Let's get to the big story breakdown.
Well, US stocks are getting a boost on the heels of the latest inflation data.
The S&P 500 rose yesterday, led by tech stocks as investors thought after some strong earnings reports.
Now the rise marks a full recovery from Wednesday's drop when the index fell about 0.5% amid export restriction concerns.
Now we're keeping an eye on what's happening in terms of trade, but this morning the focus is on inflation figures as well as earnings.
Joining me today is Peter Tuchman, senior floor trader at Trademarks.
Happy Friday, Peter.
Happy Friday.
Happy Friday.
Good morning.
So here we go again.
That was a mouthful.
It's unbelievable with that blackout, you know, you just gave us a running breakdown on what's been going on over the last 4 weeks.
It was extraordinary.
Yeah, but this week it's been like a Christmas tree yet once again we're seeing green this morning, but we've been seeing a smattering of red across the board.
So what do you make of the latest earnings and of course that today.
So look, the earnings have been super solid, and I think that's caused a little positivity.
We have had a couple of red days, but the red days, you know, are a function of a number of things.
You know, we once again we're tweet away from Crazy Town, and a couple of those tweets were, you know, China and President Trump, you know, doing a little bit of an aggressive narrative.
There was that soybean story and the cooking oil that President Trump had heard that they weren't buying as many soybeans as we wanted, so there was a little bit of that.
At the end of the day yesterday, the rally was based on the fact that we have a meeting with, you know, look, think about it.
You and I went through February, March, and April.
We lived through that experience and we always said, what is it that's going to take this market way off to the next level and it was going to be a deal with China, right?
We were able to check off all the other lists and we've done that.
I have to admit, you know, not a political statement, an economic one, but they've done a lot of backroom diplomacy while this has all been going on and so.
Basically right now we're up against the fact that he's broken down trade talks with Canada is kind of baffling, you know, I guess, I guess it's like, you know, one thing here, one thing there, but the fact is that a deal with China is on the table and that we're actually having a meeting is extraordinary, and I think that that's what the market is looking at.
But look, it's a perfect example of once again of bad news is good news, right?
The numbers were weaker than expected.
I mean some.
In line, some came in over year over year that were sort of unemployment ticked up and the highest inflation, you said in a while.
And so those are the target, those are the target bits of data that are going to impact the Federal Reserve when they make their decision.
But the fact that we've been trying to trading in the dark here for a while, you know, sort of built up a lot of anticipation.
It's kind of like a slingshot in a way, you know, that's why I mean, look, 42 is a is a is. a solid showing, you know, it's an example of where bad news is good news.
That means that people are locking in a cut, but I kind of thought we were locked in a cut before this, so I don't, I'm a little bit perturbed.
Yeah, so economic data, that is something that we have been waiting for during the government shutdown and as we head into next week, it is, believe it or not, the final week of October.
Nelly before you know it, but before that, Peter, we do have Halloween spooky season and of course the Fed rate decision next week alongside that APEC meeting and next week we are going to be hearing from the big tech companies in terms of earnings.
So how are you heading into the new week?
OK, so look, I mean they have, they have, they have held their ground incredibly well.
We've also seen a bit of a surge in the quantitative computing, right?
Those were stocks that had a beautiful surge.
Then they got sort of knocked off their pedestal when when.
When Jensen Wang came out and said we're not looking at a 10 year thing, we're looking at a 30 year thing, and if you'll notice there were a number of names like soon, you know, I'm not a financial advisor, but soon we're getting all of these computing stocks, computing stocks sort of got knocked down fairly aggressively, but they've surged their way back and in fact Mr.
Trump also once again said that that he's going to be investing in that in that sector and you know it's curiously enough, I don't understand.
If the government is or he is, you know, we know that the government is putting a lot of weight behind crypto behind Nvidia and chips and data centers.
Look, the mag 7 story, the big tech story, it's here to stay.
It's got so much, so much gasoline on that fire, you know, I mentioned it the other day that you know that the CEO of SoftBank is still talking about Nvidia being undervalued at these levels because the demand for For chips and you know and GPUs is so grand right and over they think about it, we are in the 2nd inning of a 9 inning game that's going into extra innings when we talk about AI and the AI revolution, right?
I'm quoting my man Dan Es who we promised we're going to get here one day.
But you know it's curious. we're hopefully going to get Andrew Sopko on as well.
We missed that interview yesterday.
This is A young man who's finding that there's a that the GPU, think about it, we're watching this complete monopolization of that whole GPU thing, right?
So you're seeing chat GBT and the Microsoft and the Intel and the Nvidia, they're all buying up all the supply of chips, right?
And we're hoping that these data centers are going to be built 5 years down the road, but there's still another level.
There's a secondary and tertiary demands.
Small producers and small suppliers of GPUs and small small companies that are going to demand it as well.
So there's a market.
The market in this in the tech sector is so grand.
There's so many levels to it.
And so look, I don't anticipate any kind of disappointment in what comes out of earnings for tech next week.
OK, Peter, thank you so much for joining me.
We'll see you again next week.
