On today's Morning Brief, hosts Seana Smith and Brad Smith delve into market movements, trending stocks, and key economic data. Markets are buzzing following...
The company's beat-and-raise performance has triggered a rally in global chip stocks. Morningstar Equity Analyst of Technology, William Kerwin , joins the show toI'm John Smith alongside Brad Smith and this is Yahoo Finances flagship show the morning Brief.Stock futures this morning, looking for a comeback after the S and P 500 the Dow closed Wednesday session lower tracking some fresh data out this morning.
And of course, that adds on to much of what we've seen over the course of this year for Mikron and ultimately kind of what the street was looking for, especially when it comes to will. And then ultimately, why this is such a big story this morning is we're seeing this rebound play out across the sector, many of the names, many of the chip names that we had on your screen just a moment ago on track to open the day in the green.
We want to bring in our markets reporter John Shafer and Josh, when you take a look at this good news, bad news, what is your read?We feel like you could definitely argue the market has priced a soft landing, meaning that data will continue to come in relatively consistent.We should note, but largely the story with GDP right now is we're tracking for about 3% depending on who you ask for this quarter as well.So you still have a solid story in terms of economic growth.
I tell you what Gargi there's nothing that gets me ready for a PSL like a fall outlook here and you've delivered just that take us into the thesis in the base case for the US economy and then the investment strategy on the back of that.Just this idea that obviously economic growth remains very strong, which bodes well for both uh investors that are looking for returns in the equity markets as well as an amazing opportunity in the bond markets to clip coupon to earn income.
So that is what we're highlighting in our fall outlook clip, coupon in the belly of the curve go into the income generating parts of the market such as securitized assets such as defensive high yield, such as parts of emerging market because that is where you're going to earn the income.
Does not mean that we're talking about getting down to negative levels or anything that resembles a slowing down in a recessionary terms. They can have periods of our performance but not the sustained performance and large gaps and quality is where we think we're going to see a little bit of a better performance into the remainder of the year while we have you between now and the remainder and the end of the year, we've got a big election event here and it's been a massive year for elections around the world.
So important, regardless of who's in the White House, if you are concerned about volatility going into the elections, which maybe some investors are do not go back into cash. The leadership pushing for additional cuts to interest rates as well as the reserve requirement ratio for banks to ease lending.Now, the backdrop to all of this is the weakening growth that we have seen over in China and increasing concerns about China's ability to regain the kind of growth we've come to expect from the country over the last decade or so.
Yahoo Finance's Yasmin quorum is here and Yasmin, when you take a look at what was announced yesterday, it does certainly seem like the street is encouraged by some of these A I initiatives.
You know, I didn't have uh Mark Zuckerberg wearing an oversized T shirt on my bingo card when I was going in and watching this event yesterday for Meta Connect but there was a lot to really unpack with this. Uh Take a look at the shares right now this morning, you're seeing them up by about 5.9 nearly 6% here.
You see how the street continues to price all of these announcements from South West and the day of its Investor day. But again, when you take a look at the underperformance of Southwest, it's clear that shareholders have not been happy, but they are encouraged by this news with the stock up almost 6% spot on.
You've got the dow also, after pulling back from a record high back in the Green here today, much of this morning's as sentiment really being driven by the mi results that we got. Let's kick it over to Yahoo Finance's, Jared Blacker standing by for a closer look inside some of these moves, Jared.You were just looking at the semiconductor stocks and I'm seeing NVIDIA lead the uh the mag seven stocks higher and you can see some really nice gains here.
That's December of 2025 such that at that time, they are going to be increased, they will have increased by a million barrels a day.That's been as high as 12 or 13 in the past.And the critical thing for the Saudis is they can either have higher oil prices or market share.They have had to deal with a number of cheaters in the plus regime Kazakhstan most recently.Now, I also have to take a look.
Well, really the results were nothing short of impressive, but ultimately, it doesn't change a whole lot in terms of our medium term thesis on the company.We expect that to continue through calendar 2025. There are some analyst downgrades on the stock, some concerns of oversupply greater in prices in the market.
So as much as we liked the print, we like the next four quarters for micro, we still see long term cyclicality uh in the future, William.How much more of an edge do you think they have just given that strong demand that they've seen compared to competitors in the market? Are you anticipating will cascade into other areas now that language learning models and and infer as uh infer as a service is, is starting to be more prominent and, and build out its own tentacles as well within this industry.
Pell said, quote, these markets need to keep functioning at a high level and we all have a stake in making sure that they do.The annual conference comes after a treasury yield plunged in October 2014 only to rebound moments later in an episode, later dubbed the flash crash. So it's clear that both Chairman Powell and Broader Fed officials have high conviction that the soft landing is here.The labor market by historic standards still looks pretty good.
So we may not be adding as many jobs as we once were, but businesses continue to be reluctant to lay off qualified skilled workers. But I absolutely agree that the notion that the Fed wants to move quickly does send some mixed signals.One other thing is in November will be past the election. And when we look at that coming out of that period, it was interesting from a sector perspective in the first six months after the Fed's first rate cut, health care, consumer staples and financials were leadership and ultimately technology materials and discretionary shares were laggard.
What could be the theme of the next earnings season as we're essentially closing the books where in the last week of September here right now in Q three.I think the market is positioned for this idea that as we head to 2025 the earnings growth gap between technology and the mag seven in particular and everyone else will close.
And that means the oil and gas industry could be at risk for weather related production outages, catalyst co-host Mattie Mills is taking a look at the impact past hurricanes have had on production.So I want to take a look at a chart that we are going to pull up from the control room to look at the history of the impact of hurricanes on oil production.
Yes, it could certainly have a short term impact because the US is the world's largest producer of crude, but it's not likely to have a large long term impact, guys.Let's go first up here, accenture the biggest market cap company name that is reporting this week uh based on my last um running of the calculation.Uh If you were looking for a generative A I mention on your Bingo card, you got one.
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