Stock market today: S&P 500, Nasdaq notch big gains with Tesla earnings on deck | April 23, 2024
I’m Brad Smith alongside Shauna Smith
and this is Yahoo finance’s Flagship
show the morning brief we have got a lot
of ground to cover this Tuesday morning
while Stock features they are starting
in the green with earning season in full
swing the S&P 500 snapping at Six-Day
losing streak as investors look to
quarterly results to help the market
regain momentum we’ve got reports from
some big names household names today
General Motors UPS reporting this
morning Tesla set to report after the
close today let’s get right to it with
the three things that you need to know
your road map for the trading day Yahoo
finances Brian Sai inz Fay and Jared
Blick re have more general motor Shares
are shifting into overdrive after
another big earnings beat GM’s strong
performance in trucks and EVS led the
company to lift its 2024 profit guidance
as customers have remained resilient in
a period of higher interest rates the
automaker also gave investors an update
on its EV business saying it still sees
positive variable profit in the back
half of this year and we’re also
watching shares of Tesla ahead of it
high anticipated earnings report after
the close the E giant looking to recover
some losses after the stock hit a
15-month low on Monday Tesla will give
investors a much needed update on EB
demand and guidance as investor
sentiment slides and shares of UPS
edging lower in its q1 earnings beat ups
posting better than expected results in
the top and bottom lines but higher
labor costs and subdued demand for small
package deliveries is Weighing on its
profit a new labor contract with the
teamsters Teamsters Union is also
squeezing their
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margins let’s break down the market
action that we’re seeing so far we have
stock features are edging just higher
here as earning season really ramps up
we have the S&P 500 climbing above that
critical 5,000 level let’s take a look
at where we closed at least the day
yesterday you’re looking at gains for
all three of the major averages really
pointing to the upside here you have the
Dow up just over 250 points as we wait
for this touchcreen to calibrate here
really the big test ahead for the market
is going to be some of these huge
earnings report that we’re getting out
of um ahead of the Bell here today that
we’re getting this morning heard from GM
we’ve heard from UPS we also will be
hearing from Tesla after the Bell
yesterday so certainly that is going to
drive some of the action that we’re
seeing again Futures at least pointing
to the upside for now so pointing to
gains at the open you’ve got the Dow up
just around 3/10 of a perc the S&P back
above that critical 5,000 level the next
test is going to be 5100 then let’s take
a look at the NASDAQ 100 Futures that’s
also pointed to the upside now these
moves here coming after what was the
worst week for the markets in quite some
time last week you had the NASDAQ
closing off over 5% in one week alone so
again Tech coming into this week very
beat and down and the question for
investors here this morning is whether
or not earnings are going to validate
the current valuations that we are
looking at at in the market that big
test is going to be after the Bell here
today with Tesla the first of the the
mag s here to report and give us some
insight as to whether or not we could
expect these earnings reports to really
turn some of the Market’s momentum and
help it regain that momentum to the
upside here Brad yeah shaa the Black
Rock commentary this week certainly in
Focus uh with that and in line with what
you just mentioned saying with stocks
under pressure and Ray cut hopes fading
we think the bar is much higher for Tech
firms this week to deliver on earnings
expectations so that really the setup
that we’re tracking and as you broke
down a moment ago here let’s talk about
one of those companies reporting
earnings shares of General Motors in the
green this morning after a strong
earnings beat in the first quarter the
company boosted its full year guidance
saying the consumer remains resilient
Yahoo finances executive editor Brian
sazy joins us now Brian you spoke to the
CFO of General Motors Paul Jacobson
specifically about the company’s pricing
strategy what do they have to say I just
can’t help but to giggle a little bit
Brad because this Cor saw from GM is
going to look marketly different than
what SAA just set up with regards to
Tesla I mean these are going to be
totally different quarters Tesla’s
quarter not going to be good General
Motors though noting that their EV
retail sales were up 21% in the most
recent quarter in a pressure Market uh
nonetheless I asked Paul Jacobson uh the
CFO of General Motors about uh pricing
for the company’s products now let’s
keep in mind uh in the Auto industry
really the past six months we have seen
promotions or discounts pick up here’s
what GM’s up to
our pricing is held up um very strong uh
across the board uh we saw uh average
transaction prices essentially flat and
while incentives had ticked a little bit
higher we’ve actually seen uh pricing
improve uh April month to date so far so
um really a lot of momentum that’s
fueled by the great products that we’re
producing and the strong customer demand
for them and then uh in terms of EV
demand uh Jacobson telling uh me that
demand continues to be strong and
they’re not only uh selling the cars
they have in the market they remain very
focused on ramping up EV production in
the back half of the year related to
their Altium uh EV platform here’s what
Jacobson told us this EV adoption is
going to be choppy it’s going to have
its ups and its downs but we’ve got a
lot of flexibility built into the system
think about spring hill our plant in
Tennessee where we produce EVs and Ice
vehicles on the same production line so
if we see an EV adoption um Trend higher
uh we can put more EVS onto that if we
see it take a pause we can actually per
um produce more ice Vehicles so I will
just tie this quarter in a bow while
you’re seeing shares of GM up uh they
beat big they raised their full year
outlook demand for their cars are not
falling off a cliff like Tessa and by
and large that’s why the stock price is
up there’re your three things yes let’s
compare it a little bit even further
here to Tesla because we’re going to be
getting those results after the Bell a
better investment story it sounds like
it’s very much GM at this point compared
to Tesla yeah I mean these are two
wildly different stories you have GM’s
earnings accelerating no but in De I
mean that’s actually what happened
revenues holding up well pricing holding
up well I think these are things you’re
not going to hear on that Tesla earnings
call what you’re likely to hear on that
Tesla earnings call is about Robo taxis
that are probably going to lose a lot of
money for Tesla we’re not hearing that
necessarily from JM but I will note that
driverless Cruise business Still Remains
in park they have started manual uh
testing again in Phoenix that business
lost $515 million on an operating basis
but by and large good quarter for this
company you know it’s interesting we
were running some Excel calculations on
the average selling price send that doc
right ah my bad uh I forgot to uh share
permissions on it but the average
selling price for this most recent
quarter $29,000 just above that you
compare that to last year about
$26,500 $26,500 so to your point an
increase year-over-year there and then
you talked about EV a moment ago I mean
who who couldn’t like print this thing
off like I printed it off uh the trees
are not going to like me here some H
breaking news for my birthday two years
ago I went out and bought a 2019
Corvette Brad you’ve seen it golfing a
proud moment for me I said I was going
to be buried in this car but I don’t
think uh I will because I might actually
that’s not my car that is the new ZR1
that is supposed to come out oh that is
the eay but they are but they are coming
out with the new Corvette ZR1 uh in the
back half of this year now this is not
going to move the needle but is one of
those Halo cars that drives a lot of
attention to what GM is working on and
maybe I trade in my my 2019 Corvette and
get something like that this guy look
kind like you in there it’s really not
it’s it does look to me what like oh
yeah yeah that does look like an aging
millennial losing their hair yes that is
me thank you so much yes we all got
thanks for poting that out I appreciate
it yeah always a pleasure working with
you both thank you all right we’ll keep
right here on Yahoo finance you’ve got
much more of this aging Millennial
coming up here on Yahoo finance you can
catch Brian’s a full interview with GM
CFO Paul Jacobson that’s live at 9:40
a.m. eastern time this morning she
didn’t say geriatric so that’s good
that’s next all right well after the
closing bell today let’s talk Tesla
because Tesla will be reporting its
first quarter results in the EV maker
stock sliding a 15-month low the street
not so optimistic on the company right
now only about 34% of analysts have a
buy rating on the stock that’s down from
over 51% this time last year now just
around 43% of analysts have a hold
rating and about 22% have a sell rating
so here to break it all down what Wall
Street is expecting in terms of both
earnings and guidance our very own aness
Ray has those details for SNS yeah sha
on Tesla’s results come at a critical
time when the stock is down about 50%
from its peak last year analysts expect
decreased revenue and quarterly profits
compared to last year for the quarter
Tesla is expected to report adjusted
earnings per share of about 52 cents
almost a 40% drop from a year ago in
terms of Revenue the street expects $
22.3 one billion that would be the first
Topline drop in four years a lot is
riding on this quarterly print and the
road map for what’s ahead keep in mind
this past quarter Tesla’s Global
deliveries came in less than expected
waning demand Fierce competition out of
China has forced the company to cut
prices the latest price Cuts came just
this week and investors will be watching
for what’s ahead the unveiling of the
robo taxi announced by Elon Musk
recently a vehicle that’s generally
understood to have no steering wheel or
pedals Wall Street still has questions
though about whether Tesla has given up
on a mass Market sub $30,000 vehicle
these questions come shortly after the
company cut staff while shareholders
will be asked to reinstate Elon musk’s
pay package at its June meeting for
investors this quarterly report is more
than just a financial update the way the
company deals with its challenges may
impact investor confidence and as Dan
Ives of W bush recently put it this
quarterly print and commentary from Elon
Musk afterwards will be a White Knuckle
moment guys all right yaho Finance his
own ANZ Fay it looks like According to
some options AI data that move the
expected move could be plus minus about
9 % post earnings here so we’ll be
tracking Tesla shares after that report
Apple also facing a downturn in China
and the problem does not seem to be
letting up the tech Giant’s iPhone sales
fell 19% in the region during the first
quarter marking its worst performance
since the pandemic in 2020 that’s
according to new data from Counterpoint
research now this data follows similar
findings from IDC which reported that
iPhone sales had slumped nearly 10% in
China during the first 3 months of 2024
here here and notably here they
mentioned the sales drop 19.1%
year-over-year and why huawei’s comeback
directly impacting the premium segment
for Apple here yeah and this is huge
because this is something that we have
been talking about a lot maybe that’s
why we’re not seeing so much of a
reaction here in Apple stock ahead of
the open again we’re not looking at too
much of losses here but when you compare
to what we saw just about a year ago and
we have it up there on your screen apple
is now the third largest or accounts for
a third here in terms of third largest
for market share in China That’s down
they were at the number one position
just a year ago so we’ve seen the study
fall and Brad you just mentioned it
there the rise of the domestic
competition within China clearly eating
away at Apple’s market share and it’s
something that they would likely face
now here for quite some time we’ve seen
a bit of a push back we also know the
fact that these devices uh foreign
devices were banned by state and
government agencies here that’s
obviously adding to some of the pressure
and some of the Bleak demand Outlook
that we’re seeing specifically here
within China but again the Striking what
to me was just the rapid fall that we’re
seeing in terms of market share
specifically when it comes to Apple now
that it’s at the number three spot you
would think with some of that momentum
that we’re seeing within some of those
domestic players that will likely
continue to fall as their market share
arose and then this also just highlights
the growth issue that Apple has not only
in China but really what it could
potentially have right now in Europe and
also the US given some of the numbers
that we have seen most recently and you
would think it’s setting the company up
to maybe have a tough couple of quarters
ahead of that next iPhone announcement
which could be expected here this fall
yeah exactly three things that I really
also took away from this which was
number one sales initiatives they’re
expected to be more aggressive at least
according to Counterpoint research here
so that is a larger question on how it
impacts the margin and then you think
about what this year is also going to
mean in terms of the WWDC conference
where they’re going to unveil some of
those AI features or they’re expected to
at least really talk more about what the
new lineup of iPhones announced later in
September could have in terms of the
generative AI components that are baked
into that and then lastly it’s a color
year we could see some new iPhone colors
roll out and that is something that I
think a lot of consumers or at least
analysts have to continue to think about
because of the historical cycle and
where that’s boosted sales weird the the
colors can get people going that
actually surprises me cuz who doesn’t
use a cover no well yeah that’s true
right so you’re not going to see the
color you don’t see the iPhone unless
you’re extremely extremely careful and
you’re one of those people that never
drop which I clearly cannot relate to by
The Crack Screen I was walking around
with no cover on my phone for a while so
I I would have seen okay all right well
then there you go I guess if you’re like
Brad and very responsible then you may
not have to use the case but I’m not one
of those people just Living on a Prayer
all right well let’s get to another big
earnings that’s in Focus here this
morning and that is UPS reporting mixed
results for the first quarter but the
shipping giant beat on profit after
implementing a 1 billion dollar cost
cutting plan back in January that was
done to offset this slump and demand
that’s clearly reflected in the volume
number so volumes falling 3.2% in the US
5.8% on an international basis so
clearly we are seeing some of that uh
drag on ups that we had seen over the
last couple quarters the fact that we
have this falling volume here clearly a
challenge for UPS some of the cost
cutting measures that we were just
highlighting there trying to offset some
of those challenges but really we look
at UPS almost as the economic Bell
weather here exactly what people are
spending how much they’re spending how
much they’re ordering not exactly
massive surprise that we’re coming off
those pandemic era inflated uh volume
numbers here but clearly that steady
decline is a bit worrisome here for the
stream yeah and looking through to the
kind of full year here and the company
looking out to the rest of the year
Carol toay the CEO of UPS expecting that
that average daily volume in the US will
show more Improvement through the
quarter and looking ahead to return to
volume and revenue growth later on this
year uh but again I mean this coming off
of a critical season in q1 where
monitoring the consumer monitoring where
some of the spend moderation is actually
shifting or slipping lower and how that
directly impacts ups at a time where
we’re coming off of a year where there
were major labor negotiations that took
place and that has to be factored into
to the profitability metric here that a
lot of analysts are perhaps going to ask
a little bit more about on the call as
well here all right well we are just
getting started here on Yahoo finance
coming up on the morning brief the
earnings parade well it continues we’ve
got reports from GE locking Martin and
Spotify just to name a few we’re going
to break down those results from all of
those companies that you see up on your
screen there and Pepsi Go’s pricing
power boosting shares but how can
consumers plan for higher prices Brad
you’re going to break all that down
today at 11 on well the business of Pop
business of Pop we’ve got that and much
more coming up here on Yahoo finings
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diving into some trending tickers this
morning Pepsi seeing net sales rise just
over 2% in the first quarter but taking
a hit on volume particularly in its
North American Quaker food division
which plummeted 22% as it grapples with
a recall for potential salmonella
contamination you’re taking a look at
shares only fractionally moving higher
on these results by about one tenth of a
percent here one of the huge things that
the company is talking about in this
most recent report as well looking ahead
continuing to focus efforts on executing
in the marketplace also going to elevate
and accelerate their productivity
initiative so some big Investments that
could potentially be coming forward from
the business as well and then
additionally here expecting to deliver
4% organic Revenue growth 8% uh core
growth as well here so uh that for the
business that houses not just soda but
also some of the uh the other drinks and
beverage products plus snacks yeah I I
think my takeaway here was that this is
a real Glimpse at the consumer when you
take a look at the volume declines
especially here in the US it highlights
the fact that the consumers are under
pressure they are a bit stressed in the
midst of this higher uh rate or higher
