Latest news with #WarrenPies
CNBC
5 days ago
- Business
- CNBC
Wall Street goes full risk-on mode after favorable inflation report. But something is off with this latest run-up
The stock market is going full tilt into risk after the latest inflation report. But not everybody is optimistic. The S & P 500 reached an all-time high on Tuesday after the cooler consumer price index report from July sounded the all clear for the Federal Reserve to cut in September. On Wednesday, more investors were buzzing about the possibility of an ultra big cut next month of a half-percentage point — adding to the positive mood on Wall Street. Yet, some investors are only getting more skittish as the market continues to run higher. They're worried that stocks are priced for perfection , with the S & P 500 currently trading at a 12-month forward multiple of 22 — making it vulnerable to some sort of setback. "I think this is an area to watch for a pause," Warren Pies, co-founder at 3Fourteen Research, told CNBC's " Closing Bell " on Tuesday. "You have to recognize that trees don't grow to the sky. These things pause." .SPX YTD mountain SPX year to date Pies, who recently moved to market weight from overweight, said the macroeconomic picture continues to trouble him, including cracks in the labor market that he worries traders aren't giving enough credence. CPI, while softer than expected, nevertheless showed a reacceleration, he noted on social media. "If you're a client of ours and you follow our advice, I think you want to just neutralize your overweight, and let the market come to you," Pies said. Some strategists on Wall Street think the many divergences within the market — between large caps and small caps, or value versus growth — make parts of the asset universe ripe for a comeback if the interest rate outlook improves, while limiting upside for others. On Wednesday, for example, the S & P 500 rose 0.2%, while the small-cap Russell 2000 advanced 0.9%. Health care, the worst performing sector this year, led the index. Apple rose, while Nvidia slid. Yet, the top-heavy nature of the market raises other concerns. "Magnificent Seven" stocks, which account for roughly one-third of the S & P 500 in terms of market cap, are trading a premium to the rest of the market, even as the equal-weighted benchmark remains off its record. Goldman Sachs pointed out on Monday that the median stock in the benchmark remains more than 10% off its recent highs. "This is consistent with our view that these [Mag 7 stocks] are mania candidates," read a Wednesday note from David Abramson, chief U.S. strategist at Alpine Macro. "But with valuations already high, this could play out as a mania-like overshoot, 'catch up' of laggards, or a burst bubble."
CNBC
6 days ago
- Business
- CNBC
Stock futures are little changed after market returns to record highs: Live updates
Traders work at the New York Stock Exchange on August 12, 2025. NYSE Stock futures are little changed Tuesday night as investors look ahead to inflation data due later this week. Futures tied to the Dow Jones Industrial Average dropped 13 points, or less than 0.1%. S&P futures fell 0.04%, while Nasdaq 100 futures were 0.02% lower. In after-hours trading, Cava shares plunged more than 22% after the Mediterranean restaurant chain reported disappointing second-quarter revenue growth and lowered its same-store sales forecast for the full year. CoreWeave shares dropped about 5% even though the artificial intelligence infrastructure provider delivered a top-line beat and said its revenue more than tripled from a year earlier. The major U.S. indexes are coming off of a strong trading session, which saw the S&P 500 and tech-heavy Nasdaq Composite close at fresh record highs. The S&P 500 added 1.1% to settle at 6,445.76, while the Nasdaq ended 1.4% higher at 21,681.90. The Dow Jones Industrial Average added about 483 points, or 1.1%, to close at 44,458.61. The Russell 2000 Index jumped nearly 3% during the session as small-cap stocks are generally considered a beneficiary of lower short-term borrowing rates. Stocks traded higher Tuesday as inflation data was tamer than expected, soothing investor fears that tariffs are not spiking prices. Traders are now pricing in a nearly 94% chance of a rate cut at the Federal Reserve's September meeting, per trading data from the CME's FedWatch Tool. Thursday's producer price index report on wholesale inflation will add another piece of the economic picture. The report comes ahead of the Fed's Jackson Hole meeting on Aug. 21-23, which could also help shape expectations for the central bank's next policy move. Not all investors came away convinced by Tuesday's strong moves. 3Fourteen Research co-founder Warren Pies said the moves in small-cap names may not be what they seem in this late-cycle environment. "We've had some seasonal buying in the beginning of August, and I think people are starting to jump the gun and misinterpret that as this summer melt-up that every wants to believe in," Pies said on CNBC's "Closing Bell." "I think there is some concerns in my mind about the labor market and the growth story and the market's kind of glossing over them."
CNBC
07-07-2025
- Business
- CNBC
Market is past the point of peak uncertainty, says Sand Hill's Brenda Vingiello
Brenda Vingiello, Sand Hill Global Advisors chief investment officer, and Warren Pies, 3Fourteen Research co-founder, join 'Closing Bell Overtime' to talk the day's market action.
CNBC
03-06-2025
- Business
- CNBC
3Fourteen's Warren Pies on why market could see new all-time highs
Warren Pies, 3Fourteen Research Co-founder, joins 'Closing Bell Overtime' to talk the bullish signals he is seeing in the technicals.
CNBC
23-05-2025
- Business
- CNBC
Market's message is overwhelmingly bullish right now, says 3Fourteen's Warren Pies
Warren Pies, 3Fourteen Research co-founder, joins 'Power Lunch' to discuss Pies' technical take on equity markets, the state of the equity rally, and much more.
