A lot of talk right now about holding trade deal simonian mention that there are potential sanctions are you finding ways with the stick rather than the carrots to you know bring brazil into line but i wanted to you know do we need a different sort of policy we do need something more enlightened you know figuring out how to best take care of the amazon and finding a way to encourage whichever brazilian government it is or whichever government anywhere that is a caretaker of one of these spaces. To do it in a way i dont know if we if we have to find a way to pay that country to be that caretaker but is there a some sort of middle ground that isnt about this kind of old world of sanctions and hitting people with a great big stick. Well thats a great question in response to that last question about who does the amazon belong to. In part of the amazon humble hongs to they original people that live there the brazilian and the Indigenous Peoples. In many ways its their ancestral territories
The nikkei was off by. 10. Hang seng managed to edge higher by 1 3 of a percent. Shanghai comp down. 4 of a percent. Over in europe, take a check there. We have red arrows aside from italy which is managing a. 6 percent of a gain. The dax is down by half a percent. As for treasury yields, it seems to be in focus it has been in focus as we are waiting. Fed chair jay powell might say about a potential rate cut in july the twoyear now 1. 925 . Quite a steep rise considering that the recent low is 1. 696 . 195 on a close. Amazing yields. Obviously stretched lower in trade news, top u. S. Officials, talks back on the hill the first high level talks with the chinese counterparts yesterday. They continue to try to work out a trade deal people close to the conversation say both sides are going to continue talking but that existing tariffs could be, in their words, the new normal. Netflix is losing another high profile tv property next year friends is moving to warner streaming service hbo max.
Their finances. First, shares of qualcomm falling in after hours trading after they gave a downbeat fourthquarter sales forecast. At the high end, they are looking at 5. 1 billion sales. Warningin line with a issued back in april. Joining us to discuss our guests from new york and l. A. The revenue forecast for the Current Quarter was late. The forecast for the quarter also very light. Up . 75. Ted eps street was looking for 1. 10. It boils down to qualcomms basic is this model. It has a controversial practice of not just selling chips to manufacturers but licensing and they want royalties equal to a certain percentage of the value of the device. This has caused a lot of litigation problems for qualcomm. Earlier with apple this year. There are a lot of questions about similar case brought by the ftc. A judge in the ninth circuit ruled against qualcomm. They are waiting for an appeal and there is not a lot of clarity in todays Earnings Reports. They may be getting into it on the call as
Graded a c by her own. Hes a tough grader. Nasdaq outperforming several momentum names in that index bounce back led by nvidia back 900 bucks. Oracle is the best and s p following its earnings report. That after naming a new ceo. And all takes us to our talk of the tape which is all about the rally. Is it running out of steam . Is it taking a momentary breather . No real breather at this moment as we come on the air. Lets ask archie Market Strategist for j. P. Morgan asset management. Welcome back. Reading through your notes, you sound really positive on this market. We do some positive. First on the fundamentals for the economy we see growth normalizing this year 2 , but zero recession in our base case. We see inflation also moderating towards 2 by the end of the year. You still have a pretty resilient nominal growth backdrop for companies. Resilient Revenue Growth area and at the same time it seems to us the big take away from Fourth Quarter earnings was a bottoming in the margin fro
You have two thirds of all stocks higher. Even energy coming to life just a little bit. Nvidia, about three or 4 all day, no real news, 3 1 2 . Approaching apples weight in the s p 500 so there is plenty to like and investors are loving it. There are signs of rapid optimism in mergers and surveys. That brings us to our talk of the tape, we asked cameron dawson. Also cnc cnbc contributor. If you are looking at the behavior of the market it got over bought and it is saying that way. That is usually a sign of a pretty durable rally. With stocks at record high, the economy looking okay, you have the fed not doing anything today stop thinking about rate cuts. I think it is one of those situations where is the only bare case that there is no bear case . Right now they are not giving any reason to pause this momentum. To your point you are still seeing this chase into the market and something we are watching closely because positioning is extended but not at extremes which it means eventually