☕ What's driving today's market moves?

Howdy! 👋 

I’m on the road this morning so I’ll keep it brief. 

The markets, as you might expect, are split – meaning the Dow is down while the tech-laden S&P 500 and Nazzy are both higher as I type. 

This is typical when traders are trying to go “risk on” – meaning they’re moving money into riskier choices inherent in the S&P 500 and Nasdaq indices – and leaving the much more staid Dow Jones Industrial Average behind … at least for the moment. 

Today’s early morning move is driven by two things: a) lower oil prices – which frees up capital – and lower yields on the US 10 YR – which means the cost of borrowing gobs of money has gone down. 

Looking across the markets here are a few things to get your brain (and your money) moving: 

1. P&G pops – which isn’t surprising given what a terrific company it is on many levels; sales are +7% but it’s the company’s pricing power that catches my attention. (Read) Buy the best, ignore the rest!® 
2. TSMC shares are on the move as Taiwan eases single stock investment caps for funds – meaning the regulators have just eased restrictions on how much any given fund can allocate to specific stocks like TSMC. Makes me wish I owned it, but I don’t because I am comfortable with other choices but that’s moot. (Read) The real headline, though, should be that money goes where it’s treated best so – ta da – three guesses why it’s going to a company like TSMC???!!! Yep – tech is just that significant! 🎯 
3. I have repeatedly warned investors to stay away from Nike because I believed that management made a terrible mistake with regard to strategy. And it seems I may have been on to something. The company just announced that it’s cutting another 1,400 jobs – the 2nd big “chop” this year. (Read) Shares are down 55% or so from a peak of ~$177 set in November 2021 when I said to avoid it like the plague during remarks at the MoneyShow at the time (and repeatedly since). I think they’ll fall further. 
4. Speaking of layoffs, Meta is going to cut 10% of its workforce, and the “Street” will probably think that’s great. I’m not so sure. I still think that the company could be in for the fight of its life if recent lawsuits are any indication. I want to short it or buy putskies but the dang thing will probably touch $1,000 a share first for all I know. Yeesh. 🤷🏻‍ 
5. Beijing just put a shot across Detroit’s bow and smart investors should pay very, very careful attention. That’s because China’s leaders want AI embedded in everything with wheels sooner rather than later. (Read) Long some very specific Chinese car makers and short or avoid the likes of Ford, GM and virtually every European badge too now that I think about it. 

And with that, our Tesla is finished charging so I’ve got to let it move my bride and I on down the road. 

If you haven’t tried FSD, it’s a game changer. 💯 

Not to mention a great investment. 

Bottom Line 

Profit potential is directly correlated to the ability to change your mind when presented with accurate information that contradicts your perception and your beliefs. 

Think about it and, as we head into the weekend, go find something to really “think” about. 

A strong body + a strong mind = strong results. 

As always, MAKE it a great day and finish the week strong.  

You got this – I promise! 

Keith 😀