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The Week On Wall Street & What It Means For Your Money · The Jon Sanchez Show

• Jon G. Sanchez: Good Friday afternoon to you. Welcome to the John Sanchez show on News Talk 780KOH. It's a pleasure to be with you. And as Jack and Kristen just said, TGIF, we made it through another one. Can you believe it's already going to be the 4th of July next week? I just or close to next week, next next weekend. It's amazing. Absolutely amazing. You know, I don't know about you guys, but those of you that may be up in my generation, our parents warned us: the older you get, the faster time goes. And boy, does that happen? I see it just on a daily basis, right? It's like. You wake up and before you know it, it's time to go to bed. The days are so busy. And Wall Street's so busy. And that's why you're tuning in today. It's Friday. That means I get to talk to you about anything and everything that I see, that I hear, that's on my mind. I enjoy this Friday open forum so very much. And I've got a plethora of things I want to talk about. Some of them not quite so positive or optimistic, but I'm going to always be honest with you and tell you exactly how I'm feeling, right or wrong. So I'm going to give you the week on Wall Street. But before I do, I want to give you a quick reminder. I am so excited about next week. Why? Because next Wednesday at 6 p.m., I'm hosting my next webinar on estate planning. Right, if you hadn't heard, I formed a new estate planning company called Specialized Trust on Estate Plans. We are revolutionizing the way that estate planning is done. And ⁓ advise you ⁓ recommend you visit our website, specialized trust.com, and you see how we do it, our very, very competitive pricing and our ability to create an entire estate planning ⁓ program package for you. Your living trust will, powers of attorney, everything, and under two hours from the comfort of your home. Check out the website. But you know, estate planning is all it's not about document prepar preparation. It's not about so many things that are I mean, I could do hours of a show talking about the misconceptions of estate planning and how some firms try to scare you and so on and so forth. And it's not the way that I operate. My team operates. You see, estate planning is really about your family. It's protecting what you have built for so many years. And every day I see this. People spend so much time, so much time building their wealth, saving money, investing, sacrificing. But they forget about that one little part protecting it. And most importantly, protecting it for their family. So I've created again my next free educational webinar next Wednesday evening, 6 p.m. It's titled, Do You Have an Estate Planning Problem? And what I'm going to do is I'm going to discuss a lot of different areas, but here's just some of the bullet points. I'm going to discuss the seven most common estate planning mistakes that I see families make. That includes things like outdated trusts, beneficiary designation errors, funding mistakes, powers of attorney, so many other issues. And then we're going to get into a few other areas. The probate reality check. How to tell if your trust is outdated, right? It's not just about the date. Asset titling review, beneficiary review, and the documents that every family should have. So whether you have a current estate plan, meaning living trust, or you're brand new to the game, tune in. Come join me and learn, right? That's what estate planning is all about. It's a that's why I just I am so passionate about it. It is such an exciting area that ⁓ I think you're gonna be hearing a lot more about. I really do. It seems this country is finally making a shift for various reasons that I won't bore you with, ⁓ to the importance of estate planning. Right. I know, again, I've been doing this for nearly 36 years. And I know, you know, we would of course talk to our clients about it. We'd recommend it and we'd refer it over to an attorney. And then we'd never hear any more about it. Well, that has changed now. We are in control of it for our clients. And that's why I created this business, ⁓ to take care of our Sanchez Gantt capital management clients and all of you ⁓ out there. So come join me on the webinar. It's next Wednesday, six PM, as I said. We usually last about an hour, but you know, but I stay as long as we have questions going on. ⁓ how do you sign up? Again, we're we're We're working on the automation side of things. You know, nothing goes fast when it comes to automation. ⁓ so we're gonna do it the old fashioned way. Just send me an email anytime. My email ⁓ is John J O N at specialized trust dot com. And ⁓ I will turn around and send you the ⁓ the zoom invite to it. Get to sit right in the comfort of your home, maybe have a little dinner while ⁓ while I'm educating you, right? I'd love nothing more than that. Again, my email, John J O N at specialized trust dot com. Next Wednesday, six PM Gets ready for ⁓ you know, the long weekend. Markets are gonna be closed next Friday. We're all gonna