Super Micro Computer DOJ probe, streaming wars: Market Domination

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Michael Darda Noticias

Roth Capital Partners,Labor Department,Julie Hyman

On today's episode of Market Domination, Hosts Julie Hyman and Josh Lipton break down some of the biggest stories from the trading day, from fresh labor...

break down some of the biggest stories from the trading day, from fresh labor market data to the state of the streaming wars.

And by the way has been for some time, one of the data points out this morning, the GDP revisions, I thought they were really meaningful. And for the most part, the revisions were upward, there was a lot of economists talking about these numbers today.And also the decline in jobless claims was, it was interesting, Julie, I did see, you know, different economist strategist, some who, you know, been on the show.

So if you look at first time claims in isolation, it really doesn't look like there's anything wrong with this labor market whatsoever.Earlier this week, we got a report of the conference board uh that ha have some indicators that directly tie to the labor market that are, that are also telling us something about September and that data weakened pretty precipitously.

And when that happens, you have an economy that tends to be growing below trend or below the growth rate of potential and it's very unlikely that, that kind of a thing plays out, uh, in just sort of studies at, you know, at, at a level that we think is, is, is healthy and consistent with the soft landing.Uh, but, you know, we're 8/10 of a percentage point off the trough on the unemployment rate, you know, and we're still at a historically low level here in the, in the low fours.

I think a hard look at the data, uh, really leaves more questions there than answers, but, you know, obviously hope springs eternal. So this move higher over the last two years is, is essentially valuation driven, driven and we've reset to where we were in late 21 early 22. Bain and company report on the spending that's expected for A I, but I'm curious how you're thinking about the fundamentals versus the stock action in that particular group.So for the Infotech Index, we've doubled, uh the S and P 500 Infotech Index has doubled over the last 24 months and earnings have been better than the overall S and P but they're up about 20%.A lot of excitement and optimism over A I and the spend out that's going on.

Typically, uh things start to tip over a bit and that could be happening with some of these stocks that have been leading the S and P 500 you know, five or six names in two sectors now uh account for 40% of the market cap.So, you know, it is a healthy thing to see some of some of the other sectors do a little bit better here.Um We've liked the more defensive areas So I'm happy to report that the utilities are the number two sector year to date.

That a prosecutor at the US Attorney's office in San Francisco asked for information, the journal saying that appears to be connected to a former employee who, as you mentioned, uh Julie accused the company of accounting violations that that former employer filed a whistle blower lawsuit. But I think that's a really interesting point about there are not that many players, they are very large.

Uh So between the three, there's just actually a lot of demand and, and those three will interact over the coming years as well. I actually think it allows people to find new and higher value activities, but there, there'll be dislocations along the way. And as we've got into it with our clients, we've found that it's not just a technology deployment, you could give out uh a copilot or a coding assistant program to all of your employees and it could have almost no value whatsoever uh to get it right.In other words, to get value out of this, you you have to have people doing their work in a different way.All the things that you have to do to sort of get value out of.

So that means that if you've got that mortgage, that's over 7% you know, you may be in the money to refinance now. That means affordability is still a challenge and that's going to suppress new construction activity.Did you like Lauren speaking that, I mean, you obviously election year politicians, you know, are aware this is an issue for a lot of Americans.It's very hard to say that a policy prescription can fix a market that is imbalanced.So we see population flows moving across the country really some markets are very hot.

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