rate environment and also higher prices
environment clearly Weighing on uh
consumer decisions right now and Callen
calling that out in their uh instant
reaction to this report saying that the
reiterated guidance here from Pepsi
really highlights the uncertain consumer
backdrop also slower trends that we are
seeing in the North American business so
a continuation kind of of that Trend
lower that we have seen over the last
couple of quarters now I also want to
point out though some interesting
commentary that our uh executive editor
Brian sazy he spoke with the CEO of
PepsiCo was talking about the volume
declines that we have seen and he did
offer a bit of a silver lining here at
least in terms of some of the trends
that they saw in the most recent in the
current quarter right now and he said
that he inspect he expects volume
activity here or volume number
to really start to improve and and I
think you can take from that a couple of
things one I think you can point to the
fact that maybe the consumer is going to
recover just a little bit two maybe the
worst of inflation is behind us maybe we
won’t see those type of price acts that
we had seen over the last couple of
quarters and then three some of the
pressures that it seems like in
pepsico’s business at least in its most
recent quarter maybe the worst of that
is behind them and they will start to
see Improvement here in North America
because when you compare the North
America numbers to what we’re seeing
internationally International was a huge
standout here for Pep Meo it it was a
standout I mean Europe the volume
difference that was up by about 2% in
the Convenient Food 7% in the beverages
so a plus there a plus in Maya
ultimately all in and in the Asia
Pacific region as well shifting gears to
the healthc care space let’s talk a
little novaris shares riding Rising
today after the company beat the
Street’s expectations for its first
quarter and boosted its forward earnings
guidance to break down what this means
for investors we’ve got Yahoo finance
reporter aneli Kimani here with us in
studio that’s right right Brad yeah so a
really good story for novaris which is
doing something different from other
Pharma companies the Swiss company
looking at its core uh focus groups it’s
it’s four core core areas including
driving demand from its heart failure
drug and tresto as well as the psorisis
drug centic that made up about uh maybe
two or four nearly four billion actually
uh in the uh in the in the earnings and
so that’s really a strong growth story
for the company which has been moving in
a different path than sort of other
companies where we’ve seen them get into
Buzzy spaces uh like acds and like gp1s
nois has specifically said that it is
moving into areas that it knows it has
an opportunity and they’re clearly
proving that even with the spin-off of
Sandos that got completed at the end of
last year they’re able to maintain the
growth and beat operations uh beat
earnings estimates and meanwhile also
looking at what they’re doing in the the
manufacturing space the company has
indicated that it is paying close
attention to the discussions about uh uh
policies related to biologics in China
that are coming out of DC and they’re
looking at ways to maneuver around that
so that’s going to be an interesting
story to watch on that front so we’ll be
staying tuned to that we’ve seen that
CEO V Naran has been really focused on
all these other areas and really taking
the company in a different direction
than you would see otherwise all right
Andel we have you we also have to talk
about United Health because we’re
getting some updates there as Shares are
actually in the red here this morning
after the insurance shine provided an
update on the extend of the Cyber attack
that you and I have spoken about what
three of us have spoken about here in
the past over the last several weeks
what’s the update there and the pressure
that this could ultimately put on shares
going forward yeah this company really
uh indicating to Wall Street that the
financial impact less than expected
we’ve already covered the fact that in
the first quarter alone they saw about
$872 million impact and expecting 1 .6
billion throughout the year so tiny by
comparison to the earnings of course but
what they did let us know was that the
extent of the attack was much larger
than anticipated and that personally
identifiable information and personal
health information was in fact part of
this there were early indications that
they did pay a ransom potentially in the
amount of $22 million there was a
Bitcoin transaction that had been
covered in the past by by reports and
they did acknowledge United Health
acknowledge that they did pay a ransom
to get that data back so what they did
say in the statement was quote there
were 22 screenshots allegedly from
exfiltrated files some containing the
personally identified information that
was sitting on the dark web for about a
week and they haven’t seen that
published further so as of right now
they’re thinking that they’ve contain
the issue but they’re still looking into
it and the issue is still uh sort of
under investig we know that Congress is
looking to have the CEO before them in
may as well as the potential loss in
market cap we know previously they lost
about 30 billion when this was first
reported so a lot of things mounting
when it comes to the pressure that this
company could face maybe it won’t be
specifically earnings maybe it won’t be
the big Financial hit but it certainly
is a brand hit all right an thanks so
much for breaking that down for us again
a name that we are going to keep on our
radar here today let’s move on to
another earnings report here out this
morning and that is JetBlue shares they
are actually plunging after the airline
slashed its revenue forecast for the
year it now expects a drop of over 10%
at least for the second quarter the
company CEO saying that they expect
quote significant elevated capacity in
their Latin region which will continue
to pressure revenue and Brad that last
thing I just mentioned there in the
intro the excess capacity in the Latin
region was something that they called
out a couple of times within this
earnings release really maybe one of the
challenging spots here for JetBlue and
its road to recover at least what it
hopes to be be road to recovery here yet
as it try as it tries to compete with
some of the larger domestic players here
in the US and again shares selling off
on the heels of these results and we’re
looking at a drop of I believe right
around 16% here ahead of the open yeah
you know there was a old exec who I I
used to work with who used to say you
were always in the constant process of
Reinventing yourself and JetBlue might
be going through its own reinvention
here and the share price is reacting to
that uh as well here the company talking
about that they’re going to announce a
number of significant Network changes in
the first quarter they’ve already
started to roll out that process and
what that’s aimed to do is really free
up some of the unprofitable flying the
unprofitable routes that is where
they’re going to focus perhaps more into
the Latin am or the lat am excuse me
routes that they do have and that’s
where it’s impacting some of the revenue
that they’re expecting to see as well
what you mentioned and what the share
price is also reacting to here this
morning so really focusing in on some of
the Leisure markets where they say
JetBlue has historically won larger
question of how that re jiggers or
recalculates the overall earnings
equation for this company going for a
company that in the last year and change
has had multiple big hits to the stock
not being allowed to combine with Spirit
you’ve not got the um major move forward
to be able to still have the
northeastern Alliance as well that was
broken up so all of these things
considered it’s just been question mark
after question mark for JetBlue as of
right now and we’ll see exactly what the
new operating expense profile file looks
like as they get off of some of these
unprofitable routes as they deem them
yeah reallocating some of their
resources to some of their better
performing regions there as the company
does struggle to return to profitability
all right let’s take a look at another
stock that we are watching here moving
in the opposite direction and that’s
Spotify you’re looking at shares jumping
after swinging to a profit in the first
quarter despite reporting monthly active
users that fell below what the street
was looking for despite that though
you’re still looking at a gain of just
over 10% Alexandri Canal has that
breakdown for us Ally hey sha yes I’m
here at Yahoo finance’s coffee bar and
we did have a very solid quarter for
Spotify beat across most of those key
metrics along with some strong guidance
for the second quarter all of that
driving shares by double digits in
pre-market trading as you mentioned the
company did Miss on monthly active users
I did initially think that could
potentially spook investors but that
wasn’t the case as profitability
continues to improve for the audio giant
now on the earnings call CEO Daniel e
did address why there was a Miss on Maus
one reason being that 2023 was a banner
year for adding those users and
subscribers and that shouldn’t be the
base case expectation he also said that
the impact of December’s Workforce
reduction also played a factor he said
that there’s no question that that was
the right strategic move for the company
at that time but it did disrupt
spotify’s day-to-day operations more
than anticipated he said at this point
they seem to have a handle on that and
then finally he did admit that they
might have pulled back too significantly
on marketing spend as they were focusing
on those profits he said potentially in
the second quarter and throughout the
rest of the year they could boost those
marketing numbers uh that being said
though M Maus did rise 19%
year-over-year and outside of those user
metrics we really saw Spotify emphasize
its efficiency strategy as it focuses on
boosting some of that Topline Revenue
growth that’s helped increase different
metrics like operating margins um income
that previously really struggled for the
company that was something that
investors consistently looked at across
the board now it seems like the company
has its balance sheet in a really solid
position another thing I want to bring
up on the earnings calls that Daniel e
did hint at more price hikes to
potentially come for Spotify but along
with that there’s also going to be
increased flexibility when you think
about different tiers and different
subscription plans that could
potentially include a music only
streaming tier or or tier that also has
audio books included so all of that is
something to watch moving forward he
didn’t give an exact timeline but it
seems like that’s a big Focus
flexibility on those plans to attract as
many customers as possible all right
Ally thanks so much we are getting close
to the opening bell here on Wall Street
you’re taking a look at yeah it looks
like uh oh our friends at Lithia and
driveway lad is the ticker symbol there
bringing the opening bell and then
additionally you’ve got hute Imaging
ringing the opening bell at the NASDAQ
let’s get a quick check of the market
sponsored by tasty trade taking a look
at the Dow Jones Industrial Average
first and foremost here out of the gates
looking like we’re Higher by about 4/10
of a percent NASDAQ and the S&P 500 also
seeing some green yeah you look at the
NASDAQ move to the upside let’s take a
look at the S&P also pushing further
above that 5,000 mark an important level
here to keep in mind during today’s
trading action it’s also important to
note some of the action that we’re
seeing within the bond market here
despite this move higher that we’re
seeing equities we’re also seeing this
move higher in yields you got the
10-year yield moving up just around to
basis point flipping over to the sector
action here at the open you’ve got
materials and energy utilities Under
Pressure so reversal to the trading
action that we were seeing play out last
week and on the flip side you’ve got
Healthcare Industrials consumer
discretionary among the gainers here and
Brad the real drivers here ahead of the
open or at the open I should say is
really the earnings results that we’ve
gotten so far and exactly what that
could tell us about what is ahead and at
least for right now those results mixed
here this morning yeah that’s right and
as I was mentioning the data from Black
Rock in their weekly Market commentary
the US earnings Updates this week going
it be key to see if these companies can
keep topping expectations and buoy risk
appetite in a higher for longer interest
rate environment so that’s the setup
we’re continuing some of the coverage of
the opening bell on Wall Street as well
Yahoo finance reporter hey Jared blicker
is at the Jumbotron all right Jared
you’re keeping tabs on Commodities this
morning I hear what’s going on there yes
uh we’re seeing a little bit of risk off
you’re going to see in the Wi-Fi
interactive behind me now at the bottom
we’ve been tracking Coco and I might as
well hit that first we’ll get to crude
oil and also gold but here’s Coco this
is the intraday chart let me show you
the year to date and you can see we we
are sitting on gains of 140% and that’s
after this big nasty two-day slide and I
just want to show you you can see how
big those red candles are so a little
bit of riskof here also tracking coffee
for instance um that has that’s in the
midst of a big 2 three day slump there
haven’t seen these levels in a few week
or excuse me a few sessions but it just
goes to show you the volatility we’ve
been seeing here also want to get a
check on Brent crude oil we also track
WTI but here’s Brent this is really the
world’s reference price this was over
$90 a barrel not too long ago looks like
geopolitical tension’s easing a bit and
we’re seeing prices back off a little
bit but I also want to get to gold and
that is GC equals F we’ll see if I can
find that here and even if I can’t uh
it’s been on a pretty good runup here we
go it’s down 8/10 of a percent today
it’s also in the midst of a two-day
slump but sting sitting on gains of
12.75% all of this is really interesting
to me because we are seeing the US
dollar Index and I’ll just pull up a
real quick chart of this US dollar is
trading sideways so I got to ask what
happens if it starts going up again this
ties into the higher for longer but you
can see here you you’re today chart the
US dollar Index is definitely stalled
out so we have to see what that has in
store for Commodities when it finally
breaks that trading range all right we
will be watching Jared blicker thanks so
much for breaking down those moves for
us we’ll keep right here on Yahoo
finance coming up a deeper dive into
earning season while Traders they might
want to be more cautious this time
around Veronica Willis Wells Fargo
investment Institute Global investment
strategist will tell us why next
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stocks moving higher this morning as
earnings well they take Center sieg 180
companies that’s about 40% on the S&P
500’s value reporting this week earnings
optimism snapping the S&P and nasdaq’s
sixday losing streak this week despite
that optimism though our next guest
saying that she thinks that Traders
might want to be more cautious this time
around Veronica Willis well as Fargo
investment Institute Global investment
strategist is here it’s great to see you
Rono so talk to us just about why at
least you’re being a bit more careful
this earning
season yeah I think where we want to be
cautious we’ve seen over the last
quarter the last 12 months or so really
good performance out of some of these
higher um performing sectors in Tech and
communication services and consumer
discretionary and so we’re really
cautioning investors against chasing
that exuberance going forward we’re a
little bit more cautious there are still
some economic uncertainties there’s
still some potential for a little bit of
a market downturn so maybe taking some
profit in some of those areas that have
performed well and rotating into some of
the sectors that we do like right now
energy Industrials um materials and
Health Care could be a smart move as
those valuations might be a little bit
better at this point that’s interesting
Veronica and so it starts to get at this
question of whether or not the the slide
in stocks that we had seen at least at
the tail end of last week and and
aggregate here
is a blip or kind of a bigger shift
towards pricing in inflation what are
you going to hear what are you going to
be listening for from some of the
companies that are reporting about how
they are monitoring the demand
environment yeah I think those you know
expectations for consumer spending are
going to be really key in kind of that
forward-looking guidance and that
forward Outlook so we’ve seen you know
recently some surprising strength in the
consumer and that’s really what’s you
know lifted the economy and kept that
economic growth very stable uh we are
expecting a bit of a Slowdown in
economic growth throughout the year and
so I think it’s going to be really key
to think about um how are those
companies um addressing any potential
slowdowns in um retail spending and that
slowdown in the consumer and how will
they protect against those economic
uncertainties so Veronica what do you
think all this means then for the
broader Equity Market action are we
likely going to see maybe some more
downside pressure than in the weeks
ahead yeah I think there’s definitely
that potential for a little bit of
downside in the market and we really saw
that play out last week with that you
know robust economic data and that
refocusing on what will the FED do with
monetary policy we’re getting some date
out later this week that I think will be
important for driving markets we’re
going to get that PC inflation data
which we know the FED watches very
closely we’re going to get that first
print of um first quarter GDP so I think
those are all going to be key for the
market as well as um what they’re
expecting from earnings here Veronica
can AI mentions during the earning
season save a lot of the the potential
reaction and volatility uh that we’re
expecting can AI mentions alone save
this earning season I’m not sure if the
mentions alone can save the earning
season but it’s definitely a Hot Topic
and investors are going to want to to