hopefully get a chance to ⁓ take a little bit of a breather, enjoy the fourth of July with our friends and our family. And ⁓ this is gonna be a great way to kind of wrap up the business perspective side of the week. And I'll give you another reminder later in the program. But let's get down to what we're gonna talk about today. As I said at the beginning of the show, you know, it it's Friday and and I love Fridays because I I kind of use it as ⁓ I call it my financial smorgasboard, right? I get to, or buffet. I get to just kind of go around to different areas and and really share with you what I see being in the trenches each and every day. You're hard at work, you're raising your family, raising your grandkids, building your careers, or maybe focusing on retirement, right? I know you're not sitting in front of a TV, ⁓ you know, watching the market or sitting in front of a computer watching the market. So you tune into the show to get my perspective. A lot of years of experience, but I'm in the trenches each and every day. But as, you know, I always pride myself I like to bring the complicated topics of Wall Street down to levels that everybody can understand. You are the smartest audience I've ever had in my entire career. And I've been doing radio for, gosh, north of 25 years now. And I tell you that from the bottom of my heart. I've been with you a long time since 2001, right here on News Talk 780KOH. Prior to that, the radio started in 19, gosh, when did I start? 1997 when I was in Bakersville. So I've seen a lot of different audiences, and you are the smartest. But you what? There's lot of people that are new to the show, a lot of people new to the markets, younger generations, older generations, it doesn't matter. I make it my goal each and every day that when this show ends at ⁓ you know five or four three fifty si three fifty-six in in a few seconds, that you walk away when you tune turn this off and go, you know what? I learned something that I didn't know. If I can do that, I've accomplished my goal each and every day. And ⁓ don't forget, you know, we we of course have the podcast. If you ⁓ miss the show at any point. Just go to iTunes, Spotify, any of your favorite podcasting distributors, pick up the show. And ⁓ you know, I've got a lot of great things going on on YouTube right now. I really do. So just search the John Sancho show on YouTube and ⁓ watch that. You can see my face that's built for radio on YouTube. All right. With that said, let's get down to ⁓ to the market side of things today. I'm gonna kind of wave the white flag today and say, you know what? We surrendered some gains today, we surrendered some gains this week. But overall, I think we got out pretty unscathed compared to what we went through this week. And that's what I'm going to be covering for you. But let's talk about today. Let's talk about what just happened a couple hours ago when the market closed. You may or may not have heard. But we attacked Iran again today. You may be saying, well, wait a minute here. What you talking about? We're we're in the ceasefire. You know, I I find it, I find it ironic that our politicians can say that we're in a ceasefire, but yet we turn around and fire missiles. Why? Because Israel fired upon, I'm sure many of you know about this. Israel filed upon a ⁓ a ship yesterday. That's a violation of this of this ceasefire. Of course, I'm talking about a ship going through the Strait of Hormuz. And the president this morning did a ⁓ I wouldn't say it was a news conference. He was talking about a lot of different things from the White House. But bottom line, he was really upset about it. And I don't blame him, right? I mean, the ink's not even dry in the 60-day memorable memorandum of understanding. And here we go. You know, like I've said all along, you just, I don't know how we're going to ever trust that country. I really don't. The president, matter of fact, accused the Islamic Republic of, quote, foolish violations of the ceasefire agreement by launching the drone attacks yesterday on the ships in the Strait of Hormuz. Today the U.S. Central Command came back and said, yeah, guess what? We retaliated. And it's only retaliation. That's why they're saying that the ceasefire is still going. This was just a retaliation. It's kind of a tit for tat type of situation. To me, that's a violation of the Strait of Hormuz. Or ⁓ excuse me, a violation of the memorandum of understanding. And we really don't have a ceasefire anymore. We only want a ceasefire when we you know, when it when it when it's good for the public to say that we have a ceasefire. But in reality, how do you say it's a ceasefire when missiles are going back and forth? But today US Central Command said that aircraft, US aircraft of course, struck Iranian missile and drone locations, storage locations, and coastal radar sites. What was Iran's response? Because remember they fired the drones on the ships yesterday. Iran's response today was Swift and decisive manner against us. Yep, they're going to retaliate. So where does this stop? So yesterday, if you didn't