Stock market today: S&P 500, Nasdaq notch big gains as Tesla kicks off ‘Magnificent 7’ earnings
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hello and welcome to Market domination
I’m Julie Heyman that’s Josh Linton live
from our New York City headquarters we
are giving you the ultimate investing
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make the Right Moves for your money and
here’s your headline Blitz getting you
up to speed 1 hour before the closing
bell rings on Wall
Street this has been a growth stock
that’s stopped growing and so what the
company really needs is a an incremental
growth driver the Cyber truck has been
incredibly disappointing as a as an
incremental vehicle uh and and so
they’re trying to refresh the product uh
products weight and part of the issue
here is that they’ve saturated Demand on
the model 3 and the model y they’ve been
huge successes but the the next leg of
the story has to be this this lower cost
vehicle the idea that uh Tik Tock uh
will be banned fully um has not really
registered yet in my opinion uh in in
marketer mind but even if it happens
because Instagram and Facebook which is
mattera essentially adapted to the
vertical format of video the idea is a
lot of those same users in influencers
will move to uh um Facebook uh and
Instagram we heard some encouraging
remarks from Dave Calhoun this morning
um you know the company’s still looking
to draw down its inventory this year
which is good um there’s still planning
to acquire Spirit potentially this
quarter which is you know I think a
positive um and they’re sticking by
their 1010 billion free cash Target in
26 which is surprising but I think it
you know speaks to their confidence and
the ability to write the
ship we’ve got one hour to go until the
market close let’s take a look at the
major averages sponsored by tasty trade
we’ve got not much change in the Dow
right now kind of a zigzaggy kind of
session here down about 93 points at the
moment about a quarter of 1% the S&P 500
down about the same a fifth of 1% as is
the NASDAQ if you take a look at what’s
going on sector-wise here we’ve got the
NASDAQ there but just looking at the
sectors here we’ve got Industrials that
are doing the worst today followed by
communication Services utilities and
consumer discretionary are on the rise
but really what you have here is a story
of individual movers rather than a big
macro theme that’s affecting stocks in
today’s session going back over here to
our major averages I want to take a
quick look at trending tickers actually
just to give you an idea of what uh our
users on yaho finance are watching today
and we’re going to talk much more about
them in just a minute but if you look
meta is the top trending ticker here
it’s going to report earnings after the
close of trading Tesla up 11% after its
earnings which
disappointed but moving up the timeline
potentially of the so-called model two
Boeing trading down you get the idea
here in other words we are seeing
investors turn their attention to
individual stocks based on earnings that
have reported or earnings to come and on
that I’m going to send it back to Josh
thank you Julie we’ve got some big
earnings on Deck after the Bell today
and one of those names meta the company
stock Riding High well into 2024 here
with a preview of what to expect from
today’s results Dan howy yeah you got a
strap in for this one obviously this is
coming off of meta’s huge prior quarter
where they had uh seen their share
prices rocket following the announcement
that they’re going to have a 50cent uh
per share dividend and then announced
that they were increasing their share
buyback uh by $50 billion we’ll have to
see if the kind of momentum that we’ve
seen from meta uh will continue to move
forward into this quarter and the
quarters uh to come there’s been some
talk uh among analysts about uh
difficult comparisons to the prior year
quarters uh especially when we saw the
digital ad Market really start to pick
up again uh after the slowdowns uh
during Co and uh when Mark Zuckerberg
did his kind of year of efficiency uh
part of the the conversation is going to
be about how they’re dealing with AI uh
and how that is enhancing ad sales if
it’s enhancing ad sales uh the kind of
work that they’re doing there obviously
uh this month they announced their new
llama 3 uh large language model as well
as their uh meta ai ai chat bot that’s
been kind of met with uh mixed uh
responses now some people upset that
they can’t turn it off some people uh
seeing strange responses to it it joins
a a Facebook group for mothers in New
York and claimed that it had a child in
a school district um so kind of weird
things there and then uh we also saw
Mark Zuckerberg announc uh that they’re
going to open source their operating
system for VR headsets that’s the
Horizon OS meeting that will start to
see more uh manufacturers get into the
headset game we’ll just have to see if
that means that more people will start
buying headsets
though and uh speaking of headsets by
the way even as we see that company meta
try to push forward its various headsets
there are some reports about Apple’s
Vision Pro from the very closely watched
analyst Ming quo saying that the company
has cut orders for the Vision Pro what
can you tell us about that and sort of
contrast it with what we’re seeing from
meta yeah I mean Ming chin quo obviously
is a wellknown Apple analyst uh I mean
he’s up there with some of the the best
when it comes to uh recognizing what
Apple’s doing um and getting the inside
baseball on it and so you know him
coming out with this is is a kind of a
uh obviously a a big hit to Apple if if
it’s true that they actually are cutting
back on orders because of response from
consumers or or perhaps lack of response
uh from consumers I think you know the
vision probably at $3,500 was never
going to be a volume seller it’s not
going to be an iPhone it’s not going to
be an Apple Watch uh you know even those
among themselves are are relatively
expensive but they they have clear
purposes that people want whether it’s
the uh iPhone it’s your smartphone it’s
everything your digital life now uh and
your Smartwatch which you know helps
with everything from being able to get
uh notifications to to Fitness so you
know when it comes to the Vision Pro
it’s still the jury’s still out onto
what the the clear purpose is there’s uh
the productivity standpoint which is
good uh but you know do you want to wear
a headset while you’re working all day
uh movies look great on it do you want
to wear a headset while you watch a
movie there’s there’s still this kind of
Disconnect with consumers so uh when it
comes to to meta they’re clearly going
all in on this um you have to imagine
that Apple’s going to stick this out
though remember the Apple watch wasn’t
exactly a huge seller right out of the
gate either yeah the answer on do I want
to wear a headset all day at work that’s
a no do I want to wear a headset when I
watch movie that’s a no but maybe
that’ll change Dan Hy thanks a lot
appreciate
it also on Deck to report first quarter
results for yaho finances prasmanan is
here with the details of what to expect
there hey PR hey Julie yeah so you know
big picture looking at revenue of $40
billion for the quarter a result that’s
actually three and a half% lower than
the year ago with the just at EPS coming
in at 42 cents a share now this all
comes behind the backdrop of of strong
q1 sales results with overall sales up
6.8% they reported this earlier this
month what actually hybrid sales hitting
record and EV sales actually up pretty
strongly too now Ford as we know is
pivoting and delaying some EV spending
and and vehicle launches EV vehicle
launches pushing forward with hybrids
and other gas vehicles until the Ed
Market matures but in the meantime
investors are looking to see if Ford’s
strong current sales will lead to a
boosted profit Outlook following GM
doing the same only a couple days
ago PR thank you appreciate it and
chipotle also gearing up to report after
the close yah finances Brook to Pama
joining us here with more Brook good
afternoon Josh I mean certainly Wall
Street is expecting another positive
earning support from Chipotle Chipotle
shares up 31% year to date so far so
another positive report expected after
the Bell today to break down those
estimates the company uh wild of Wall
Street expects Revenue to come in at
2.67 billion now that’s about 133%
higher than last year adjusted earnings
per share also expected to grow
year-over-year coming at
$166 up 11% from last year and same sort
sales expected to jump roughly 5% now
some key points that Wall Street is
watching for in this q1 report include
that resilient foot traffic what wal
really expects here is that consumers
continue to seek the throughput the
Quick Service that chipotle continues to
provide and Al ultimately the best bang
for their Buck Chipotle continues to
have this value perception with the
average Bowl costing about $9 now
another key point that Wall Street is
looking out for is innovation they’re
looking to see if there was a potential
Boost from limited time offerings that
they actually brought back these two
favorites including carne assada which
lasted until the early part of this
quarter and then they brought back the
Chicken alpast store now it’s important
to note here that these two returned uh
fan favorites do have a premium price
point and so it’ll be interesting to see
just how well they did in this past
quarter the last key point that Wall
Street is looking out for is any impact
from that California fast act we do know
that that went into effect on April 1st
that increased the hourly wage there to
$20 per an hour now it’s worth noting
that 14% of total locations for Chipotle
are in the state of California and so
many eager to hear just how much menu
prices were increased to offset that
labor inflation Sharon zachia of William
Blair suspects it’s around 7% of a price
hike within California all right thank
you Brook appreciate it stocks lower
today is earning season is now in full
swing and investors have their eyes set
on big Tech Tesla of course kick started
it for the Magnificent Seven on Tuesday
setting the table for another wave
reports after the close today including
another mag seven name meta for more on
what we’ve seen thus far on the earning
season and what we can expect moving
forward we welcome in Michael ktz Piper
Sandler Chief investment strategist
Michael it’s good to see you thanks for
having me so uh after the Bell earnings
parade continues Michael right got meta
IBM Ford um what have you learned so far
this earnings season Michael what have
been kind of your big takeaways yeah
well we came into the earning season
with a fairly low bar we look at how
many companies pre-announced before
earning season and that’s been trending
higher for several quarters and hit a
new cycle High uh roughly a three or
four year high across uh large mid and
small caps before the quarter so that
means the analysts have kind of already
lowered their estimates coming into the
season the odds of beating perhaps are a
little uh easier uh and so we’ve seen
exactly that so far about a 100
companies have reported uh we’ll get a
lot more today uh most of them have beat
um we look at every
quarter stocks that are most likely and
least likely to miss earnings much many
of the companies that have already
reported to date are on the least most
likely to beat and they indeed have so I
would say just with a little Caution the
bar has been lowered but also be don’t
don’t extrapolate this quite quite yet
so in other words are we going into a
period where it’s going to the bar is
higher and it’s going to be tougher to
beat yeah incrementally and there is a
again a little bit of a seasonality
within earning season the the the first
100 companies uh just generally have a
higher uh history of beating why is that
it could be because the industry mix
that first starts earnings and how they
uh can better get the street uh to where
they want it to be before earnings um
and sure and then as as we go forward
looking at the stocks that we think are
most likely to miss and these are
companies that have a history of missing
companies where earnings expectations
are very uh uh really dispersed or wide
uncertain and companies that are very
cyclical uh more of those are yet to