see how this emerging technology is
going to fold into not just the tech
sector but other sectors as well um it’s
going to be something that’s a longer
term theme and investors are going going
to want to know how these companies are
going to fold that in Veronica Willis
Wells Fargo investment Institute Global
investment strategist Veronica great to
see you thanks so much for taking the
time here today thank you certainly
coming up everyone shares of General
Electric GE Rising this morning after a
strong earnings beat and guidance raise
we’re going to dive deeper into those
results with an analyst next
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let’s keep the earnings parade rolling
here GE Aerospace shares moving higher
after the company reported its first
quarterly report since separating from
General Electric Power business now the
company raised its ful year profit
forecast citing strong demand for jet
engine parts and services earlier this
month GE completed its breakup into
three companies focused on Aviation
energy and health care but Wall Street
analysts have been bullish on the
Aerospace part of that business let’s
bring in John ID who is the president of
Argus research for more great to see you
here this morning and thanks for taking
some time first want to get your
reaction to GE Aerospace and what the
company is citing as Demand right now
for that Aerospace
business so what great timing from CEO
Larry kulp to have their very first
earnings report and Report double
digigit Revenue growth double digit
operating profit growth beat earnings
expectations it it’s an awesome story
and the company’s really benefiting from
uh some Tailwinds in the industry with
the passenger uh
recovery with Freight starting to pick
up so it’s it’s a good time right now
for GE Aerospace and it was a good time
for GE uh to focus on just that
business question for you when when it
when it comes to GE and I bring up the
boing situation right now we have a
Boeing having some production
difficulties I I think some people
initially looked at that that that would
actually be bad news for GE but could it
actually be a bullish sign here for GE
given the fact that these airlines are
going to have to spend a bit more on
service and these and these newer
Parts well so um yeah and and you look
at the backlog for that kind of signal
from GE and I do believe their service
backlog was up something like 20%
year-over-year and you look at the
backlog for Boeing and their backlog
grew 10% year-over-year through the
latest
quarter um they’re also planning to ramp
up production on the
737 in the next couple of years that’s a
30% increase in production there so so
yeah the the near- term looks pretty
good for Revenue growth opportunities
for a company like GE Aerospace how how
should investors evaluate this company
now that it’s finally kind of been able
to to separate and and look at the sum
of this part of the business
extrapolated from the rest of the
business which investors were waiting
for it to be uh kind of split off or
spun off sure and and and when you talk
about Investors waiting they were
waiting to you capture value that they
felt was there but wasn’t present
because there was so many problems with
the balance sheet and and the mix of
businesses so so now a lot of that Val
has has really been recaptured I would
say GE Aerospace is breaking new highs
right now um its operating margin is is
in the 20% plus range and if you go back
a couple years overall ge’s margins were
you know break even at best so so the
turnaround is complete and and I got to
say there’s not a lot of of value left
in GE but there is a real growth
opportunity and and as you know uh the
market has been paying for growth for
really uh the the the past 10 years so I
like the growth outlook for GE but I
wouldn’t call it a value here John Let’s
also talk about loine Martin you covered
that company as well they were out with
results here before the Bell they
reported nearly 14% jump in first
quarter sales geopolitical tensions here
really prompting a boost that we’re
seeing in defense spending when you
couple that with even what we just saw
from the house this past weekend passing
that Aid bill what exactly is that going
to do to locky Martin’s business here
going forward how big of a
boost so so locky Martin is not going to
be growing as fast as General Electric
it really doesn’t have that uh
commercial exposure it’s all government
spending and um I I think the probably
the most you can expect for lockeed
Martin on the top line is probably low
singled digit growth over these next few
quarters to despite the good news out of
Washington um Lockheed Martin where it’s
seeing its most growth is is not
necessarily in its Aeronautics business
but in its space business uh the
satellites and and the technology and
it’s trying to integrate that technology
in defense systems across the board uh
not just for the us but for
international customers as well so I
don’t think the growth is going to be as
visible at Lockheed Martin as we’ve seen
at General um electric the margins at
Lockheed Martin are 10% whereas they’re
20% in GE but you do get a better value
with a Lockheed Martin share you get a
2.7% yield and and a lower PE ratio so I
think lock heat is going to be better
for a value investor and GE is going to
be better for a a growth
investor all right John E Argus research
president thanks so much for hopping on
taking the time to join us here this
morning well we keep right here on Yahoo
finance coming up next our very own
Brian sazy is going to speak with GM CFO
Paul Jacobson about its strong first
quarter earnings beat here for GM we
will see that full interview next then
Madison Mills is going to join me here
at 10:00 a.m. eastern time we got to
kick Brad Smith off the set we’re going
to be breaking down fresh housing and
Manufacturing data right here at the top
of the 10: a.m. eastern time hour it’s
cool I’m going to use that hour to run
over to the GM delivery and and sales to
pick up one of these uh pick up one of
these e-rays why not wow go for it I
guess they just call it a dealership not
deliver say I know right just a $5 down
payment anyway I’ll see you at 11:00
a.m. eastern time we’re going to talk
spending on homes spending on cars and
groceries plus financial advisor shares
how to become a millionaire by 30 you’re
watching Yahoo finance
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it’s another quarter and another quarter
where General Motors really beat Wall
Street profit estimates and raised its
outlook for the full year let’s get
right to GM CFL Paul Jacobson Paul uh
this is becoming a little bit of a old
hat with these uh earnings beats here I
think this report though really
surprised a lot of investors when going
through the numbers why do you think
that upside was driven in terms of
profits and sales
well U thank you Brian I appreciate you
having us and uh it’s a it is a great
day here at General Motors and I just
want to give a great big shout out to
the team um for delivering another
quarter of really really strong results
you know when we came into the year we
talked about uh building in an
assumption that uh pricing was going to
be down two to 2 and a half% I think
that really reflected a lot of the
sentiment that was out there on the
street um but uh as as we’ve seen in
Prior quarters um our pricing is held up
um very strong uh across the board uh we
saw uh average transaction prices
essentially flat and while incentives
have ticked a little bit higher we’ve
actually seen uh pricing improve uh
April month to date so far so um really
a lot of momentum that’s fueled by the
great products that we’re producing and
the strong customer demand for them this
is a very important point I think on
pricing and it’s not lost on me
throughout the the earnings deck Paul
because this is not the story we’re
hearing from let’s say traditional or
now Legacy Eevee makers such like a
Tesla so why do you think your pricing
right now is doing or holding up pretty
well well you know we really have a a
broad portfolio of vehicles that appeals
to uh many customer bases and uh when
you look at our full-size truck and suv
franchises they’ve been really strong
the refreshes that we did um a little
over a year ago a couple years ago have
been um incredibly strong and uh we’ve
seen that we’ve been able to pick up
share in those segments even while our
pricing has been a little bit higher
than our competitors um the consistency
of that product I think is strong and
now when you look at the Chevrolet
Tracks uh the Buick and Vista uh
bringing in portfolios at at lower price
points the track starts just above
$20,000 sales were up 500% in the
quarter from where we were a year ago
and that’s an improved product um that
is driving uh significantly improved
profitability for us over the prior
model and it’s one that that customers
just love since we last saw you on on
Yahoo finance Paul’s earnings uh about 3
months ago we’ve had uh Financial
challenges at EV maker Lucid Fisker is
on the verge of not being around anymore
Tesla stock price is down double digits
I think it’s down 42% year-to dat why do
you think we’re seeing the shake out in
the EV space and I should note your
stock is
up well you know I think over that time
period um as we’ve talked about EV EV
adoption is going to be choppy and uh
We’ve certainly seen slow in the growth
rates but when you look at our retail
sales in the first quarter they were
actually up 21% on the EV side that’s
despite the fact that the Chevy bolt
which we’re sunsetting the prior
generation as we work on the next
generation was down 60% over that same
time period so retail um performance for
our EVS is actually is actually holding
in there uh pretty well now we’re
scaling up production and we need to
make sure that we keep Pace with demand
and where the customer is um but we feel
good about the products that we’re
bringing to Market and offering um
customers in the EV space capability and
performance that they really haven’t
seen from many competing products
explain that to investors Paul because
you notice I in the slide deck it’s
mentioned that you’re scaling up the
Altium platform um the battery platform
with an acceleration in the back half of
the year uh but EV prices remain Under
Pressure you know square that for us are
you still making that bold bet on
EVS well look you know at the end of the
day we’ve we’ve built the infrastructure
and we’ve put a platform together that
allows us to put purpose-built EVS into
the market that have better capability
so if you look at Vehicles like the
Silverado for example 440 Mi of range uh
strong performance and towing uh great
charging speeds Etc um and we’ve got
many people out there that are
performance testing it against our
competitors and it really isn’t a
competition when you look at the the
capabilities and that’s what you get
with purpose-built EVs and when you
combine that with the styling and the
and the function of what we do at
General Motors we think we’ve got a
platform to be able to be successful um
but as we’ve said before you know this
this eveve adoption is going going to be
choppy it’s going to have its ups and
its downs but we’ve got a lot of
flexibility built into the system think
about spring hill our plant in Tennessee
where we produce EVs and Ice vehicles on
the same production line so if we see an
EV adoption um Trend higher uh we can
put more EVS onto that if we see it take
a pause we can actually um produce more
ice vehicles that flexibility I think is
really key for us uh as we built the
infrastructure to be successful on this
trend over the long term nothing gets me
excited Paul than seeing good fashioned
gm4 duking it out for Market sharing
trucks now you noted in the slide deck
that you saw a 3 percentage Point
Improvement in market share for trucks
is this you just saying uh hey we’re
taking market share from the F-150 full
stop I mean let’s be blunt well what
I’ve what I’m really proud of is that
the team has been able to do it uh while
while staying consistent on pricing um
you know historically in this business
uh a lot of share was was traded back
and forth with uh with price Wars and
when you look at the quality of what
we’ve been able to produ
and the demand that we’ve generated for
our vehicles um it’s a strong statement
as to the uh engineering quality and the
design of what our portfolio is and uh
incredibly proud of the team so you
won’t mention you won’t say you won’t
say you’re taking share from the
F-150 I’m not going to say where we’re
taking share from I’m just really proud
of the vehicles that we’re selling okay
fair enough uh on Robo taxis there’s a
key dat coming up in this industry um
August 8th that’s when Tesla’s supposed
to unveil something with Robo taxis uh
does that make make you push harder to
get Cruise back on the road I know your
ma back to manual testing what in
Phoenix is that the event that that you
think will unlock really a lot of
excitement around this space and you
move more aggressively with crw well I
mean we we remain very excited about crw
while we’ve taken this pause um to
reestablish credibility with the
regulators and with the public um we are
proud that we’ve gotten Vehicles back
out on the road in Phoenix and we’re
going to be guided by safety going
forward but uh it just because we’ve
paused vehicle on the road doesn’t mean
we’ve paused investment in the
technology we’ve been running uh lots of
simulations across the board behind the
scenes and the product is really better
than ever so um it’s going to take us a
little bit of time but we want to make
sure that we are Guided by safety and
guided by restoring our credibility in
the space but we’re very excited about
what Cruz has to offer love to get your
final thought on this one um Paul so I
mentioned earlier since we last uh spoke
to you a real ShakeOut in the EV
industry but when we also last talked to
you there was a real Focus on the FED
potentially cutting interest rates maybe
we get four five six rate cuts that has
been completely Unwound and as I sit
here today inflation is still high and
maybe there’s been some chatter about a
rate hike this year which wasn’t even on
the cards 3 four months ago as the CFO
GM I mean how are you thinking about
rates and how might uh If the Fed
doesn’t move how do you think that’s
going to impact your business in the
second half well we we watch our
customers um very very closely in terms
of um you know the credit statistics and
and where demand is and you know I think
the customer has been really resilient
for our products um over the last couple
of years this is nothing new from what
we’ve seen with a higher interest rate
and and I think we’ve adjusted uh having
GM Financial um uh alongside us is a
great asset to have because it allows us
to help customers with offers on lease
rates Etc so um I think we’ve been able
to manage through this and the customer
has been really resilient and that’s
what’s contributed to our our strong
results so we’re going to continue need
to be guided by the customer um through
this uh and really create a portfolio
that meets their needs wherever they are
all right well good luck with that
Corvette ZR1 launch I know a lot of eyes
will be uh on that one indeed Paul
Jacobson general motor CFO always good
to see you we’ll talk to you soon thank
you Brian all right all your markets
actions straight ahead stay tuned you’re
watching Yahoo finance
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welcome back to Yahoo finance I’m Shauna
Smith alongside Madison Mills we’re 30
minutes into the trading days let’s
start with today’s top stories well
stocks are higher for a second day in a
row with earnings driving the action big
names like GE locking Martin and GM all
delivering solid quarterly results and
General Motors Shares are moving after
boosting its earnings guidance seen
shares up in the market here up about 5%
Tesla moving forward uh and to the
upside as they are prepping to report
after the Bell today and UPS another big
earnings mover that we are watching
ticking higher this morning you’re
looking at gains of just about a tenth
of a percent they beat expectations but
it did still see a decline in Daily
volumes pointing to a Slowdown in its
consumer we want to get to some breaking
news first we’ve got a new housing
report outc coming in new sales new home
sales rising to
693 th000 for the most recent month that
surpassed the streets expectations now
medium new home price though falling
nearly 2% on a year-over-year basis to
43,700 now the average selling price was
just above
524,000 you compare that jump that we’re
seeing are the better than expected
report comparing that to what we saw in
last report February’s surprise decline
here so we’re seeing more prospective
home buyers really rotate in into new
homes not exactly a massive surprise
here Maddie given the fact that existing
Home Sales Inventory there near the
lowest levels that we have seen
historically so people who are looking
to buy a home new homes are almost the
only game in town and really their only
option or really I guess offering more
options maybe at this point than the
existing Home Market is and you smartly
pointed this out yesterday Shauna that
the big difference between existing and
new home sales is that key piece of new
inventory in the market and when you
know the big question mark of whether or
not the Federal Reserve interest rate
hiking cycle is working is because so
many people are locked into their
mortgage rates this is why we take a
look at this indicator but this morning
I’m watching S&P Global’s us
manufacturing PMI that’s a monthly
survey that measures the health of the
manufacturing and services sector
Contracting down we’re got we’ve got
49.9 in the actual number the estimate
for the month of April was 52 and really
seen weakness across the board with this
print here we’re seeing that employment
in the manufactur and services sector
also falling dropping from 51.2 to 48
that’s the lowest reading since May of
2020 this is obviously just one data
point here we get a lot of data points
about the jobs Market that are a little
bit more broad-based but it could be an
indication of some weakness to come in
the labor market which would be good
news for people who are looking for some
signal that the FED may be able to take
the breaks off yeah exactly and I also
think the Market’s reaction to this is