hear the details, let me just get into you because again, this has an impact into the market side. So it was a one-way drone attack yesterday, again, launched by Iran, of course. It struck the Singapore ⁓ flag ⁓ cargo ship called Ever Lovely, right in the Strait of Hormuz, right off the coast of Oman. The vessel was able to continue on its way. It was ⁓ damaged to the bridge. Trump said the US military knocked down three other attack drones aimed at ships in the strait. So this wasn't just a one ship attempt, just kind of a, you know, all right, we're j we're just gonna make this rule small. No, they tried many more, but our great technology knocked them down. Central Command also said the following quote Furthermore, Iran's dangerous behavior undermined freedom of navigation as commerce increasingly flows through the vital international trade quarter. Now the attack comes more than just one week after Trump and the Iranian president signed that memorandum of understanding that I mentioned, aimed at developing a permanent peace deal to end the war between the two nations. And remember, J.D. Vance traveled to Switzerland last weekend for the talks with the Iranian counterparts. That's the part that's just you just shake your head trying to figure this whole thing out. But again, Central Command said, you know what? All this was was a retaliatory start. Trump was asked by a reporter at the White House today if there would be any consequences for Iran for violating the ceasefire. He says you'll find out. After the attacks, the Islamic Revolutionary Guard Corp said, quote, We announce our counteraction against the attack carried out by American forces on Sariq Island. Our naval and air forces succeeded in neutralizing the ⁓ this attack and forced the invading forces, meaning the US, to retreat in order to protect Iran's sovereignty over its land and waters. And they went on to wrap up by saying, We emphasize that this aggression will not go unanswered, and our response will be swift and decisive at a time and a place of our choosing, they said. We warned that any new foolishness will be met with a harsh response that will shatter the invaders' illusions in the region. Doesn't sound like it's over, does it? Now, this news came out during market hours. And you would think that this market would go, ⁓ man, here we go again. What's what's going on? And they sell the market off. Didn't happen. Once again, biggest surprise of this whole Iranian conflict has been the resilience of this market. Yeah, we we had some initial shocks in the beginning. But really, if you sit back and you think about everything that has happened since February the twenty eighth. And here we are, you know, this week we, you know, pushed some all time highs. It's amazing. And I again when this news broke today, I was expecting the market to re to react in a very negative fashion. Yeah, it didn't happen. So like I said, we kind of got out unscathed on this one. I'll tell you what the markets did and more of what happened this week on the week on Wall Street. Welcome back to the John Sanchez Show on News Talk 780KOH. All right, again, we scathed our way out of today's trading action. Not a bad day, nice and quiet. Good way we like to wrap up the week. But what a week it has been. And again, I'm going through and giving you all the details as to what really moved your portfolios, your 401ks, your IRAs, your child's college education. Right? Got to be informed. And that's why you are joining me this Friday afternoon. All right. So let's tell you what this market did, first of all. Like I said, pretty quiet when it was all said and done. Just a 45 point decline on the Dow. Our closing level was 51,876. The Nasdaq lost 61 points as all, 0.24%, and finished the day at 25,297. And the SP 500 for the day down just three points to 7,354. With all that news, as I said ⁓ a moment ago in the last segment regarding the ⁓ the the situation between us and Iran, ⁓ guess what? Oil prices actually finished down below $70 a barrel, if you can believe that. $2.72 to $69.24. Gold rose $48.30. I think a little nervousness, so because of ⁓ the ⁓ attacks ⁓ between us and Iran, and it finished at $4,096.70 per ounce. And we turned things over to the bond market. Little nervousness there. They bought the bonds, drove the yields down a little bit. Two basis point decline on the 10-year treasury at a yield of $4.37, but down eight basis points for the week. Now that's gonna feel good. All right, let me go to ⁓ another big event that happened today. Now you may or may not recognize this name that I'm about to share with you. But ⁓ if you watch, you know, any of the news channels, you you know who he is. His name is Neil Kashkari. He's been around a long time. He's ⁓ now the Federal Reserve Bank of Minnesota president. ⁓ believe he's now a voting member of the FOMC. And again, mid-morning he came out with some comments that did dip the market a little bit, but Again, the market showed some resiliency. And I want to share with you what he said. ⁓ now, mind you, he he's a little bit different than