Latest news with #LarryTentarelli
Business Recorder
5 days ago
- Business
- Business Recorder
Wall Street ticks higher as tech boost offsets economic worries
U.S. stocks edged higher on Wednesday, as strength in technology shares offset declines driven by weak economic data that deepened concerns about the impact of the Trump administration's erratic trade policies. The U.S. services sector contracted for the first time in nearly a year in May, while businesses paid higher input prices, a reminder that the economy was still at risk of experiencing a period of very slow growth and high inflation. The ADP National Employment Report showed U.S. private employers added the fewest number of workers in more than two years in May. Investors are awaiting Friday's nonfarm-payrolls data for more signs on how trade uncertainty is affecting the U.S. labor market. 'I think you get very short term volatility from the ADP number, but I don't think that it means that much until we see the payrolls number,' said Larry Tentarelli, chief technical strategist at Blue Chip Daily Trend Report. Washington doubled tariffs on imported steel and aluminum to 50% on Wednesday, the same day by which President Donald Trump wanted trading partners to make their best offers to avoid other punishing import levies from taking effect in early July. Investor focus is squarely on tariff negotiations between Washington and its trading partners, with Trump and Chinese leader Xi Jinping expected to speak sometime this week as tensions simmer between the world's two biggest economies. Wall Street mixed after Trump's steel tariff threat May was the best month for the S&P 500 index and the tech-heavy Nasdaq since November 2023, thanks to a softening of Trump's harsh trade stance and upbeat earnings reports. The S&P 500 remains less than 3% away from its record highs touched in February. Barclays joined a slew of other brokerages in raising its year-end price target for the S&P 500, pointing to easing trade uncertainty and expectations of normalized earnings growth in 2026. At 10:36 a.m. ET, the Dow Jones Industrial Average rose 88.09 points, or 0.20%, to 42,605.07, the S&P 500 gained 17.36 points, or 0.29%, to 5,987.73 and the Nasdaq Composite gained 58.41 points, or 0.31%, to 19,459.09. Eight of the 11 major S&P 500 sub-sectors rose, led by communication services with a 1.2% rise, while information technology stocks gained 0.4%. Shares of Hewlett Packard Enterprise rose 1.1% as demand for the company's artificial-intelligence servers and hybrid cloud segment helped it beat estimates for second-quarter revenue and profit. GlobalFoundries rose 2.2% after the chip manufacturer announced plans to increase its investments to $16 billion. Tesla dropped 3.8%. The electric-vehicle maker's sales dropped for the fifth straight month in big European markets. Wells Fargo shares rose 1.2% after the U.S. Federal Reserve removed a $1.95 trillion asset cap imposed in 2018 following years of missteps. Shares of cybersecurity firm CrowdStrike slumped 4.7% after it forecast quarterly revenue below estimates. Dollar Tree fell 10.2% after the discount store operator forecast second-quarter adjusted profit would be as much as 50% lower than a year ago due to tariff-driven volatility. Advancing issues outnumbered decliners by a 2.02-to-1 ratio on the NYSE and by a 1.41-to-1 ratio on the Nasdaq. The S&P 500 posted 19 new 52-week highs and no new lows while the Nasdaq Composite recorded 63 new highs and 23 new lows.