come and so I think things will kind of
even out a little bit what’s uh Michael
right now what’s your year in Target for
the S&P 500 and what are sort of kind of
upside risk to that Cole right now it’s
5250 uh the upside risk is if we get
lower softer employment data so bad
macro data actually or soft macro data
let’s say uh and brings down yields
takes the heat off the inflation Focus
gives the fed the door to open to cut
rates uh maybe once or twice this year
that’s to me upside uh we’re living in a
very Bond driven Equity market today and
so is your base case that we are not
going to get Cuts in facted this year or
that maybe we’re not going to get very
many base case is that we will see
enough softness even in data like NFP
nonr payrolls and an uptick on
employment claim starting uh in the
coming months and really start to show
up by the back half of the year which
will open the door to get those cuts so
we’ve seen a huge shift year-to date in
fed expectations in four and a half five
months I think we could see another
decent shift over the rest of the year
and Michael where do the kind of the
opportunity Look To You Right Now what
what are you kind of you screening for
and maybe some examples of that sure uh
we’ve been big bulls on quality stocks
which have essentially become what it’s
being talked about now is the momentum
trade and when you say quality Michael
how do you define that yeah companies
with higher levels of profitability uh
companies with Higher free casual yields
so they’re not just uh they’re not all
expensive uh and we look at Cross
sectors so it’s not never about seven
stocks or one sector this is a theme you
really see across sectors and
particularly as you go down in
capitalization a so as you look for
smaller caps that have really
underperformed for a couple years now
there’s a huge bifurcation and
performance of the halves that have
earnings growth earnings revisions and
have good profitability and those
companies that are clearly struggling
from the high interest rate and sticky
inflation backdrop yeah I think we have
some um some low cash yield uh examples
in the last 12 hours companies that have
reported that have been struggling on
that front absolutely um and so do you
think in terms of the picks and we just
showed some of them that maybe would be
considered quality the tsmc’s of the
world um there we go again Abbot AB Etc
that that are they sort of agnostic as
to where yields go because of that cash
position sort of a a buffer if you will
yeah they’re insulated right from y if
we look at you know the beginning of the
year the first quarter large cap growth
stocks were up 12 13% by the end of the
first quarter small caps all the way to
the other end of the spectrum were flat
and this year we’ve seen obviously
yields go up they got to a point where
now all equities have kind of struggled
but for the first 3 months it wasn’t an
issue for these higher quality stocks
that are insulated which also means if
we do get any soft macro data and lower
yields the ones that are more insulated
are less likely to respond as positive
compared to the regional Banks small
caps and deep value stocks selling May
and go away Michael how much weight as a
strategist do you put out on seasonality
you know when there’s not a million
other macro data points and an and a key
fed meeting to kick off May uh I’d say
it’s maybe a little more relevant
seasonality uh I think is something
that’s interesting but can often be
overwhelmed when there’s other uh Market
moving events and we have so much data
now between geopolitical issues the
politics fiscal the qra is coming up uh
and and a Fed meeting so to me those are
going to take precedent uh as well as
CPI uh and and other data so generally
and when the econom is accelerating
getting better and particularly when
investors are not worried about
inflation stocks do great between May
and the end of September and and vice
versa so to me it’s it’s it’s it’s
interesting but there’s so many other
overwhelming factors that can play
Michael it’s interesting just tonally
you don’t sound super bullish to me I
mean yes your target is above where it
is right now but you’re not like
pounding the table and saying the market
is going to do great from here is the
vibe I’m getting from you is that is
that fair you know the best years for
equities are when you get large PE
expansion it’s actually not when
earnings are taking off that tends to be
late cycle and we tend to be worried
about inflation and and maybe the FED
starting to hike so it’s hard that was
last year where yields um sorry
valuations really expanded this year
it’s going to be hard and we’ve already
seen some PE expansion but it’s going to
be hard to really make that um much
bigger move again I think the Catalyst
uh especially for those laggards would
be lower interest rates but yeah I’m at
5250 uh I think you know we’ve had a
great year last year coming off a Terri
2022 and there’s a lot of soft Landing
hope priced in there’s a lot there were
a lot of rate Cuts priced in and the
market is so data dependent right now I
think it’s really about stock picking as
opposed to you know where the index is
going to make a major move gotcha
Michael thanks for coming in good to see
you in person appreciate it well we’re
just getting started here on Market
domination coming up Boeing shares lower
today despite topping earnings
expectations we’ll talk about those
numbers with an analyst on the other
side plus another round of earnings on
to after the close we’ll get you all
those results from meta Ford IBM and
chipotle once those cross plus the
latest edition of our series goodbye or
goodbye we’ll get insight on two stocks
to help you make the best choices for
your portfolio stay tuned we’ve got more
Market domination after this
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Boeing blew through $3.9 billion do in
cash in the first quarter but it was
better than the 4.4 billion that
analysts estimated questions still
circle around the embattled airplane
manufacturer including production
quality the search for a new CEO here to
help us break it all down is Robert
springardn managing director of
Aerospace defense and space at melas
research thanks for being here Robert so
when we look you know it’s interesting
because initially there was a bit more
of a positive reaction when it came to
Boeing maybe a little bit of relief then
we saw that fade what do you think sort
of took over here just that the road is
still going to be tough for Boeing yeah
that’s really all it is you know I think
people were long into the into the
quarter expecting some positive news the
CEO gave um a pretty positive upbeat
interview on television this morning
before the earnings call and then you
get into the details in the earnings
call and you see it’s perhaps a little
bit more complex a recovery story than
it looked earlier in the
day and Rob it sounds like they’re
they’re standing by their free cash flow
Target 10 billion by by 2026 did that
did that surprise you rob they’re gonna
stick by that b yeah a little bit I mean
we we reduced our number roughly a month
ago think that they’re you know that’s a
bit of a stretch to get to that 10
billion in 2026 the CEO said he thinks
they can do it the CFO interestingly
suggested at least to me that maybe they
hit that run rate toward the end of the
year in 26 so maybe a little bit l
um but there’s you know they got to chop
a lot of wood to get there talk us
through some of that chopping right I
mean you know we know a lot of the
challenges that are in front of Boeing
right now what do you think is sort of
most urgent and important for the
company to accomplish this year besides
you know finding a new guy to run the
thing or woman well so there is that but
the the two most important things are
the
737 and 787 production rates those are
the two cash cows in the commercial
airplane business business and they need
to stabilize those aircraft programs and
raise those rates to generate cash again
the two cash cows then they have to
improve the defense business and that
did come in a little better than
expected today so that was one of the
positives but it’s still a negative cash
flow business and it’s got to swing to
positive by 2026 in order to hit that1
billion number and Rob I don’t think
I’ve had a chance to get your take on
the spirit acquisition either in your
opinion smart move Rob POS for the
business I think it’s kind of
inconsequential we’ve taken the view
that Boeing has wielded a lot of
influence at Spirit since the the spin
20 nearly 20 years ago um they’ve had
people in those factories for a couple
of decades they can ask Spirit to do the
things they need them to do so I don’t
think it’s necessary that they have to
own Spirit in order to get it to improve
better yes they can put them on common
systems and so on but there are plenty
of they have plenty of access to Spirit
the whole time what this really what
really needs to happen is both spirit
and Boeing have to improve their
operations and they can do that
separately or together what does the
regulatory landscape look like right now
for Boeing what’s still to come in terms
of you know consequences or new new uh
regulations put on the company well
that’s a little bit of an unknown you
know they’re still under scrutiny for
the tragic accidents that happened a few
years back and and that is now being
Revisited some of the families are
asking the government to reopen
investigations and and we don’t know how
that will play out we don’t know if this
incident with Alaska Air 1282 allows for
the reopening of the Deferred
prosecution agreement from a few years
ago and then the other side of this is
the FAA is simply going to mandate a
certain level of increased scrutiny and
oversight over Boeing’s operations and
going forward i’ I’d like to think that
that scrutiny oversight will be
consistent it it makes the environment
the industry safer for everybody Boeing
will adapt to its so the other aerospace
companies and that’s a good thing and
Rob in terms of just uh kind of events
coming up on the calendar you do have
that uh Farm Boro air show Rob coming up
I think it’s uh July is that important
for Boeing at
all historically the air shows Farm bro
in in July and then alternating with
Paris in June the next year have been a
great place for orders materialized and
for industry to get together is really
about orders that’s been less important
I’d say over the last decade uh having
said that though because of Co because
Co cancel a couple of those shows the
last uh um Paris Air Show was a big deal
it f barel could be a big deal for
orders this year but I would say that
that’s more of a side event where where
the focus is going the scrutiny is going
to be at this point where Boeing is
concerned is on getting those aircraft
production rates St stabilized and then
raising them and so Rob maybe you’re
leading to my last question for you you
have a hold on the name so you’re on the
sidelines I was just going to ask you
rob you know what kind of you’re looking
for what would it take to to get you
more bullish on Boeing well exactly that
I I want to see evidence they’ve really
got their arms around these production
rates and that they can raise them
sustainably there’s been a lot of
volatility month to month quarter to
quarter we need to see these rates
stabilized on an annual basis and the
ability to move those up over the next
couple of years toward those targets and
once we see that we can get constructive
at the same time we need to see
Improvement in the defense business debt
retired and uh and the other thing I hav
mentioned it yet we really do think the
company needs to think about its next
airplane it is losing ground to Airbus
the longer that they wait to start a new
aircraft and that does preserve cash
flow but there’s two sides to this coin
the longer that they wait to start on a
new airplane the more ground they
potentially lose later on in the next
decade interesting and obviously to your
point before they’ve got a lot to do
before they uh can get to that new plane
Rob thank you so much appreciate it
pleasure let’s take a look at some of
the other top trending tickers right now
well Tesla of course is soaring today
the news of the EV makers Robo taxi
plans has both Uber and lift taking hits
