FROM THE SO-CALLED ROARING KITTY TRADER. SHARES DOWN SHARPLY THIS HOUR. TAKE A LOOK. MORE THAN 40%. IT DOES TAKE US TO OUR TALK OF THE TAPE. THE FATE OF THE RALLY WITH STOCKS ONCE AGAIN REACHING NEW HIGHS THIS WEEK. K CAN THE MOMENTUM CONTINUE? LET'S ASK TOM LEE, FUND STRAT'S HEAD OF RESEARCH AND MANAGING PARTNER. GOOD TO SEE YOU, WELCOME BACK. >> GOOD TO SEE YOU, SCOTT. >> THAT WAS THE NEWS OF THE DAY THIS MORNING. WE'RE BUYERS OF STOCKS ON FRIDAY, BUT EVEN STRONGER IF THE JOBS REPORT IS SOFT, THE IMPLICATION BEING YOU'RE BUYING NO MATTER WHAT. WHY DID YOU COME IN TO TODAY THINKING YOU WERE BUYING STOCKS REGARDLESS? >> WELL, THERE'S A COUPLE REASONS, SCOTT. THE FIRST IS THAT I THINK MARKETS ARE MUCH MORE FOCUSED ON INFLATION REPORTS AND CPIs NEXT WEEK AND THE JUNE FOMC MEETING ON WEDNESDAY, AND THE SECOND, WHICH, OF COURSE, WE THINK IS GOING TO JUST SHOW A CONTINUED IMPROVEMENT IN INFLATION. BUT THE SECOND IS THAT STOCKS REALLY, HISTORICALLY, HAVE DONE WELL IN THE WEEK FOLLOWING THE RELEASE OF THE EMPLOYMENT REPORT, RISING ROUGHLY 70% OF THE TIME, AND IT IMPLIES ROUGHLY 50 TO -- SORRY, 70 TO 80 POINTS IN THE S&P. OF COURSE, IT WOULD BE BETTER IF IT WAS A SOFT JOBS REPORT, AND IT WASN'T. >> IT'S FUNNY YOU SAY THAT. IT WOULD BE BETTER IF IT WAS A SOFT JOBS REPORT, BECAUSE I THINK THE MARKET SPENT A GOOD AMOUNT OF TODAY TRYING TO DECIDE WHAT IT WAS. WAS IT GOOD NEWS? IS GOOD NEWS IS BAD NEWS? IF THE MARKET DOESN'T NECESSARILY NEED RATE CUTS, WHY IS A SOFTER REPORT BETTER? WHY CAN'T WE JUST BE HAPPY WITH GOOD NEWS? LABOR MARKET'S STRONG, ECONOMY'S HANGING IN, DON'T NEED RATE CUTS, AND STILL MAY GET THEM LATER THIS YEAR. >> I MEAN, I'D GENERALLY AGREE WITH YOU, SCOTT, BUT AS YOU KNOW, THERE'S A FACTION OF BOTH MARKET PARTICIPANTS AND THE FOMC THAT VIEW SOME OF THIS DATA AS TOO HOT FOR THEM TO BE COMFORTABLE WITH, AND I THINK, YOU KNOW, THE MORE POSITIVE DATA POINTS YOU GET, THE MORE YOU MIGHT ACTUALLY START TO SEE MARKETS PRICE IN A HIKE. SO, I THINK YOU'RE RIGHT. THERE'S A GOLDILOCKS WINDOW, AND -- BUT IT'S SAFER TO SAY BAD NEWS IS GOOD NEWS BECAUSE THOSE ACTUALLY CLEARLY TAKE AWAY INFLATIONARY PRESSURES. >> I'M WONDERING IF YOU THINK, IN ANY WAY, THAT THINKING THAT JUNE IS GOING TO BE THE POINT OF THE YEAR IN WHICH WE START TO GET THIS MONEY OFF THE SIDELINES AND INTO THE MARKET AND HOW GOLDMAN-SACHS FRAMED IT THE OTHER DAY, TALKING ABOUT A "WALL OF MONEY" COMING IN. BUT NOT REALLY UNTIL JULY. YOU COULD HAVE SOME SELLING BETWEEN NOW AND THEN, BUT AT THE BEGINNING OF THE THIRD QUARTER, AND