Navigating Market Uncertainty

Fresh news and strategies for traders. SPY Trader episode #1149. Hey everyone, it's your pal Bubba here, and welcome back to Spy Trader! It's 6 pm on Wednesday, May 7th, 2025, Pacific Time, and let's dive right into what's moving the market today. First off, we're seeing mixed signals across the board. After that early April dip caused by tariff announcements, things bounced back, but volatility is still the name of the game. Yesterday, May 6th, the S&P 500 took a hit, dropping 0.8%, and today is a mixed bag, with the Dow up 0.7%, the S&P 500 gaining 0.4%, and the Nasdaq rising 0.3%. Yeartodate, the S&P 500 is down 4.32%. Now, let's talk sectors. Tech stocks, even the big ones, are feeling the pressure. Energy is looking undervalued with those sliding oil prices, even though oil saw a bit of a recovery yesterday. Communication Services, Consumer Cyclical, and Real Estate are also in the undervalued camp, while Consumer Defensive, especially names like Costco, Walmart, and Procter & Gamble, looks a bit pricey. Macrowise, tariffs are still the big elephant in the room. Companies are walking on eggshells with their forecasts. The Fed's expected to hold steady on interest rates, even though President Trump is putting on the pressure to cut 'em. Preliminary GDP numbers show the economy shrank for the first time since 2022, mainly due to a surge in imports and weaker consumer spending. All eyes are on inflation, especially with those tariffs potentially pushing prices up. The overall rate of economic growth is projected to slow throughout 2025. Companyspecific news? Disney's shares are soaring after strong results, and AMD also had a great earnings report. On the flip side, Alphabet is getting hammered due to AI search competition, and Apple is exploring AI options for Safari. Palantir took a 12% nosedive, and Uber stumbled even after beating earnings expectations. Okay, drumroll for Bubba's trading recommendations! Given all this uncertainty, diversification is your best friend. Keep a close eye on those trade negotiations – they're market movers. Maybe beef up your defensive sectors like consumer staples, healthcare, and utilities. Tread carefully, folks! Longterm investors, sit tight, but keep some cash ready to pounce if the market dips again. Smallcap equities might be worth a look, and don't forget to explore international markets for better valuations. Why did the stock market investor bring a ladder to work? Because they heard prices were going up! Remember, folks, this isn't financial advice, just Bubba's two cents. Chat with a pro before making any big moves. Stay safe, and I'll catch you on the next Spy Trader!