“I think that a lot of these stocks have just gotten extraordinarily overbought, and they’ve gone to the stratosphere.” – 03:37

Mark Newton, Managing Director of Fundstrat Global Advisors, joins Remy Blaire at the New York Stock Exchange to discuss the current state of the stock market. Despite the S&P 500 and Nasdaq Composite reaching record highs, we discuss the broader market’s struggle to gain meaningful traction over the past month. Mark highlights that while the S&P equal-weighted index and the Dow are near their highs, they have yet to confirm a breakout, indicating a potential lack of momentum.

The pair explore the implications of defensive sectors, such as consumer staples and utilities, gaining ground, which historically can signal a market correction. Mark points out that market breadth has been declining since mid-July, with parts of the tech sector showing signs of weakness. He emphasizes the importance of selectivity in investment strategies moving forward, especially as we approach seasonal weakness.

Mark provides insights into the current sentiment in the market, noting that despite a significant rally of about 32% since April, bullish sentiment remains subdued. He suggests that this lack of speculation could mean that any potential pullback in the market may be short-lived, and he maintains a bullish outlook for the remainder of the year, albeit with some expected volatility in the near term.

Lastly, Mark expresses optimism for the market’s trajectory, citing the deflationary impact of AI and the potential for rate cuts to support economic growth.

“I think the overarching message that the market is sending you right now is that the inflation data is not hot enough to really kind of pull the Federal Reserve back.” – 01:23

Michael Reinking, Senior Market Strategist at the NYSE, joins Remy Blaire to discuss the latest developments in the financial markets, focusing on the recent consumer price index (CPI) data and its implications for the economy. 

The pair begin the discussion by examining the CPI figures that have made headlines, noting that while inflation is rising moderately, the reaction from the markets has been mixed. Michael highlights that the consumer goods sector has seen some increases, particularly in appliances, while the services side has come in hotter than expected. This unexpected flip in the data suggests that the inflation figures are not alarming enough to deter the Federal Reserve from its current course, with the upcoming jobs report being a critical factor in determining future monetary policy.

Michael unpacks the implications of the recent downward revisions to nonfarm payrolls and the weaker-than-expected July figures. Michael emphasizes the importance of the Jackson Hole gathering for the Fed, where we can expect continued messaging around a potential rate-cutting cycle as we move into the fall.

The segment wraps up by analyzing key levels to watch in the S&P 500 as the market opens. Michael identifies critical support levels and the proximity to all-time highs, providing listeners with actionable insights for the trading day ahead.

“There’s a lot of expectations going into this core CPI print for the month of July.” – 01:24

Chris Versace, CIO of Tematica Research, joins Remy Blaire to discuss the current state of the U.S. stock market and the looming concerns surrounding inflation as a new trading week kicks off. With Wall Street poised for a higher open, we reflect on the positive momentum from last week, where U.S. stocks, particularly the Nasdaq Composite, reached new heights, and the S&P 500 came close to a record close.

Chris shares his insights on the market’s expectations for a potential rate cut by the Federal Reserve. The pair discuss the recent surge in rate cut expectations, with the CME FedWatch tool indicating the possibility of three cuts by the end of the year, up from the previously anticipated two. Chris emphasizes the importance of the upcoming core Consumer Price Index (CPI) figures for July, suggesting that a higher-than-expected inflation reading could influence the Fed’s decisions moving forward.

As we approach the back-to-school season, Chris unpacks the impact of recent tariffs on consumer behavior and spending. Chris explains how the extended Amazon Prime Day and competitive offerings from retailers like Walmart and Target may have influenced shopping patterns, particularly in the context of rising costs due to tariffs.