THUS THE SECOND HALF OF THE YEAR, IS THE AREA TO REALLY PLAN FOR A WALL OF MONEY COMING INTO THIS MARKET, AND THEN PUSHING STOCKS THAT NEXT LEG HIGHER. >> SCOTT, THAT DYNAMIC IS CERTAINLY AT PLAY FOR A COUPLE REASONS. ONE, YOU KNOW, APRIL WAS A DOWN MONTH, AND I THINK A LOT OF INSTITUTIONAL INVESTORS ACTUALLY SAT OUT MAY, THINKING IT WAS -- APRIL WAS THE START OF A BIGGER CORRECTION, SO JUNE IS WHEN MONEY STARTS COMING BACK IN. BUT I THINK MORE IMPORTANTLY, SINCE THE END OF 2022, I THINK A LOT OF INSTITUTIONS AND A LOT OF HIGH NET WORTH INDIVIDUALS SORT OF SAT OUT THIS MARKET, SAYING, I'M HAPPY EARNING 5%. BY THE MIDDLE OF THIS YEAR, IF THE S&P IS UP 15%, ON TOP OF MISSING 30% LAST YEAR, I THINK A LOT OF FOLKS ARE GOING TO SAY, LISTEN, I CAN'T JUST SIT ON CASH AND EARN 5% ANYMORE WHEN I'M MISSING OUT POTENTIALLY ON A 25% YEAR FOR THE S&P. >> TOM, WHAT'D YOU MAKE OF THE FACT A COUPLE TIMES THIS WEEK WE HAD RATES GO DOWN AND STOCKS GO DOWN? NOT EXACTLY THE DYNAMIC THAT MANY HAD BEEN EXPECTING, RIGHT? THAT'S NOT THE WAY THAT STOCKS AND RATES HAD BEEN -- HAVE BEEN REACTING. THEY'VE BEEN PRETTY WELL CORRELATED. RATES DOWN, STOCKS UP. WELL, THERE ARE A COUPLE OF OCCASIONS THIS WEEK WHERE THAT DIDN'T WORK. WHY? >> IT'S KIND OF HARD TO TELL, ESPECIALLY DAY-TO-DAY, BUT IF I HAD TO GUESS, YOU KNOW, WE DON'T WANT TO BE IN A SITUATION WHERE THE ECONOMY IS SLOWING SO MUCH THAT WE'VE ACTUALLY HIT STALL SPEED, SO RATES WOULD GO DOWN. THAT TYPE OF ECONOMIC DYNAMIC WOULD SCARE STOCKS, SO IT'S ALMOST LIKE BAD NEWS IS TOO MUCH BAD NEWS. IN FACT, MAYBE THAT'S WHY TODAY'S JOBS REPORT KIND OF FITS RIGHT IN THE MIDDLE BECAUSE IT'S ACTUALLY GOOD ENOUGH TO TELL US THE ECONOMY'S STILL STRONG, AS YOU SAID, BUT IT'S NOT ENOUGH TO ACTUALLY ADD TO INFLATIONARY PRESSURES. >> TOM, WHAT IF, YOU KNOW, THIS MARKET IS JUST SCREAMING OUT IT'S NVIDIA'S WORLD AND WE'RE JUST LIVING IN IT? IF NVIDIA'S UP, MARKETS ARE GOOD. NVIDIA'S NOT DOING MUCH, S&P CAN'T DO THAT MUCH. NASDAQ'S NEGATIVE TODAY. IT'S A ONE-STOCK STORY. >> I MEAN, NVIDIA IS REALLY A GENERATIONAL STORY FOR NOW, BECAUSE I MEAN, HOW MANY $3 TRILLION COMPANIES ACTUALLY HAVE DOUBLED? SO, CLEARLY, NVIDIA IS IMPORTANT, BUT IT'S IMPORTANT BECAUSE IT'S REALLY ONE OF THE MOST IMPORTANT WAYS TO GET EXPOSURE TO A.I., AND I THINK THE A.I. STORY IS EARLY INNINGS, AS MANY PEOPLE TALK ABOUT. IT'S TRANSFORMATIONAL IN TERMS OF PRODUCTIVITY, AND THERE'S A LOT OF USE CASES DEVELOPING. SO, AS MUCH AS IT MIGHT FEEL LIKE A ONE-STOCK MARKET, AS YOU KNOW, THERE'S A LOT OF STOCKS UP MORE THA
