Good Morning,
I hope everyone had a nice weekend. It was a thrilling Sunday as Team USA beat Canada to claim Gold for the first time since 1980! The Olympics are over but winter is not as NY is expected to experience blizzard like conditions. Stay safe!
Markets managed to close higher last week while navigating a deluge of headlines. Most notably was the Supreme Court’s decision Friday to strike down the President’s ability to enact tariffs under the International Emergency Economic Powers Act (IEEPA). The Trump administrations response was swift, announcing a 10% global tariff that was upped to 15% over the weekend under Section 122 of the Trade Act of 1974. This statute can permit tariffs for up to 150 days. We will have to see how things develop but I would anticipate a lot will be mentioned in tomorrow’s State of The Union address. Markets also continue to monitor the situation with Iran as Washington has floated a 10-15 day negotiating window. All things considered, I wouldn’t rule out some near-term volatility as this uncertainty unfolds. This week I am focused on Nvidia and their earnings report set for Wednesday after the close. We have continued to see a rotation into more value areas of the market over the last few weeks. NVDA numbers will likely drive momentum over the short-term as investors look for justification on the massive amounts of capital going towards AI buildouts. I remain in the camp of higher cash flow companies that are heavy in assets. Please reach out with your questions/comments.
Attached, please find this week’s Market Strategy Radar Screen Report from John Stoltzfus, Chief Investment Strategist of Oppenheimer Asset Management.
Have a great week!