A rough day on Wall Street coming to an End with the sound of the closing bell At the New York Stock Exchange the Dow Closed about th000 points down little More than 2 and a half% down the NASDAQ And S&P 500 closed worse off uh with the S&P 500 down around 3% and the NASDAQ Tech heavy Down a little more uh over 3 and a half% So joining us right now as CBS News Contribut JD jkin um JD when we talked To you it was Friday you had a little Bit of optimism going into the weekend What's your assessment today on this Monday Lindsay I gotta tell you here my Friend I I'm still pretty much an Optimist um believe it or not I mean First of all I always think it's a Little awkward for groups who have to Reain the closing bell at the New York Stock Exchange on a historically bad day Like today and says For the Love of All Things holy please end the Bell early And make this day happen but you know I Mean honestly Lindsay since you and I Spoke on Friday I've spoken with so many Wealth management advisers portfolio Managers uh economists as well as Market Technicians and they say the S&P 500 the Overall markets were overbought that Helps explain why the markets had been Reaching all-time high after all-time High throughout much of the summer in Other words this type of Correction this
Type of pullback is healthy for the Market this was expected I should note This is a little bit of a perfect storm Of things that maybe we did not see Coming and since you and I talked about The softening in the labor market on Friday afternoon show obviously you had This major shock overnight to the Nik in Japan that entire index down 12% anytime you have a major market Around the world that's down double Digit percent the reverberations will Undoubtedly be felt around the globe and Right now I think investors are looking At a bit of a good faith pullback here Because of a combination of factors but No one I've talked to has said this is a Reason for panic this is good faith Selling that is healthy for the system And I know more than a few wealth advis Who are encouraging their clients to Find those buying opportunities now that A lot of those big stocks they might be Fans of are suddenly trading at a Discount and are they ever because there Is certainly a lot of red on the big Board today Lindsay is this sort of a Day where you just sort of like put the Computer down and just sort of stop Looking is it going to be a week like That I it may very well be a week like That um you know honestly listen it's Beautiful weather here in our nation's Capital so you know I'd say go for a
Walk today don't look at your portfolio For a few days for sure uh if that's the Type of thing if you follow it day by Day the month is going to be really Interesting because we can't forget We're still in the heart of corporate Earnings season and that arguably Matters much more to investors than Anything happening with the presidential Election or even any of the uncertainty In politics so you take a look at the Next few weeks Lindsay we've got some Key inflation data that we know the Central bank will be very keen on big Earnings from companies like Nvidia Which has undoubtedly been the most Important name for us equities uh and We're going to hear more comments from Fed officials including chairman of the Central Bank Jerome Powell at the end of The month his highly anticipated remarks At the Symposium at Jackson Hole in Wyoming that'll really be the best Attempt we have to hear from him in his Thinking as we get a little closer to The fed's next meeting in September and Of course that's expected to be the big One when finally after more than two Years we are expected to finally get a Little bit of relief with an interest Rate cut well and the FED doesn't really React to Market volatility right I mean What would have toen happen for the FED To say you know what we're not even
Going to wait until we meet in September We're going to cut rates earlier would Have to be a major crisis the likes of Which we saw in 2008 or in March of 2020 And honestly no one I talked to from my Reporting over the last five days says That that's where we are uh chairman Powell has been asked a number of times How closely do you even track the stock Market and he's always a little Cy in That response he's very careful about What he says and perhaps even more Careful about everything he doesn't say So undoubtedly the FED is recognized and What is happening across the major Market indexes but this fed for the most Part all the criticism aside has been Very consistent our goal is to bring Inflation back down to two point uh down Back down to 2% and right now the most Important reading of inflation is core Pce we get that data point released the Final Friday of every month and that's Still at 2.6% now given in the softening Of the labor market conditions the FED May feel encouraged even with core pce Inflation where it is to move forward With an interest rate cut but I don't Think anything that happens in the stock Market in terms of a hit to people's Portfolios or 401ks uh is really enough To move the fed and me we can't forget The S&P 500 is now trading all the way Back down to where it was two months ago
It has still been an incredibly Resilient all-time high series of Markets uh even despite the recent Jitters notwithstanding what has recent Data told you about consumer habits and Spending well we've seen a lot of shift For sure and I've really taken my Accused personally from a lot of the Food services companies so about a year And a half ago you started to see the Pullback for consumer spending in names Like Dollar Tree and Dollar General you Had that work its way up to companies Like McDonald's and mandes and Craft Hindes um so food services companies and And corporate companies have been Telling us warnings about a consumer Pullback and then I also pay attention To companies like Walmart which are Telling us that for the first time more Six figure income earners of Americans Are shopping for their day-to-day Basics Their Necessities at a place like Walmart so it's really interesting During corporate earnings season to Listen to these companies about the Change in consumer sentiment and how Consumers are spending their money Differently today relative to even a few Months ago so we're definitely seeing Those pressure points on the consumer I Think ultimately we're just seeing Discretionary spending be exactly that a Bit more discretionary people are
Picking and choosing what high Ticket Big budget items they're choosing to Spend their money on and they're trying To find cheaper alternatives for their Basics in the day-to-day spending JD Durkin thanks so much for joining us
