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“.– …. .- – / …. .- – …. / –. — -.. / .– .-. — ..- –. …. – -.-.–” – Samuel Morse
Below is a snippet of commentary from today’s Morning Lineup. Start a two-week trial to Bespoke Premium to view the full report.
How many times have you looked at your cell phone already today? It’s probably the first thing you did today. Whether you looked up scores, stock quotes, messages, or even got some work done, the fact that you are reading this right now all traces back to a meeting in Morristown, NJ 187 years ago where Samuel Morse demonstrated his idea of sending electrical impulses over a wire that could then be translated into text, or as he called it, the Telegraph. While that meeting in 1838 was the first telegraph demonstration, the first official telegram wouldn’t come for another six years in May 1844 when Morse sent a message from Washington, DC to Baltimore. Even though he was the first person to ever send a message over wires which ultimately led to the mass proliferation of content, if he were alive today looking at all that the telegraph has spawned, Morse would probably be at a loss for words. His thoughts would probably echo the message he sent in that first telegram, “What hath God wrought!”
Friday’s 1.26% rally was the best day for the S&P 500 since 11/6, the day after November’s election. It was also the third 1%+ daily gain in that span. The other two days were a 1.10% gain on Christmas Eve and a 1.09% gain on 12/20. While there continues to be a near constant focus on the Fed, we think it’s notable that two of the three best days since the election have come when Congress passed the continuing resolution to keep the government open and last Friday when Mike Johnson was re-elected speaker on the first vote.
While Friday’s gains sent the bulls home in an optimistic mood, it wasn’t perfect. After briefly trading back above its 50-DMA, the market pulled back in the afternoon and finished slightly below that level. It was the fourth day in a row that the S&P 500 made a run towards its 50-DMA, but also the fourth day in a row that it finished off its intraday highs. As we start the trading week, the S&P 500 is poised once again to trade back above that level, so now all it needs to do is hold it. Until then, the burden of proof is on the bulls.