today Tesla’s still up by about 12% Uber
uh Down 2 and a half lift down about 3%
here and what’s interesting is of course
is that the robo taxi remains as of and
musk also talked about a ride hailing
app that Tesla’s developing what’s
interesting about all of this is it as
yet remains mythical right like August
8th is this event we don’t know most
experts in autonomy will say it’s still
you know that doesn’t mean it’s rolling
out this year or next year the you know
we still don’t know the de of that so
even if there is some sort of
competitive threat to Uber and lft it is
not doesn’t seem to be an imminent one
yeah I mean it was so interesting Geor
because it was sort of like one company
with almost two calls because it was
like the core business is not good I
mean you missed on the top and the
bottom so to your point musk kind of
addresses that but then shifts and and
in part he he was kind of laying out his
vision for the company and I listen we
have had investors in Tesla it’s part of
their thesis right long term this is
autonomy and this is what this is what
musk is saying you know quote if
somebody doesn’t believe Tesla is going
to solve autonomy I think they should
not be invest in the company so laying
down the gauntlet he has this Vision to
your point I mean what is the actual you
know timeline here when it’s actually in
service I I I don’t know I mean is it
five years is it 10 years NBC News
reported the company actually hasn’t
even sought permits that would let it
test and operate Robo taxis in three
States including California Nevada where
obviously it has a lot of employees um
but he has a vision and and certainly if
you’re a bull there’s plenty of people
are in Testa for this reason you know
they that long-term view right and
there’s also this uh sort of again
tentative idea of oh you let you sort of
rent out your Tesla when you’re not
using it like an Airbnb must like an
Airbnb for cars again that may be seen
as a threat to Uber and lift I don’t
know how many people are going to want
to do that yeah but again you know
there’s not a timeline but you know
timelin it’s not really elon’s thing
timelin he doesn’t but you know listen
talking is confident than ever no matter
what even if I got k out by aliens
tomorrow he says Tesla will solve
autonomy maybe a little slower but it
would solve autonomy for vehicles at
least aliens are you listening
yeah all right checking in moving on
shares of Northfork Southern lower today
after missing on earnings estimates
there Ro operators saying it’s seeing
some pressure following the collapse of
the Francis Scott Key bridge in
Baltimore last month according to CFO
Mark George the revenue impact from the
channel closure is in the 25 million to
35 million per month range um so this
was interesting Julie so that that was
nor fork Southern’s call to1 adjusted
earnings and revenue sounds like they
did just kind of slightly undershoot
what the street was looking for and it
did talk about this kind of pressure
falling the collapse the bridge um the
rent of renew impact 25 to 35 million
per month exec saying they’re working on
it trying to provide alternative Supply
Chain Solutions but there clearly you
know a challenge yeah and the company
did see um that volume grew by 4% but
Revenue fell by 4% because there was the
lower fuel sear charge and they also had
a worse mix I guess on the platform
compared um with last year there
something that’s going on in the
background here is that the company is
undergoing a proxy battle so some
analysts said this earnings report you
know people are sort of looking past it
to this proxy battle that’s going on
with an investor called Anora Holdings
which is calling for changes at a norick
southern including you know they say
there’s been poor decision- making and
that the stock is underperformed and so
that’s going to be the next thing that
investors are going to be looking to
yeah we should know by way northw isn’t
alone um in terms of the impact from
from the bridge and Baltimore rival CSX
said last week it could lose between 25
and 30 million sales a month due to that
that Port closure and then quick mention
Old Dominion Freight Line also reported
um that’s not a railroad it’s Trucking
Company getting knocked around because
that company’s numbers missed analyst
estimates and it’s in the less than
truckload business which has been doing
better than the rest of the freight
industry apparently this so the fact
that they missed a little bit that’s why
it’s getting punished and it’s
interesting because I think if you’re an
investor these are these are the
companies you watch because these are
the companies actually moving stuff
around the country and as an investor
you like to watch that kind of like it
gives you that that temperature check on
the overall economy so you don’t like to
see those kind of hiccups no you do
coming up it’s latest edition of our
series goodbye or goodbye we’ll get to
investor Insight on two assets to help
you make the best choices for your
portfolio stay tuned more Market
domination after this
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it’s a big noisy Universe of stocks out
there welcome to goodbye or goodbye our
goal to help cut through that noise to
navigate the best moves for your
portfolio today we’re taking a look at
names in materials and which are worth
adding to your portfolio and which are
best left behind I’m here with Jacob sun
and shine markets reporter at Barons
Jacob come on down let’s talk about what
your buy stock is first of all Air
Products and chemicals um so this is an
interesting one it’s not a name that we
talk about and an enormous amount the
stock is down this year so let’s get to
your case here and the stock being down
is part of it because you say a recovery
is coming I like quality companies that
are down double digits it is a little
bit cyclical because of the N Market
Mark that it’s exposed to in industrial
gases selling to a lot of Manufacturers
consumer and and Market stuff like that
so it’s gotten crushed uh China which is
a big part of the business has been a
problem uh roughly $3 billion of sales
in the last reported quarter As you move
out a few quarters this year every
quarter and new projects come online and
they’re not delayed and China continues
to grow analysts are looking for Asia
growth for for revenue for APD of just
under 2% if you think about the way
China’s growing it’s actually pretty
reasonable new projects coming online
those quarterly Revenue figures should
come in better um there is a bit of a
long-term thesis which I’m sure we’ll
get to but in the near term I think the
earnings estimates have reset lower the
stock has reset lower and it’s a decent
uh buy here okay let’s talk about the
next Point here which is that they have
fixed contracts for their industrial
gases yeah exactly and that so they are
cyclical because of their end markets
but with those fixed contracts it does
make that cyclicality that sensitivity
to the economy a little bit less so uh
they have there’s a certain price range
and volume count of just like amount of
chemicals uh in those contracts that
they can sell so investors know that
there’s that buffer on the downside with
revenue and earnings because of those
contracts right so that’s that’s not a
terrible situation okay and then the
third thing is sort of like the new
Zeitgeist in gases if there is such a
thing and that’s clean hydrogen and so
what is Air Products doing in that space
clean hydrogen the the total market for
that substance today is zero dollar what
they’re doing that space is they’re
ramping up there are three big chemical
makers in the world it’s air Leed in
Europe it’s Lindy which is uh a a peer
to Air Products and it’s Air Products if
you are a larger fairly well Wells
scaled uh chemical maker Air Products as
a market cap about $50 billion you can
invest in clean hydrogen that market
could be when I look at the number of
tons that could be purchased priced per
ton it could be hundreds of billions uh
globally over the next you know five 68
years I don’t know that Air Products get
so much of that but they’re doing less
than $15 billion annual sales that’s a
huge opportunity and it makes me bullish
on the long term okay well we always
like talking about the risks and the
risk is actually Around clean hydrogen
you talk about the risks from delays I
mean there’s also it’s also just sort of
a risky
unknown where that market is going to go
as well so when you talk to analysts
about a Fairless cyclical company like
Air Products and you and they say well
the risk is Project delays okay that’s
analyst jargon for that industry what
that really means is that if customers
are delaying uh purchasing things from
or new new projects to come online new
contracts those delays that that to me I
I hear the word cyclicality I hear that
uh industrial companies around the world
um are pulling back on their spend uh
because their end markets are a little
bit slow because you have higher rates
that do continue to flow through the
global economy gotcha all right well
let’s get to the other stock that you
don’t like here and that one is in Big
Oil we’re talking about kico Phillips
the shares are up a little bit year to
date here but let’s get to why you don’t
like it oil prices now this is a little
counterintuitive to me oil prices
because oil prices are up why is this
not a why is this a a risk for kico
Phillips and it’s funny because a few
months ago I had written you probably
want to buy oil because it looked from a
technical standpoint where like oil
prices were going up so what happened so
oil prices go way up uh uh us oil
producers go way up kico Phillips since
that there’s like a little bottom
somewhere with oil and the stocks in
January kico Phillips has looked like
this chart and it’s it’s up about 21 22%
and it’s baking in higher oil price um a
lot of Leverage to the bottom line for
earnings because they have a lot of
fixed costs and higher earnings
estimates those earnings estimates for
oil will probably come in the reason I
don’t like kico Phillips is because
Chevron and Exxon have talked more about
transitioning to responsible clean oil
production Kano Phillips has talked
about it to be fair but not a lot and in
their 10K they talk about risks not
opportunities they talk about risk when
it comes to clean energy so they’ve had
this big rally already and they’re not
up there in my opinion with Chevron and
Exxon with the future okay and as you
point out the clean energy projects take
time so I guess what you’re saying is if
they’re not already doing if they’re
just talking then they’re going to be
behind their competitors oh the whole
thing is going to take time and and and
there are not a lot of numbers around uh
cleaner uh you know zero carbon emission
like BP talked about it by by getting to
Net Zero by 2050 um and if you if you
just read up around I think you want to
get away from analyst land because so
much of this is unquantified today
there’s an article from the guardian
saying hey this is going to take some
time addressing the entire space right
exactly okay so let’s also talk about
what’s happening with trades here
Insider trades sales I assume if you’re
looking for a negative s signal that
we’ve had some Insider selling going on
yeah you’re talking about kico Phillips
yes yeah that’s never a great sign
that’s not a huge focal point for me
when I look at um a company but I I
probably will be in the future but I
mean that’s never a great sign yeah all
right so the risk that it could make it
do better here is that you do have oil
going to Triple digits or Beyond I guess
so oil’s gone up to a little bit a
little above 80 I’m thinking of WTI
Brent crude is a little bit higher than
that and then it stops right it had this
little little Spike when the Israel Iran
issue happened um and then it came back
down so it’s like okay if that issue
can’t uh cause more upside what you
would need more upside for the price of
oil is a rearing or a worsening of the
situation unfortunately overseas if you
get that yes you get a pop in oil and
you’d want to own kico Phillips but I
never would tell somebody hey own a
stock because this event might happen
and I have no idea right all right so
let’s sum up what you’ve said and by the
way as a baren reporter you don’t own
any of these or have a position in any
