Let's bring in Eric Criscolo, good friend of ours on the show, market strategist here at the New York Stock Exchange, because he's far smarter than I am to help us make sense of what happened here today.
So we had some new Iran headlines, some developments over so-called Project Freedom, from where you looked at oil kind of inching higher, equities inching lower.
How did investors react this afternoon?
Kind of more or less the same playbook right where yesterday you saw a lot more optimism around Iran, maybe a light at the end of the tunnel, then all of a sudden today I kind of flipped a little bit, right, so we were back we were thinking everything was maybe inching toward progress and then the script got flipped a little bit that kind of started the down trend.
I mean we were down 0.4%, right?
I mean this was a small decline, nothing major, but it just shows you that Iran continues to be, you know, in the minds of the market as they digest a huge flow of earnings still and you're seeing some flows swing this way and that, but generally it was just.
Reacting to the macro basically.
Yes, how about the software bounce back now I'm going to do a deep dive on Snowflake coming up here in just a bit, but Data Dog up 31%.
Mongo DB down 10.6%.
Obviously this is a sector of stocks, Eric.
They've been very badly beaten down previously, so maybe some more room to run up, but it's still nice to see it bounce back for some of those names.
Yes, yes, I mean that sector, like you said.
That group has just been just been decimated, the software names, especially compared to the semi's names.
The semi equipment names have just been absolutely on fire.
They are carrying the marker.
So you know we've seen every now and then we've seen a blip of a rotation where you know software gets a bid, semis sell off.
That kind of happened today.
I mean, we'll see what kind of momentum it is, but semis are definitely extended.
Software is definitely oversold, so you know there is, there is a chance that that kind of flips for a little bit longer going forward.
How are you viewing winners versus losers, that there are many losers so far here in earnings season because obviously it's one thing to beat, it's another thing altogether to give guidance that the street really wants to see.
And sometimes the stock can report all the right things and they still kind of get punished like a palantir.
Yeah, we have seen most companies beat on the top line.
They beat on the bottom line.
I think it was running about 80% for both, which was above the longer term averages.
The guidance has been mixed, not necessarily cutting guidance, generally speaking, but management teams have just been cautious.
So like if they beat, they don't raise guidance, right?
They just maintain guidance so they don't price in the guidance or they don't price in the beat into their guidance.
So they're being cautious.
We've also seen the winners, the ones that have excuse me, the ones that have beaten their expectations, they don't rise as much as maybe they thought they would.
Meanwhile, the ones that miss expectations are getting punished more on the downside.
Tomorrow morning at 8:30 a.m., a full hour before the market opens here on Wall Street, we'll get the April jobs report, low fire, low.
Backdrop environment maybe for the Fed to contend with.
What will you be following on that print before we kick off trading?
Yes, I mean, based on all the data that's come in for the labor market, including today's the weekly jobless claims, I mean, it's been, it's been a very good labor market as far as the data goes.
Like you said, low hire, low fire.
We have been in that trend for a while now, and it's kind of That's kind of the reason why the Fed was able to or has pivoted from, you know, concerned about employment going forward.
They've kind of pivoted back to we have to get inflation down.
It's still above 3%, and you saw that kind of pivot, especially with the last meeting.
You saw more dissension, more dissension, especially around the commentary in the statement.
They want to focus more on the inflation side of things.
Yes, I hope you come back next week because we've got the president meeting with Xi Jinping, which out of any of the other market movers maybe promises to be the single biggest market mover that we'll have in the middle of next week.
You would think so, but who knows?
Yes, exactly.
Who knows, because sometimes the market moves and you're kind of surprised why it did.
Ericco, thanks for being here, brother.
Nice always a pleasure.
