Part of ceos, certainly what we heard from starbucks last night that the consumer is becoming more cost conscious. The effect of higher rates, the effect of inflation is real. Its impacting lower income lower income consumers, and i dont think without question you could avoid that ultimately what does that mean i know some people have suggested, well, maybe the Federal Reserve puts on the table a possible one more ratea and ultimately what they deliver to markets i dont think is going to be too disruptive and send the market into a deeper decline. Sounds like what are you saying, the bullish story is over the Firm Landings here . I think the firm landing actually benefits. I think the firm landing benefits the premise that accommodative Monetary Policy is closer than we think i actually think you get the rate cut at some point in 2023 will we get it for the wrong reasons . I take what he said the other way. I get that hes saying thats not going to drive the market lower, the fed to. An
No. Absolutely not i think a lot of is because of the decline we had earlier in the month, down 5 i think it was healthy i think its all about earnings. Look, so far earnings are growing at 4. 7 . Thats not really statistically dramatically above what the consensus was at somewhere around 3. 6, 3. 7. It doesnt feel that way i think this week is a big week just in terms of can amazon yep and i think its really amazon, can amazon extend the momentum from last week that was delivered from alphabet and meta can apple stop the momentum schneid. Anastasia, the fed meeting, and maybe the risk is the fed chair giving the most recent inflation reads, and that read was better than the most recent cpis, and so what do you think i think it will be really hard for fed chair powell to send hawkish given what he said a couple weeks ago, and the 2year it has priced out but one cut for the remainder of the year, and its 125 basis points priced in to the next five years, and the market is where the fed
Earnings expectations are for mega cap tech coming in. This is unbelievable you want to know how important these are . Mag seven earnings on aggregate are expected to rise 40 in q1 revenue is expected up 13 versus 2. 3 for the rest of the s p. The rest of the s p is expected to see a 3. 1 decline in earnings sounds like last quarter. Thats exactly what happened last quarter and let me tell you why its so critical that these Mega Cap Companies deliver, and this relates to the market itself on monday i said, i felt as though the market was bought bombing, and one of the reasons i felt it was bottoming, i didnt think there would be followthrough selling because you had strength in financials you had strength in health care. You had strength in industrials. The market holds its 100Day Moving Average we now rally up to the 50Day Moving Average heres the handoff its got to come from mega cap earnings to get through that 50Day Moving Average to restore price above the 50Day Moving Average. Fi
The 200 Day Moving Averages. The nasdaq where the biggest pain is today. Several megacap tech names see moderate shelling. We see the names with amazon, which is sharply lower as the ftc hits the company with an antitrust suit well have an update on that in just a little bit. Alphabet, apple, microsoft, theyre all lower as well. Take a look. 2 declines. That does take us to our talk of the tape is there still a bull case to be made for stocks in the years final stretch . Some suggest despite all of what we just said, the answer is yes. For more, lets bring in adam parker, founder and ceo of research, and cnbc contributor lets say that i was talking to mike santoli came up to me and said President Biden obviously went to see the striking uaw workers today. Said him saying he supports a 40 increase in pay for uaw workers sent stocks lower. I was looking at gm and ford, they were lower. Put that into context as one of those areas that has us uneasy in the markets today. Right we have wage
By 17 state attorneys general to stop rivals and sellers from lowering prices, degrade quality for shoppers, overcharge sellers, and stifle innovation the suit represents one of the biden administrations most sweeping and aggressive moves to break up what it sees as consolidated power in the hands of the tech giants the administration hopes this will both lower prices new competition and spark new innovations that will help the economy. The ftc says amazons alleged schemes impact hundreds of billions in retail sales every year ftc chair lee. Lee it occurs in two markets the online superstar market that serves shoppers and the market for online Marketplace Services that are purchased by sellers. The alleged tactics include antidiscounting measures and conditioning sellers ability to obtain prime eligibility on using amazons costly fulfillment service. The ftc says it is seeking a permanent injunction in federal court that would prohibit amazon from engaging in that conduct, scott. Over