Equites advanced ignoring underwhelming earnings from several tech heavyweights. Over 350 members of the S & P 500 rose even as the Magnificent Seven sank 1.8% on the back of GOOG’s disappointing results.
The market has been whipsawed by data that has surprised in both directions, trade tensions and questions about whether the billions of dollars spent on AI will start to pay off. Some are suggesting that AI may be the same as the ESG investments. Over $6 trillion globally has been raised for ESG and the sector as the group is down almost 50% according to data collected by Morningstar.
Speaking of the data, the ISM Non-Manufacturing index, which measures activity in about 70% of the economy did not measure up to expectations and the prices paid index declined moderately versus rising. The data caused a significant rally in the Treasury market, causing a flattening of the curve.
There was also considerable narrative about Gaza with many pondering the President’s recent statements. Some are questioning whether Trump has lost focus on pressing fiscal issues attempting to resolve the issues that has been around for centuries.
It would be a celestial event of biblical proportions if the eternal war between the Children of Ishmael and the Children of Isacc is drawn to a peaceful conclusion. Can the people who descended from Hager and Abraham coexist with the people who descended from Sarah and Abraham? Writing it differently will, or can Mohammad’s descendants live in peace with Jesus’s descendants? Talk about the ultimate birthright citizenship question.
After the close, AMZN releases its earnings. AMZN has spent massively on AI and most will look for evidence that these expenditures are generating any type of return.
Last night the foreign markets were up. London was up 1.12%, Paris up 0.80% and Frankfurt up 0.79%. China was up 1.27%, Japan up 0.61% and Hang Seng up 1.43%.
Futures are insignificantly lower on increasing concerns about stock valuations. It could be argued that uncertainty is rising given the continued onslaught of perhaps radical proposals from the Administration. The 10-year is off 1/32 to yield 4.43%.