a lot of your Fed governors. He ⁓ he tends to walk kind of right down the middle of the line, right? He really never really commits to raising rates, cutting rates. He's just kind of a neutral guy, fairly optimistic overall. When he came out today and kind of broke that down the middle line and found himself in the camp of, hey, I'm ready to raise interest rates. Now, you know, I have said many times on this program over the last few months the street is anticipating the next move of the Fed will be an interest rate increase. We don't know when, we don't know how much. There's speculation that it could be in October, there's speculation it could be in December, there's speculation it could be as little as quarter percent, there's some speculation it could be as high as three quarters of a percent, which I think would Absolutely rock this market. But when you get a Fed governor that comes out and finally says, Yeah, it's time to raise interest rates, that makes you sit up in your chair a little bit. So I want to share with you some of the comments of what Federal Reserve Bank of Minneapolis president Neil Kashkari said. He said, signs of a widespread inflation have led him to pencil in one interest rate increase for this year in the central bank's economic projections released earlier this month. That's remember what we call the dot plop. Remember, that's where the individual Fed members get to give their personal opinion where they think rates are gonna go. He said the following quote I'm concerned about inflation. And it's not only tied to what's happening in the Middle East, it's just the impression of broader inflationary pressures in the economy. He was speaking with Bloomberg News on the sidelines of the Aspen Ideas Festival in Aspen, Colorado. Now, inflation, which had shown signs of cooling again at the start of the year, after remaining pretty much unchanged, we'll call it back in 2025, has absolutely surged, as we all know, in the last three months. Of course, the war in Iran drove up oil prices. A broader range of categories have seen price increases also. That has increased concerns among many other Fed officials, as I discuss, that inflation is more widespread and persistent and can require more forceful action from the central bank. Remember, it was just yesterday when Corey and I were chatting about inflation, and I said, look at here we are with PCE prices that we received this week, the Fed's favorite measure of inflation at 4.1% year over year. Remember, the Fed's mandate is 2%. So we're 2.1% above the Fed mandate. Mr. Kashkari said the following. I don't trust Iran. How much are they going to honor the agreement? How much are the markets, the oil markets, the fertilizer markets and other adjacent markets going to return to normal? Or are they going to be extended or they're going to be in an extended period of some kind of stress and uncertainty? Now remember back to that PCE, that number, ⁓ remember I touched on this when it came out a couple of days ago. ⁓ remember that four point one percent I just mentioned, that is the highest level we've seen in this inflationary measure going all the way back to April of twenty twenty three. Now, his cohorts, of course, sitting on the FOMC, remember when we had the Fed meeting a few days ago? Nine of the Fed's members, nine of the Fed's nineteen members, penciled in at least one rate increase this year. That of course drove the markets to bet that the Fed would raise interest rates this year. But Kashkari said he's not necessarily in a rush to hike rates and that he doesn't have more rate increases forecast for 2027. He sees the Fed holding policy steady, then, but noted that he wants to see how data comes in. Of course he does. He previously had one rate cut penciled in for this year. But see, that's what the street consensus was coming into this year. Actually, multiple cuts. He said policymakers are committed to returning inflation to the Fed's goal. But finally, finally, the reason I want to share this story with you, finally, a Fed member has said what I have said to you over and over again. And I said this just yesterday. How do you get inflation from four point one or somewhere around there, right? Depends upon if you're looking at CPI, PPI, or the PCE numbers. How do you get it down to the Fed's mandate of two percent? As I just said. We're 2.1% away from where the Fed wants inflation. And finally, a Fed member, Kashkari, said the same thing. Listen to his quote. How do we get inflation back down in a reasonable period of time without doing a lot of damage to the labor market? Now, what he means there is, remember, the way the Fed ⁓ again, the analogy I always like to give. Imagine the Fed is driving a sports car. That sports car is the US economy. If the Fed wants to get the economy going faster, They press on the gas pedal. That means they cut rates. If the Fed wants to slow down the economy, they tap the brake pedal. They they raise rates. Now, when you raise rates, again, tough for everybody, consumer, businesses, et cetera. But generally, of course, one of