Introduces Joe Mazzola and asks for thoughts on market pullback due to higher oil and hot PPI.
Sam
Joe Mazzola
Stocks hit by oil spike (Brent above $108, WTI ~$98) and PPI exceeding estimates (0.7% headline, 0.5% core) before oil spike; components feed into PCE, which the Fed focuses on.
Asks what to watch for in Fed messaging, referencing expectation of 'keep calm and carry on' message.
Sam
Joe Mazzola
Dot plots will show Fed governors' inflation/GDP views; digesting multiple variables (tariffs, 50-60% energy price jump affecting chemicals/fertilizer); watching if inflation is 3-6 month thing or persists through year; market pricing maybe one rate cut vs. 1-2 a month ago.
Notes market resilience, asks about energy as hedge per Joe's notes.
Sam
Joe Mazzola
Energy is a hedge; investors should add to it; leadership narrow (only energy/utilities have >50% stocks above 200-day MA); index down 3-5% but underlying drawdowns severe (25-30% in S&P, worse in Nasdaq); suggests overexposure to energy, pull back on high-beta names.
Asks about tech sector, noting non-monolithic behavior (Nvidia up, others down) and Chinese ADR stories.
Sam
Joe Mazzola
Strength in software and memory (Micron up >50% YTD); Micron earnings due, expecting record revenue; need selectivity in tech, look beyond Mag 7; stock-pickers can do well in this market.