[Applause] Foreign It's about that time as we hit 4 P.M Here on the east coast and you're Listening to the closing bell of the New York Stock Exchange and there's big Smiles for a reason look at all the Screen a real positive a day for the Stock market positive week as well for The day the Dow Jones as you see there Is up almost 390 points that's right the S P 500 and NASDAQ also saw gains each Ending the day up roughly one and a half Percent joining us now is Mark Lehman he Is the CEO at JMP Securities a Citizens Company welcome thanks very much for Being with us Mark so we saw all that Green as Errol pointed out what was Driving the markets today Well I think it was a little bit of a Relief on on the bond market we've been So focused on rates and how they've come Back a little backed up if you will to That four percent level and we've kind Of gone slightly below that and yet Earnings continue to drive better Profitability for some of our larger Companies and I think it was a little Bit of a relief rally but it also was a Fundamental understanding that I think Earnings have continued to be good for Some of the companies that really Adapted in 2022 and are showing those Earnings into 2023. help us understand
Who's doing well who isn't because I Understand tech stocks had a very strong Week and a lot of the headlines recently Have been about layoffs among tech Companies and that's not necessarily Representative of the entire economy but In your view what stands out Um about the current state of tech right Now Well it is absolutely the right question Because I think we saw in 2021 if you Were a tech company and that's a very Large uh Universe uh you're doing very Well irrespective of kind of what Secretary we're in and in 2022 is the Exact opposite and what we've seen at The beginning of this year is we've been Company specific and as I like to say It's become a market of stocks as Opposed to a stock market so let's talk About this week we saw great earnings Out of Salesforce and you know that Company's been going through some Changes at the board level but the Results were really good and I think the Stock acted similarly well my analyst Pat Walravens has a 250 dollar price Target but their Top Line growth their Margin profile has improved and it's Similar to what you just said some of Them are focusing on layoffs sort of the Grow it all cost Mantra from the low Rate environment of the past is no Longer the vajra and profitability is
Starting to take off and profitability Chart changing is multiples and Multiples Drive stocks well earlier Today the institute for Supply Management released a survey showing That the U.S Services sector grew Steadily in February Mark what's made The economy and the market so resilient I I think there's this overarching Lack of supply of talent and I think We've seen we've read all about the Number of workers who've left the Workforce and yet there's still a an Economy that is still growing albeit at A slower rate than it was during the Pandemic and some of the fears of what Would happen if we had a recession and I Think that supply of talent is still What is really driving the marketplace And people are still looking for the Best and brightest and although like you Said Talent has been pulled back a Little bit at the biggest tech companies Those are new projects and some of the New things that companies are going into But existing parts of the economy Continue to grow nicely and so there is Still a labor shortage for the best and Brightest Really interesting to hear about that Dynamic especially because as Arrow Pointed out you know we had been hearing And would have been making the headlines Were those layoffs in the tech sector
That seem to be sort of continuing Mark Lehman Mark thanks so much for sharing Your expertise and insight with us thank You Mark thank you
