Morning Brief hosts Brad Smith and Madison Mills guide investors through the market open, covering the biggest industry stories and talking to top Wall...
guide investors through the market open, covering the biggest industry stories and talking to top Wall Street and economic experts.This is Yahoo Finances flagship show the morning brief brought to you by invest.
Luca Maestri will step down as CFO effective January 1st Master will continue to lead the corporate services team and report to see Tim Cook Apple says as part of a planned succession, Kevin Per Apple's current Vice president of Financial Planning and analysis will become CFO the announcement comes as the company we know deals with weakness in iphone sales and growing demand to incorporate a Apple struggled in the first half of the year.
So even with these futures movements lower as of right now, there's still a holding above that tactical level that Bank of America research is pointing out.So all of that considered the moves that we're seeing, of course, coming into the start of today's trading activity.And let's get into some of those tech stocks because you've been keeping a close eye on some of those large movers to the downside that we were seeing yesterday and largely they were in semis.
Yeah, just lastly, even while we're talking about some of these tech names, I'm taking a look at some of the other downside movers that we had seen yesterday. And as you can see, one of the big laggards in the retail space is Amazon, which is part of the broader tech tech draw down that we were seeing to start off the week ahead of those in video earnings, but we're going to focus in on the broader tech story and one story.CFO look at my history will step down at the start of next year, will be replaced by Apple's Vice President of Financial Planning, Kevin for more on this.
And you wonder how Kevin and Tim Cook, even though they've worked together for years at this point, how that will shift, how Kevin might put their stamp on the CFO role at Apple two and what that difference may look like.So he's been working like hip to hip with Luca for a long time and he will now be reporting to Tim Cook as well.And I, I would say this to, you know, listen, I mean, and just in the interest of full to closure for the audience, I worked at Apple.
There's a lot of competition coming out of China, so it would be a challenge, but I think he'll be up for it given his long tenure at Apple so far. So an amazing transition from Steve Jobs to Tim Cook, I expect the next transition to also go well, uh likely from someone who's currently at the company.And I expect when the day comes, they'll replace from within at the CEO level as well.September is really going to be focused zeroed in around the iphone.But also for that to pass through and, and translate into better revenue, better production financially for the company and for investors.
And also I I particularly was interested in what you said about the CEO spot coming from within, moving forward, really important for investors to keep an eye out on those other names in the C suite given that uh advisement there.Finally, you guys Sky Dance Media is set to become the new owner of the company after a millionaire dropping his bid.
It would also provide $4 billion to purchase about 50% of Paramount's non voting stock at a premium of $15 a share or investors can choose to roll them over into the new company.We've already seen layoffs underway with a goal of laying off 15% of the current workforce. Now, we do see some recent data saying that at least employers are starting to cover it more than 50% have according to some data.
And this is when it starts to become good news for consumers, at least because companies are competing to be to gain market share in the space by lowering prices.It could be Lily has definitely started.That was one of the things a lot of analysts had noted was that they had started at a lower price, so they were already signaling that they're ready to compete.
You are given these compensation packages usually with stock options for a reason such as this to be able to add on to the base compensation that you would be getting here.And you gotta take a little off the table when it seems right and for all of them to do it at the same time. Specifically having said that though the CEO did not, a couple of things that may be a company specific to here is saying that full year 2025 passengers could be shy of 200 million with that 5% fares lower to start the year as you mentioned, Brad, but really going strong against Boeing and some of the commentary saying, quote, he doesn't have a lot of confidence.
And of course, all eyes on the NASDAQ for that big tech rotation and whether or not NVIDIA earnings are going to be able to turn things around for the tech trade.I just wanted to take a quick look at the dow because we did have the first record closing and this is a nine month chart.First record high we've had in about a month.And then the S and P 500 well, that just came within inches actually, uh just a few points of the all time high.
So what if and when coffee futures are able to break out, it's gonna take a lot of attention there and uh don't tell sa because uh his uh costs are going up on the morning brew all Right. So some of the areas that we'll be watching out for at this point is of course, financials, um some of the companies which do well in a rate cutting environment such as real estate utilities.What we generally want to see though for a healthy equity market is that you're seeing performance which is spread out across a number of sectors rather than just being driven.
The fact that they're very cash rich, they don't come across, uh, the same kind of problems that a, a number of the smaller companies would. Yeah, I love that term and I think I've had a couple of people say actually that does remind them of the US as well.The UK has really struggled over the couple of quarters and now it seems like it's having a bit of a resurgence and it's getting through what is increasingly looking like a, a challenging time almost for the global economy for the US.
If they can retain their strength, then maybe the labor market weakness that we've been seeing come through can actually come to a halt and almost stop there. Look, I think as we've gotten some more economic news over the past several weeks, I think that 25 basis point rate cut at the September policy meeting is looking more and more likely.
I think in the back of the minds of F MC policymakers, they do want to have a sense of where they might be headed before making that decision about pace, right? Now, if you look at the actual current data on inflation, you still do see elevated rates of services inflation. Did that kind of strategizing from the finance world impact hiring on the labor side of things and, and does that read through, raise eyebrows for you?Well, I think if you really look at it two years ago, roughly at this time for the economy was probably the most intense phase of hiring and it was pretty much also the peak in inflation pressure.
And, you know, understandably we're always looking forward to the next step after being comfortable with the current size of your workforce might possibly be a turn to layoffs.But I think essentially markets are going to be somewhat nervous about this prospect for the rest of this year and into next.
And actually, workers may now be in jobs that they're, they're better suited to be filling uh that they prefer because of all this turnover we've seen in recent years.So, um that's a positive, however, by its nature, that's something that should be uh temporary or transitory if you like in the broadest sense of the word.A lot of increased labor input, a lot of increased labor supply over the past few years, but also pretty strong productivity growth.
It just simply doesn't work that way as soon as the economy transitions into a slower growth pace you're going to be focused on.And I just think that um inevitably uh with growth likely to at some point to slow below the 2% level with job gain, slowing with wage growth, slowing that implies slower income growth in the future.
Apple Madison Mills Tom Forte Managing Director Paramount Global
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