Transcript:
Tom Vaughan:
Hello, everybody, welcome to Thursday, another green shirt day this week, really fascinating. The S&P 500 was up 2%. Today, really strong, lots of green on the charts. A lot of things moved up very strongly today, a couple of key catalysts that I think are important number one, is Nvidia reported their earnings last night, and did great for the current quarter. I mean, fantastic, actually. But they gave some softer guidance for the next quarter, and the stock sold off and the after hours as much as 12%. But then just continued up today and came all the way back, it was up over 5%. By the end of the day, those types of reversals that you see happening are, I think, a really good sign for a bounce at least or recovery of motion to the to the upside. We also got a report that came out today from JP Morgan, talking about the big jump in the number of corporate buybacks. So you know, we talked about yesterday how insiders, executives at companies are buying back company stock at a fairly big rate.
And now we’re seeing a big jump in the number of corporations buying back their own stock. So there’s a lot of buybacks that have been announced really hundreds of billions of dollars in total, that should happen throughout the year, but the corporations can kind of time when they want to buy those back. And they’re buying those back at a pretty good clip right now. So that could be a huge catalyst actually, because you have so many people that think this market is gonna go down, and we’re gonna have this huge recession. And they could be right, but they’re all out. And they’ve made their moves. And so it doesn’t take a lot of money coming back in on the other side, to really just make the thing go. And so that’s what we see today. I think partly, what we’re probably seeing all week here is some of this big money coming in and driving it the other way. Because once you get that it again, it creates this momentum. There’s a lot of money managers out there, they have the highest amount of cash that they’ve had for a really long period of time. And so all of a sudden, you know, they’re starting to underperform the indexes, and they start to come back in. And then that starts to put squeezes on the short calling people. So they start recovering the shorts by buying stock. And so you get this scenario where you can really get this run up. We had this at the end of March, and it was a really fantastic move altogether.
Unfortunately, the Federal Reserve is kind of fighting the market and coming out and saying, you know, a lot of negative things that seem to bring the market back down, although we just had the Fed minutes come out yesterday. And the market responded fairly well to that. So I think what we’re doing right now with the Fed is fairly well known and kind of built into the prices as far as that goes. There obviously can be other surprises that come along, but really interesting timeframe altogether. So look forward to seeing what’s going to happen tomorrow, see if we get a continuation of this move, or at least hold up somewhat on Friday. If you’d like to join me, you can go to the YouTube channel, we’ll talk money with Tom that I have and watch our live stream from 1215 to one o’clock Pacific time. I do a summary of what’s going to happen. You know what I saw happening in the market for the week. And then we answered questions, you know, from the audience, basically, about retirement planning and those types of things, or markets and what’s going on anything in that category. So, look forward to seeing you then. Thank you very much.