to note as well right we have seen some
pressure in yields a bit of a reversal
here when you take a look at Equity
markets they are still holding on to
gains actually pushing here to the
upside so the question here this very
slight contraction that we are seeing
within manufacturing what exactly that
is going to tell us potentially about
rate cuts and the timing of rate Cuts
you would likely to say that if we are
starting to see some weakening then that
that supports the argument that maybe we
will see the FED cut rates earlier than
maybe initially anticipated although
like you just said this is one data
point right we’re also looking ahead to
the GD GP print that we’re going to get
later this week we also have pce the F’s
preferred inflation gauge that’s going
to be out on Friday so certainly a
number of data points to come which we
know the FED is going to be looking at
very closely but it is important to
point out some of the weakness that we
are seeing within this PMI report and a
great point to that you made which is
that we’re are we are seeing Market
strength off of this print so to discuss
this more the S&P Global’s us
manufacturing PMI again coming in at
49.9 versus that 52 estimate remaining
above the 50 mark that could be
signaling business activity is slightly
stalling so here to discuss we have
Chris Williamson S&P Global Market
intelligence Chief business Economist
and executive director Chris thanks for
being here talk to me about your
reaction to this print does it change
your view at
all uh no I mean what we’re looking at
here when you look at manufacturing and
services combined uh the economy is
still growing in April so at the start
of the second quarter you’re seeing a
growth expansion persist we had uh a
reading in the first quarter an average
reading that was consistent with about
2% growth you’re slipping a little bit
below that now so economy Still Still
expanding but a little bit of a wobble
perhaps in April uh so it’s going to be
interesting to watch this and see how
that persists but certainly the second
quarter so far is not looking as strong
as the first quarter which I think is
pretty much align with what most people
were anticipating it was a good start to
the year and losing some momentum Chris
what do you attribute this to the
decline in new orders we seen that for
the first time in 6 months Maddie just
highlighted some of the weakness that
we’re seeing at least on the labor front
the lowest employment rating that we’ve
seen in nearly four years is this a
result of the potential of higher for
longer what do you attribute that to
yeah it looks like it so we’ve had a
pullback in business expectations about
the year ahead so one of the questions
in the survey is what do you think your
own output of your firm will be in the
coming year and that’s taken a dive um
it’s it’s slipped back to levels that we
saw late last year when there were a lot
there there were quite a lot of concerns
about recession so this seems to uh have
have uh this concern seems to have
heightened and you can align that with
these rake expectations of course there
were 160 basis points of rate rate Cuts
being penciled in late last year now now
you’re looking at you know will there be
one and this has fed through to business
confidence and also the the higher
yields uh feeding through so it looks
like you’ve got
a the financial conditions tightening a
bit which is caused this little bit of a
a stammer to growth really so I think
that’s what we’re looking at you’ve got
demand pulling back slightly a sort of
Readjustment if you like of the demand
environment in the light of this new
race environment so it’s going to be key
really to watch see what happens in the
next couple of months is this a one-off
monthly adjustment or is this the start
of a more um worrying downturn but do
you think there’s a part of J Powell
that is smiling at this news just to see
a little bit of
excitement oh we might be we might be
losing you Chris I was asking about
whether J Powell is smiling at uh this
print here but I don’t think we have you
so we might try to get you back and
we’ll and we’ll see if we can get you on
the other side here but shaa I do think
it’s interesting to think about whether
or not sometimes the bad news is good
news for the FED yeah exactly and at
least when you take a look at the
Market’s reaction when you’re seeing
that too the markets looking at this as
a bit of good news that this could
exactly what you’re saying here pushup
what the FED has been talking about here
maybe the likelihood of a cut we’re not
seeing material weakness obviously if
you see any material weakness when
you’re talking about the labor market
when you’re talking about the economy
that is going to be a real concern here
for the market down the road also here
for the FED uh right at this juncture
but again it this points back to the
fact of what the FED has been waiting to
see what we’ve heard J pal talk about
time and time again at his most recent
press conferences here he’s been waiting
for a bit of more weakness in the
economy when you take a look at these
data points that were out this morning
especially what we’re seeing on the
labor front now it will be interesting
to see exactly how this trickles down
into the larger uh jobs picture the
print that we are going to be getting
here uh next week but again we are
starting to see some weakness and it
looks like broad-based weakness at least
from this report when it comes to some
of that uh some of the pressure that
we’re seeing on the jobs front
absolutely and to your point we’ve got
GDP coming up this week which could be a
much more important indicator all right
well stocks are higher for a second day
in a row with earnings really driving
the action today after the close we will
hear from Tesla will be the first of the
so-called mag 7 to report after the Bell
the lot riding on big Tech earnings
let’s bring in Peter Oppenheimer Goldman
X Global Chief Equity strategist joining
us now it’s great to see you again so
just talk to us just about how important
the mag s earnings reports are for the
market at this point given the fact that
many of these Tech names really account
for so much here when it comes to some
of that concentration and the gains that
we’ve seen yeah absolutely there’s going
to be huge Focus because they make up
such a big slice of the market now you
know if you look at the those those
companies together they’re around 30% of
the S&P uh in terms of size or market
capitalization and they’ve also had a
period of significant beats in relative
to expectations in recent quarters so
although they’re very very large uh that
has really reflected very very strong
fundamentals over the last couple of
years and although we’ve seen the rising
interest rates coming through since
2022 unlike some of the other growth
sectors which are less profitable and
there therefore be negatively affected
by high rates because these companies
have strong balance sheets and all of
cash they’ve actually been relatively
immune so I think the Market’s going to
focus a lot on their results as a driver
to where we go from here in the index
Peter it’s great to speak with you I
want to talk to you about this
concentration a bit more because profits
for the mag 7 are expected to rise 38%
if you take out Nvidia that number goes
down to
23% I know you are as much a historian
as you are uh an equities guy talk to me
about whether you’ve seen a time in
history where one name has that big of
an
impact well it’s not unique historically
um we’ve had you know the largest
companies in the index of typically been
somewhere between 5% and 20% so if you
went back to the the 1960s for example
you know the big car companies were as
big in the index as the bigger
technology companies are today uh in the
early 1970s the big uh oil companies uh
were as dominant now as the tech
companies are today so it’s not unique
one of the things I would say that is
very positive is that there have been
times on occasion in the past when the
biggest companies have been very
expensive and they’ve really reflected
hopes and expectations of future profits
rather than current strong results you
only have to go back for example to the
late 1990s during the technology bubble
when we had technology companies being
the biggest stocks but they had much
higher valuations than those today
because those prices were reflecting
hopes of future strong profit growth
rather rather than uh the achievement of
strong profitability which we’re seeing
with these dominant companies today so
it’s not unique to have the con
concentration or the size and scale of
companies that we’re seeing currently
but the rather good thing I think is
that these companies are actually
achieving very very strong
profitability and I’m curious you
mentioned Innovations like the worldwide
web of course that makes me think about
AI I wonder to what extent you think
that we can continue to use history as a
gauge for the future given that AI could
stand to change so much of the world
around us particularly when it comes to
just company efficiency in general well
absolutely and I think this is one of
the opportunities uh as it relates to AI
what the market is really doing at the
moment is seeking out and really
focusing on those companies at the
epicenter of the technology you know
who’s really spending money on these
large language models for example who’s
got the scale to be able to afford the
compute power uh to achieve these
breakthroughs but as we’ve found out
from other waves of technology in the
past including the internet some of the
biggest winners and Market Growers
ultimately are not necessarily the
companies that are doing the original
Innovation but companies that can
develop new products and services on the
back of the Technologies or indeed
companies in other sectors which as you
say could become much more efficient as
they adopt and utilize these
Technologies over time so I think this
really comes back to the point about
broadening uh while the dominant
companies are there for good reason
they’re very strong profitable High
growing companies um the gap of
valuation between them and many other
companies in the index is quite wide and
over time as these Technologies break
through you’re going to get new
opportunities emerging new companies
with great products and services which
grow at a very rap rapid rate which are
not really being focused on and indeed
companies in other sectors that could be
a big beneficiary think of healthc care
for example just speeding up the
innovation of new drug Discovery these
are where the opportunities I think are
still uh really quite strong Peter talk
to us just about the timing of this from
a strategist perspective from from an
investment opportunity perspective is
this something when you talk about the
rotation talking about the broadening
out at least in terms of some of the
benefits that we will see from AI is
this something that
it’s starting to take place but how long
historically speaking when you compare
it to past Technologies does it normally
take for for these benefits to really
show up in some of the other Industries
outside of the original and for here
it’s
Tech well I I think if you go back over
very longterm history you know even back
to the Industrial Revolution and then
the electrification revolution um things
like mainframes and and and then
ultimately PCS and and the internet it
has taken quite a long time actually to
see significant marked benefits to the
economy more broadly and to other parts
of the market um things like
productivity just the reflect reflection
of becoming more efficient often takes a
while because of what we call networking
effects it’s all very well to have the
technology but to really utilize it and
enhance it and harness it you need to
have all the right infrastructure and
systems in place uh to to leverage it
and that can take some time I think the
interesting thing about AI is it really
sits on top of existing
infrastructure existing systems that
companies would have on software the
internet and so on and therefore we’re
quite hopeful that you could see some
material benefits coming through from
things like enhanced productivity in
other Industries probably more quickly
this time around than before um but you
know we have to also recognize that it
it’s not the only thing driving markets
we have got a world of higher interest
rates now than we’ve been used to in the
last 10 years that means a higher cost
of capital also seeing some push back to
uh globalization which has been very
enhancing in terms of global growth in
in recent decades and and now we’re
getting more sort of regionalized
trading models which are creating some
frictions and some slower growth
opportunities as well so I think you
have got got to look at these things in
the mix but we’re hopeful that you’re
going to see some broadening out of
returns and leadership in these markets
orbe it in an environment where the
returns perhaps are a little bit slower
than they’ve been in the world when we
were used to interest rates close to
zero well Peter I I want to wrap by
asking you a global question here
because we’ve seen that The Descent in
inflation in Europe has been great for
stocks there with the footsie 100
hitting record highs do you think that
inflation could have the same effect on
us equities or would it be a different
Dynamic
here yeah we’re still uh pretty
optimistic that inflation will come down
from the high levels that we’ve been
seeing over the last couple of years uh
it’s been a little bit stickier in the
last quarter Than People expected uh at
the start of this year but really The
crucial thing for for equities is is the
mix between inflation which we want to
come down but to stabilize
at a level which allows interest rates
to moderate but still with decent growth
and I think if you if you compare where
we are now to where we were a year ago
when there were widespread concerns
about recession and continually Rising
interest rates uh the mix is getting a
little bit more positive so as inflation
begins to demonstrably moderate interest
rates will come down I think that will
be more positive of course for companies
the cost of borrowing and financing is
going to improve and it’s also probably
going to contribute to a bit of a
broadening out of returns in the market
uh as some of the things that have
lagged behind a bit because they’ve
suffered most from rising interest rates
and inflation we start to see um some
some Tailwinds so just as we’ve been
seeing in Europe as inflation is coming
down a little bit more quickly you know
stocks have been doing better those that
are very interest rate sensitive have
been doing very better have been doing
better and I think that happen in the US
too Peter Oppenheimer always great to
get your Insight thanks so much for
joining us once again here at Yahoo
finance Goldman sachs’s Global Chief
Equity strategist thanks thank you well
coming up GM Shares are in the green
after results coming in better than
expected we’re looking at gains of just
about 4% CFO Paul Jacobson telling Yahoo
finance the company’s pricing strategy
is working we’re going to dive into the
report the biggest takeaways when we
come back
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let’s do a check of the market sponsored
by tasty trade you’re looking at the
three major averages up here on the
screen posting gains across the board
the down now up just over 120 points
you’ve got the S&P back above 5,000
you’ve got the NASDAQ up just about 1%
today so we’re seeing some excitement
here some optimism across the board on
the heels of a slew of earnings reports
out after the Bell yesterday and out
after or before the Bell today we take a
look at the intraday chart of the S&P
and some of the gains that we’re looking
at today you can see we hit the highs
right after uh we’re actually not too
far from the highs of the session here
but we did see that Spike higher here on
the left hand side of your screen that
was following the S&P manufacturing data
that was released at 9:45 a.m. eastern
time today showing some weakness so the
reason why we’re seeing a stocks gain
here is because that really brings a
conversation of a Fed Ray cut
potentially back in play and maybe
raises the odds that we could see a ray
cut sooner than maybe initially feared
here but again we’re going to be getting
that GDP report later this week another
reading on inflation and we got the jobs
data coming out next week so certainly a
number of data points for the FED to
look at here but as it stands just about
an hour into the trading day we’re
looking at gains across the board for
all three of the major averages Maddie
well thanks shaa and also one of the
shares jumping this morning is of course
General Motors after its first quarter
earnings call investors booed by that
strong earnings beat and guidance boost
our very own PR super Manan was
listening into that earnings call PR
what’s do that to you yeah you know
investors very happy they’re strong
quarter that up to guidance that’s a big
deal we know some analysts had predicted
they might do this and then here you go
we have it uh for 2024 uh more the same
in the conference call talking about how
uh despite Sal sort of flattish Revenue
much higher even and they were able to
maintain pricing pricing power there
keep prices pretty stable despite a high
rate environment that a lot of
Manufacturers are dealing with right now
GM uh kind of indicating that their
products remain popular with their
customers uh also the company talking
about EVs and reiterating their sort of
uh positive variable profit in EVS is a
metric they say that they can hit by the
end of this year also saying that
they’re going be ebit margin in the
single digits for EVS by 2025 uh so this
despite the fact that they actually had
to bring down some prices for their
Blazer EV earlier this year year uh for
this is one of their newest EVS uh CFO
Paul Jacobson on the call talking about
EVs and pricing power and also just
profitability here’s what I have to say
importantly this pricing action doesn’t
change our expectation to achieve
positive variable profit for our EV
portfolio in the second half of the year
or our mid singled digigit margin Target
in
2025 so yeah kind of repeating what I
said sorry about that but but anyway I
want to do I want to add a little
anecdote that he did say that Cadillac
lyric which is a very popular EV they’re
