“We are setting ourselves up for a cut.” – 04:15

Peter Tuchman, Senior Floor Trader at TradeMas, joins Remy Blaire at the New York Stock Exchange to discuss the current state of the stock market and the broader economic landscape as we kick off a new trading week.

Peter starts by discussing the Dow Jones Industrial Average, which is nearing a record high, and how the market rally is expanding beyond just the tech sector, with small-cap stocks also tracking higher. A significant factor contributing to this rally is UnitedHealth’s stock surge following the news that Berkshire Hathaway, led by Warren Buffett, has taken a $1.6 billion stake in the healthcare giant.

Peter highlights that despite August typically being a weaker month for the markets, we are witnessing strong fundamentals and positive earnings reports. He notes that while tariffs and inflation have had some impact, the market seems to have disengaged from the volatility that previously accompanied tariff discussions. Instead, there is a sense of optimism as backdoor diplomacy appears to be yielding results.

Peter notes that European leaders are gathering with President Trump in Washington, D.C. He emphasizes that while political events can influence the market, the most critical factor this week is Federal Reserve Chair Jerome Powell’s upcoming speech in Wyoming. The market is anticipating potential interest rate cuts, with current probabilities suggesting an 82.9% chance of a cut on September 17th.

“To the extent that Powell delivers, you know, some cold water on the market, small caps can be a little more interest rate sensitive.” – 06:57

Chris Versace, CIO of Tematica Research, joins Remy Blaire to discuss the latest developments in the U.S. retail sector and the broader economic landscape as we approach a pivotal week for earnings reports and Federal Reserve commentary. 

The pair break down the recent rise in U.S. retail sales for July, which reflects a broad-based gain despite economists expressing caution due to a softening jobs market and weakening consumer sentiment. Chris highlights the acceleration of underlying inflation, particularly driven by services, and the modest rise in goods prices, which has eased some concerns about tariff-driven price spikes.

As Chris looks ahead, all eyes are on the upcoming earnings reports from major retailers, including Walmart, Home Depot, Target, TJX, and Ross Stores. Chris emphasizes Walmart’s impressive performance this year, outpacing not only its rivals but also some of the largest tech companies.