of these individual stocks but let’s uh
sum up what you’re telling people you
would recommend buying Air Products and
chemicals based on an achievable
recovery limited downside risk and the
big potential in clean hydrogen on the
other side you say avoid kico Phillips
for limited growth in oil prices a
longer timelining clean energy
initiatives and Insider selling thanks
so much for being here J good to see you
and thank you so much for watching
goodbye or goodbye we’ll be bring be
bringing you new episodes three times a
week at 3:30 p.m. Eastern
time now for today’s trending tickers as
we approach the closing bell on Wall
Street B Riley shares check them out
they are surging as the company
delivered its annual report after delays
amid its internal investigation so the
news here is just that the bank finally
files at 10K it had been delayed now the
filing did flag per reports Julie
material weaknesses and it’s reporting
but I think the bank is saying here and
this is the key that this independent
investigation effectively reached the
same conclusion as a previous review did
that it had no involvement with or
knowledge of alleged misconduct
concerning this client named Brian Khan
and the questions had been raised about
his role in the hedge fund collapse schz
had kind of flagged that relationship
the stock got whacked whacked but now
bottom line looks like a giant sign of
relief from investors right and Khan
himself hasn’t been charged with
anything and he denies wrongdoing but
regardless this does seem to um put some
space between be RI
and whatever allegations are um against
him related to the collapse of a hedge
fund um and so as you said a lot of
relief being expressed here the shares
were up even more out of the gate when
the company came out with this report so
there still are perhaps some critics out
there who are going to find what they
want to read into the report but for the
moment shares up
37% um so we’re couping some of the
recent losses um let’s also talk about
solar nase energy Shares are sliding
after that company missed estimates on
the top and bottom line second quarter
Revenue guidance disappointing we also
got some news from sun power which you
see there the company is going to be
cutting jobs but let’s talk end phase
first here um it makes solar equipment
and what’s interesting is the company
says things are bottoming it actually
says the second quarter is is kind of
the worst that things are going to get
here that the US rooftop solar Market is
going to rebound but invest perhaps are
not so sure and are looking at the the
numbers that were just reported yeah to
your point the the in the execs are
saying Julie q1 was the bottom quarter
uh they say the second half of the year
we expect stronger growth in demand team
at KeyBank though saying here lower than
expected q1 results and issued guidance
continued to weigh on the story
deepening the road to recovery and of
course and phas really kind of seen as a
bellweather for the industry so you did
see some follow through other names
reacting yeah one big event that
affected the industry this year is
California
pays prices to Consumers who sell energy
back to the grid they cut those prices
and that was a sort of a shock to the
system the whole ecosystem within solar
but that’s now being lapped so that’s
one of the reasons why the company says
things are going to get better but over
at sunpow which does the installations
of those rtop solar projects it’s
cutting more than 25% of its Workforce
it’s going to cut um it’s going to close
residential installation Loc ation um
and it’s sort of pivoting its model here
just another example High interest rates
have been tough for the solar industry
so that’s part of of what’s going on
here and these stocks have been just
whacked I mean end phase is down about
50% now over the past 12 months moving
on Trump media CEO Deon Nunes doubling
down on his claim of the djt stock being
apparent victim of naked Short Selling
here with the very latest is yah Finance
is Alexander Canal Ali hi guys yes so
this is a letter that Nunes sent to
Republican lawmakers essentially
accusing a potential manipulation of the
stock price saying that there’s been
anomalous trading of shares he says that
there’s been unlawful trading activity
which does stem from the naked short
selling now in order to understand this
if you want to go in short a stock a
Trader must first borrow shares that are
already owned before they can be sold
and a naked short sale isn’t illegal
practice of selling a short share that
has not yet been borrowed so this is the
Crux of the ISS here we do know that
short interest in DG JT stock that has
only increased as the company has hit
the public markets uh short interest is
about 133% of outstanding shares that’s
according to the latest data from S3
Partners the company has attempted to
fend off some of those short sellers by
giving investors some advice tips and
tricks on how to avoid their positions
from being shorted now I do want to
point out that Nunes has singled out
four Market participants that have been
responsible for more than 60% of the
volume of djt shares traded that
includes Citadel capital and Jane Street
Capital um citel Securities I should say
and this is something that nunz echoed
in a previous letter that he sent to the
NASDAQ on April 18th and following those
accusations we did see Citadel come out
with quite a fiery response saying in
part uh quote Devon Nunes is a
proverbial loser who tries to blame
naked short selling for his falling
stock price we have seen shares of this
company trade very volatile it is down
about 50% since that public market debut
but at current trading levels it does
boast a market cap of about 4.9 billion
that means Donald Trump has a stake of
around 2.9 billion and the stock did hit
a key Milestone yesterday close uh which
means that Trump secured an additional
1.2 billion so he can’t he can’t trade
in for six months so so that’s something
to point out we’ll see over the next six
months if we can continue to see these
levels I’m going to continue to watch
moving forward yes thanks for watching
for us appreciate it Ally well hot off
the heels of Tesla’s results we’re
taking a broader look at how investors
should look at the auto sector and how
they should trade it that’s next in the
Playbook
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Ford is the latest automaker scheduled
to release its first quarter earnings
results after the bell and amid the
ongoing EV push car makers continue to
focus on both fully electric and hybrid
options but affordability and access do
remain a top priority for customers
we’re looking at how to navigate the big
picture with the Yahoo finance Playbook
joining us now Olivier blanch Blanchard
a research director for semiconductors
EV and autos at the ferum group
apologies I speak French so always wants
to be the French pronunciation Olivier
um you know we’ve got Ford coming after
the close we already heard from General
Motors we already heard from Tesla if
you’re an investor how are you sort of
waiting these um as we sort of go over
these
earnings right um well it’s you know
it’s the the EV space is a complicated
space and I would say that the
automotive space uh more broadly is a
complicated space as well and the way
that I like to look at this is it’s not
just about EVS it’s also about softwar
defined vehicles and sometimes we can
flate EVs and software defined Vehicles
because they tend to merge um but there
are essentially two technology tracks
there one of them is obviously the the
decarbonization and the uh the battery
versus hybrids versus fossil fuel part
of the equation and the other part is
all of the uh the technology that goes
into Vehicles like Adas uh like cockpit
Technologies like all the connectivity
stuff and the intelligence uh that will
eventually take us to these uh these
these computers on wheels that that can
do anything for us and so when I’m I’m
looking at uh which companies have a
long Runway of success um I’m even I I
don’t want to be you know bullish about
Tesla but uh because obviously they have
some they have some operational issues
um but but all of these companies
whether it’s it’s Ford GM BMW the
Chinese
manufacturers uh Tesla included are all
on the right track for growth and so
think that some of the pains that we’re
seeing now are growing pains they’re
also reflective of seasonal behaviors uh
people buying cars at different times of
the year uh and I think they also
reflect a little bit the state of the
economy um currently the EV market and
the the automotive market for software
defined vehicles and EVS uh
simultaneously is is a little bit skewed
on the side of more expensive models and
uh consumers are just kind of you know
worried about that kind of spending
right now things are very expensive
obviously there’s inflation there’s a
little bit of price gouging uh and
people are a little bit closer to their
uh to their budgets and so what we’re
seeing is a reluctance to buy EVS for
two reasons one most of them are still a
little bit above the price point that
the average consumer uh for a mainstream
adoption of EVS is comfortable with and
the other one is fear about charging and
infrastructure uh about the
serviceability of the vehicles and also
about the long-term resale value of
these vehicles once the batteries and
the technologies that are on board have
a few years on them Olivia so uh if
price is an issue though you know Elon
mus just told you help is on the way
he’s got a more affordable version
coming I guess I have two questions
Olivier one is this more affordable
version I I’d love your guess as to what
that is going to be Olivier is it going
to be a truly new vehicle or just kind
of you know an existing vehicle with
some tweaks and two what do you just
ultimately think demand’s going to be
like yeah so I think the you know you
have to look at the price points that
that consumers are comfortable with so
let’s say the $35,000 range for a new
vehicle obviously that’s going to be
much more stripped down um than than a
luxury vehicle that’s 75 or $100,000 and
so I think that you know we the those
those parameters and those breaks within
the the industry with the price points
are pretty much set already now it’s up
to the EMS to come and and meet those
price points with the uh the types of
features and performance that uh that
that match them um unfortunately for
Tesla I don’t know what it looks like
yet and I don’t think that Tesla knows
what it looks like either uh obviously
they’ve slashed prices last year uh to
great effect right they they had a
banner
Q4 uh in Europe and in the US but
unfortunately it’s kind of a Sil Silver
Bullet you can only fire every once in a
while uh and so now you’re seeing Tesla
basically just um having purchased a lot
of these uh a lot of this volume uh with
with profitability and there’s not a lot
of room for Tesla specifically to go
from from a a positive profit standpoint
in terms of cutting cost so I don’t know
if there’s a short-term solution for
Tesla there however for companies like
Ford GM uh a lot of the the Korean
companies the European companies and
obviously the Chinese uh
evem um that’s that’s something that uh
that they’re a little bit better at and
that they’re they’re I think more
experienc working with and also they
have more scale production wise and
Olivia when you’re looking at ways to
sort of play demand for Auto I know that
you’re also looking at the broader Tech
ecosystem when it comes to chipmakers
that service the automakers for example
are those companies can they do well
even if for example EV sales aren’t as
strong yeah yeah so I look at a company
like qualcom for example uh that has
this this sort of like full digital
chassis platform that’s kind of layered
um so you can you know purchase the
entire stack from them uh and and try to
do kind of like a qualcom flavored Tesla
stack um or you can pick and choose and
I think that’s that’s where the so there
there essentially two tiers here there’s
one from technology side where you can
go to the luxury uh performance all the
way down to sort of like the budget
performance and just enable the right uh
the the right uh features for the
vehicles and choose the systems on ship
and the the essentially the hardware
that’s going to be most adaptable
