Stocks closed moderately lower yesterday, ending the S&P's longest winning streak in more than 20 years, i.e., 9 up days in a row.

But many believe this is the beginning of more gains to come.

Last week's Q1 GDP estimate, which showed the headline number being down, also showed a resilient economy and that core GDP was up. Last Friday's Employment report also showed a strong economy with a better-than-expected labor market. And corporate earnings are suggesting continued growth with each of the next four quarters projecting positive sales and earnings growth.

Yesterday's ISM Services Index rose to 51.6 vs. last month's 50.8 and views for 50.2.

Although, the PMI Composite Index slipped to 50.6 vs. last month's 53.5 and estimates for 51.2. The Services Index also dipped, coming in at 50.8 vs. last month's 54.4 and the consensus for 51.4.

Today we'll get the International Trade in Goods and Services report.

And the two-day FOMC meeting will begin.

On Wednesday, it concludes, and the Fed will make their announcement on rates. The odds, overwhelmingly (99% according to the CME's FedWatch tool) favor no change in rates at this meeting. But investors will be anxious to hear what their outlook is for the next meetings on June 18 and July 30.

As it stands now, the odds for a June cut are at 30.6%, while July is at 75%.

If the Fed's comments appear to support the idea of a June or July timeline, that could be viewed favorably by the market.

That comes out at 2:00 PM ET, followed by the Fed Chair Press Conference at 2:30 PM.

In other news yesterday, Ford announced earnings after the close and posted a positive EPS surprise of 600%, and a positive sales surprise of 13.1%. But that translated to a quarterly EPS growth rate of -71.4% vs. this quarter last year, and a sales growth of -4.83%. They also pulled guidance and warned of a -$1.5 billion negative impact due to tariffs. They were down -1.04% in the regular session before earnings, and were down another -2.65% in after-hours trade following earnings.

Palantir also reported after the close and reported earnings in line with the consensus estimate of 13 cents, and a positive sales surprise of 2.43%. The equated to a quarterly EPS growth rate of 62.5%, and a sales growth of 39.3%. Moreover, they upped their 2025 revenue guidance (midpoint of $3.895B vs. previous estimate of $3.75B) by 3.87% on increased sales driven by their AI software. That would represent a 35.9% increase in y/y sales. However, they were down -0.41% in the regular session, and another -6.80% in after-hours trade.

Today we'll hear from another 388 companies on deck to report, including Advanced Micro Devices, Arista Networks and Marriott to name a few.

Later this week, President Trump is expected to announce one of the first trade deals negotiated after he suspended reciprocal tariffs on most trading partners.

In the meantime, earnings and the FOMC Announcement will be the main events.

See you tomorrow,