Thursday - May 7, 2026
The Dividend Cafe
The Dividend Cafe - The Bahnsen Group
4.9 • 569 Ratings
🗓️ 7 May 2026
⏱️ 9 minutes
🧾️ Download transcript
Summary
Brian Szytel reports a modest market pullback with the Dow down 313 points, the S&P 500 down about 0.3%, and the Nasdaq slightly lower, alongside a small rise in yields (10-year around 4.38%) and oil up about 1%, while year-to-date gains remain strong. He highlights the ongoing impact of stimulus via legislation enabling advanced expensing, encouraging corporate investment with lasting effects on profitability. Economic updates include initial jobless claims rising to 200k from 189k but still very low, Q1 productivity at 0.8 versus 1.4 expected, and construction spending up 0.6% in March. In Q&A, he explains high margins through index composition toward higher-margin firms, a shift to services, and operating leverage from productivity and post-COVID pricing power, and contrasts US economic advantages with Europe’s fragmentation and vulnerability to cheaper Chinese competition.
00:00 Market Recap Today
00:16 Why Markets Pulled Back
00:57 Year to Date Snapshot
01:09 Stimulus And Capex Boost
02:09 Economic Data Roundup
03:29 Q&A Margins At Highs
04:08 Three Drivers Of Margins
05:18 Europe Vs US Competition
06:13 Politics And Wrap Up
06:34 Final Sign Off
Links mentioned in this episode: DividendCafe.com
Transcript
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| 0:00.0 | Welcome to the Dividend Cafe weekly market commentary focused on dividends in your portfolio and dividends in your understanding of economic life. |
| 0:10.0 | Welcome to Dividend Cafe. This is Brian Saitel, your host here from our Newport Beach, California office on May 7th. This is a Thursday. So you're almost |
| 0:21.7 | to your weekend. We gave a little back overall in markets on the day. So we had a down day in |
| 0:25.7 | markets. This was following two really nice up days here. So there wasn't a big catalyst to today's |
| 0:31.3 | sell-off. This was mostly just, that's what markets do. They price things in. They go up. They go |
| 0:36.1 | down each day. And this is still |
| 0:38.4 | really close to all-time highs in the stock market. But on the day, you had the Dow give up 313 points. |
| 0:45.3 | S&P was down a third of a percent. NASDAQ was only down about 15 basis points. You do get a couple |
| 0:51.9 | of basis points on 10, so interest rates went up here a little bit, |
| 0:55.5 | as did all prices recover just a small amount. They were up about 1%. So you got 10 year up about |
| 1:00.9 | two basis points at 438. So across the board, sell off in both stocks and in bonds. That's what |
| 1:07.2 | happens when yields go up a little bit, bonds prices still off. But overall, we're still |
| 1:11.5 | hanging in there. This market is still pretty robust year to date. The Dow is up about three and a half |
| 1:16.2 | percent. S&P is up about seven and a half and NASDAQ's up about 11 or so on the year. So what I wrote |
| 1:22.1 | about today was some more qualitative issues going on in markets. We've talked about the resiliency |
| 1:26.8 | of earnings and how good things look. |
| 1:28.6 | And so the war in Iran and some of the energy prices have just been offset by that resilience. |
| 1:33.3 | But one of the other things that shouldn't be discounted is just the effect of stimulus. |
| 1:37.5 | You had this OBBBB legislation get passed, which allowed for advanced expensing from corporations. |
| 1:43.8 | They were able to go spend |
| 1:45.1 | money on durable goods, things like equipment, build factories, by property, expand businesses, |
| 1:50.6 | and we're able to deduct that stuff. And so it did a couple of things that nudged them forward |
... |
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