able to bring costs by
$122,000 from last year to this year uh
because of the fact that battery prices
and module prices are coming down and
then he further predicts that they’ll
have more profitability EVS potentially
because of scale effects as they build
more EVS those prices come down because
of the higher upfront cost they put in
for their new factories and places
across the the country yeah certainly
looks like impressive results or at
least the street is impressed with the
numbers that they saw out this morning
with shares moving to the upside right
PR thanks so much
again GM shares Rising on earnings a
sign that maybe the autog strategy of
moving slow and steady is helping the
company in the EV race now GM saying
that it still sees quote positive
variable profit in its e business in the
second half of this year as it projects
to sell around 200,000 EVS by the end of
the year our next guest has named GM one
of the best positioned oems a long term
we want to bring in at Tom Nan he is RBC
capitals Global Auto analyst Tom it’s
great to have you here so talk to just
about your takeaway from these results
again GM is cutting costs the price the
pricing strategy seems to be helping so
how does that then position GM amongst
its Rivals here for the remainder of the
year yeah it positions it very well I
mean we’re dealing with an industry
where Pure Play EVS are going to be
really challenged with the EV slowdown
so you kind of want to have IC exposure
which they do in Spades right with SUVs
and pickup trucks but at the same time
you want to have EV exposure when demand
comes in luckily these guys slowed their
role if you will on bevs and they’re
going to come in they believe um in the
back half of the year with a lot of
launches and they’re building their own
batteries with the help of LG so they’ll
get those Ira credits which by the way
is a big part of why they think they’ll
get to the mid single digit uh EV
margins next year there’s only two
companies really doing this it’s them
and Tesla that’ll get these IRA benefits
so yeah it’s all about about EVs and how
they approach them slowing initially
unlike Ford perhaps and coming in
hopefully for their sake when demand
eventually comes back the open question
obviously is will demand come back in H2
for EVS a lot of those 200 to
300,000 EVS are equinoxes and Blazers
those are more lower priced that’s where
the problem point is but they’re hoping
that they can get that $7,500 credit
because they’re producing batteries with
Altium in the US and that should help
spur demand because they can lower
pricing Tom uh great to speak with you
I’m interested in how many times you’ve
mentioned EVS in your first answer
because my read on this earnings print
was that they are winning because they
are not
overinvestigation q1 beat was largely IC
driven right they the EVS that they sold
were the higher end EVS right the lyrics
Etc where you saw costs come down by
$122,000 uh year-over year but there’s
still the strong suit was the pickup
trucks and and SUVs the I so yeah you’re
absolutely right the reason why we bring
up EVS is that’s where the strength
should come in as the scale 60% of the
of the 60 basis point Improvement in
margins is coming from Pure scale and so
if they’re able to hit the higher end
let’s say of that 200 to 300,000 EVS by
the end of the year that helps a lot but
yeah the margin strength in q1 was to
your point largely because of the Icees
and their ability to hold on and keep
pricing
higher Tom our executive editor Brian
sazy he was able to speak with uh GM’s
CFO Paul Jacobson earlier this morning
and asked him about the pricing strategy
here what GM is seeing on that front
want to play a quick sound bite and then
get your reaction on the other side what
I’m really proud of is that the team has
been able to do it uh while while
staying consistent on pricing um you
know historically in this business uh a
lot of share was was traded back and
forth with uh with price Wars so Tom
taking into account what Paul was just
saying there to Brian zzy how does this
compare to what Tesla is doing what the
other competitors are doing and then
also going back to it sounds like it’s
also reemphasizing your point just about
why GM is better positioned at this
juncture yeah because the pricing is
really happening at the EV front if you
look at where inventories are building I
think it’s 80 days for EVS in the US
whereas for IC it’s only like 50 to 60
days right so demand slowing down for
EVS means you have to cut pricing to to
to get these off out you know off off
these dealerships and off the Lots so
the Icees are able to hold on to pricing
longer because demand is Shifting back
towards them so yeah it’s totally
consistent we’re seeing that also with
stellantis the other name I think is
really well positioned with the Legacy
oems in the US because they’re able to
hold on to price because they sell IC
and plug in hybrids to the expense uh
unfortunately for these Pure Play EVs
and currently for for Tesla Tom let’s
end on some potential bad news for GM uh
we’ve heard a lot of bad news this
morning about the impact of China on
names like Tesla and of course apple is
that the biggest risk for them moving
forward or is it something
else no I mean there were some questions
on the call today on China uh they’re
they’re exposed there but it’s not
really a big driver for them as much as
it is for Tesla um the bad news I would
say is again there’s 200 to
300,000 uh full electrics that they’re
planning on producing this year they’re
only at the beginning of that this year
what if the equinoxes and Blazers that’s
kind of the more lower priced cars what
if there isn’t is enough demand for
those
and they have to really cut pricing or
they just don’t sell as many we
mentioned scale at the beginning you
know if you don’t sell enough that hurts
your EV margin so I I really do think it
comes down to them being able to sell
those high volume EVS Equinox and Blazer
we’re just at the beginning of that we
got to see if if really people are
willing to take the plunge and buy their
EVS really good points Tom thank you so
much for joining us to break this down
really appreciate it that was Tom nian
RBC Capital Global’s Auto analyst we are
going to have all of your markets action
ahead still looking at Green across your
screen when it comes to the broader
indices here uh and you we are going to
continue to watch what’s going on in the
markets coming up you’re watching Yahoo
finance
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UPS beating first quarter profit
estimates today but Revenue was a slight
Miss as the company saw over 3% declines
in average daily package volume that
softness in demand raising some
questions about whether this earnings
print could be an indicator of any sort
of softening in the broader economy but
we are seeing this stock kind of fussing
around this morning it’s up right now
about um a little over one and 310 of a
percent here so joining us now to
discuss we have Ken hawkster Bank of
America Securities senior Transportation
analyst thank you so much for being here
with us talk to me about your main
reaction to this earnings print because
it seems like the market reaction is a
little bit confused yeah great thanks
Sean and Madison for having me here this
morning um you’re right uh the the
volumes actually the revenues did Miss
but volumes actually were a little bit
better than expected overall domestic uh
beat our Target International a little
bit weaker than our Target so o overall
uh a volume were a little bit better
pricing is where I think you have a
little bit of concern right pricing was
a little bit softer I think that’s going
to be the read through are they winning
some of the volumes because of using
price they’ll argue that it’s it’s more
a mix impact just different type of of
of volumes are coming online uh so
that’s really what you’re seeing uh I
think the market try and digest here is
this going to be almost a new normal
here for UPS at least over the next
couple of quarters as we do get to that
more maybe balanced uh demand that
they’re expecting to see yeah certainly
they were talking about uh uh volumes
actually turning positive in the second
quarter uh that’ll be a great inflection
for them and then it’ll accelerate into
the back half of the year so they’re
looking for continued growth I think
that’s very different than what we heard
from the trucking companies early in uh
earning season where we saw JB Hunt
night Swift uh pre-announce and talk
about pretty harsh results uh given the
weak demand environment or or actually
wasn’t demand demand actually just like
UPS you saw flattish uh volumes at JB
Hunt it really was
uh uh just a a Outlook or or too much
capacity so pricing continues to be
under pressure same thing we’re seeing
at UPS just pricing uh Under Pressure
given how much excess capacity but they
did talk about accelerating volumes not
only in the second quarter but then into
the back half of the year I think that’s
a good read in terms of maybe demand
having found some sort of floor what do
you make Ken of the F year guidance
projections as well and and I asked
because I’m curious about whether or not
this was UPS just being able to be
defens
or if they are actually telling some
sort of broader growth story moving
forward what does that tell you about
their ability to meet that full year
guidance yeah I I think this is remember
they just hosted an analyst day not too
long ago just at the end of March so at
the end of first quarter we got a pretty
good preview but they talked about first
quarter ebit uh operating income being
down 40% year-over-year it came in a
little bit better than that so they’re
keeping their first half Target uh but
that means your step up into the second
quarter isn’t as great if you’re beating
by the first quarter Target uh but then
and as you mentioned they did not raise
F year estimates um and in the interim
they also won the US Postal Service
contract so you’ve got a little bit of
wins I think they’re being a little
cautious on this demand environment that
you’re asking about where you just don’t
know which direction it’s going to head
in are we going to see that accelerating
or are they just getting some business
wins uh but overall uh you know they did
keep their ful year Target uh uh in
terms of of Outlook and uh and same
thing for for second quarter ebit out
look Kim what do you think is realistic
in ter in terms of this turnaround Story
how long is it going to take for UPS to
really start gaining some of that upside
momentum yeah I I think um the the
momentum really will be on the volume
side right we know that the earnings
were really hit as they signed a new
Teamster Employment contract this year
you’ve got really tough comps because of
that on the cost side where costs are up
employment costs are up 133% year of a
year uh so you have this huge tough comp
until we anniversary that over the
summer so then you’re going to have kind
of almost a flattish uh uh labor cost
from that point forward and so then it
you really becomes you need that
operating leverage of getting volumes
into this fixed cost Network that you
can get some of that leverage I think
that’s why you’re seeing the the focus
on where volumes are for the stock in
particular because that’s really what’s
going to drive future earnings is if you
can see Topline growth same thing we see
for the rails for the trucking companies
and same here at UPS they re need
volumes right now and in transportation
without those volumes we’re not making
anything we’re just moving it we really
need to see that Freight start to move
Ken always great to have you thanks so
much for joining us here at Yahoo
finance this morning Bank of America
Security’s senior Transportation analyst
thanks Ken thanks for having me well
Amazon launching an unlimited grocery
delivery subscription for Prime members
customers living in one of the 3500
eligible cities in towns will be able to
get free deliveries for grocery orders
over $35 this is across Amazon Fresh ac
across whole foods and some other
specialty retailers now this comes after
Amazon removed its quote just walk out
technology from its stores last week so
a bit of an update there we’re looking
at gains for Amazon just about 3/10 of a
percent it’s also it’s worth taking a
look at the reaction that we’re seeing
in instacart this morning because again
really Amazon coming in as a direct
competitor to instacart and some of the
movement that we have seen there so this
could potentially pressure their
business down the line but you take into
account what this is offering here
clearly this is Amazon capitalizing on
obviously the fact that it owns Whole
Foods here capitalizing on on technology
that they already have put in place they
obviously know the subscription business
extremely well so they’re now extending
that and expanding what they had
previously offered when it comes to
groceries and no surprise there we now
have instr up on the screen which shares
off just about 7 and a half per. yeah
and it’s really interesting because if
you look at some of the analyst reaction
that we’re already getting they’re
saying that given Amazon’s limited
success with grocery deliveries to date
they don’t expect that huge of an impact
on competitor offerings like instacart
at this point although quote this
ultimately depends on Amazon’s Ambitions
in the category so interesting to see
that there’s not that huge analyst
reaction however I do think I mean shaa
if we want to use me as the test case
here I turned to you and said oh I’m
switching to Amazon just because for
consumers who already have so much brand
loyalty they’re used to those deliveries
and some of the perks here Amazon has
the capital on hand to offer things like
free 1hour delivery
uh unique offerings to Amazon Prime
current users uh and also to EBT users
as well so that could be an indication
that for instacart they’re going to have
to beef up some of those offerings to
compete yeah and also you could also
bring up Walmart plus the program that
Walmart has there also what target has
they have a a free grocery delivery plan
that costs about $99 a year so not
exactly free because you’re paying 99
bucks a year but again this could
pressure some of the other offerings
that are out there as Amazon the
Behemoth within the space one of the
behemoths within the space obviously
expanding their offerings there and you
would think we’ll likely grab some of
that market share you being a test case
one of those people maybe I will too
because you go to Amazon you get used to
using Amazon for so many things so the
fact that it’s there within the
ecosystem on the platform makes it very
easy for the user base that they already
have B absolutely well we are going to
continue to cover all of your Market
moves here coming up Apple’s problems in
China not letting up the company’s seen
the slowest growth for iPhones in China
since 2019 we’re going to discuss what
this means all ahead after the break
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big Tech and focus as members of the
so-called magnificent 7 are set to start
reporting quarterly results of course
kicking it off with Tesla then we’ve got
Microsoft and alphabet coming up on
Thursday next week we’ll see Amazon and
apple two of The Magnificent Seven are
in the red so far this year those are
Tesla and apple apple off around 133%
under pressure from a lot of factors
including growing skepticism on Wall
Street Legal battles a canceled EV
project and increasing smartphone
competition more bad news on that front
Counterpoint research revealing Apple’s
China iPhone sales dropped 19% in the
first quarter here with more on this we
have Yahoo finances Akiko feta
Akiko yeah Maddie this is the very risk
that analysts have been flagging for
some time it’s about the reemergence of
Huawei The increased competition in the
premium smartphone market in China and
then the impact that’s likely to have on
iPhone sales in the country as you point
out Counterpoint research pointing to a
19% drop for the tech Giant in a quarter
where smartphone sales actually showed
continued growth in China we saw about a
4.6% growth quarter on quarter there so
that points to a big concern for Apple
in China which is one of the most
lucrative markets outside of North
America take a look at the market
breakdown coming through from
Counterpoint research here Vivo and
honor domestic smartphone makers are
maintaining the top two spots but Huawei
pointing to uh 15.5% of the market when
you look at growth from the same period
last year we’re talking about near 70%
growth in the quarter and that is all
due to the release of its premium
smartphone mate 60 Pro remember that
released last fall surprised the market
for its ADV Advanced features that were
built on chips manufactured domestically
that was hailed as a big
win against us export controls at least
in Chinese State media and Counterpoint
research is pointing to the release of
that as the very reason why Apple’s
iPhone sales were hit in the country now
you combine that with geopolitical risks
that have now emerged remember last fall
you had government agencies as well as
state back firms Banning iPhone usage
among employ employes and that points to
a significant headwin for the country as
you rightly noted shares of Apple down
nearly
14% year to date and no question China
is going to be a big question that comes
up in the earnings call next week take a
look at the regional breakdown for Apple
though because that points to why we put
so much attention on China greater China
making up about 20% nearly 21% of the
revenue share for Apple now what does
this mean for the company moving forward
well you can kind of follow where Tim
Cook has gone with this over the last
few months remember last month he was at
the China development Forum professing
um his love for the Chinese market at
least publicly saying he was happy to
see the country opening up further to
businesses but just last week he paid a
most extensive visit that he has done so
far to Southeast Asia going to Singapore
going to Vietnam as well as Indonesia
pointing to Apple looking to expand
their manufacturing sites as as well as
their Market within Asia Beyond China
you combine that with what they have
been doing in India and that points to
the risk that Apple sees on the horizon
they’re really trying to sort of
diversify Beyond China but China’s still
significant Market that 19% drop
