was supposed to be a selling point early this year as corporate America loosened its purse strings and stopped sitting on all that balance sheet cash.
Based off FDX and ORCL, the spending isn’t happening. Is it too early to be concerned? Jon “Dr. J” Najarian, co-founder of OptionMonster.com says no. “It’s a trade down time,” he says in the attached clip. Firms are still cutting corners wherever they can; a practice that seems so last year, but is lingering into first quarter.
The markets are shaking it off thus far, punishing the stocks themselves but leaving the broader market momentum intact. Najarian isn’t counting on that resiliency to last unless earnings improve.
You can see the full “Breakout” segment below: