Financial News vs. Noise

Fund Manager Who Bet Against Jim Cramer And Cathie Wood Has New Anti-Woke ETF: 'Puts Profits Ahead Of Politics, DEI & ESG'-Benzinga

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I will be on the Schwab Network this morning at 9:45AM to talk about the Magnificent 7

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Yesterday's Episode of The Watchlist

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CPI is this morning. If there is a surprise to the upside it could be a problem. If it's in line it probably doesn't move the needle much, if at all. Overnight there were hawkish comments out of the BOJ, which could be responsible for this morning's weakness. My sense is you ought to be cautious ahead of FOMC and BOJ next week.

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Yesterday's action was in the financials. It started when Ally Financial CFO said this about his borrowers....

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"struggling with high inflation and cost of living and now more recently, a weakening employment picture."

"So looking at 61-day plus days past due, and those delinquencies in particular, we're looking at because those reflect really kind of that pool of struggling borrowers. And as that pool of struggling borrowers in those later-stage delinquency buckets has grown, it gives us pause in that as we kind of think about that 10 basis points of underperformance on NCOs in July and August, our sense is that's probably going to expand as we come in coming months, just given the size of this population of struggling borrowers. So that's really kind of one of the things that's put us on notice around credit development."

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I still think the average American is hanging on by a thread, if that. I don't think any of this is being represented in the numbers we are seeing.

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Then you had JP Morgan. Jamie Dimon remarked that COO Dan Pinto "could run the bank tomorrow". Pinto then went out and talked down 2025 expectations. The stock obviously didn't like it...

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Perfect timing for this headline.....

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Financial stocks are beating S&P 500 this year. Will their bullish run continue?-MarketWatch

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The debate was last night and that is likely to dominate the news cycle this morning. Each side will say their candidate won, but if you look at the comments coming from the right and left, and what's happening with DJT pre market, the sense is that Harris won. Don't really think that's market moving at the moment.