucky am I?
I had the great Frank Capilari on my show this morning, a CMT, and now you, two CMTs in one day.
Frank's a good man.
He's luckier than I.
Thank you for being here.
Yeah, listen, happy Memorial Day and thanks for all that serve.
I'm heading to Sea Isle.
I hope you have a great weekend yourself.
Thank you, my man.
It's good to see you as always.