certainly not good news for the company
certainly very worrisome here for
shareholders R Kiko thanks so much well
coming up we are chatting commercial
real estate Yahoo finances Danny Romero
live on location of one commercial
property that is turning into a
residential housing right here in New
York City we’ve got that story for you
when we come back
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Walmart’s majority owned fintech startup
one is beginning to offer buy now pay
later loans for Big Ticket items at more
than 4600 stores this is according to
CNBC now this Sparks on competition for
a firm which has been the exclusive
provider of loans for Walmart custom
customers since 2019 it might be a bit
surprising why you’re actually looking
at shares of a firm moving higher on
this news it had initially been under
pressure but now we are seeing shares
rise on Heels of new commentary coming
coming out from Dan Dov of mizuo and
he’s really putting things in
perspective saying that the stocks dip
on concerns about competition from a
Walmart back one he calls them quote
overblown and he goes on to say that
following the report a 2022 report he
has said that the one startup was
planning to offer buy now pay later load
that history actually suggests that
headline risks for a firm end up being
greater buying opportunity so we saw a
bit of a reversal in shares of a firm
following the heels of this uh instant
reaction here from ISO analyst Dan Dov
so that’s why we’re looking at gains
from a firm as well so maybe some of the
fear initially that we saw play out in
pre-market trading have been a bit
overblown from his perspective right and
it’s a really interesting point because
one is going to go head-to-head with
some of the partners that Walmart’s
already had obviously a firm being one
of them just looking at stat airm helped
Walmart generate $648 billion in Revenue
last year that is a hefty number so some
big competition from one here uh moving
forward and again seeing that stock up
after this news but we are going to turn
to the housing market we’re seeing
Innovations and Commercial Real Estate
with commercial properties turning into
actual residential housing joining us
right now from a property just like that
is our very own Danny Romero and she is
joined by Joey chilelli managing
director of Vin Barton group Danny take
it
away Maddie look you’re taking a look at
the future of housing right now this was
a wework location that now is being
demolished and is going to be converted
from office to residential and I’m
joined with Joey Kelli managing director
of Van Barton group and they are in
charge of demolishing this so when did
this phase start yeah this uh started
about a month ago actually the
demolition phase and how long does it
take to fully convert from office to
residential this space here will be
about 12 months in total okay and and
what have been the challenges
specifically for this project when
converting this uh this particular
location in Project is um some of the
challenges were more of lining up the
unit walls perimeter walls to the
mullions of the windows um and making
sure that we created really marketable
and livable units um without a lot of
the jogs in some of those perimeter
walls how many would you say Apartments
will be in this uh building about 75 75
and what would be the range of how much
they would cost wise um on average say
about 4,000 and back to you know we’ve
seen a lot of states and cities move
forward with incentives and programs to
offer for developers like yourself in in
converting Office to residential does
the math actually math it does it does
um so in this particular location in
this project we are not receiving any uh
incentives or uh tax exemptions um and
so you really need to weigh what the
cost would be to upgrade this location
to more of a Class A office what the
rents you could get for that are as well
as the 10 Improvement dollars that you
would have to spend and the leasing
commissions that would need to be spent
and the time that it would take to lease
that up as office compared to
residential the city has a vacancy rate
of
1.4% so the time to lease this up for
residential will be dramatically less
and the costs would actually be less
than the overall dollars that would need
to be spent for office and it goes to
say that you know the the tax incentives
and um and all of the points that are in
the legislation for the budget for the
New York state will help and will help
other projects uh but this location does
not receive any now New York uh
lawmakers have authorized a new
incentive to help affordable housing
because that’s really the issue here in
New York City and across the country is
that enough to really tackle the issues
I think it’s a it’s a part of it it’s
not um the overarching um uh it won’t
solve all of them right but it will
produce um a meaningful amount of
Apartments uh and put those onto the
market and help the housing crisis
overall so it’s not going to solve all
the problems but it’s certainly um one
key part that will help the overall
issue so you heard that shaana we’re
moving forward tackling this uh housing
crisis that’s happening here in our
country but during our 4:00 hour show we
are going to show the completed side of
all this this is only the first phase
that you’re seeing right now the
demolition side so I’m going to toss
that back to you Shao all right thanks
Dany we look forward to seeing that here
later coming up on Yahoo finance and of
course our thanks to Joey chilelli as
well let’s do a final check of the
Market’s 90 minutes into the trading day
you’re still looking at gains across the
board you’ve got the Dow now up 265
points right around the highs of the
session the S&P up just over 1% the
NASDAQ leading the charge trying to
recover from last week’s losses now up 1
and a half% on the day and coming up our
new show wealth dedicated to all of your
personal finance needs our very own Brad
Smith has you here for the next hour
stay tuned
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welcome to wealth everyone I’m Brad
Smith and this is Yahoo finance’s newest
guide to building your financial
footprint our community of experts will
give you the resources the tools the
tips and the tricks that you need to
grow your money on today’s show an
expert sounds off on the three biggest
factors to consider when buying a car
and combating food flation will bring
you the grocery aisle hacks with the
potential to decrease the length of your
Supermarket receipt plus it’s real
estate week here on Yahoo finance and
we’re searching for the most affordable
regions for the first time home buyers
out there all that and much more but
first let’s take a look at some of the
market action we’re 90 minutes into days
us trading activity stocks higher this
morning after the S&P 500 and the NASDAQ
composit snapped a 6-day losing streak a
big week of corporate earnings is
forming a major test for optimism
General Motors out with its first
quarter report revealing consumers have
remained resilient in spite of higher
interest rates the automaker seeing
average transaction prices essentially
flat new vehicle prices in the US
overall have been following in 2024
according to the Bureau of Labor
Statistics know in your hood as the BLS
next up PepsiCo also at with first
quarter results and the big story here
for the soda pop company and snack and
beverage giant is inflation has relied
heavily on price increases to combat
inflation here and price increases they
did accelerate in the first quarter
pricing is up 5% globally versus 16% a
year ago and volumes the amount of
people that are purchasing that’s down
about 2% so that’s actually unchanged
from the prior year when prices were
much higher higher so are we seeing some
resilience from the consumer that’s a
larger question here we’re going to dive
further into what this means for
consumers at the end of the day here but
let’s get back to the automotive
landscape General Motors a top trending
Ticker on Yahoo finance this morning
trading to the upside on a big earnings
beat and we’re taking a look at the
three things you should know about this
earnings report Yahoo finances PR super
Manan has the breakdown hey Pros hey R
so yeah investors really happy here
strong quarter strong guidance stock
moving up all recipe for for great
things if you own GM stocks now so three
things we’re kind of watching that kind
of caught our eye first of all we
mentioned this earlier resilient
consumer despite higher interest costs
by uh people are still buying GM cars
according to GM you know while pricing
stayed about the same from an average
transaction price and Fleet Sales were
down retail sales at the dealership were
up actually even in the face of those
headwinds like I mentioned uh earlier
earlier today gmcf of Paul Jacobson was
on talking about these very things
our pricing is held up um very strong uh
across the board uh we saw uh average
transaction prices essentially flat and
while incentives had ticked a little bit
higher we’ve actually seen uh pricing
improve uh April month to date so far so
um really a lot of momentum that’s
fueled by the great products that we’re
producing and the strong customer demand
for them you know some of those products
actually are are cheaper products that
are actually well received the market
the Chevrolet Tracks their entry level
TV actually really really uh positive
strong sales there for that truck in the
market so far I driven it before it’s
actually quite nice uh also the Buick
and Vista kind of the the twin of that
vehicle also doing quite well there too
uh these are these These are purely gas
powered cars they’re not hybrids they’re
not EVS or just gas powered cars finally
um the trucks GMC strong sales of
full-size trucks they gained three
points of market share in q1 versus a
year ago we’re talking about the
Silverado the Taho of the world things
like that also want to note that I’ve
seen some incentives though for the
Silverado I’ve seen them around the New
York area we’ll have to see if that sort
of eats into those atps that we’re
talking about and see if they might have
resort to discounting to move some of
those trucks how is this company doing
on the luxury side where are some of the
more affluent customers perhaps looking
at or kicking the tires on some of the
Cadillac Products that the company has
brought to Market or even I mean that
Corvette eay that we were talking about
earlier this morning as well that they
had right front and center on the front
of their quarterly sales figure report
that they put out a few weeks back yeah
I mean speaking of that e that’s the
only hybrid that they have on sale right
now believe it or not but Cadillac
another strong quarter in q1 for them
they’re selling not just their Escalades
which we all know about but also their
the ct4 and ct5 the Blackwing versions
of those car those sedans are actually
selling well the lyri sold 4,000 units
last quarter which is a obviously huge
amount compared to last year because
they were still ramping up that
production so GM doing very well
especially in the luxury in and Brad you
know even a full-size Tahoe that’s a
luxury car now yeah that’s that’s a
$80,000 car so that’s considered even
luxury now Bros thanks so much for
tracking everything related to the
consumer in this report appreciate it
and later on this hour we’re going to
hear from Edmond’s consumer insights
analyst Joseph Yun about the top
considerations that you should have when
buying a car stay tuned for those tips
Switching gears though it’s been quite a
wild ride for Bitcoin in 2024 we’re not
even halfway through the year yet we
just barely made it out of q1 here and
Midway into Q2 so prices have been on a
tear as you’ve been seeing on this chart
year to date the late the largest
cryptocurrency up 50% year-to date
thanks to demand for spot Bitcoin
exchange traded funds those ETFs and
that started trading in January and of
course most recently the once every
four-year having event that took place
last Friday keeping the supply of
Bitcoin limited and maintaining the
decentralized currency storage of value
so now where do crypto investors stand
and if you’re not investor should you be
for more I’m joined by Eric Edelman or
Rick Edelman Rick Edelman joining us
here this morning great to see you Rick
digital assets Council of financial
professionals founder and the author of
the truth about crypto all right so a
lot of us are learning once again the
truth about the having and coming off of
that major event in a year of what’s
been major event on top of major event
with the ETFs that we had mentioned
earlier ago so now what does the future
hold what is the perspectus now for
Bitcoin for the rest of
2024 good to be with you Brad as always
uh you know the the having drew a lot of
attention to what’s going on in the
world of crypto the the having is a once
every four-year event uh affects only
Bitcoin that is the largest oldest most
popular best known coin so it gets a lot
of attention and people are excited
about it and understandably so but the
the having event in and of itself is
just an ordinary element of how Bitcoin
operates so uh history tells us that in
the year following a having bitcoin’s
price has always risen dramatically now
we all know past performance doesn’t
guarantee the future but it has always
been Dem demonstrated to be a bullish
signal for crypto so there’s excitement
for that reason you cited the most
important reason though for why there’s
excitement and that is the launch of the
new ETFs the spot Bitcoin ETFs that
debuted in January that is the key
reason why there’s so much excitement
about what’s going on in the world of
Bitcoin these days so the having is now
behind us everyone’s excited that it
likely will generate higher prices over
the next year and the Bitcoin ETFs are
in the market now and that is generating
massive new inflows for investors and
that is causing a price spike as well so
a lot of bullishness for the world of
Bitcoin right now what is the
determining factor in whether or not
someone should be considering crypto for
their
portfolio two key criteria Brad number
one are you a long-term investor and
number two do you own own a diversified
portfolio meaning if you are of the mind
that you want to own a little bit of
everything stocks bonds government
securities real estate oil gold foreign
assets Emerging Markets then crypto
belongs in that portfolio just like
everything else the whole point to a
diversified portfolio is to reduce your
risks don’t have all your eggs in one
basket you want to diversify so the more
you diversify the better off you’re
going to be from a risk perspective in
that context adding Bitcoin to your
portfolio even though Bitcoin itself is
risky the science tells us that adding
risky assets to the portfolio actually
lowers the overall risk of the portfolio
thanks to diversification so if you are
long-term and diversified you ought to
have a little bit of Bitcoin in your
asset allocation and then additionally
here as as we’re thinking about some of
the other ETFs that have also been filed
for where there could be some
significant kind of flow activity that
takes place ethereum and that’s set to
have its own kind of Shining Light over
the course of this year too is what
happened for Bitcoin that expected to be
the same for ethereum here very likely
uh there are a dozen or so applications
in front of the SEC right now to allow
for ethereum ETFs the general attitude
is that the SEC will say no in May to
those applications but everybody is
hopeful that the SEC will say yes by the
end of the year or certainly in early of
next year uh ethereum is the number two
asset and between Bitcoin and ethereum
they have about 90% of the total market
share of all of crypto out of tens of
thousands of coins those two are really
it they’re kind of like the Coke and
Pepsi of crypto so a lot of people are
very excited that ethereum is going to
eventually have its own set of ETFs and
uh there’s a lot of bullish for that and
for ethereum and some other coins too
and on the regulatory front if anyone is
adding crypto to their portfolio what
most notably could move the dial one way
or the other this
year uh we could see legislation
possibly in the area of stable coins and
this would be the first crypto
legislation ever and it would
demonstrate that Congress is recognizing
that this is a new legitimate asset
class it is a new technological
innovation that has legitimate place in
corporate Commerce and uh that’s all
very exciting so watch for what Congress
is doing there are a couple of bills in
the it right now that just might get
Advanced before the elections the other
thing is on the other side of that coin
the SEC continues to hate crypto Gary
Gensler the chair of the SEC is
continuing his enforcement activities he
continues to file lawsuits against
crypto companies continues to believe no
new regulation is necessary continues to
believe that there’s no Pro positive
place for crypto in the American
landscape and so if you were to see uh
that kind of activity continue that
could be perceived as bad news news for
uh crypto at least here in the US all
right Rick just lastly while we have you
it is financial literacy month as well
and so we got to end with one key term
that people need to know uh from your
radar and surrounding Bitcoin here defi
decentralized Finance defi refers to the
fact that crypto works as a direct link
between two people two parties buyers
and sellers uh creators and uh receivers
and there’s no intermediary there’s no
third party in between you and me and as
a result blockchains are able to operate
faster and cheaper and safer 247 imagine
you doing stock transactions without a
broker in between you or getting a
morgage without having a mortgage
company in between you this is why defi
decentralized Finance is a term you need
to become familiar with Rick Edelman
digital assets Council of financial
professionals founder thanks so much for
taking the time here with us today Rick
good to see you you too br thanks coming
up everyone PepsiCo out with first
quarter results today how does the food
and beverage Giants earnings impact you
we’ll tell you after the break
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welcome back let’s do a check of the
markets sponsored by tasty trade taking
a look at the Dow the S&P 500 the three
us major averages you’re seeing gains
across the board the NASDAQ leading on a