cost-wise to those lower cost vehicles
or go with the premium uh and and equip
your vehicles that way and the other
thing is just limiting the number of
features so you could have an EV that
has very few digital features on board
right so you might have like just an L1
uh or maybe a low L2 level of uh of
driver assistance as opposed to the L2
Plus+ or L3 plus uh that you might see
in more advanced vehicles um and that’s
that’s just a way to kind of pick and
choose which features uh match the the
specific price points uh that are going
to appeal to to those consumers yeah so
there’s in other words there’s a lot of
flexibility there for the oems to work
with their technology Partners to find
the right mix miense Olivia thank you so
much for joining us today appreciate
your time thank you coming up it’s the
closing bell on Wall Street and that
just means it’s about time to break down
some earnings reports the latest from
meta for IBM and chipotle and much more
when Market domination overtime begins
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there’s the closing bell on Wall Street
and now it’s Market domination overtime
we’re joined by Jared blicker to help
get you up to speed on the action from
today’s session let’s start with where
the major averages ended up sponsored by
tasty trade we’ve got the Dow very
slightly changed here just down about 43
points so kind of come into the unch
line for all three major averages in
fact the S&P also a little changed the
NASDAQ up just about a 10 of 1% as we
talked about earlier really today it is
individual stocks that are pushing
things around rather than a big macro
narrative this is even with the tenear
note at
4.65% up about five basis points but not
really putting that much pressure on big
Tech as we await some big earnings but
Jared’s got a closer look at today’s
seor sector action and more hey Jared
hey Julie well let’s take a look behind
me at the Wi-Fi interactive you’re going
to see consumer discretionary in the
upper left guess what the biggest
component in that is it’s Amazon but
number two is Tesla and Tesla is flying
today so consumer discretionary really
powering things higher but number two is
xlp that’s Consumer Staples then you
have utilities and then you have Tech
which is xlk real estate and
communication Services really odd
mixture of growth and a little value and
also defensive stocks uh in there as
well now to the downside we had
Industrials down 8/10 of a%c that is a
Boeing Story another earning story
Healthcare also down a third of a%c and
financials just barely negative want to
show you the NASDAQ 100 here before I go
Nvidia is a stand out that was down
about
3.33% a nice number there and then Tesla
up 12% best day in over a year get those
final stats but uh it really is a story
of individual stocks here as you said
Julie uh back to you Josh Jared thank
you stocks any to day little change
climbing from the lows as investors
weighed Rising interest rates and
earnings Alexander canal and Josh sha
are here with the takeaways of the
trading day guys over to you yeah Josh I
mean I think to me the biggest takeaway
was that maybe there wasn’t a broad
Market takeaway today right I I think
sometimes we don’t have to make
something out of nothing here when you
look at the three major averages we
really didn’t have a big move I mean the
one thing that really sticks out
obviously is that over 10% jump you saw
in Tesla that of course driving the
consumer discretionary sector higher and
sort of leading things but Ally what
stuck out to me about that move was
there’s plenty of days where we’ve
talked about Tesla after earnings and
that driving action in the NASDAQ that
driving action in the broader market and
that wasn’t really what happened today
and maybe that has something to do with
these higher bond yields we’ve been
talking about a lot Julie mentioned we
didn’t get a big jump in the tenure
today but we certainly didn’t have
yields down and it seems like with
yields at this level maybe investors are
just being a little bit more cautious
and sort of waiting to hear from these
companies and earnings yeah especially
with a lot of the big Tech heavy names
coming out tonight and over the course
of the week I mean even so the fact that
we’re nearing that
4.7% on the 10 year that’s the next
technical level that strategists have
said to watch I think that’s something
that’s significant and we’ve seen that
hammer small caps we’ve seen that hammer
mid capap companies these larger cap
names have been pretty insulated from
this due to AI to a certain extent how
long can that be the narrative that
plays out and you know with Tesla I
think it’s interesting too because we
saw them Miss on earnings and revenue
and it shows that it’s not just about
the current story it’s the future right
and I think that’s what investors were
trading on with Tesla the future of this
company well it shows the faith-based
trade is not dead right and and and I
think that goes to to the point that you
were bringing up Josh how it’s not just
about a beat and hold sort of SE uh
season this earnings uh season it’s more
about the raise the guidance raise and
we’ve seen that play out with names like
Netflix for example you had that company
come out pretty solid earnings overall
but the stock went down and partly the
reason why was because we didn’t see
that guidance raise we saw actually
guidance com in below estimates for the
second quarter in the full year and that
creates some jittery feelings among
those investors yeah grw peda from city
was on this morning on the morning brief
show talking about that sort of the
environment right now given the rally
we’ve seen a lot of these stocks and one
stock that we’re waiting for right now
in meta right in sort of that massive
rally you’ve had over the last year
beaten hold so beating estimates but
holding on Guidance just really hasn’t
moved the bar I think back to JP Morgan
right JP Morgan Had largely I think
people would argue pretty good results
and really one of the things investors
were caught up on was the fact that they
didn’t raise their guidance to the
expectations that people hope for and I
think you get to this point in the
market rally especially with a name like
meta with a name like Microsoft or
alphabet coming up tomorrow that it’s
just how much is already priced into
that stock and a significant amount of
growth is already expected from these
companies and it sort of gets hard to
meet that after a while which I think is
why a lot of strategists are sort of
looking for a broadening out right
because if you’re looking at other
sectors those sectors might have a
chance to actually beat expectations
versus these massive companies that have
high expectations it becomes a little
bit harder yeah and we were just looking
at a meta chart over around 40% year-to
dat gains there and over 100% over the
last 12 months so you talk about
elevated expectations heading into the
pr
Tesla was the exact opposite Tesla has
really been struggling over the past
year so I’m curious to see the move in
meta uh obviously that has been boosted
by a number of their initiatives but
also the fact that we saw dividend we
saw stock buyback that obviously a good
thing to help boost shares well and just
thinking about sort of the macro drivers
too as we were talking about today we
had a day where Tesla Rises over 10% and
the market doesn’t really take off on
that right the NASDAQ doesn’t take off
we don’t see a big move it’ll be
interesting to watch the market action
over these next couple days of tech
earnings as we see sort of investors
digesting these earnings is that the Big
Driver right now is maybe a GDP print
tomorrow that can move yields as we were
talking about going to be one of the
bigger drivers I think that’s something
that people are focused on right now is
sort of what is what are we going to
pick out from these different results to
sort of get some sort of maybe a more
solid narrative because I don’t really
know if we have one this far from I
think it’s going to be meta and let’s
talk about what they say what they say
so they came out um it looks like the
first quarter came out comfortably above
estimates the second quarter though
maybe not as much so first quarter
Revenue at$
36.467853
billion the midpoint of that looks to be
below the about 38 and A4 billion
dollars that analysts had been end
anticipating so the quick reaction here
is that the shares have fallen but to
your point Josh um Schaefer that is this
is a stock that’s up 39% year to date
and so how much is priced in already is
a great question we I’m just looking at
the statement here Mark Zuckerberg says
it’s been a good start to the year he’s
pointing out the new version of meta AI
with llama 3 he says another step toward
building the world’s leading AI we’re
seeing Healthy Growth across our apps he
says and we continue making steady
progress building the metaverse as well
so it doesn’t see seem like anything
fundamentally is changing with the
strategy at meta uh at first glance here
it seems to be folks are focusing on
that second quarter forecast I’m going
to keep digging in here yeah I mean the
stock you know listen as we were
discussing heading into this print it
had been a monster was up about 40% this
year and now you’re given some of that
back in the after hours and it does look
to be that Q2 sales forast lagging at
the midpoint there Julie it’s also I’m
just looking at expenses because that’s
another big obviously Focus for
investors with his name they see full
year total expenses now 96 to 99 billion
they had seen 94 to 99 billion a lot of
questions I call about the guidance um
what are they seeing that maybe the
street missed um other issues that are
going to for sure come up company’s AI
tools reals monetization President Biden
just signed into law obviously forcing a
a sale or a ban of Tik Tok I think
there’s a lot of questions about what
that could mean for meta how much could
that benefit if that really goes through
yeah so let’s talk about some of the
stuff that is contributing to those
higher expenses because to your point
the street loved it when they were
cutting expenses so what’s the reaction
going to be now that they’re increasing
the lower end of the expenses there so
the company’s talking about higher
infrastructure costs higher legal costs
which is something that we know has been
sort of ramped up uh regarding the
company and for reality Labs operating
losses will increase meaningfully that’s
the word in the statement here
meaningfully year-over-year due to our
ongoing product development efforts and
our investments to further scale our
ecosystem Capital expenditures this year
are going to be 35 to 40 billion that
had been to 30 to 37 so they’re
increasing that range well I guess
they’re
lowering yes they’re increasing that
excuse me they’re increasing that full
range um as they are accelerating
infrastructure Investments to support
artificial intelligence so again the
street loved it when these guys were
seeing the light on expense reduction
now uh Mark says uh maybe let’s just let
it creep up a little bit here and it’ll
be interesting to see sort of how he
talks around that on the call right
because there is certainly in a part of
the AI investor story that I think
investors largely understand at this
point which is expenses are going to go
up if you’re investing significantly in
AI it is going to cost a significant
amount of money these companies meta
including also alphabet and Microsoft
are expected to be increasing capex over
the next year and be the main capex
drivers in the S&P 500s I I don’t think
it’s necessarily a shock of course
they’re raising their expectations for
how much they’re spending then a little
bit more than before but to me it will
be interesting to see sort of in the
next day or so how we digest exactly how
they’re spending that money and what
it’s going to do because when it gets in
that reality lab segment to I think
that’s maybe where investors might get a
little hesitant that has not been the
most productive part of meta’s business
since it since they launch that part of
the business and so I think maybe
understanding where they want to spend
that money how it probably leads to some
sort of AI Solution that’s going to help
the company might help a little B yeah
and I think this is going to be
