And now let's get to the big story breakdown.
The markets continue chugging along.
This week we saw more record highs from the Nasdaq and the S&P 500.
Meanwhile, we're now well into earnings season.
Google's earnings showed its commitment to continued AI spending, while Tesla is sticking to its robotaxi plans.
Despite this, Tesla leaders didn't provide guidance amid a mix of tariff headwinds and external factors overhanging the company.
Elon Musk is warning of some rough quarters ahead for the EV maker.
Now joining me this morning is Peter Tuchman, senior floor trader for TradeM.
So good to see you.
That old adage Salame go away, not holding true with these record highs.
You know I think if we were sitting here and the market was down 1000 points, it would be probably easier to explain why with all the uncertainty around tariffs and everything, right?
And but we are at record highs and there are plenty of reasons why we are, you know, I think one of the biggest things is that there's a lot of underinvestment.
There's $7 trillion on the side.
On the sidelines that has not been put into the market that I think is being added in now.
So there's a lot of buying with sort of with intent where you know the buyer, the smart buyers are coming into the market now.
They got caught off guard.
They sort of went from equity, heavy equity cash portfolios, and they sort of reversed that when the new administration came in.
They were happy for a while when the market sold off in March and April.
They got caught off guard by that crazy rally, and now we're once again at record highs, but earnings have been so strong and now most of the companies, not Tesla, but most of the companies are able to give guidance this quarter at what they weren't last quarter, which contributed to that sell off.
But the market is solid.
The banks came out at the gate as the first ones to declare their earnings.
They were super strong and we've seen short of Tesla, which really needs to establish itself as an AI company as opposed to an auto company which is going to be where the Capex money comes in as we saw with the other company with Google, where a lot of the money is coming in on the AI side.
Speaking of AI, the transition there.
President Trump signing those executive orders, getting some strong praise from Nvidia's CEO.
So you know.
This AI trade going to continue to dominate and what other sectors are you watching?
Look, so I have a show, a YouTube channel with Dan Ives, right, who's the number one tech analyst in the world.
He's Mr.
Nvidia, right?
And so we actually were together on CNN last night and we did, we spoke a lot about what's going on in the AI space.
We know that there's $12 trillion coming into the capex coming into AI.
Nvidia as well as some of the other secondary and tertiary derivatives of Nvidia in that space.
So the AI money is here.
It's the middle of a major revolution.
We're in the beginning innings of an AI revolution, and that is what's carrying the market for the longest time.
It's starting to carry the market here once again after a bit of a pullback.
There was some, there were a couple of months where Trump had outlawed Nvidia from selling certain chips to China, and they sort of he backtracked on that and that sort of.
You know, left the runway a lot clearer.
So Nvidia is on the run.
AI is super solid and it is one of the biggest fuels behind the market.
Yeah, interesting times we live in.
Spectacular.
Speaking of interesting, we see gold breaking above 3400 this week, but we also see strong numbers from the markets.
We typically don't see both of them so strong at the same time.
So look, usually gold is a hedge, right?
Right?
It's physical and you know people use it as a hedge against inflation and the correct, but right now.
Everybody's buying anything that's not locked down.
They're buying crypto.
They're buying gold.
They're buying the market.
They want, they want some kind of security, so that's why they're buying gold, because look, when markets are trading at record highs for a sustained period of time, there's obviously those fears that the market is going to break down, whether it's technically or whether we're one tweet away from, you know, we are one tweet away from Crazy town, right?
We need to understand that.
So you know at this point everything is running, you know, and the market disengages some of that.
The old adages of, you know, of buying gold when the market's down to protect themselves.
Literally anything that's not locked down they're buying right now.
All right, one tweet away from Crazy town.
That's got to be the stay of the day.
I'm hanging on to that, but I can't let you go without talking about the Fed.
I mean, all eyes on the FOMC meeting this week.
We had that meeting between Powell and Trump yesterday.
So what are you looking for?
So look, it was a fascinating meeting.
I've gone over it.
I've done 3 or 4 interviews.
Talking about that and I think you know my gut is that Mr.
Trump obviously has been at Jay Powell to cut interest rates for a while and the bottom line is he holds his line.
You know, at the end of the day we have tariffs create a low growth or no growth environment, and when you cut interest rates in that environment, you end up with stagflation, which is a really hard landscape to navigate out of and that's why Pas held his ground.
Mr.
Trump persists and so he didn't get the reaction out of Jay Powell that he wanted to, so he ended up Coming to his house, right?
I mean, that's what that meeting was about exactly.
So I'm showing up at your place, but what was great about yesterday was Powell, in the nicest way, most respectful way possible, rebuffed him when he said it was $3.2 billion that was spent, he actually corrected him because it was a building that was 5 years ago and it was built 5 years ago.
So the numbers were wrong.
So that's why he sort of threw the paper away, you know what, at the end of the day, you know, some people think that he's going to end up as a lame.
I don't, I don't think it's smart to change captains of the ship midstream here.
He's done an amazing job in my opinion, carrying us out of COVID, carrying us out of high inflation from 8% down to 2.3%.
He's done a great job.
So irrespective, you know, everyone needs to know that the Fed and the president, there's a wall between them.
They should not be communicating that much with each other, telling each other what to do.
I think that's what Powell professionally is holding his ground there.
Does he cut rates?
Probably maybe September.
All right, got to dance with the guy that rung you.
Exactly.
Thank you so much.
Great to hear.
Happy trading, everyone.
