On Tuesday's episode of Catalysts, host Madison Mills explores the tech sector, provides stock updates, and dissects market dynamics. Kicking off on the...
) recent WWDC event, where the company's stock price received a muted reaction. Ken Mahoney , CEO of Mahoney Asset Management , joins the show toexplaining her bullish stance on the tech sector's performance.Now we're going to dive into the catalyst moving markets today.
So a little, a little creepy, but you know, they also said that they want to protect people's privacy as much as possible that is not going to train open A I models.Well, it's such a great point and this is the key sort of catalyst for Apple moving forward.Which has been a key really success point for them in the past, the ability to prioritize consumer privacy.
I'm curious what was missing from the announcement that would have made you a little bit more enthusiastic because in reading your note, I feel like I can shot summarize it as just a big shrug to the news.100 and $10 billion buy back there.I mean, there's 270 million phones out there that are 55 years or older, that's a big opportunity.
So there's gonna be a lot of applications, I guess it's just kind of overwhelming the amount of, of applications uh A I that could go about again, the biggest thing is they have all these customers and they want Apple to take the lead.I think they're kinda ok. We'll do it, but we'll put it on top of a I, we'll put it on top of Surrey as opposed to kind of blazing a new trail.Ken Apple saying they're not gonna pass off the cost for chat G BT to customers.
I would say NVIDIA um kind of in the round of that, you know, $3 trillion market cap and you know, just added on a trillion in the last six weeks. CP I and the fed decision even with fears around higher for longer rates, strategist broad broadly expect big tech to lead stocks higher through year and driven by A I demand.Thank you so much for joining us in studio and you know, you have a pretty bullish outlook here, 5500 year end price target for the S and P. You see that going up to 5750 next year.
So then you naturally see that valuation compress from, from a large cap tech perspective and that seems like a critical part of why you're able to make the tech sort of rally but also inherent concentration within tech.When we have a lot of other guests, come on and say that the concentration of the rally in tech is a bearish signal for them.
And so what we've seen is we're still seeing that narrow as the rest of the, let's call it 4 93 4 94 catch up to the rest of the mag seven. I was talking to a source about the health care sector yesterday too who mentioned that their ability to kind of navigate the higher for longer environment is differentiating factor as well and the ability to not have as capital intensive sort of expenditures on the balance sheet.
So that's another sector that we do like, you know, interest rate agnostic as relates to, to industrial and speaking of higher, for longer, we have updated economic projections from the fed tomorrow.What if the fed doesn't cut it all? And I think it's a really and I think this is where like the in the equity risk premium conversation comes in as it relates to equity.And if you look past in the past 15 years, they look really expensive on an equity risk premium standpoint.
Zooming ahead to Friday, Abby when we're, you know, all heading to our Friday evening, happy hour to talk about financial markets as we do. It sounds like from this Bloomberg report that this is targeting users of Spotify that are consistent, that really want the premium offerings that hi fi audio, the the ability to curate playlists and and it's a specific type of customer, not every customer is going to pay up for that.
Now, Shopify is getting a bullish call from JP Morgan, the firm initiating coverage with an overweight rating saying the company's quote competitive moe warrants a premium evaluation you're seeing shop I shares up a little over one there. Well, it was the largest intraday jump since January that we saw on the heels of that news and you know, having these products available to apple pay users coming out later this year.
Really quickly want to point out another comment from a firm saying that this will enable users checking out online in app with Apple pay on the iphone and ipad to pay over time with a firm.Seeing how many users are using the pay over time option.We have seen a recent pull back though. But I think there is when you look at the overall supply demand backdrop, it does look constructive on a longer term basis despite this latest pullback that we're seeing off over bot levels.And what's the ceiling here for you when it comes to copper prices?The 50 day moving average has been tested.Potentially, we could see a drawdown maybe to the 2023 highs, right around 4 25 4 30.
So I think longer term copper moves higher and could easily go back and retest these recent highs in pretty short order, speculators have been piling into this.Well, Adam, another key driver of demand is of course artificial intelligence and the impact that that has in terms of needs for data centers.
Because I don't think investors realize that copper is behind a lot of different things that we use every day in our lives.If you just look at the construction industry, that's the biggest um in terms of demand for copper that's doing quite well as we're building out infrastructure.When you think about just the resorting theme and utilities are another one that obviously um it would be another spot for, for the A I play in, in terms of uh the energy transition here.
So along with some of that profit taking, that could be a little bit of a temporary headwind for this commodity.Now, looking ahead to the 2024 election, we've got a new note out of JP Morgan saying market consensus is for Trump to win the White House. If Donald Trump wins a second term, there are the tariffs on China that Trump wants to impose and a lot of other factors for investors.
But one investment vehicle has been seeing some benefits from the high rate environment, municipal bonds and joining us now and stand close head of municipal d. Thank you so much for joining us.I mean, if you look at what's happened to Muni's so far this year, there's been two broad themes.So that's affected everything in fixed income, including Munis and 50 basis points cheaper than we started the year.
And is this a way for investors, retail investors listening to this segment now to who are invested in local politics to maybe have another avenue of influence is not the word I'm looking for but influence.Well, and it's interesting to see that, that congestion pricing would have been uh we think very favorable for mini bonds.You could leverage it up to 15 billion by issuing debt.
So in airports, we expect uh more issuance and a lot of this issuance is not being driven by runways, it's not being driven by gates, it's being driven by the passenger experience lounges and rest restaurants and shopping. Um but we also understand that a new generation of fans are consuming content through streaming platforms.
I mean, Amazon's 1.8 billion NBC Universal reported 2.5 billion notice, noticeably missing here is Warner Brothers Discoveries, TNT which has, you know, had this the rights to this league for so long, but they're just not coughing up the cash that these leagues want. But if you take a look at the share price right now, we are up more than 5% surpassing an intra day high market cap at around 3.2 trillion.
That was a huge issue for one of the big tech names, not just for Apple, of course, but for the broader market to have this much pressure on a $3 trillion company as of today because of the market moves to the upside that we're seeing this stock up 9.5 percent year to date.And at least when you look at the stock price, they did deliver, it's interesting to see that the market reaction was negative after getting the news from the developers conference yesterday.
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