The Woke Street Journal
Market
Not sure what market’s would have been down without NVDA, but would have been worse. Yesterday’s weakness didn’t come out of the blue, it usually never does. I pointed out some issues in transports and housing stocks and have also talked about economically sensitive names.
Dow transportation stocks are ‘area of potential concern’ for stock-market bulls-MarketWatch
Yesterday we saw that bleed into everything else.
Mike O’Rourke had a prediction the other night about the Magnificent 7…
"With multiples in the same ballpark, don't be surprised tomorrow if the other Magnificent Seven names become sources of funds for investors favoring Nvidia's growth."
You saw this play out as the Magnificent 7 lost $170 billion in market cap, while NVDA gained $217 billion
Mike O’Rourke had another prescient observation about the other chip makers after NVDA earnings….
"Except for Broadcom, the other key AI chipmakers have already reported earnings and were generally underwhelming. It is hard to see how Nvidia crushing it this quarter (when they did not) is a positive for those competitors. Furthermore, knowing Nvidia has an even more highly anticipated chip coming on the horizon means the challenge for the competitors is getting harder."
You may have seen this play out yesterday as well.
SPY has had quite a run since the April dip, will be looking to see if it can find support at either the 10 day or 20 day.
Same deal on the QQQs
The Dow looks like a double top short sale, no coincidence it’s doesn’t own NVDA. It’s not really relevant but it does tend to give you a sense of what’s going on outside of the Magnificent 7 and AI.
Small caps look the same…
I know I’m a broken record on the regional banks, but that was an ugly candle yesterday.
10 year rates are working on a nice undercut and rally at the 50 day. I mentioned yesterday that stock traders seem content with 0-1 cuts this year as long as there were no raises. If the bond guys aren’t then that bleeds into stocks.
For now I still think you buy the dips, but if rates continue to move up then all bets are off.
Woke Companies
This figures…..
Still looks like a short…
Scott Shepard: Woke Companies Pretend to Do Good, But Instead They're Just Doing Left-National Center for Public Policy Research
ESG
CALPERS PANICS AS POLITICIZED ESG PORTFOLIO STRATEGY CRUMBLES-X
The USA's largest public pension is in meltdown mode, attempting to salvage their politicized bet the farm on climate change investment strategy. @CalPERS, my former employer, has posted an unprecedented six LinkedIn posts and videos in the last three days, as a lawsuit by Exxon threatens to kill the key to success for their $100 billion investment in climate change solutions by 2030. Their “key to success” is the ability to push issues through corporate governance that would be damaging to individual companies, like Exxon, in an effort to benefit other portfolio holdings, like their $100 billion climate change investment commitment.
Investor interest in ESG has waned amid cost of living crisis-FT
The majority (83 per cent) said investor interest in ESG funds had waned, while 11 per cent said investors were increasingly more interested in ESG funds.
The remaining 6 per cent of advisers said investor interest had remained the same.
Texas Continues to Push Back Against ESG, But Is It Enough? -AIER
Pursuing ESG priorities allows asset managers to put their own political crusades ahead of the interests of shareholders. And who are the shareholders? Not the Gordon Gecko ESG advocates portray, but ordinary men and women. The TPSF manages funds designated for education on behalf of Texas taxpayers. If the funds have lower returns because of asset managers’ ESG crusades, Texas taxpayers are on the hook.
Exxon Gets Green Light for Lawsuit Against Arjuna Capital-Responsible Investor
DEI
University of North Carolina Board Votes To End DEI Requirements-Daily Caller
Things That Get Blamed for Climate Change
Red States Ask Supreme Court To Stop Blue States From Forcing Climate Agenda On Rest Of Country-Daily Caller
Nineteen Republican state attorneys general hit five Democrat-controlled states with a legal challenge alleging that the blue states are illegally attempting to impose aggressive climate policies on the rest of the country.
Covid
Moron. Don Lemon Says Vaccine Requirements Didn’t Cost People Their Jobs Because ‘Everyone Was Working From Home’-Daily Caller
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