Transcript:
Tom Vaughan:
Hello, everybody, welcome to Wednesday, the S&P 500 was up just short of 1%. Today, another really good day all together, actually. And what’s really driving things is earnings. And, you know, ultimately that is the key component for stock market growth over the long term is having good earnings. Last night, you know, Google reported great earnings, they also announced a 20 for one stock split. AMD, had fantastic earnings, really good guidance, ended up very well today AMDs report, because their semiconductor company really affected a lot of the other semiconductor companies, we had a big run into most of them today, the index that we use, so xx, was up two and a half percent today. So that really outdid the S&P 500. And I think again, in that particular arena of semiconductor, we’re seeing just shortage companies that are, you know, running flat out, have orders going out, you know, way into the future and what have you too, so that’s, that’s a good sign.
We are seeing, you know, the drive of earnings can go the other way. For example, after hours today, Meta, which is formerly known as Facebook reported, and they had some weaker than expected revenues, stock actually dropped 20%. In the after hours, you know, we’ll see what actually happens tomorrow. But Meta is one of the bigger stocks that’ll bring down some of the indexes. As far as that goes, this is our fourth day in a row on an upturn. I would expect at least some pullback here eventually. But it has been very, very sharp recovery. And what happens sometimes, you know, you get going down, down, down, and everybody gets really pessimistic. And they start shorting the market in lots of different ways. And when you short the market, you can really get in trouble when it starts back up. And so they when they cover those shorts, they’re generally buying that stock to get out of that short position, which can then of course, make it go up even faster. And so I wouldn’t be surprised if that wasn’t a bit of what was happening here. Because the pessimism got so high at the first part of this year so far. So things are going well. You know, earnings are good, that makes a big difference. Again, stock market returns, generally will follow those over a period of time. So look forward to seeing what’s gonna happen tomorrow. Thank you.