Yahoo
02-06-2025
- Business
- Yahoo
'Sell in May' strategy didn't pay off: How to position for June
May recorded the best monthly market performance in 18 months. Blue Chip Daily Trend Report chief technical strategist Larry Tentarelli joins Madison Mills and Brad Smith to discuss how investors should position for June. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. Today's strategy session. The market mantra of selling May and go away didn't work out too well for investors last month. So how should investors position for June, which is historically a weaker month for stocks. Joining us now, we got Larry Tenerelli, Blue Chip Daily Trend Reports, Chief Technical Strategist. Larry, it's great to speak with you this morning. This May was the best monthly gain in 18 months. When you see a record rally like that, how hard is it to get a sequel? Good morning, Maddie. I don't think that we should expect another five percent or six percent upside month, but I do think that there's a lot of bullish momentum in the markets right now. And if there was any type of consolidation or reset, I think it would be a buyable pullback. Larry, I wonder what is the kind of key technical indicator that you're looking at amidst some of what the analysts and investment strategist that we've spoken with are anticipating in a longer period of chop or volatility. So the trends are very strong right now. The S&P 500 and the Nasdaq 100 are both trading over the 20 day, the 50 day, and the 200 day moving averages. So that indicates an uptrend on multiple time frames. We've got bullish weekly momentum. And we could see some chop into the summertime after such a big move in the indices, some type of a digestion period would not be uncommon, but I think it's something that we can buy into. You said that, yeah, I hear you saying buy into the rallies. What does that buying look like? Are you buying into the mag 7 that once again emerged as the majority of the responsibility for the gaining in the S&P 500 or are you looking at the other 493? What's that looking like? So the top ranked sectors for me are technology, industrials, and consumer discretionary. I'm not so much a fan of the entire mag 7. I've got a position in Nvidia. I've got a position in Tesla. I think those are two high upside potential ideas. The industrial sector has been very strong. Consumer discretionary has been very strong. And as long as the jobs market holds up and the economy holds up, I would expect those three sectors to lead. Larry, I put one stat at the top of my notes. It's not deep, it's super high level, and it comes from FactSet. 98% of the S&P 500 companies have reported earnings. So, as we're essentially with earning season in the rearview mirror, a couple household names are still going to be kind of rolling out results here and there. But all things considered, how does this setup, especially knowing the guidance coming off of this most recent earning season, what's that setup look like for the summer? Are we due for some perhaps relief rallies if companies come out and say, all right, things weren't as bad as we had forecasted, and we can also offer a bit more guidance going forward from here. I think that's very possible that we could get a relief rally. At the end of March and going into April, the markets had really priced in a worst case scenario from the tariff news cycle. And we haven't seen that worst case scenario play out as of yet. Earnings have come in fairly strong. So I think as long as earnings hold up and we don't get any major downside surprises, or we don't get any major step back in the tariff news cycle, I think that does set us up for higher. Larry, those are some pretty big ifs, especially given some of the headlines that we've got with the US and China both saying that each other is failing on their side of the trade bargain. How are you thinking about how risky tariff policy is going to be to this market over the course of the summer here? There is definitely risk. So as you can see, we've got a very high volatility news cycle. Luckily that the news cycle over the past month or so has been positive. But there's always risk. We should expect 1 to 2% daily ranges in the S&P 500 on May on any major headline. So I think that's something that we want to keep in the back of our minds, but until it happens, I wouldn't spend too much time focused on it. Larry, just lastly while we have you here, I know that Palantir, as we know, is one of your top ideas here. And for Palantir recently getting more government contracts, and we know that this is a space where they highly rely on government contracts for their future recurring revenue run rates as well. They just got this new partnership. It seems like they're working even more so with the Trump administration and setting aside any of the concerns around surveillance of citizens. It seems like that is where they're going to be leaning into some of those relationships with the administration to garner even more of their revenue base. Just want to get your kind of updated assessment on them. So Palantir, still my favorite tech idea, and I think they're really in a sweet spot. They dominate their industry, they dominate big data and AI, and they are tied in with some very high value contracts with the US government. So that is definitely a bullish tailwind. And unless there's some type of a major step back there, which I don't expect due to the stickiness of their relationship with the government, I think that sets the stock up for higher. All right, Larry. We'll continue the conversation here. Thanks so much for joining us here. Appreciate it. Brad, thank you so much.
