Even as all three indexes finished the week higher, anxiety clouded over wall street. Stocks sew-sawed daily even as the blockbuster earnings from Goldman-Sachs and JPMorgan Chase were ‘pristine,’ underlying fears of creeping inflation and AI directions, investors were cautiously concerned about the stock prices. “The laundry list of worries is actually increasing,” said Joe Rizzuto, chief investment officer of GammaRoad Capital Partners. “This is the environment where we should expect higher volatility.” Regional banks are showing scattered signs of weakness, namely Zion Bancorp, facing charges of fraud against borrowers. Several others have and are dealing with many cases of fraudulent actions.
Monday’s market was hindered by a massive electronic breakdown, handcuffing a majority of Monday’s business. “The Amazon Web Services” outage was the culprit. Markets were encouraged by President Trump’s personal comments that he and Treasury Secretary Scott Bessent will meet with Chinese President Xi Jinping to discuss the coming trade implications. “This administration is clearly open to deal making, and I think the market is leaning on that for now,” said Ross Mayfield, investment strategist at Baird. At close the Dow Jones was up 516 points, encouraged by President Trump’s positive comments amid the electronic malfunctions. Both the S&P 500 and Nasdaq edged higher, adding 1.1% and 1.4% respectively. All three indexes are now trading at new record levels
The Dow Jones Industrial Average crossed the 47000 mark Tuesday, as very positive early earnings powered the market. At day’s end the index closed at 46924, slightly lower. Early reporting of results led by GM, Coke, and Netflix all posting better than expected results, boosted investor enthusiasm. Investors and traders have brushed aside many contending ‘road-blocks:’ including the prolonged Government shutdown, “now the third longest Federal work stoppage in U.S. history,” upcoming tariff negotiations, and threatening rising inflation with resounding market support. Gold and silver stumbled with both metals regressing, coming off lofty highs. Gold dropped 5.7%, its biggest single day loss ever, and silver plunged 7.2% after a strong run-up. Gold remains up 55% for the year, presently $4,157.90 a troy ounce.
Stocks pulled back on Wednesday amid worries that the Trump Administration was considering more restrictions on exports of software related products to China. President Trump implied he might “impose duties up to 100% on related products.” Indexes were fidgety, with the Dow Jones losing 334 points, or 0.7%, while the tech heavy Nasdaq fell 0.9%, after gaining back some losses, and the S&P 500 finished 0.5% lower. Bitcoin was up $1,767.00 to $109,990.00, after several ‘down days.’ Gold slipped again, settling at $4,044.40 a troy ounce, off 6.7% of this year’s high.
Copper reserves are diminishing worldwide as a result of a huge mine accident in Indonesia. Freeport McMoRan, a major copper mining company in Indonesia, has closed one of the largest producing copper mines in the world after a huge mine disaster, now compounded by a revised labor contract with added mining policies that has not been accepted by the government and labor officials. Copper, a vital metal used in many industries, is experiencing huge increases of over 18.5% this year. Prospects are slim that the mining operation in Indonesia will be producing soon.
RUMBLINGS ON THE STREET
Jeff Wilson, Portfolio manager at Jengen Investment Management, WSJ – This kind of Goldilocks period over the past six months has been a pretty good backdrop for risk taking in the market. This is a reminder there are fairly uncertain times moving forward.”
Sam Stovall, chief investment strategist at CFRA Research, WAJ – “Bull markets don’t die of old age, they die of fright. And they are most afraid of recession.”
Scott Helfstein, head of investment strategy at asset manager Global X. WSJ – “This is a market being driven by strong fundamentals. Earnings growth is largely driving equity values.”
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