percentage basis right now up by 1.4%
the S&P 500 also up by 1% today in the
Dow Jones Industrial Average up 610 of a
percent for the sector activity we’re
seeing more green than red as
communication services and Technology
are leading the charge but the laggards
loan as they are energy and materials
right now well Pepsi reporting quarterly
earnings today well why should you care
is the big question here are some things
in the report that directly impact you
Pepsi’s product prices remain high but
are decelerating and shrinkflation is
something that you should be keeping
tabs on meaning less bang for your buck
just listen to what President Joe Biden
had to say about shink inflation earlier
this
year the snack companies think you won’t
notice if they change the size of the
bag and put a hell of a lot fewer same
same siiz bag put fewer chips in it no
I’m not joking it’s called inflation oh
we count the chips and We Know Joe so we
might be paying more for less and high
prices might be one of the factors
fueling lower volume for Pepco products
here on a call with analysts and
investors though here’s what management
had to say in addressing the pack sizes
they essentially said that smaller pack
sizes are in Market to satisfy consumer
demand for portion control so that a
little tidbit from the call Amazon
another company that we’re tracking here
today Amazon launching an unlimited
grocery delivery subscription for Prime
members if you live in one of the
eligible 3,500 cities and towns in the
US you’ll be able to get free grocery
deliverers over $35 from Amazon Fresh
and Whole Foods and other retailers here
saving some money on grocery delivery
definitely helps especially when food
prices are so high thanks to in part
inflation there but saving might not be
as tough as you think and no I’m not
talking about clipping coupons to break
down how to save some dough on food Don
thilmany USDA Regional food Business
Center Professor director is here great
to have you here with us today first and
foremost what do people need to know as
they’re trying to you know just save a
little bit of a buck here and there in
the grocery
aisles well the great news is that we’re
going to see food inflation really slow
down this year everyone who’s looking at
this is predicting that we’re going to
finally see some slowed growth because
we’ve had some wi chain disruptions
finally clear up and um some of the
costs stabilize but we are still seeing
um some pretty strong pressure including
what you said on the fact that people
want their groceries delivered online
now and that does generally add some
additional cost although Amazon’s
clearly trying to um put that in check
but what we do have as good news is
there’s some food categories that have
really um stabilized and even slightly
flattened and that includes all of your
fresh meats pork beef Seafood and even
fresh fruits and vegetables so we’re
really seeing the pressure is on some of
those value added products like uh Pepsi
Co stack foods and so what’s remaining
expensive on the other side of that so
we’ve got the the healthy items that you
listed off uh that it sounds like we’re
seeing prices moderate lower on but
what’s staying expensive at this
juncture well I I think it’s you’re
going to start and continue to see it in
the processed foods um so sometimes
people are eating out out away from home
at restaurant FR those are the prices
seeing the most pressure right now and
that’s because of labor cost we’ve made
a commitment across the country in many
states to actually start bringing up the
labor and um wages and if not because of
policies because of the Workforce
pressure that there’s just not enough
workers so labor is really driving this
and so if you think about where labor is
most intense in the Food Systems it’s
those prepared meals people are we eat
away from home or the processed products
like those meals or products almost
ready to just take out of the packaging
and eat direct um by consumers that’s
seeing the most pressure because there’s
a lot of labor hours put in to those
products relative some of your raw
fresher Foods what are the top savings
tactics that people can enact right
now um well cooking from scratch has
always been one we’ve recommended when
we do programming with consumers because
again then you’re providing the labor
and not the the folks there there are
people who are um going to those big box
whereas Costco having a really
uh good year right now because people
are buying a bulk they’re doing some of
those tactics to get the better price
points per unit instead of that shrink
flation that uh Biden mentioned and then
last of all eating out less or um um at
least making it a different part of your
um portfolio of your food spending
because those pressures are high and of
course the other wild card here is
what’s going on with the discussions
around OIC we’re actually seeing a
pretty good share of households who are
eating smaller less portions and less
food on average and that’s what the food
companies are watching right now too but
that’s one way people are also spending
less is they’re eating less you know
it’s so apt that you brought that up
that was one of the things that we were
just mentioning with PepsiCo as well and
I did a a control F or a command f for
all the Mac users out there of pack
sizes within the earnings commentary
that the company had published and
that’s exactly where they talked about
some of the shrinking of the pack sizes
because of the consumer demand directly
perhaps related to the appetite profiles
shrinking as well here how much more of
that do you expect to see given the wave
of glp 1s that have been introduced and
accepted by the market
too I don’t think that’s a trend that’s
going away it’s also an effort because
of the food companies also have these
sustainability scorecards and food waste
is one of the metrics they drew there so
it also looks like they’re actually
helping the food waste Thing by giving
consumers the package sizes that won’t
won’t not get fully eaten and go to
waste so I don’t think think we’re going
to see smaller pack sizes going away
anytime soon they’re probably a
permanent part of the portfolio what’s
going to be interesting to see is if
there’s really a cost savings there or
if you um take it on a Perce basis if
most of that is going to be a um a help
for the food companies and not for
bringing prices down just lastly while
we have here done for people who say you
know what I do want to go out I want to
splurge on myself from time to time is
there smart spending that they can do
even if they are still saying you know
what I do want to eat out at least
perhaps celebrate an
occasion um there’s a bunch of
interesting things going on in the
restaurant space we could probably do a
whole segment but you know you you
definitely still have restaurants doing
happy hours and trying to drive traffic
when they’re not at the prime time hours
um so you’re seeing people eat at more
varied times of day than they used to
because the restaurants want to be full
not just from 6:00 to 9:00 p.m. every
night and of course the food truck
phenomena is not going away people are
eating away from home but in less
conventional ways so you’re seeing food
trucks continue to expand throughout the
country as a way to go eat out and get
something interesting to eat but in a
far better price point than what you’d
get in a sit down meal yeah the food
trucks were absolutely crushing it at at
least two of the conferences that I went
to last year it’s a great note Don
thanks so much for taking the time here
with us today certainly appreciated Don
thilmany who is the USDA Regional food
Business Center professor and director
thank you Don nice visiting with you
like was thanks coming up everyone our
Deep dive into the real estate market
continues we go Coast to Coast post
examining housing markets across the us
as part of our weekl long special real
estate the new reality
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for Yahoo finances real estate week
we’re taking you coast to coast and
everywhere in between from the densely
populated East Coast which features
diverse markets like New York City the
old world charm of Charleston South
Carolina and even down to Miami Beach
Florida but housing affordability on the
East Coast continues to be an issue we
could see home buyers hopping over to
the Midwest often dubbed the only
affordable housing market in the country
I bet you heard someone say this in the
last year the National Association of
Realtors was one of them cities like
Chicago and Cleveland have been
considered generally more affordable
especially when considering the 25% rule
what’s the 25% rule this is when a home
is considered affordable when households
spend 25% or less of the family income
on mortgage payments is this still the
case for these flyover states and what
about the West Coast are prices still
Skyhigh redin reports in February 2024
42.7% of homes in California sold above
their listed price that’s up over 10
points year-over-year from free Freemont
to San Jose it’s a big bold and fiercely
competitive housing sector but could all
that change we cover all of this and
more on Yahoo finances real estate the
new
reality now let’s take a look at the
real estate market from Coast to Coast
with mortgage rates now above 7% is
there anywhere in the US that a
firsttime home buyer can get a good deal
here to give us a breakdown of housing
markets across this vast Nation as part
of our week long special real estate the
new reality is ORF Divi who is the
Zillow senior Economist ORF great to
have you here with us on the program
today first and foremost we we have to
acknowledge the affordability issue
right now what what is the best place
where home buyers can find a deal or
some affordability in the market yeah
look mortgagees driving uh most of the
activity these days right so in February
at start of the year we saw mortgage
rates decline a little bit we saw a big
increase in the number of existing
homeowners listing their homes for sale
uh in February uh new listings increased
21% from last year uh and in March uh
unfortunately mortgagees started
increasing again we saw the new listings
metric start to ease again in April
first couple weeks we see an increase
again and so mortgage is really driving
what’s going on out there but there are
markets where homeowners are less likely
to be affected by the big uh swings in
morage traes those are markets uh that
are in in places that are relatively
more affordable they’re in the midwest
uh they’re also in Texas and Florida
they’re markets where the majority of
homeowners don’t even have a mortgage to
start with uh and you know you great
examples are you know your Detroit
Pittsburgh Minneapolis those are markets
where you know you’re seeing older
homeowners with no mortgage listing
their homes for sale and that’s
providing a lot of a lot more options
for potential first-time home buyers
that are out they trying to get their
you know on that first rung of the home
ownership ladder are there markets or F
that are actually seeing price Cuts
right now from the assessment and and
evaluation across the board yeah it’s a
it’s it’s mixed you know you you’re
seeing Mark in almost every Market we
have sellers uh we have you know sellers
cutting prices right one in five sellers
cut their price in March but at the same
time uh you have you know some sellers
actually raising their prices uh in
markets in expensive markets on the
coast uh in the California markets you
know like San Jose San Francisco you
know a small increase in demand can push
prices up higher because there’s just
not enough inventory to go around
there’s not enough sellers coming on the
market to sell their homes in those
markets so for those prospective sellers
that are still sitting on property right
now where are we seeing the values rise
the most is there one region that’s
having kind of an outsized moment of
value and and ultimately seeing those
values move higher at this juncture
absolutely San Jose San Francisco
Seattle San Diego Los Angeles are
markets where you’re still seeing a lot
of price activity up upward price
activity and it’s not coming from uh you
know a big increase in demand it’s
mostly coming from the fact that you
know there’s not enough listing activity
you don’t have a lot of sellers coming
on the market to sell in those markets
and so that that drought right in
inventory is really pushing upward
pressure on prices those are markets
that don’t build a ton either right uh
you know if you don’t have a lot of new
construction uh a lot of uh new homes
coming on the market uh to for sale
you’re just going to continue to see
that price pressure and so those
expensive Market just got more expensive
uh this spring ORF it’s interesting one
of the data points that Zillow has run
as well is the median age of all
listings where are you seeing some
moderation there right
now yeah so so you know we’re seeing
that listings are moving faster in
markets that are relatively more
affordable and so if you’re looking at
the Midwest markets if you’re looking at
the South uh especially you know Austin
Austin’s a market that’s built a lot of
Housing and so you’re looking at markets
that built a lot of housing homes are s
selling slower there taking a longer
time to sell but if you’re looking at
markets that don’t build a ton or
markets that are relatively more afford
like in the midwest you’re going to see
homes moving a lot faster uh and so we
just came out with that study for
firsttime home buyers and if you if you
look competition is really really fierce
in those markets where you know homes
are affordable and so you know those
markets in the midwest you’re going to
continue to see a lot more activity uh
the good news is that sellers are also
coming back in those markets because a
lot of those sellers don’t have a
mortgage to start with is so they’re
less affected by the big swings in
mortgage rates that we’ve seen lately
just lastly while we have you or I mean
it sounds like there are some major
corporation moves in region and how they
might be setting up new groundbreaking
facilities I’m thinking of Intel and
their own construction plants chip
fabrication that they’re trying to bring
online that’s jobs coming to an area I’m
thinking of uh whatever day of the week
it is and Tesla and what takes place
there um you know all of this considered
when corporations make these big
announcements what type of Delta do you
usually see in how the real estate
values move in those markets that that’s
right and you’re you’re absolutely right
I mean we saw that with the Amazon hq2
right we saw every time they announced
something we saw big activity big
increase in activity and home values
increasing in those markets and so and
and what we what we’re essentially
seeing is firms are moving to where
workers are and workers are moving to
where the jobs are uh and so when our
most recent analysis of mover data that
we published in December really showed
that ultimately what’s driving the
market is affordability people are
moving to places that are relatively
more affordable with more inventory and
a greater mix of housing options and so
workers are doing that and so firms are
looking for talent and doing exactly the
same thing ORF D who is the Zillow
senior Economist joining us here on the
show today thanks so much for the time
ORF appreciate it pleasure pleasure to
be on certainly
now we’re taking a look at what’s
trending on Yahoo finance Spotify
beating on the top and bottom lines in
the first quarter the Audio Giants
swinging to a profit as it continues to
implement its recent efficiency strategy
over the last year Spotify has committed
to multiple rounds of layoffs and price
increases the company reporting monthly
active users below what the street was
expecting but still higher than the year
prior shifting gears to the healthcare
space United Healthcare Group those
shares in the red right now the
insurance company saying hackers stole
data from quote a substantial portion of
people in America this comes after a
Cyber attack on the company earlier this
year and we got a fresh reading of the
housing market as well this morning with
new home sales data sales rebounding in
March with 693 th000 new single family
homes sold that’s well above
expectations of 668,000 sales rising to
a seasonally adjusted annual rate of
nearly 9% this come comes after a dip
that we saw back in February the new
Home Market has become a dominant player
as the resale Market has struggled to
gain inventory and listings well much
more on wealth after this short break
you’re watching Yahoo finance
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mters earned more money than analysts
expected in the first quarter of the
Year and that beat comes despite a
number of challenges for automakers
including High interest rates and slower
than expected EV adoption car prices are
declining but it’s not all fun in games
for buyers here according to Edmonds the
share of consumers with new vehicle
monthly payments of $1,000 or more is
above the 177% mark for the fourth
straight quarter so what’s the best way
to go about purchasing a car well we got
some of those tips and the top
considerations Joseph Yun Edmond’s
consumer Insight analyst joins us now
worldwide GM sales average price per
sale average vehicle sale up 3,000 here
ultimately as you’re thinking through
what the best tips are for consumers
where do consumers need to start as
they’re kind of kicking the tires on
that potential
vehicle I think the first place that
consumers really need to think about is
the overall cost of the vehicles not
only have the vehicles gotten way more
expensive in The Last 5 Years almost to
the tune of nearly $110,000 so has the
interest rates um we talked about in the
last segment about how interest rates
for homes are at over 7% same goes for
uh new car loans as well which means
that you know when you’re taking out a
loan for maybe $40,000 for a new car
that’s almost $10,000 in interest alone
so when you take into take those things
into consideration it means that you
know you have to pay so much more than
you might have the last time around when
you were doing car shopping so you have
to be flexible maybe your plan a vehicle
maybe your plan B vehicle are no longer
in the in your budget so looking to be
flexible and looking at what you really
need as opposed to what you want I think