something that all of these big Tech
names especially those with exposure to
AI are going to be dealing with and it’s
interesting to see the after hours
reaction to some of those meta
competitors you’re seeing alphabet
shares down about 2% right now and after
hours Microsoft not as bad about half of
a percentage point right now but again
that’s something that I think investors
are going to be really focused on just
the spending and and again guidance like
what we were talking about that Miss
really driving shares lower my big
question
is he going to be wearing the chain I
know on the ear call shares will rise
shares will rise Drive the stock to that
it was it was like the biggest makeover
Ever all right thanks guys appreciate it
and joining us now to dive deeper into
meta’s results as Rohit karney managing
director at Roth mkm great to see you as
always Rohit so what is your sort of
first blush reaction here especially
given that we’re seeing this tumble in
the
shares um again we thought the
expectations were high going into the
print uh they uh Street estimates they
beat street estimates for 1 Q that’s a
good sign probably they came in line
with what investors were expecting uh
the key kind of yellow flag here is uh
the high end of guide does not bracket
what investors were expecting investors
in my opinion were looking for close to
$40 billion maybe slightly more than 39
and a half so I think Q2 guide is is one
yellow flag and as you guys mentioned uh
the capex and Opex both are rising so
second quarter in a row they are raising
capex guide so clearly what how much
they’re investing in AI for
infrastructure is uh going to keep on
ramping up and they have this curious
little quote inside uh the pr saying um
we are not giving guidance for 24 but we
think uh we will continue to invest in
uh capex and AI infrastructure so which
means capex is going to continue to rise
in probably they keep playing catch up
so that those are the three worry points
Q2 Revenue guide uh 24 Opex Rising 24
CAPIC Rising second time in a row um in
isolation again uh for meta the
valuation support that you get around
$440 $450 per share is extremely solid
it’s trading at around 18 times uh right
now um for next year’s earnings I think
you don’t get an asset like this so it
continues to bounce between where it is
right right now to maybe back to 500
over the next few months so we would be
buyers on this weakness uh but we love
to understand what’s going on with the
capex guide and and uh re I’m also just
curious you’d be buying on this weakness
but in in the course ahead do the how do
the comps actually get meaningfully
tougher roit from here yep I think coms
get tougher and the second double bamy
Josh they have is uh investors don’t
have a visibility into incremental
Revenue drivers coming into 23 we knew
that they’re going to ramp up reals
monetization they’re going to ramp up
click to messaging they’re going to ramp
up AI uh geni related things throughout
23 into 24 the number of incremental
Revenue drivers are slightly limited uh
and we have very limited visibility as
to what net new things can they do or is
it going to be more of the same so I
think that’s the worry wall of worry
that investors would need to climb about
coms getting tougher and fewer
incremental Revenue drivers so uh
hopefully we get a better narrative from
them around the net new things that they
have been investing in Perhaps it is
about e-commerce Perhaps it is about
what they’re doing with Amazon and uh
shops on Instagram so there are new
things but not as big enough as we saw
in 23 right on that point and I’m glad
you mentioned AI right we have
transitioned from uh you know all of the
calls talking about how generative AI is
going to be transformative it’s the
biggest things since the iPhone is this
and that and now what is it I mean maybe
it’s still going to be all of that but
we’re not seeing that bare fruit as of
yet it’s not going to be you know that
incremental driver that you were talking
about so how should investors be
thinking about it when it comes to
meta um I think uh let me get this
straight uh with regards to mag 7 and
definitely within the internet Mega caps
um meta is probably executing on a gen
Playbook uh and out executing its twers
U better than what we have seen in uh
the other mag five players if you will
uh the reason I say that is they have
recreated their entire ad stack that has
about 10 to 15 million customers which
are their advertisers and so the the
scale of um Improvement that those
advertisers will get with Gen
improvements is going to be Amplified
and that’s going to help with the
fundamentals they’re not doing a lot of
external things that we we are able to
see on Instagram or Whatsapp or whatnot
those are mostly experiments but uh in
my opinion um meta is executing the AI
Genna Playbook better than peers and and
that’s something that we are very
excited as to how uh ad stack is
improving and now they’re improving on
consumer uh consumers as well but you’re
right I think Julia in terms of it’s not
yet apparent it’s still coming and
that’s the amount of Investments that
they need to do to make it very apparent
um that is probably going to be the big
question mark tomorrow morning road I’ll
get you out of here on this obviously a
lot of news around Tik Tok potentially
you know good news for meta uh
absolutely as and there is no doubt
about it I think the way this is going
to be a slow moving iceberg in my
opinion or slow melting Iceberg for the
next 69 months and then it melts very
fast but over the next 69 months if you
are a new Advertiser who’s looking to
spend some resources time or money on
Tik Tok you would be hesitant um because
what if Tik Tok goes away in the next 12
months uh so the first thing you do is
probably uh go to uh the next best thing
that’s out there that’s Instagram so the
first and the most uh direct beneficiary
that we think that happens with the
volatility in Tik Tok in the next 69
months that’s meta that’s Instagram and
then there is probably strickle down to
other companies like a like YouTube and
then maybe Snapchat but Instagram is the
best beneficiary next 9 months beyond
that it’s a much bigger beneficiary
and and Rohan you know I know that
you’re bir rated on meta um so do you
think investors should be stepping in
here as the stock falls on this earnings
report or is there like a key question
that you need answered on that
conference call first um I think uh um
objectively speaking uh there is uh the
the potential upside that investors
thought that this is a company that
could show a pathway to maybe $26 per
share for25 maybe $27 per share I think
that is off the table uh but having said
that in my opinion this company
definitely does at least 23 maybe $24
per share and that means at after hours
it’s trading at 18 times and plus
they’re going to buy back shares and
generate a lot more cash so maybe
they’re trading at 16 times uh which
means we would be stepping in and buying
it here but perhaps the upside that
people are modeling maybe it goes to 550
and Beyond that’s going to come down a
little bit but still at 440 it’s the
best mega cap to buy right now all right
Ro hit thank you so much for breaking
down those earnings we appreciate having
you on the show thanks Josh thanks J for
chairs arising following an earnings
beat on the top and bottom line let’s
get to those numbers Julie q1 results
beat q1 adjusted EPS 49 cents uh Street
was at 42 cents Topline better than
expected to revenue comes in at 42.8
billion versus consensus at 40 billion
looks like they reiterated earnings
forecast for the year 10 billion to 12
billion before interest in taxes raised
free cash flow forecast to between 6.5
and 7.5 billion you can see the stocks
popping here heading into the print we
were already up about six 7% this year
Julie yeah and it’s interesting the
breakdown in the different divisions as
well a Ford Pro that’s their commercial
business um Revenue there up 36% in ebit
uh earnings before interest in tax more
than doubling they saw H demand for
their Superduty work trucks and Transit
Vans Ford blue which is the sort of
Legacy business view all those what
they’ve always done um they said their
hybrid volumes on Pace for 40% ful year
growth if they continue at the same
trajectory which I thought was quite
interesting because we’ve seen that sort
of pivot on the part of car buyers to a
hybrid here so that’s part of what we’re
seeing and the president’s CEO Jim
Farley staying in the St statement that
um he sort of is emphasizing the site of
different choices that they are offering
to consumers right now yeah you know is
EV growth is slow they’ve really kind of
dialed back their EV strategy and so now
it’s about okay we’re going to ramp up
output of the bread and butter you know
traditional gas models like the bronos
sport and to your point focus on those
gas electric hybrids too which people
want you know consumers are still hungry
for those I mean the the pro business
really a standout here in the quarter
for sure still to come more earnings to
break down we’re going to get you all
the numbers for both IBM as those Shares
are sinking and then we’re joined by an
anal to break down the latest numbers
from Chipotle as those Shares are higher
following an earnings beat more Market
domination overtime coming up
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let’s get you up to speed on the action
from today’s trade sponsored by tasty
trade and look at the major averages
Julie it’s Bas a real muted kind of
finish to the day the Dow is down about
call about a tenth of a percent the S&P
500 has basically ended the session flat
Tech heavy NASDAQ finished it up about a
tenth of a percent so let’s get to some
more earnings IBM confirming it is
acquiring software company Hashi Corp
that’s been uh reported upon in recent
days at the same time it’s also
reporting its first quarter results here
and the company shares are falling as
you can see Revenue coming in at 14.46
billion
14.25 billion is what analysts had been
anticipating and the company’s operating
EPS earnings per share that is at one uh
at a168 excuse me the company says that
that Hashi cour buy is going to add to
its iida in the first uh the first year
post the acquisition at the same time
the company is not uh really raising its
forecast for the year it is leaving that
unchanged so that’s something to keep in
mind as well um so the shares under
pressure here it looks like there’s
might have been some weakness in the
Consulting business um and that’s part
of the reason it seems why the shares
are trading lower yeah it’s interesting
Julie because I know there’s some on the
street analy cover the name and and they
would argue IBM is kind of a show me
story and and if you know they’re
effectively saying listen they actually
kind of like what they would see in the
software uh side of the business the
growth the profitability um you know
software represents probably it’s like
roughly 40% of total mix but I know they
would kind of call out concerns they
might have about the Consulting business
right um so on the call today I mean
listen there’ll be a lot of questions
about the acquisition but also questions
about AI bookings Revenue overall
contribution Red Hat performance and
Outlook Always In Focus um kind of what
the trajectory looks like there and then
and then that Consulting growth um and
free cash flow too progress toward that
kind of 12 billion Outlook they right
and that’s something that they did not
change so maybe there’s just point that
they didn’t raise it unclear but if you
break it down here software Revenue was
Rose by 5% % Consulting Revenue was flat
and infrastructure Revenue fell by 1% so
Consulting Revenue to your point was
kind of the focus here or the swing if
you will um that the people were paying
attention to and that is an area that
seems to have disappointed so hence uh
the decline that we are seeing in the
shares in the after hour session and um
when you look at by the way how the
shares have done as well um they’re up
about 12 and a half% year to date so not
like
huge outperformance not huge I mean
they’ve done better than the market y
but it’s not like meta sized returns ear
today going into this oh for sure moving
on Chipotle shares gaining after the
company reported its first core results
