Transcript:
Tom Vaughan:
Hello, everybody, welcome to Monday, the S&P 500 was down a point 4%. Today, that was actually pretty good result, it was down in the morning, got a lot of economic numbers coming out of China, they were worse than expected, mainly due to their lock downs, their version of the Federal Reserve actually lowered rates to try to support their economy, rest of the world really is raising rates because the economies are too hot and inflation is too hot. Exactly the opposite happening in China, you can’t have the world’s second largest economy completely fall apart and not expect, you know, our stock market to have trouble in that environment also, but a certain amount of slowdown is actually good. And that’s exactly what’s happening all over the place. We’re seeing slowdowns. But you know, where does it end up? How far down does it go? Those types of things. So for example, slowdown in China today drove the price of oil down below $88 A barrel at one point. And that’s a really good thing in the sense that gas has been one of the main things that’s been driving, you know, inflationary environment here, so the more oil comes down, potentially the more gas prices can come down, and the better our inflationary situation might get. So sometimes there’s good things that happen in these bad areas. Again, it’s just a matter of magnitude.
How bad does it get? This week, we have a retail earnings coming out that are important from Walmart, Target and Home Depot. Be very interesting. See how they report because they’re kind of give me an idea of what’s going on with some of the consumer behavior and what have you. So watch for those as far as that goes also, but really good day today, we’re not that far from breaking through the 200 day moving average on the S&P 500. So that would be very fascinating. And we have a lot of support below us was really good to see it go up today considering how much it went up on Friday, how much it’s been going up over the last several weeks. It is a little bit stretched out. Don’t be surprised to see some type of a pullback, just because we’ve come a long way. So in a short period of time, and usually there is some pullback there that happens. But again, we have a lot of support below us that should hold us up. And then hopefully we can kind of go from there. So let’s see what happens tomorrow. I’ll talk to you then. Thank you