is a great place to start does this
change the type of vehicle that
prospective buyers decide to ultimately
drive off the lot with yeah I think so
maybe a lot of right now three row SUVs
for families are very popular maybe you
don’t need that third row anymore um
maybe you don’t need to have that luxury
car maybe you can get a near luxury car
a lot of modern cars these days
especially in popular segments have a
ton of luxurious features so making
those little compromises can definitely
help a lot of people trying to figure
out if an electric vehicle an EV is the
Smart play for them where do they need
to make sure that they’re asking the
right questions and considering their
own lifestyle with their driving
patterns I think the biggest thing for
potential EV owners is that do you have
reliable charging accessible to you
whether that’s your home or if you have
uh DC fast charging infrastructure
nearby because if you don’t have a
reliable place to charge then you can’t
really get anywhere and also to think
about how many miles you really drive
maybe each month or every week because
that’s going to determine how much you
need that charging infr infrastructure
to work for you and so if you don’t have
those things in place and if you drive a
lot if you do a lot of road trips uh I
believe our infrastructure both locally
and federally isn’t quite there yet so
making sure that those things are in
place for you or make making sure that
it might be a second car instead of a
primary vehicle and I think those are
things that you really need to think
about before hopping onto the EV train
Jo Joseph we heard from GM that prices
were basically flat year-over-year I
wonder what you’re seeing in the Edmonds
data prices have been flat and it’s
mitigated by the fact that
like discounts are starting to come back
into play but the msrps kind of keep
climbing so it’s kind of giving us a
wash situation
um hopefully you know with the c current
credit environment it’s hard to move
vehicles for some manufacturers so I
think they’re trying to make sure that
customers are coming into dealership
doors Joseph Yun who is the Edmonds
consumer insights analyst Joseph thanks
so much for taking the time here today
of course thank you absolutely well from
getting smart about your car purchase to
staying smart about your overall
Financial well-being a 2023 Northwestern
Mutual study finds 2third of Americans
believe their financial
needing some improvement here a 4% rise
from 2022 and nearly one in five of
those surveyed said that economic
uncertainty LED them to either begin
working with a financial adviser or plan
to work with one at a later date the
report found that generally working with
a financial adviser boosts confidence in
a range of areas and here with more is
domain money founder and CEO Adam Dell
Adam great to have you here in studio
over thanks for having me absolutely
first and foremost I mean we got to talk
about the results that many people
expect when they begin working with a
financial adviser and how they can
ultimately regardless of their financial
status find an adviser that wants to
work with them too yeah a lot of people
feel as though access to a financial
adviser is inaccessible because they
don’t have enough assets to be
interesting to traditional raas and so
it’s important to find a financial
adviser who will work with you where you
are in your financial life and so
ultimately with that in mind what do
people ultimately want in that financial
adviser experience from what you’re
seeing yeah they want peace of mind they
want a clear understanding of where they
are and what their goals are and how
they get there nobody plans to fail they
fail to plan and so having a clear set
of steps to take to reach your goals
gives people you know a clear
understanding of what they need to do in
order to achieve what they want to do in
their life um people have children they
need to save for college they want to
buy a house they need to save for that
house they want to retire they need to
plan for those things how do people know
when they have a good financial adviser
versus a financial adviser that’s not
executing in their best entrance or a
frankly a bad financial advisor and
distinguishing between the two well a
good financial adviser won’t charge you
a 1% asset under management fee because
there’s an inherent conflict of interest
with the 1% AUM fee every year your
advisor is taking 1% of your assets away
from you and over time that compounds to
an enormous number of dollars over your
life and so a good financial advisor
will give you a clear financial plan for
your goals and not charge you based on
how much money you have and so as we
think about where the financial advisor
role is changing there’s the whole
element of gener generative Ai and
artificial intelligence that’s being
layered into just about every career how
is this impacting the of course advisor
component of this too yeah people want
to speak to a human being and a real
expert that’s knowledgeable about
financial planning U I don’t want to
entrust my health to a robot I don’t
want to entrust my financial life to a
robot I want to talk to a real live
person who’s knowledgeable on the
subject what’s the immediate step that
someone can take today to just begin on
the pathway of improving their financial
well-being the small decisions that can
make big impact over time yeah well at
domain money we offer a free strategy
session where people can talk to a
financial adviser and get a clear
standing of what are the big things that
we need to be thinking about for our
family uh do we have debt uh are we on
track for retirement have we put enough
aside each month for the 29 529 savings
plans for college those very basic
things are really the starting point of
financial planning then you get into
bigger hopes and dream dreams well how
do we take that vacation we want to take
this year how do we make sure that we
can retire sooner uh all of those things
require planning and the best way to do
that is to sit down and start today you
know the the the expression the best
time to plant a tree was 20 years ago
the next best time is today it’s the
same with financial planning and
planting a tree of course an investment
not just for the ecosystem of course
more oxygen created but at the end of
the day when you think about the
Investments that people are asking you
about now too it can be a range of
things from should I invest in you know
a property that I want to flip or should
I invest in Bitcoin what what is that
top investment that people are asking
you about in order to create perhaps
some passive stream of income as well
yeah well the most important thing is to
get the basics right make sure you’re
maxing out your tax advantaged accounts
your um your 401k uh your Roth IRA and
making sure that each one of those is um
um set up properly we have lots of
clients who come to us who have sort of
bungled their Roth IRA and need some
help sort of unwinding it and you know a
lot of lot of investment firms
especially the Robos out there they
don’t really care whether or not you’ve
done it right they just want an account
and so uh ensuring that you’ve done that
properly is really part of the basics
the other thing is to ensure that you
have an emergency fund in place because
there are pertubations in people’s lives
and you need to have a buffer to ensure
that if you do have a hiccup you have an
emergency fund in place to take take
care of it domain money founder and CEO
Adam Dell thanks so much for taking the
time here thanks for having me
absolutely everyone coming up UPS seeing
a Slowdown in shipping during the first
quarter but what is the signal about the
state of the economy and the consumer
you much more on wealth after the break
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so you want to be a millionaire
who doesn’t more than 21 million
Americans have earned their millionaire
status and sometime around the age of 50
the average American exceeds that $1
million household net worth but there’s
no need to wait until middle age for
younger investors how can you become a
millionaire by 30 our next guest giving
the tools to do just that for more on
building your wealth I’m joined by
Cedric Nash Financial mentor and author
of why do white guys have all the wealth
here Cedric great to have you here in
studio with us first and foremost what
is the small step that someone can make
on a daily basis to really get towards
that millionaire status you know I
always say that becoming a millionaire
isn’t hard it’s just slow and the
reality is young people have a have an
unbelievable opportunity to become
millionaires because they’ve got time on
their side um I think the first thing
they should do is you know obviously you
know Embrace that or or maintain that
mindset of living like a broke college
student right because that’s going to
create frugality so as they increase
their income and they’ll have more money
to save and invest the other thing they
could do is invest in their 401k and
take advantage of free money see
millionaires never want to let free
money go off the table so when you
invest in your 401k and they match
that’s taking advantage of free money
another thing they should really be
looking at doing is in addition to
maximizing their 401K is it to to to
invest in a duplex or a threx or F
fourplex as opposed to a single family
house when they come out of college when
they’re ready to buy a property the
reason why is because multifamilies are
valued based on their capitalization
rate based on the income that they
generate which means that the value of
those properties end up being higher at
the same time they could rent out every
single room and every single apartment
in those buildings and live rentree
allowing to save and invest even more
money those are the key steps to
becoming a millionaire in looking at the
habits and studying the habits of
successful people and millionaires out
there how many streams of income do you
often see them being able to generate
and and what is a good kind of Benchmark
or rule of thumb I love that it’s like I
think that you know millionaires have at
least four or five streams of income
they’ll have their main business right
they’ll also have often invested in in
in a in a diverse portfolio of stocks
which include dividend stocks right I
have a guy that works for me he doesn’t
have to work for me but he jokes about
how the income that I pay him which is a
deep six-digit income you know he he
makes more money off of dividends
because he has that much cash invested
so Dividends are a strong form of of uh
of income as well as investing in real
estate that is is it’s it’s a double
whammy because you get income and you
get appreciation and as you increase
your rents the value of those properties
continue to go up so you know those are
great sources of income you also work
with a range of high-profile people as
well athletes entertainers what’s the
number one investment that they’re
asking you about and they’re kicking the
tires on mentally that they might try to
activate to be honest today a lot of um
a lot of black athletes and black
celebrities are asking about real estate
you know you know from a cultural
standpoint a lot of older gentlemen in
our community kind of talked us away
from Real Estate they’re like oh you
don’t want to you don’t want to have
multifamilies all these people do is
tear up their property and so it’s kind
of created a mindset where people and I
go now I speak about this I always do a
survey and the majority of the crowd
will raise their hand that they’ve
gotten that advice for them so a lot of
them because we’ve stayed out of real
estate and primarily multif Family
Properties they want to know how I how
how do I buy apartment buildings how do
I own lightweight commercial and mixed
use properties uh they like that because
they seem to be a little risk a verse
and they don’t like necessarily the the
The Versatile uh the volatile nature
potentially of the stock market so
that’s where they seem to lean in one
advice from one of the other themes that
we talk about frequently is the the
great wealth transfer that is
anticipated and ultimately for minori is
out there what type of effect is that
expected to have on wealth building but
just pass on wealth as well it’s going
to have a huge you know impact you know
my book is titled why should white guys
have all the wealth and it’s not about
black versus white it’s about the fact
that 84% of wealth in this country is in
white households and 4% is in Black
households which means that upon
inheritance we’re going to receive a
smaller amount of inheritance which
exasperates the Gap but we can stop that
and we could stop that through
effectively transferring wealth from one
generation to what to the other also
pulling our families together and
developing this mindset of never selling
grandmother’s house from the perspective
of keeping all the assets within the
family and building upon those and
efficiently transfer them to the next
generation at the same time transferring
a mindset that allows them to add to
that wealth and by the way I still want
my grandma’s house in the Bronx a
significant moment for a lot of people
out there and a lot of Multicultural
families as well Cedric thanks so much
for taking the time here Cedric Nash
Financial mentor and author of why do
white guys have all the wealth thanks so
much thank you appreciate UPS results we
teased this before the break let’s come
back to it UPS results showing the slump
in demand still persists for the
shipping giant with both International
and domestic deliveries falling in the
first quarter so what should consumers
be watching for that let’s bring in
Yahoo finances relle akufo joining us
now with the breakdown hey
relle hey good to see you Brad so a
couple of things in this mixed earnings
bag for UPS here the three things I’m
focusing on shipping volumes cost
cutting measures and the contract that
USPS has with um with UPS as well their
Air Cargo contract so first let’s talk
the shipping volume declines that was in
its key us business and international
business look they said they’re
controlling what they can control on the
earnings score but they did note changes
in what customers are looking for in the
product mix as well average daily
volumes down 3.22% in the US down 5.8%
in its international business do keep in
mind the cyclical nature of the business
as well when it comes to shipping now
UPS Co Carol does say she expects volume
and revenue to return to growth so
interesting though because q1 is usually
the lowest margin quarter for the
international business and they did
really hone in on the macro picture
still Weighing on that international
business the second part which a lot of
people were wondering about were was how
cost cutting measures were going to be
received now UPS is on a mission to cut
a billion dollars in cost this year that
includes this big Teamster contract um
that was put in there they were
wondering if that was going to offset
some of the losses here they said that
they leverage technology even more to
really try and cut those costs even more
they are going to cut about 12,000
nonunion jobs they announced that
earlier this year so still moving
forward with those cost measures
and then of course we have to talk about
this contract between USPS for its Air
Cargo contract now if you recall FedEx
originally has that contract it does
still have it until September but now
you have ups taking that over that’ll be
in September people wondering how you
going to pay for this what sort of extra
investment here they are going to be
hiring about 200 Pilots but they do say
they have enough planes for this now in
terms of what this means for the
consumer as I mentioned uh Carol to the
UPS CEO expecting consumers to keep
shopping interestingly they talked about
their returns business Amazon and happy
returns seeing attractive margins there
and also higher fuel prices bad for
consumers but it means UPS can make a
little more money off those fuel SE
charges so some some brightness ahead at
least for UPS not so much for the
consumer though yeah all right well
that’ll moderate my package orders for
sure Michelle thanks so much appreciate
it that’s it for now I’m Brad Smith
you’ve been watching wealth here on
Yahoo finance we’ll see you tomorrow at
11:00 a.m.
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#stocks #inflation #YahooFinance #recession #bitcoin #Biden #Stockmarket #coronavirus #memestocks #Fed #YahooFinance #investing #stockmarket #crypto
To get the latest market news check out finance.yahoo.com
US stocks climbed on Tuesday, on track for further gains as tech-focused investors prepared for a fresh wave of earnings highlighted by struggling Tesla (TSLA).
The benchmark S&P 500 (^GSPC) rose more than 1% after staging a comeback from a six-day run of losses the previous session. The Dow Jones Industrial Average (^DJI) climbed roughly 0.6%, while the tech-heavy Nasdaq Composite (^IXIC) soared, up about 1.5%.
The gauges are looking to build on a positive start to the week that saw the S&P 500 close below 5,000 for the first time since February. Stocks rebounded as investors jumped back into the likes of AI darling Nvidia (NVDA), which had lost ground amid worries about higher-for-longer interest rates.
Many in the market are looking to this week’s rush of Big Tech earnings to pull stocks out of the slump that has dogged them since the start of the year — though some on Wall Street hold out less hope.
Tesla’s earnings are likely to be a catalyst for the S&P 500, given the stock’s weight in the index. The results, due after the market close, are seen as pivotal for Elon Musk’s EV maker, whose shares have been hit hard by a disappointing delivery outlook, the cancellation of plans for a long-awaited sub-$30,000 model, and a strategy switch to robotaxis, among other headwinds.
As the first “Magnificent Seven” to report, Tesla sets the stage for highly anticipated results from Meta (META), Microsoft (MSFT), and Alphabet (GOOG) later in the week, though some suspect the megacaps’ momentum is fading.
Meanwhile, legacy automaker GM (GM) got the ball rolling on earnings on Tuesday, posting strong first quarter results and upping its full-year guidance. Its shares popped around 5%. Spotify (SPOT) stock jumped after the audio streamer swung to a profit amid an earnings beat.
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