the results of raising interest rates are people lose their jobs and depending upon the extent of those interest rate increases. So that's what Kashkari said when he says, How do we get inflation back down in a reasonable period of time without doing a lot of damage to the labor market? He said that's the challenge that we're wrestling with. He said fighting inflation has made, has been made more complicated by a series of supply shocks that have hit the US economy, including fallout from the US war in Iran this year. He added that the build out of data centers to support the AI industry is certainly putting pressure on prices in some sectors of the economy today. He's hearing as much from business leaders in his district who report widespread input price increases. At the same time, retail firms are seeing a bifurcation of their customers, with high-income earners continuing to spend, while lower income Americans are trading down and visiting stores more frequently, but buying less. Sign that they're having difficulty making paychecks last to the end of the week. In his interview, he also warned that wages, which are now rising more slowly than inflation, Could be posed to pick up more significantly since they tend to lag prices. And that could further complicate the Fed's aim of ⁓ cooling inflation. Quote, if we expect real wages to go back to their prior course, we should expect to see some wage pressure. That may not be a leading source of inflation, but that right that but that might slow the disinfl disinflationary path. He said the labor markets have improved from the weekend from its weakened state at the end of 2025 when Fed officials cut interest rates three times. To try and shore up tepid hiring. Lastly, he said, I've definitely seen what I would call signs of life in the labor market. So, your big takeaway from this, just real quick reading between the lines, is the Fed, as we know, pays very close attention to what's going on in labor. That helps them make their interest rate decision. Stay steady, raise, or cut. So now you heard it from one of the Fed members. All right, when we come back more of the week on Wall Street, Welcome back to the John Sanchez show on New Stock 780K, which happy Friday to all of you. Once again, we had a pretty quiet session when it was all said and done, but as always, a lot of intraday volatility. ⁓ 44 point loss on the Dallas, how we finished 51,876, NASDAQ lost 61, SP down three. I'm recapping the week on Wall Street, how it affected your portfolios, and then we'll ⁓ wrap things up in the next segment as to what do we need to be thinking about next week? All right, once again, if you just joined us, ⁓ we did retaliate against Iran. ⁓ fired some missiles at them after they fired some missiles on some ships yesterday. But ⁓ again, the markets really didn't pay any attention to it. Oil finished down two dollars and seventy two cents to sixty nine twenty four a barrel. Okay, what else moved the market this week? Let me spend some time talking about OpenAI, the parent of chat GPT. Our day got started, and this was in the pre-market session, when ⁓ was it Bloomberg or yeah, I think it was Bloomberg reported that OpenAI may be postponing their IPO. Hmm. Now what are we talking about here? So remember as we came into this year, the market was looking for some very, very big and successful IPOs. SpaceX, OpenAI, Anthropic, and a handful of others. Well, we already had, of course, SpaceX. It's not doing too well. Stock has dropped significantly. And if I had more time, I'd want to share with you some information on the SpaceX bonds that they just sold. They are also falling like a rock. Today SpaceX ⁓ closed at ⁓ you know what, doggone it. Pardon me for a second. Thought I had that quote up, but I did not. ⁓ let's see here. Bear with me. Let's see. We closed at come on. ⁓ let's see. SpaceX today. It was ⁓ moving on the downside. How did we finish when it was all said and done? If the computer would operate with me, there we go. ⁓ got on it. ⁓ anyways, I'll bring it up here in sec. it was ⁓ the the stock's kind of not performing, just to put it in real layman's terms, right? All right, here's our close 153.23. Now remember our 52 week high on SpaceX. two hundred and twenty five dollars and sixty four cents. Remember it IPO'd at one hundred and thirty five dollars. Okay, so we are not far from that IPO price. But more importantly, and right now in the after hours, it's at 152.17. But more importantly, let's go back to this open AI story that rocked the market in the pre-market session. I mean, we were down, look at my notes here, yeah, 450 points on the Nasdaq futures right before the market opened. So the market did not like this news. So here's what happened. Again, I believe it was Bloomberg. Don't hold me to that, but I think it was Bloomberg. It came out and said, look, it we're hearing rumors. that open AI management, Sam Altman, et cetera, is going to be postponing the twenty twenty six IPO of open AI. The market went, whoa whoa, whoa, whoa, wait, wait wait a minute. What are you talking