also out company’s comparable sales
beating analyst estimates uh here for a
deeper dive in Chipotle’s results let’s
get to RJ hadavi Place uh uh head of
analytical research RJ it is good to see
you so maybe just get your your first
hot take on that report R.J what’ you
make of it yeah I mean I think right out
of the gates that same Source sales beat
was uh was pretty significant coming in
at 7% versus uh uh consensus estimates
of 5.4% uh our data show pretty strong
traffic throughout the quarter January
was weak just because of weather but
strong results February March I think a
lot of that goes back to new product
innovations that the company released
but also some improvements probably on
the throughput side we saw that in the
leverage uh the operating margin numbers
as well um and that’s continued in the
second quarter so I think uh you know
really it’s that Top Line momentum
that’s really driving that not every
restaurant operator can say that in this
environment and you know grow stocks uh
if you can find some really great
stories like that uh that’s where we’re
seeing a lot of the market gravitate
towards these days hey RJ it’s Julie
here I mean it is interesting that
operating margin at 16.3% which was up a
year-over year from 15 and a half% um
and as you say that’s partly Topline
growth here how much of it should we
also attribute to price you know and
what is sort of the cost of goods
looking like these days
yeah certainly price is an element of it
and the company’s was running in you
know the low single digit in terms of
pricing increases year-over-year uh
certainly below what we’ve s seen with
the inflation period last year but uh
you know certainly an element of pricing
going in so I think that’s certainly
attributing to it but I I do think if
you look at that uh based on the Topline
numbers and you know the typical
leverage you would see with that I think
you can also start to look at some
improvements the companies talked about
throughput improvements for the last
several quarters and I you know comes
down to better training and better uh
retention and I think we’re starting to
see that in the numbers I think still
room to go I think there’s still some
opportunity there but that is a really
encouraging number and really coincides
the visitation numbers that we’re seeing
with our data RJ I always love that word
throughput for the for the lay people
among us what what is that I mean it
basically means like getting your food
to you quicker making the whole process
of moving through the line quicker right
EXA exactly it’s it’s for for Quick
Service restaurants it’s key to be able
to get people through the line quickly
and it’s the reason why people are
willing to wait in long lines at
Chipotle because they know that they can
get through that quickly and not every
restaurant operator has that ability and
so I think that’s an important metric
and in fact there really is a high
correlation for those chains that can
move people through the line quickly
during their peak hours um they
generally tend to be more successful
longer term and uh that shows they have
a lot of demand if people are waiting in
the line that shows they’ve got the
operations uh down patent so I think
that’s something that chipotle would
would admit that they could get better
on that front they want to get back to
Peak levels that they saw pre pandemic
but they I I’m starting to see an
improvement based on our numbers and our
visitation around Peak hour right now uh
the thit enhancements they’re making
seem to be off and RJ you know heading
into this print the stock had already
enjoyed such a run it was up about you
know already 30% this year 60% of the
past 12 months how does valuation look
to you at these levels you know it’s one
of those cases again where I mean
there’s not that many growth names in
this category particularly that has the
wh space opportunity that chipotle does
um you know the companies talked about
six thousand units longer term and you
know potentially even higher than that
too as you start to look at smaller
markets and opportunity there so from a
valuation perspective I would just say
um there is still a lot of growth uh
involved with the stock you know in our
visitation data particularly in these
smaller markets shows that a lot of
white space and so I think that’s one
thing you got to keep in mind with the
valuation perspective here so what you
guys do there among other things that
place their AI is look at the those
visitation trends that you talked about
the traffic Trends and I’m curious if
you are seeing across fast casual in
qsr overall increases in traffic or if
it is really idiosyncratic
Chain by chain or even Market by market
can you kind of talk big picture about
what you’re seeing yeah very wide range
uh in fact we did see we got most of the
chains most of the both qsr and fast
casual were down in January and again
that was largely weather related but
then we looked at February March we were
looking at you know flat to slightly
positive for most of the qsr fast casual
category and to come in our estimates
put it somewhere in the low to mid
single digit in terms of transaction or
visitation growth for pootle so they’re
doing a lot of things right they’re
beating the the category by a sound
amount there um you know so I think it’s
not just you know the growth itself but
it’s that outperformance if we look
relative to Chipotle’s peers um and
again they’re doing a lot of things
right it’s the chipot lane be able to do
the digital order and pick up it’s
moving to smaller markets it’s the
throughput enhancements it’s the Loyalty
uh the digital platform engaging
customers there they’re doing a lot of
things right and to be honest not
everybody’s putting that same investment
in them in this categories so a lot they
put in uh we’re seeing and that shows up
in the results that we saw today already
and I’m curious who is um who is the
Chipotle customer do we have line of s
into that demo RJ and is that a more you
know relatively resilient consumer it is
uh when we look at our data it
definitely skews to a higher household
income consumer uh you know relative to
to Countrywide averages it’s you know
generally pretty high in there um yeah
so it’s not a surprise that this has
been a more resilient customer
particularly with inflation and other
headwinds coming in but what is
surprising the company’s talked about
this too is they’re starting to see
visitation increases across all cohort
groups uh from a household income
perspective and that’s what our data is
showing as well so encouraging that you
we’re starting to see some stabilization
among particularly that lower income
consumer um there may be other factors
at play too we’re starting to see return
off has become a bigger Factor that’s
driving some of that particularly for
the lunch Day part in terms of visits
here um as I mentioned smaller markets
is also something that’s big for these
guys as well so um you know that that
core customers tends to be a higher
household income it’s generally a little
bit younger uh than than say a casual
fine dining um but you know we’re kind
of kind of seeing consistency with the
visitation Trends across different
cohort groups at this point R.J finally
I want to ask you about wages right um
and I know you’re focusing on traffic
and and visitations right now but um
especially what we’re seeing happen in
California with wage increases what
effect do you see that having on not
just a Chipotle but any of the big
restaurant chains it’s a great question
something we’ve been looking into a
little bit more uh honestly with the
wage increase only kicking on on April
1st we have only have a couple weeks
data to look at at this point generally
speaking what we’ve seen is that
California as a state as well as key
markets in California that’d be Los
Angeles San Francisco San Diego are
generally just tracking off a national
average at this point we see it uh
slightly behind uh there is a midly
little bit of noise in the first part of
the month with uh a or with Easter
travel and things like that but
generally speaking it is lagging and I I
think we’re still in that adjustment
phase a lot of consumers are coming in
and maybe hadn’t seen any kind of w or
price increases because of the wage
increases too so uh it’s something we’re
going to be actively monitoring it’s
something that’s a little early to tell
um just like I said they’re slightly off
national average right now in the state
of California but I don’t think it’s
enough to make any direct inferences at
this point we’re going to need a little
bit more data on that RJ thanks as
always for join joining the show
appreciate it thank you and tune in
tomorrow we’re gonna have an exclusive
interview with Chipotle CFO Jack Hardon
in the 9:00 am hour of Yahoo finance
time now for to watch Thursday April
25th starting off on the early front
with two Magnificent Seven stocks in
Focus Microsoft alphabet and Intel all
reporting tomorrow Microsoft announcing
third core results for 2024 after the
Bell an it’s expecting the tech giant to
continue its strong Cloud sales and AI
improvements to Azure workloads we’ll
also be getting some Airline earnings
tomorrow from Southwest and American
both reporting first quarter numbers
before the Bell analysts expecting Fuel
and labor cost to be a factor for both
Airlines higher fuel costs are likely to
bite into southwest’s earnings and
Market Airlines is facing the challenge
of a new contract approved last August
that will increase pilot pay and taking
a look at the economy first quarter GDP
data is coming out tomorrow morning
Economist forecasting economic growth to
slow down compared to last quarter’s
unexpected game new report giving us
more insight on inflation as the FED
continues to ponder interest rate Cuts
that’ll do it for today’s market
domination overtime be sure to come back
tomorrow 300 p.m. Eastern for all of
your coverage leading up to and after
the closing bell stay tuned we’ve got
more Finance on the other side
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it was another seesaw day on Wall Street
while stocks closed off the lows of the
session higher bond yields wait on
investors joining us now is Christian
mcon amplify etf’s CEO Christian is good
to see you so uh you know Christian we
had the pullback but you say look out
this could actually turn into a
full-blown correction how come
Christian yeah I think you know the
market really is digesting what’s going
to happen with rates here and you know
we’ve taken a lot of cuts off the board
maybe one expected and you know data
kind of is coming in hot here for the
economy which is I think pretty good uh
for a long-term for investor but for
investors betting on rate Cuts uh that
could cause some more issues in the
market so uh while we think this uh dip
could be a little bit more pronounced
than three 4% maybe closer to 10% we
think this is probably a good longer
term by the dip situation because of
course we’re in a presidential election
year and some of those Cycles show that
uh you know the end of spring uh early
summer are weaker followed by a fairly
strong fall so we think this could be a
buy the dip opportunity could get a
little rougher here uh but we do think
there are places to maybe hide out for
example okay so give us some of those
places where people can hide out and
presumably you’re talking about hiding
out
maybe while this correction that you see
is is happening yeah that’s right yeah
and there’s different kind of forms of
that right so one of the areas that
we’ve seen do quite well in the last
month with the S&P down 3 4% is silver
and you know specifically uh silver
stocks so the S&P down you know 3 4%
we’ve seen our Junior silver miners ETF
sij rally by 177% so about a 20%
performance difference just in the last
30 days between Junior silver mining
stocks in the S&P really due to a couple
factors some of it is the increased debt
burden um there’s been some reports out
about record uh silver use industrially
in
2023 uh yeah the price has risen on
Silver uh but uh there’s probably we
think more to go there given the current
environment so we think uh looking at
those uh silver stocks may be a nice
little way to grab some Alpha here well
the general Equity Market tries to
digest kind of the future what about oil
