Market Insights with Moneybags McGee

Fresh news and strategies for traders. SPY Trader episode #1217.
Hey everyone, it's your pal Moneybags McGee here, ready to dive into the thrilling world of finance on Spy Trader! It's 12 pm on Thursday, June 5th, 2025, Pacific Time, and the markets are giving us a bit of a mixed bag today. Let's break it down. The Dow is up slightly at 42,489.50, and the S&P 500 is also inching higher at 5,986.35. But the Nasdaq's the real story, making some gains at 19,528.70. Not bad, but remember, we had a killer fourday winning streak before today, so things are a little cautious as we await the big US jobs report.

So, what's making the market tick? Well, President Trump and President Xi Jinping had a chat, but it didn't exactly soothe those trade tensions, so that's still a big question mark hanging over us. Plus, jobless claims hit an eightmonth high, which is never good news for the labor market. Keep an eye out for earnings reports from Lululemon and Broadcom those could be market movers. Oh, and some data came out recently: Private payrolls and the services PMI weren't exactly setting the world on fire.

In company news, Empiric Student Property might get a new owner in Unite, Procter and Gamble is planning some job cuts. Ouch! About 7,000 positions are on the chopping block as part of a restructuring. On a brighter note, Young's is having a great start to the year because of the hot weather! Cheers to that!

Looking back at May, the stock market had a pretty sweet run. The Dow jumped nearly 4%, the S&P 500 climbed over 6%, and the Nasdaq soared almost 10%! The Russell 2000 also had a nice 5% gain. Tech, Communications, Consumer Discretionary, and Industrials led the charge. Healthcare, Energy, Real Estate, and others lagged behind. What a contrast from the first quarter when Information Technology really took a hit. Then Energy, Healthcare, and Consumer Staples actually did well.

Now, let's talk about the big picture. GDP growth expectations for 2025 are all over the place, which isn't exactly helpful, with Vanguard saying 1.5%, PIIE way down at 0.1%, Deloitte saying 2.6% and EY estimating just 0.6%. Unemployment might creep up a bit, and there's worry that tariffs will push up inflation. The Federal Reserve is probably going to hold steady on interest rates for now, but rate cuts could be on the horizon later this year. And guess what? Consumer sentiment is way down, hitting nearrecord lows.

Between trade wars, tariffs, and the Fed's next move, there's a lot weighing on the market. So, what's a savvy investor to do? Here’s my take: Be careful out there! There's still too much uncertainty to go allin on anything. Diversify your portfolio like it's your job. That means spreading your investments across different sectors and asset classes. Stick with highquality companies that have solid financials. With the Fed potentially cutting rates, highquality fixed income might be a good place to park some cash. My friends at Morgan Stanley are saying to favor US assets over nonUS right now. Bottom line: Keep a longterm perspective and don't panic sell at the first sign of trouble. The Technology sector is near fair value, so be cautious. Defensive sectors like Healthcare and Consumer Staples might offer some shelter if the economy slows down. Energy has been doing well, but watch out for potential oversupply in the oil market.

And that's a wrap for today's Spy Trader! Remember, I'm just a humble podcast host, not your personal financial advisor. This is all based on what's happening as of today, June 5th, 2025, and things can change fast. Do your own research and talk to a pro before making any big moves. Until next time, keep those portfolios diversified and stay frosty!