Two things that caught my attention this week – a wealth of common sense

I was in California in California last week.

Me and 5,000 friends:

The experience of this event is good of the charts.

Everyone is in a fantastic mood. There is great content, conversation, view and weather. Moreover, it is so nice.

However, I never get my typical work done during the week of future evidence.

I am too busy talking, walking around, catching up old friends, new meeting, recording podcasts, moderating panels, the various stages emcee, eating, drinking and perhaps sneaking to the pool for swimming, Vistacos and a Miami vice.

That does not leave much time to pay attention to the markets or to do my usual reading and research. So when I returned from California, I spent a few days catching up.

Here are a few of the stories, graphs and market promotion that caught my attention:

Oracle’s insane movement. Oracle rose no less than 40% on Tuesday after reporting income.

This head of CNBC is pretty funny:

It is wild that a company with a value of almost $ 700 billion can increase its market capitalization in one day more than a third in value.

This graph of Sherwood News helps explain why it happened:

The prediction of the company for cloud-related turnover by the end of the decade is 14x higher than last year’s income for that division.

That huge move helped Vault Oracle in the top 10 of the S&P 500 per market capitalization (via Tailor -made):

Larry Ellison’s company closes a market capitalization of a trillion dollar, but something else at this table attracted my attention.

One of these things is not like the others. To report?

Note that this is not like the others?

Warren Buffett!

The Top 10 list is 9 Tech Kolos and Berkshire Hathaway. Would it be hyperbole to suggest that this might be one of his greatest achievements? Buffett survived the Dot-Com bubble. Now he survived the AI call Whatever we call this.

I wonder how long it takes before the top 10 is all technical shares.

The stock market does not yet care about the labor market … not yet. First, there was The big news That the BLS had the largest annual job revision. In the 12 months ending in March 2025, 911K fewer jobs were created than originally reported.

That is about 76k fewer jobs that have been created every month. So the labor market has been slower than we thought.

Then came the news that there are now fewer vacancies than the unemployed who are looking for work:

This is the first time that this has happened since the pandemic. When the labor market was hot in 2022, there were millions of vacancies above the unemployed population.

It is not a complete disaster, but it would be foolish to ignore the fact that the labor market has cooled.¹

The response of the stock market to a delaying labor market is essentially this meme:

Despite all this news about the delaying labor market, the S&P 500 this week alone became 3 new highlights of all time. There have been 24 new highlights this year and 43 in the past 12 months.

Maybe the stock market had priced it all.

Perhaps the stock market does not care about the labor market until there is a real recession.

Perhaps the stock market now only cares about AI.

Or maybe the stock market and the economy do not agree.

Is the stock market smarter than all of us?

Sometimes yes, other times no.

We will see.

Continue reading:
Some graphs that will surprise you

¹I also think that the combination of AI, immigration reform and the standardization of the pandemic economy make it very difficult to disabled the labor market.