about? This is one of the big things we're looking for this year. I'll tell you this right up front before I go into more detail. The company has neither confirmed nor denied that story. But the market went, ⁓ this isn't going to be good if this happens. And it's true. Now, why? What they're saying is because the SpaceX IPO is not doing too well. I mean, it did phenomenal, obviously, in the pricing. It did phenomenal the first week or so, not doing phenomenal now. And as I said, All along leading up to and right after the IPO. The success of an IPO where you really test it and the success of the company, I should say, is how it does over the next few weeks, few months after the IPO. Because there are so many games that are played by Wall Street banks, the underwriters, when I when they take a company public, right? You gotta remember, what did what did I tell you guys? They they made the the major banks that were involved, they made, what was it, a cumulative $500 billion in profit in if with their investment banking fees? I mean it was staggering. staggering. ⁓ so they have an incentive to keep the stock up. And they again, I won't bore you, but they they play a lot of games with it. Now it's kind of open trading, right? All the all the excitement, all the hoopla as I say, it's all starting to settle down now. Now you're gonna get a real true test as to whether this company can stand on its own two legs. I mean it's a money losing venture. It's exciting. It's got an incredible future. We all know that. I am a major way too much ⁓ subscriber to ⁓ to Starlink. I spend way too much money ⁓ regarding Starlink. ⁓ but I live and die by it. I need it. So I'm an advocate. ⁓ but the stock's not doing too well. Now let me okay. So the market got upset about that. The company didn't come out, like I said, and admit or deny it. Wall Street doesn't like that because that was again one of the things we're looking forward to when this year started. We're looking forward to some interest rate cuts and these big IPOs. But they're saying the reason open AI is, you know The rumor has it that they're postponing the AI, the IPO, is because of SpaceX, because it has not performed and it's not holding up. So that's got everybody concerned. Now, again, I wish I had more time because there's another interesting layer of concern that's going on. You see, SpaceX, just a few days ago, did a massive bond offering. And the traders are already starting to see. These bonds not performing well. To the tune of, let's see, what was the the bond pro I think it was a twenty-five billion dollar offering, if I remember right? Over three hundred and fifty million dollars has already been lost in the value of those bonds. That's not supposed to happen. So why is it happening? We must ask ourselves. So now we come back to the question. These companies aren't making money. Okay. Open AI really isn't. SpaceX isn't. But it we're buying the future, right? Like we always do. Ford cash flow. But the bond traders are going, wait a minute, there's some problems here. Now, I'm going to add one other situation. Oracle. Stock had one of its worst weeks in years. Why am I bringing up Oracle? Because it ties back into SpaceX and it ties back into ⁓ Open AI, which is massive capital expenditures. Massive spends, nothing in return yet. So that's the that's the my theory as to why these bonds of SpaceX are not doing well. And that's one of the reasons we're seeing some pressure on the stock, of course, is big offering, big publicity, on and on. But in reality, can these companies pay back the bondholders? Can these not picking on SpaceX? But in reality, so much money is being borrowed for the AI infrastructure spinout, right? The data centers. The chipsets, everything. We're back to this lingering problem that we come in and out of throughout the year, which is can these companies really afford to pay back the debt? Because their free cash flow is dropping dramatically, like Oracle, dropping dramatically, because now they're all going out. Remember, Google did it. ⁓ obviously Oracle and a few others. They had to go to the bond market, go raise more capital, or do a secondary stock offering, raise more capital because they are spending so much. So the analogy would be all right, let's say you make $100,000 a year, but you go, you know what? Man, I really want that ⁓ that beautiful house down the street. And guess what? I'm gonna go borrow everything I can so I can get that beautiful house. Well, you don't know if the house is gonna go up or down in value, but you took on the debt. Now your lender's going, hmm, I wonder if they can repay me. And that's what Wall Street's looking at. Hmm, I wonder if these companies that are focused on AI can repay. Shareholders from a stock performance standpoint, can they repay the bondholders from a debt standpoint? So again, got lucky today. Could have used that as a big excuse for this market to sell off. That was a major story, but I think because it wasn't confirmed or denied, Wall Street just kind of forgot about it, moved on to some of the other