SPCX Gets Double Upgrade as Tech Lags; Fed & Mag 7 Earnings Dominate Next Week

Okay, let's set up this trading day. Kevin Hanks is ready for our prefelt playbook. And we'll start off with the tech trade and tech has been under pressure. The socks has been down about 15% um so for the month. So it's been obviously a lot of pressure on tech, not necessarily the hyperscalers in the same way, but let's talk about tech. Good morning, Kevin Hanks. >> Good morning, Nicole. Yeah, I I think the market remains under pressure. the focus like you mentioned on the NASDAQ on tech on Neoclouds on memory all those under pressure but we'll see it's important remember they have already sold off significantly so the question now is and let's face it riskoff assets right now are elevated the VIX is is uh above 20 right now as we start the day so uh certainly some levels of risk are built into this market right now. These have corrected and they continue to be soft going in to start the day. You mentioned the SpaceX news. That's good news. But it's memory, it's Neoclouds. Hopefully, uh the lower overall 10-year yield now approaching teetering around 5% will help some of that or alleviate some of that. I think how we end the week, how we end today's trading is vitally important. technical yesterday led by the NASDAQ. The market was heavy all day and really never came up for error throughout the day. So I think when you come off a day like that, how we finish the day today will be vitally important. And since we got on the SpaceX talk, um, look, we heard about the idea of going into mobile over the last week and when it first broke, the first thing that happened was AT&T, Verizon. Those names sold off. And that's sort of what we're seeing here today. T-Mobile, AT&T, Verizon, those names are coming under pressure. And on the other side of the coin will be the possible beneficiaries of this story, right? Those satellite towers like Crown Castle. Um, so we'll have to wait. SpaceX is moving these markets. >> Yeah, exactly right. There's SpaceX is in the news a lot. I'm sure you and Jenny are going to talk about that in a moment. So, I'll let her get into some of the details. But cell towers, the next step along the path are going to be the cell towers. And SpaceX with a double upgrade today. That'll be in the news. SpaceX, I've got it up about 2% pre-market. So that that that's going to be an important part of today's trading as well, Nicole. >> All right, let's get to what we're seeing here on the big picture. We're getting some economic data, um consumer sentiment. I mean, we still have to weigh these in here ahead of the Fed meeting next week, too. >> Next week's Fed meeting. Today, we get data on PMI composite flash. Remember whe when you get these PMI and ISM numbers, the the most important number is 50. 50 is the difference between expansion and contraction. Below 50 is contraction. All of these numbers that we're going to get today are going to be above 50. They're looking for the composite index something around 57 and a half, manufacturing around 55 and a half, services around 58. So, they're all in expansion territory, but we'll still look at things like prices paid and employment and all the uh parts that make up the the these numbers in terms of University of Michigan consumer sentiment. That's that one of those softdated numbers that skews very political. I I'm not, you know, think about this. March of 2024, right after the election, this number hits 79.4 for consumer sentiment. Now it's looking at 46. It's almost almost in half of what it was. Why is that? Well, I don't know. Inflation is an issue, right? The the year ahead inflation expectations 4.7% seems a little high when the overall inflation numbers have come down a little bit slowly, but they've come down. So, I think this number, the market likes to trade off it. I'm not sure it should, Nicole. >> Yeah. And look, I mean, the Fed will have a lot to discuss in their family fight meeting next week. Um, you know, inflation's elevated, but it's not taking off in the opposite direction. The labor picture, right? They have a lot to discuss. We'll we'll look at all of that as oil is still at $101, right? It's not at 91. It's not at 81. They still have inflation being passed through the economy. Um, so there's that. Then next week, right, we've heard from some of the big players already this week. Then we have more of those mag seven names next week. We got a big lineup. Think about this, Nicole. Next week, 178 names in the S&P 500. Roughly just over a third, 32 names in the NASDAQ. Right around a third of all those companies, all those indices coming out with earnings next week. Now, you mentioned the NASDAQ has been extremely volatile, but there's a big week of earnings. Who are the highlights? Well, how about Tuesday? Boeing, uh, Visa, I think are important. PayPal, UPS, Royal Caribbean, that's just Tuesday. Wednesday, Google and Microsoft along with eBay and, uh, Service Now, that'll be a big day on Wednesday. Thursday, Mastercard, another look at the US consumer. How about Amazon? How about Starbucks? How about Intel? That's all Thursday. Friday, as we normally do in this week, we'll get uh energy companies, Exon Mobile and Chevron. So, a huge week of earnings, but unlike this week that was very light in terms of economic data. Next week, we got a lot of economic data. Durable goods on Tuesday. Uh Fed meeting, Fed decision on Wednesday, that that meeting happens Tuesday and Wednesday. Thursday, GDP, first look at third quarter GDP. That'll be a big one. Personal income and outlays, more inflation data, and so next week will be big, not only in earnings, not only in a Fed meeting, but in economic data as well. Nicole, >> and we'll have a special Fed day show, of course, from our impact conference in Boston. So, lots to discuss next week. Kevin Hanks, great to see you. We'll catch you at noon on Fast Market.