Let's get to the big story breakdown.
While the US jobs report missing expectations with non-farm payrolls coming in weaker than expected at 73,000 jobs, while the unemployment rate ticked higher to 4.2%.
Ma, 7 earnings taking center stage as well.
Microsoft joined the $4 trillion club while shares rallied after a strong quarter powered by surging demand.
For a cloud services and AI, met a jump by 12% thanks to rebound in its core ad business, a sign that marketers are spending again and demand is picking up.
Meanwhile, Amazon beat on both the top and bottom lines, but shares fell after the report as Amazon web service results disappointed.
And finally, Apple beat 3rd quarter expectations on strong iPhone sales.
Some US.
Push to buy devices ahead of possible tariff-driven price hikes.
And joining me on this Friday afternoon is Peter Tuchman, a senior floor trader at Trade Moss.
Well, good morning to you.
Thank you so much for joining me.
Well, happy Friday.
Yeah, absolutely.
And here we are on August 1 once again Trump moving the goalposts for tariffs, but what about that jobs report?
You know what, look, it's disappointing.
We have to really look into the nooks and crannies of the report to see how much of that was impacted by tariffs, right?
I mean, it is, you know, they've adjusted 3 months back, I believe, right?
So that's showing us, look, it's been, if you go back to this, you know, February, March, April, it was a really rough quarter, right?
We know that market and then mid mid April was down as much as 20%.
So if we're seeing that, it kind of makes sense, but we sort of have to identify where the where the problems were.
Yes, and it's also been a big week. earnings, not to mention the Fed meeting.
So there's a lot going on under the surface.
So what did you make of the mag 7 names that reported this week?
You know, look, I think, I think they blew them out of the water, to be perfectly honest.
Obviously Amazon blew, you know, blew it out on both things but sold off.
Sometimes, you know, we're in a kind of a new world.
You can have good earnings, good guidance, and good revenues, and the stock will sell off.
It can be very complicated.
That's kind of in the new world, but you had meta which really contributed to that really.
Solid opening yesterday.
We were up Microsoft and met up, blew it out of the water, and so look, at the end of the day we know that last quarter we had solid earnings but inability to give guidance, and that was what really put such heavy pressure on the market.
Now we're having good, good solid earnings and the banks out of the gate were super good.
Mag7 stocks that have reported so far are really I mean there's really not one I saw really.
I mean maybe one that was at all disappointing, but so that's been a big field behind the behind the market.
Yeah, and speaking of yesterday's trading action, we're both here on the floor of the New York Stock Exchange.
We had a massive IPO, which was Sigma, so they priced at $33.
We saw shares rally yesterday 250%, and they added about $50 billion in terms of their market cap.
So what did you make of the IPO?
So IPOs are one of my specials.
I probably have traded more IPOs than anyone in history, right?
That's one of.
Claims to fame and it was an amazing, I would say it probably was one of the top 5 right so it had everything going for it, right?
You had a super solid market, the sector is hot.
The company is good.
I mean it's been sort of, you know, there were employees here who had been working with this company for, you know, for many, many years since the beginning, and that kind of loyalty, you know, you can't really, you can't buy that.
That's just, that's amazing.
And so that was super impressive.
It was originally priced from 25 to 27.
There was such a demand for it.
It got repriced above 33.
It ended up opening at 85 and rallied as high as 146, right?
You know, look, the bottom line was, and it never really came in.
I mean, I don't know where it closed in the 120 range.
It was super impressive.
The company is super solid and you had all the fuel behind it.
So you know, look, this week has been had a lot going on.
We had a lot of earnings.
You had the Fed meeting, which was a little bit.
Contentious at best.
I mean, the market was not, you know, I know nobody expected him to cut interest rates, but I did, you know, he always talks about his decisions are database decisions.
GDP came out that morning up 2.4% to 3%.
That was solid.
My gut was, and I had spoken to Dan Is about it the other night.
My gut was that he was going to, he should have.
Some people believe he should have pivoted.
It should have been a quick pivot and if not cut interest rates yesterday.
They at least give us some super clarity about a September cut, which he did not.
So I think you're going, I mean there's a little bit of that, you know, take my ball and leave the playground sort of an attitude there because think about it, you know, there was that meeting with the hard hats over with Trump the other day and all that kind of thing.
There is a little bit of butting heads, you know, he does not want to be seen as somebody who's kowtowing to Mr.
Trump because he holds his line, but at the end of the day, the, you know.
The economic data should have really set us up for a cut, you know what, whether my look, this is super important to note for the first time since 1993 there was dissent amongst the ranks.
Two Fed governors dissented, meaning that they did not vote with him.
That's not happened since 1993.
My gut is that it'll probably grow to more dissentions come September and we'll probably get a cut there.
Well, that's something we'll keep our eyes on, Peter.
Finally, before I let you go.
Even with yesterday's pullback in the major stock averages and even with futures lower this morning, we're still looking at elevated levels for the S&P 500, given where we were at the beginning of Q2.
So we're right here around the 6300 level for the S&P 500.
What are you watching for in today's session?
You know, look, my gut is what we've seen a lot lately is that even when we've had these days where some, look, we, you and I lived through August 5th last.
Right, when we've seen these and we lived through last quarter when that sort of self-inflicted tariff story really took the markets down.
What we've seen lately is early morning sell-offs based on some news, but the market sort of rallied into the close, right?
We've seen a lot of that and for me that's that's buyers coming into the market, buyers of conviction.
You're seeing there's a lot of under underinvestment.
There's $6 trillion on the sidelines.
So there are people who are looking to buy on dips.
Today is a morning dip.
Not sure how the day will end up.
Yesterday's sell off also contributing factor was it was the end of July.
It was profit taking, and it was a really good month.
So you're going to see that happen at the end of a month.
I would imagine today fresh money is going to come into the market as it always does in the beginning of a month.
So many moving parts, anything, it's anybody's game.
But you know what, there's a lot going on.
OK, Peter, you and I will be back here bright and early on Monday.
Have a great weekend.
Have a great weekend.
Happy trading.
