Hey, it's Kramer, and this is my morning take on the market from today's CBC Investing Club

morning meeting.

All right, so Jeff, this is one of those things where we have to start with the macro,

and then we can go to the micro.

And the reason I say that is because the macro backdrop that we had is about as good as you

can get.

Sure. I mean, look, coming into the week,

we needed to see inflation data cool. We needed to see some signs of resilience in the economy.

That was the big fear ever since the jobs report that the labor market was falling off a cliff.

And we kind of ran the gauntlet this week. We had PPI, CPI, CPI, cool in line and today you got a really bullish retail sales report, jobless claims lower than expected. Why it's a bullish report because- Well, it was strong. Right. We needed, good news was good news, right? Okay, because that's what I wanted to point out. We shifts. For so long it was bad news, was good news because we needed to see inflation come down. Now we don't want to have, that's what the market year now we don't want to crash landing. We don't want a recession. Right. And that retail sales number is pure no recession. We don't want an emergency, you know, three quarters of a basis point, a percent great cut and and we're seeing

that in the data that maybe we're not going to need that and you know it's part of

the reason why last week when the market was so concerned about the economy we

actually were trimming Proctor because that was rallying on those concerns to buy

Wells Fargo. I didn't I I didn't really have it at 110.

I mean, remember what's happening here is you have to do the exact opposite of what happened Monday.

Monday was a false tell, I call that, meaning that Monday was just a trade that had to do with margin calls getting out of stocks,

which then led to Tuesday and Wednesday being belief that we're having recession, which then took up stocks that should not have gone up like a Proctor, which did not have that good a quarter. No, it did not. And we wanted to buy stocks of companies that had great quarters. Well, Wells was good enough. I've done some more digging on Wells. And I think that that, you know, obviously they had the same problem. You gave him a tough grade yesterday. You gave him a tough grade yesterday on your, on your

gratings of the quarters. I had to do that. But, you know, if we can parse through retail sales

as well. So up 1% month over month, first 0.4% expected, the largest increase since January,

2023.

So obviously signs of resilient consumer.

But if you parse through the data, you had electronic and appliance stores up 1.6 month. Wasn't that an interesting figure?

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