Yahoo
02-06-2025
- Business
- Yahoo
'Sell in May' strategy didn't pay off: How to position for June
May recorded the best monthly market performance in 18 months. Blue Chip Daily Trend Report chief technical strategist Larry Tentarelli joins Madison Mills and Brad Smith to discuss how investors should position for June. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. Sign in to access your portfolio
Bloomberg
19-05-2025
- Business
- Bloomberg
Bloomberg Daybreak Asia: Markets React to Moody's US Credit Downgrade
The dollar edged lower along with US equity-index futures after Moody's Ratings stripped the US government of its top credit rating, citing a ballooning budget deficit it said showed little sign of narrowing. US stock futures declined 0.7% after the ratings were slashed one level to Aa1 from Aaa Friday. A gauge of the dollar weakened 0.3% and Treasuries were little changed at the open Monday. Shares in Japan, Australia and South Korea were weaker at the open. We get reaction from Larry Tentarelli, Chief Technical Strategist at Blue Chip Daily Trend Report. Plus - holding longer-term Treasuries and importing Japanese cars manufactured in the US are among the possible bargaining chips for Tokyo in its talks with Washington over President Donald Trump's sweeping tariffs, according to the leader of a small but influential opposition party. Yuichiro Tamaki, head of the Democratic Party for the People, said in an interview last week that Japan could offer to reinvest proceeds from maturing US Treasury holdings into super-long bonds in return for concessions on tariffs. Those comments come ahead of the G7 Finance Ministers meeting in Canada this week. We get more on Japan's outlook from Tobias Harris, Founder and Principal at Japan Foresight. He speaks with Bloomberg's Yvonne Man and Avril Hong.
Yahoo
04-05-2025
- Business
- Yahoo
‘Sell in May, go away': Why Wall Street isn't buying it this year
It's the seasonal adage investors love to debate: "Sell in May, go away." But in a market currently driven by policy headlines, many strategists say this year's climate doesn't fit the usual patterns. With lingering economic uncertainty, fragile technicals, and geopolitical catalysts like US-China trade talks in play, few see a clear case for stepping to the sidelines — at least not just because the calendar says so. "We're in a different market this year," Larry Tentarelli, chief technical strategist at Blue Chip Daily Trend Report, told Yahoo Finance last week. "Historically, if we go back over the past ten years, sell in May hasn't actually worked too well." The saying traces its roots overseas to when London traders timed their market exits in the summer before buying again just after the famous Saint Leger horse race in September. The idea was to skip the typically sluggish summer months and reenter when markets historically perform better. This approach proved effective during the early days of modern Wall Street between 1960 and 1987. But things shifted after the major market crash of 1987. Following that, a fully invested strategy began to outperform, and staying invested through the summer months became more favorable. Since then, holding steady during this period has generally been a winning strategy, at least on balance. According to data compiled by LPL Financial, the S&P 500 (^GSPC) has historically posted its weakest average returns between May and October — just 1.8% since 1950 — compared to the stronger November-to-April period. While summer returns have been positive 65% of the time, their relative underperformance has reinforced the "sell in May" trend as seasonal market behavior. However, not everyone is convinced the pattern holds in today's volatile market. "Seasonality data can provide important insights into the potential market climate, but it doesn't represent the current weather," Adam Turnquist, chief technical strategist at LPL Financial, wrote in a note to clients on Wednesday. "And when it comes to markets, tariff uncertainty and monetary policy right now have the power to make it rain or part clouds into sunshine." From a technical standpoint, stocks showed significant progress in April but remained in recovery mode after all three major indexes posted their worst monthly performances of the year. "This is a very high volatility news driven cycle," Tentarelli added. "I'm looking to buy the pullbacks as opposed to sell the rallies." Markets have been whipsawed by President Trump's tariff rollout as ongoing back-and-forth trade developments with other countries continue to muddy the outlook. Read more: The latest news and updates on Trump's tariffs "Just because ['sell in May'] has some statistical significance doesn't mean it always works, right?" Siebert Financial chief investment officer Mark Malloch said. "In a situation where we've had markets move up and down quite a bit, it's questionable on whether that can be a factor." Plaza Advisory Group wealth manager Andrew Briggs agreed, noting, "We have had a nice recovery in April, which is great to see. That certainly means we could retest some lows here, but that's not enough evidence for us to recommend selling in May and going away." Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at Sign in to access your portfolio