headlines. One of those other headlines now really relates to the consumer. And this was our only report of the day that I'm going to cover when I come back, and that is the University of Michigan consumer sentiment number. Number didn't come in too good. You, the consumer, you're still worried, and I'll tell you why when we come back. Welcome back to the John Sanchez show at News Talk 780KH. I wish each and every one of you a safe, wonderful weekend. Once again, we finished with a loss of 45 on the Dow. NASDAQ gave up 61, the SP down three. All right. Let's get back to ⁓ today's action and then ⁓ kind of wrap things up and look forward to to next week. So we only had one report on the calendar today, and that, of course, was the University of Michigan Consumer Centre number. You know, this is I I want to take just a second to kind of explain this report since it's Friday and I just hit on a lot of different subjects. We get this report each and every week. Wall Street normally pays a lot of attention to it. If you don't know what it is, I just want to give you a brief overview of it. So each and every month, what happened is the University of Michigan, they conduct a survey of at least 500 phone interviews across the country. Now the survey asks 50 core questions. That's why the Wall Street pays attention. It's a big report. Not a big sample size, but a lot of questions. 50 core questions that covers three areas in a person's life: their personal finances, business conditions. And buying conditions? And some of these questions I are really fascinating. And I I want you to kind of think about these. How would you answer if you if your phone rang and it was University of Michigan consumer sentiment number? How would you answer this? First one, would you say that at the present time, business conditions are better or worse than they were a year ago? Would you say that you and your family living there are better off or worse off financially? than you were a year ago. Do you think that a year from now you and your family will be better off financially or worse off or just about the same? What do you think will happen to interest rates for borrowing during money or borrowing money during the next 12 months? Will they go up, stay the same, or will they go down? And during the next 12 months, do you think that prices in general will go up or down or stay where they are now? So you get the idea. Again, there's 50 minimum of 50 of these questions. Now, why am I explaining this to you? Because this again was a report that the only report of the day that we received. And the number wasn't good. No surprise. The consumer, you Are not feeling real confident about things. The final reading came in at 49.5. Remember, we get a preliminary reading that we received a few weeks ago. So the final reading was 49.5. What does that mean? Well, there's no, you know, hey, we need to hit 80 or 100. You just want that number to move up and you compare it to what it did the last month. Prior reading was 48.9. So it improved a little bit from this was June's ⁓ report, so it improved a little bit from May, which had a reading of 48.9. But the big takeaway of the report. Was that consumer sentiment was absolutely boosted by gas prices coming down. However, the higher cost of living in general remains a major burden, according to the survey, as sentiment is still 13% below levels that stood out in February prior to the start of the Iranian War, and almost 20% less than the prior year period. So the consumer, month of June, now, even though we're not even done with June yet, not feeling quite so confident. And again, Wall Street pays very close attention to this. Because of spending. Remember, you represent two thirds of economic spending. So it's very important for Wall Street to see how you're feeling about your habits and your confidence in the economy, so on and so forth. ⁓ now as we ⁓ wrap things up, I again not worried really at this point about the situation that unfolded in you know between us and Iran today ⁓ and you know obviously yesterday. ⁓ but you know, if we look forward to next week, the big deal of next week, of course, is going to be the non-farm payroll numbers. So on July the second, we are going to get our non-farm payroll numbers. They're looking for about 130,000 jobs that have been created in the economy. Non-forearm payroll is about ninety-eight thousand. And no change to unemployment rate. So that's going to be the big one. And again, the market will be closed on Friday. One more time, a quick reminder, join me for my webinar. Speaking of next week, next Wednesday, six PM. Do you have an estate planning problem? I'm going to be answering that. If you already have a trust or you think you need one, I've designed this webinar for you. Send me an email at John J One at specialized trust dot com and I'll get you enrolled right away. God bless. Have a great weekend. It's been a lot of fun being with you this week. I do appreciate you. You are part of my family. I love all of you. We'll see you on Monday on the John Sanchez show. Take care.