Friends

Wow, there was a lot going on today with regards to the markets. As I mentioned yesterday, we monitor how stocks react to their earnings reports and today’s action was not good for the bulls. Good numbers from the likes of Meta, and Tesla didn’t result in higher share prices. Instead, worry about massive cap ex and debt buildup in these companies took the lead. As tech shares tumbled, so did yields on bonds in a kind of flight to quality move. AI debt concerns coupled with the bond market in France collapsing had investors buying U. S. Government debt. The 10-year Treasury Note yield fell all the way to 4.95%. Remember, just a week ago that yield was more than 5.30%.

As for stocks, by the close the Dow Jones Industrial was up 11 points to finish the day at 52,867. The S&P 500 was down 93 points to close at 7,663. The Nasdaq Composite Index was down 693 points to close at 26,008. Gold was down $111 to trade at $4,038 per ounce, while oil was up $2.20 to trade at $99.35 per barrel WTI.

As mentioned, expectations are high as are concerns with regards to big tech names and AI. Next week we get a look and earnings from Amazon, Alphabet, Microsoft, Eli Lilly, Visa, AbbVie, Verizon, Coca-Cola, Boeing, Merck, Caterpillar, ExxonMobil, Chevron, BP, and Intel, just to mention a few. Numbers are likely to be very good. Will share price reaction be good? We will see. First let’s see how the week finishes out tomorrow.

Have a nice evening everyone.

Jim