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“We really need to see the E in PE start to move higher to drive the market… higher on a sustainable basis.” – 03:07

Chris Versace, CIO of Tematica Research, joins Remy Blaire to discuss the current state of the markets, which are recovering from a sluggish week while investors remain attentive to the looming possibility of a government shutdown.

Remy and Chris delve into the potential impacts of a government shutdown on the economy and market sentiment. Chris emphasizes that the duration of any shutdown is crucial; a brief shutdown may have limited effects, but a prolonged one could significantly disrupt economic activity. He notes that the White House may implement larger layoffs if a shutdown occurs, which could exacerbate the economic impact.

The conversation shifts to the flow of economic data, which could be restricted during a shutdown. Chris highlights the importance of upcoming indicators, such as non-farm payrolls and unemployment data, in assessing the health of the job market and determining whether further interest rate cuts by the Federal Reserve are necessary. With the Atlanta Fed’s GDP now model projecting a robust third-quarter growth rate of 3.9 percent, the need for more data becomes increasingly apparent.

As the quarter comes to a close, Remy and Chris discuss the trickling in of earnings reports from major companies, including Nike and ConAgra. Chris points out that consumer spending patterns will be critical to watch, particularly whether consumers are prioritizing discretionary goods or essential items like frozen foods. This analysis could provide valuable insights into broader economic trends and expectations for the upcoming earnings season.

The segment also addresses market sentiment, with Remy noting that positioning data indicates investors are anticipating a year-end rally. Despite record highs in major indices during September, Chris warns of the potential risks of complacency, especially given the low volatility levels. He reminds listeners that while the final months of the year typically yield strong market returns, caution is warranted.

“I don’t see anything crazy happening. We always know that we’re one tweet away from crazy town.” – 04:09

Peter Tuchman, Senior Floor Trader at TradeMas, joins Remy Blaire at the New York Stock Exchange to provide an in-depth analysis of the current state of the U.S. stock market as the trading week begins. The segment opens with a discussion about the major stock averages, which are showing positive movement after finishing the previous week relatively unchanged. Remy highlights that the end of the third quarter is approaching, a period that has seen the Dow, S&P, and Nasdaq reach record highs. However, a looming government shutdown threatens to create uncertainty, as Congress must act by midnight Tuesday to prevent it.

Peter expresses a sense of confidence among investors, noting that past government shutdowns have often resulted in anxiety but rarely lead to actual shutdowns. He explains that with the market trading at record highs, there is no need for “window dressing,” a tactic typically employed when markets are down. Instead, he observes a mix of profit-taking and a significant amount of capital still on the sidelines, as larger funds and institutions seek to catch up with the market’s performance.

As they transition into October, a month known for its volatility, Remy and Peter explore the relevance of seasonality in the current market environment. Peter emphasizes that the lifeblood of the market is earnings and guidance, particularly in the AI sector, which has been a significant driver of growth. He points out that major companies like Microsoft and Oracle are heavily investing in AI, indicating a promising future for the sector.

The conversation also touches on the risks that could impact the market as the year comes to a close. Peter notes that while some investors express concerns about the market being overvalued, the VIX, or fear index, does not currently reflect widespread fear. He reminds listeners that the market often defies expectations, continuing to reach new heights despite various challenges faced over the past year.

“By and large, the domestic economy is continuing to hold up honestly, far better than people were thinking a few months ago.” – 01:19

Chris Versace, CIO of Tematica Research, joins Remy Blaire to discuss the latest economic data and its impact on the U.S. stock market. The segment opens with a positive overview of the major U.S. stock averages, highlighting that the Dow Jones Industrial Average is up by 0.5%, while the Nasdaq and S&P 500 have also seen slight gains. Remy notes the recent slide in U.S. equities earlier in the week but emphasizes the stronger-than-expected second quarter GDP growth of 3.8%. She also mentions a decline in weekly jobless claims, indicating fewer Americans are filing for unemployment, and a rebound in monthly durable goods orders, primarily driven by a significant increase in aircraft orders.

Chris shares his perspective on the current state of the economy, suggesting that it is performing better than many had anticipated just a few months ago. He acknowledges some uncertainty in the employment picture but asserts that consumer spending and business investments are on solid ground, indicating a potentially stable economic environment.

The conversation shifts to the Federal Reserve’s recent communications, particularly the possibility of two more rate cuts before the end of the year. Chris explains how this development could positively influence market sentiment, especially in light of the latest core PCE price index data, which shows inflation is stabilizing. He suggests that the worst of tariff-related inflation may be behind us, further supporting a favorable outlook for the economy.

As they delve into the stock market, Remy and Chris discuss the recent performance of major U.S. stock averages, particularly the volatility experienced by big tech stocks. Chris addresses concerns about investment dynamics among tech companies but reassures listeners that the long-term outlook for AI and data center demand remains strong. He points out that earnings expectations for the latter half of 2025 and into 2026 are beginning to rise, which could bode well for market performance in the coming months.

“Never bet against the U.S. consumer, because they continue to spend.” – 01:37

Walter Todd, President and CIO of Greenwood Capital, joins Remy Blaire to discuss U.S. stock futures, which are poised for a higher open as they aim to break a three-day losing streak. This optimism follows the release of the latest PCE inflation figures, which align with economists’ expectations.

Remy prompts Walter to share his insights on the implications of the recent PCE report and GDP growth of 3.8% in the second quarter. Walter explains that while the stronger economic data has been interpreted negatively by the market—decreasing the likelihood of the Federal Reserve cutting interest rates—the American consumer continues to show resilience in spending. He highlights the dual risks that Fed Chair Jerome Powell has mentioned: persistent inflation and a slowing labor market.

The conversation shifts to the topic of stock valuations, with Walter drawing a parallel to Alan Greenspan’s famous “irrational exuberance” remark from 1996. He notes that despite significant gains in the market since April, there are several risks on the horizon, including a potential government shutdown and geopolitical tensions. Walter expresses concern that the market appears to be priced for perfection, suggesting that a pullback could be imminent.