Chip’s Stock Roundup

Fresh news and strategies for traders. SPY Trader episode #1008. Hey everyone, it's your pal, Chip McStocks here, and welcome to "Spy Trader"! It's Saturday, March 8th, 5 AM Pacific Time, and we're diving into a quick recap of the week's market happenings. Why do stocks always seem so cheerful? Because they have lots of ticks. So, grab your coffee, and let's get started. The past week ending March 7th, 2025, saw a general downtrend in the U.S. stock market with a good bit of volatility thrown in. Tariff concerns, especially those impacting trade with Canada, Mexico, and China, were a major drag. Plus, the AI sector faced increased scrutiny which didn't help. Tech and energy stocks took a hit early in the week, while the more defensive sectors like health care and consumer staples held up a bit better later on. Overseas, European stocks were mixed, but Asian markets had their best week since September. Economic data painted a mixed picture. Manufacturing data was okay, but consumer sentiment surprisingly dropped. Inflation figures were in line with expectations, but purchasing managers reported higher input prices, hinting that consumer inflation might be growing. The market is expecting the Federal Reserve to cut interest rates. And of course, geopolitical factors, like trade talks and discussions about a ceasefire in Ukraine, played their part. So, what does all this mean? Well, uncertainty about tariffs and concerns about a potential economic slowdown have made the market a bit defensive. We're seeing a rotation away from tech and growth stocks towards more stable sectors. People are seeking safety in bonds, driving Treasury yields down. There's even some worry about stagflation which is slow growth combined with rising inflation. Now, let's talk about some specific companies and sectors. First up, crypto. It looks like Trump is taking a strong stance in favor of crypto which would mean ending SEC investigations into companies like Coinbase and Kraken, which could be a plus. However, keep in mind that it could also mean increased speculative activity and volatility in the overall market. Next up, Alphabet, that's Google, is facing a House Judiciary Committee subpoena regarding potential government pressure on content moderation. Could mean future volatility for Alphabet and other tech giants. Now, Walmart, everyone's favorite discount store, is seeing strong sales growth, but a lot of it is due to higherincome consumers trading down. This suggests some broader economic concerns, and this boost might be temporary. Walmart's stock is trading at a premium, so be careful there. Let's talk about Amazon. Amazon is looking like a good growth stock thanks to its dominance in ecommerce, cloud computing, and digital advertising. The cloud computing market is expected to reach two trillion dollars by 2030. That's a lot of money. And even though it's huge, Amazon's valuation is still looking pretty reasonable. Something to keep an eye on. Speaking of inflation, the article highlights that it might be stubborn and remain high, which could put pressure on consumer spending, especially for retirees. We also found a video that takes a look at the current state of the stock market, examining recent macroeconomic data, and it also includes insights from Tom Lee of Fundstrat. Important to remember that even wellestablished companies like Apple might not offer exceptional returns due to high valuations and slowing growth. Valuation matters and high P/E ratios can limit future returns. Growth is key. Okay, let's talk about the Nasdaq. The Nasdaq is nearing correction territory, and the S&P 500 is also down. Downturns can be scary, but they present buying opportunities for longterm investors. Focus on fundamentally sound businesses with longterm growth potential. Use these downturns wisely to acquire more shares of quality companies at lower prices. Don't chase popular stocks with stretched valuations. Okta shares surged after a strong report, suggesting continued demand for cybersecurity solutions. Finally, the connected TV advertising market is booming, which is good news for companies like PubMatic that are investing in this area. Alright, that's all for this edition of "Spy Trader". Remember, I'm not giving you personalized financial advice; just sharing my thoughts. Do your own research before making any moves. Until next time, this is Chip McStocks, signing off!