Christian you want to exposure there as
well yeah we think so uh you know oil
certainly is very volatile right now
given recent events um there’s a lot of
uh exogenous events affecting oil be it
GE geopolitical conflicts or even some
of the Cold War issues uh going on uh
with the US and the spr so we think
owning oil though is is a great thing
for investors to benefit from uh these
higher than average oil prices even
after we’ve come off the peak uh equal
larger profits for for oil gas chemical
companies and um many of these companies
are pivoting and saying you know what
we’re not going to spend all the money
on R&D like we did in the past instead
we’re going to return Capital to
shareholders so they’re increasing their
dividends they’re doing Special
dividends stock BuyBacks so we think uh
looking at an air a portfolio of high
dividend yield uh oil gas chemical
companies uh Mak sense we have indiv and
div our natural resources ETF yields
well above 5% we think the yield could
be closer to 8 to9 % with special
dividends coming in later in the year
we’ll have to watch earnings for these
oil and gas companies to see but again
elevated oil prices are good for the
bottom line here and in this case really
helps with shareholder returns and then
you guys actually run um an Israel ETF
which uh you know seems like it would be
kind of a counterintuitive play right
now with the geopolitical risk yes it’s
definitely for a perhaps a more of a
longer term investor or contrarian
investor
um portfolio uh this is itch
itq uh the Israel technology ETF from
amplify and blue star is a a fund that’s
been out for nearly nine years it’s
averaged 9% a year average annual
returns going back to 2015 and it invest
in the companies that are really
innovated that are coming out of Israel
and these are cyber security artificial
intelligence clean energy uh agriculture
uh companies uh very cuttingedge
companies compies that are trading at a
meaningful discount right now uh because
of several of the things yes the Hamas
conflict but also before that there was
the judicial controversies in the
Israeli government and this has really
pushed uh these companies down now
they’re above where they were uh as of
the October 7th attacks uh but we think
they could be a great uh play for the
longer term investor if you look at
geopolitical conflicts in the Middle
East or Israel investors benefited from
buying the dip uh in Israel equities in
general certainly even more so looking
at these technology companies so we
think itch is a great Savvy way to get
involved uh these companies are trading
at 11% discount to their price to sales
ratio uh over the last seven years and
again with the portfolio averaging 9% a
year going back to 2015 average annual
returns we think buying this on a dip
makes a lot of sense for long-term
investors who want exposure to maybe
more moderately priced technology stocks
and are willing to stomach some of the
headline risk and increased volatility
that hopefully um will dissipate over
time so Christian so uh silver oil in
Israel would putting together an
interesting portfolio uh give me I’ll
get you out of here this Christian give
me you know is there a sector though or
an asset you would avoid here
Chris well that’s a good question so I I
think um looking at the artificial
intelligence stocks here their
semiconductors uh is something that
you’d want to pair back from um they’ve
had a great uh run they’ve been they’ve
had tons of momentum and certainly we’ve
seen them drop off we think breath in
the marketplace is going to broaden and
if that’s the case uh less money will be
chasing these names more money will be
chasing maybe some of the higher quality
growth companies or other sectors Beyond
just technology in in in IND Industries
like semiconductors so we think taking
some of that exposure off and looking at
other areas that are maybe more
moderately priced that haven’t had this
in type of incredible run makes a lot of
sense here Christian that was a great
chat thanks for joining the show
appreciate it hey good to see you thanks
for having me up next a look under the
hood at the commercial real estate
market as part of Yahoo finance’s
weeklong special real estate the new
reality we’re dissecting it all when we
come back
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tightening spreads and debt worries
tainting the look of the commercial real
estate market this year but our next
guest says fundamentals for the market
are sound for more on the bright spots
and storm clouds of the commercial real
estate space let’s get to Marcus and
millichap CEO Assam Naji joining us here
as part of our weeklong special real
estate the new reality uh n it’s good to
see you and maybe you know we talk about
CR a lot on this show and maybe we’ll
just start there um kind of your 30,000
foot view of the sector how healthy and
resilient does it
look good afternoon thanks for having me
on the program we really have to
separate the property fundamentals and
property performance from the capital
markets interest rates and valuations on
the property fundamental side of the
equation the industry as a whole is
running somewh something in the
neighborhood of 90 to 95% occupancy
rates except for the office sector and
um is not seeing a massive overbuilding
problem or rent collection problem uh or
any kind of a reversal in healthy
occupancies what we are seeing is
pockets of overbuilding for apartments
uh we’re definitely seeing pockets of
overbuilding for warehouse distribution
facilities which has been really driven
by a lot of e-commerce growth over the
past 10 years and uh other than those
two there is really no signs of any kind
of a performance concern or occupancy
concern the office sector is a whole
different story and even there we have
newer properties especially in Suburban
markets that are running on average 11
12% vacancy rates and then there’s urban
office uh especially older ones that are
running 25 to 30% vacancy rates and uh
those happen to get a lot of the
headlines and a lot of the focus because
of hybrid uh work Solutions and people
being reluctant to come back into the
office office full-time which are
legitimate problems many of our clients
are reporting continued headwinds
against getting people back in the
office but it’s really limited to Urban
office especially the older stock of of
Office Buildings on the capital markets
interest rates and valuation side of the
equation we’re still seeing a big bit
ask spread between buyers and sellers
and reluctance by Banks and Credit
Unions to be actively lending in the
market so that is still the most uh kind
of the biggest area of Challenge and I I
I noticed that the the group in terms of
sentiment around the stocks has not been
great that’s true of Marcus and millich
that’s true of Real Estate Investment
Trust it’s really true RIT large here
and do you think that that sentiment
basically has to do with what the
outlook for interest rates and that
perhaps the stocks can’t recover until
we get an A little bit closer to when we
might actually see cuts
that’s a great question and there’s a
direct correlation between the groups
the entire sector’s uh valuation
movement and fed sentiment we saw a big
runup in the in the sector’s um
evaluations late last year when interest
rates were coming in you know the tenear
treasury had peaked around 5% and then
pulled all the way down back down to 4%
and you saw the stock prices go up
accordingly and then when the FED
basically changed its mind again given
the inflation readings of the last
couple of weeks coming in hotter than
expected and now the notion of delaying
the easing cycle you you see the stocks
are under pressure again so there’s a
direct correlation between fed
expectations and interest rates because
of the fact that the cost of debt is
such a Paramount element to evaluating
commercial real estate the vast majority
of transactions use debt in some form
typically 60 to 70% of of the value of
an acquisition has been financed whether
it’s banks credit unions insurance ins
companies U and other forms of lenders
the cnbs market and so on agency lenders
for apartments and therefore the
sensitivity to the cost of debt has a
direct correlation on pricing and it’s
not a surprise to see that tight and a
band Hass I’m curious when you’re
talking to your clients right now what
are they most interested in where do you
see the the strongest
demand you know it’s interesting there’s
been so much focus on the fed and
everyone at least logically still
waiting for the FED to break the the
cycle of tightening and and introduce
the cycle of easing and there’s a lot of
U kind of dependency on that timing and
and the shift for when people I think
are going to become much more aggressive
in coming into the market meanwhile
what’s interesting is that two years has
now passed since the uh tiany cycle and
that time frame has brought price
Corrections has brought some distress
operational distress not so so much you
know industrywide big sell-off of major
portfolios but operational distress in
many different product types and markets
and therefore more properties are coming
to Market at prices that are far more
reasonable and they’re very competitive
with replacement cost one of the most
important metrics for commercial real
estate investing is replacement cost and
so a lot of our clients are actually
seeing that replacement cost is not much
higher than the price that can fetch
current assets uh and uh and therefore
they’re moving ahead even before the FED
really confirms its intention to bring
down interest rates with the first you
know reduction um so we’re seeing more
activity we’re seeing more properties
come to Market through exclusive
listings because those sellers that were
waiting for a hell Mar from the FED are
now seeing that that’s not going to come
and interest rates are even when they
start to come in they’re very unlikely
to go back to where they were uh you
know which was near zero for quite a
long time so there is a whole
recalibration and adjustment in the
marketplace that’s happening as we speak
it just hasn’t quite finished its
process yet ham great to see you thanks
for joining us as
always thanks for having me coming up
plenty of earnings we’ve still yet to
talk about we’re getting you the latest
numbers from service now and Whirlpool
on the other side
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let’s take a look at what’s trending
after hours shares of service now are
sinking after the software company sales
outlook for the upcoming quarter came in
below estimates suggesting corporate
customer budgets remain tight but it was
a solid first quarter for the company
profit more than doubled as AI enabled
software sales soared and service now
did beat on the top and bottom lines
also taking a look at shares of WHL pool
here getting a Boost after hours the
company is cutting roughly 1,000 salary
position and efforts to reduce costs as
week us home sales weigh on demand
revenue for the first quarter be anal
estimates but sales of large appliances
in North America fell more than 8% from
a year ago and that’ll do it for today’s
yahooo Finance live be sure to come back
tomorrow 3 p.m. Eastern for all of your
coverage leading up to and after the
closing BT
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US stocks secured gains across the board on Tuesday, as tech-focused investors prepared for a fresh wave of earnings highlighted by struggling Tesla (TSLA).
The tech-heavy Nasdaq Composite (^IXIC) led the trading day, surging about 1.6%. The benchmark S&P 500 (^GSPC) rose about 1.2% after staging a comeback from a six-day run of losses on Monday. The Dow Jones Industrial Average (^DJI) climbed roughly 0.7%.
Tesla rose as much as 8% in after-hours trading after the company suggested its future vehicle lineup would include more affordable models. The update comes as the electric vehicle giant missed earnings expectations on both the top and bottom lines. Gross margins came in above estimates of 16.5% to hit 17.4% in the quarter.
Tesla’s earnings will likely be a catalyst for the S&P 500, given the stock’s weight in the index. Shares have been hit hard after 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.
For more on this article, please visit:
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