Large caps, Google's nuclear deal: Market Domination Overtime

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Julie Hyman,Josh Lipton,Market Domination

Market Domination Overtime Hosts Julie Hyman and Josh Lipton take a look at the biggest stories of the trading day with top experts. The Dow Jones Industrial...

her outlook for the US economy amid macro-level uncertainty and why investors should consider large-cap stocks rather than small caps.And now it is market domination over time, sponsored by Tasty Trade.And let's start with where the major averages ended the day.

But I promise some uh sector highs here and we saw that in utilities and financials, those were at records. But then you put a month chart on a month time frame to all of these and they are solidly in the green. Um I think that what we think that now is the time for is really sort of getting ahead of some of that rotation.We think that that can continue next year.

I asked because we've had any number of strategists, come on the show, they bang the table on small caps.They think it's a really smart way to play the soft landing.He looks at the charts, he's getting more and more bullish on small caps.Like, look, we love Iwmiwm is the small cap utility ETF in the space and we see investors use it in so many different ways.I think that the small cap play makes sense on a really tactical horizon.

Um So, you know, I think it's fair to take a little bit of pause and look at valuations from here um in the same way that we're looking at the broad the market broadening out.

What Musk also announced overnight was that he's going to be in Pennsylvania for the next five or so days to give a series of talks. There was this interesting New York Times article and talked about how Harris, for example, has raised a billion dollars. And, and Ben just curious in, in sort of the modern election era, in particular, does the candidate with the biggest war chest historically win?What's, what the other thing that's interesting about this is that with the smaller Trump campaign right now, he's outsourcing a lot of his stuff to Elon Musk.

Um First of all, for people who are not familiar with small modular reactors, can you describe to us really the key difference between them and their development and sort of what we've traditionally seen in nuclear power?And they're really different from the large conventional reactors that we've built.

And that kind of building on that is kind of what allows us to do the scale for all the commercial deployment that this agreement really kind of sets in place.There are no SMRS in use right now yet, right?What is sort of, I mean, if you can describe it maybe in layperson's terms, what are sort of the biggest technological obstacles?

Um gaining that operational experience is kind of a major hurdle for, for customers to understand that this technology is going to be work and how it's going to work and that it's going to be reliable. You know, Mike, we we've seen now big tech clearly embracing nuclear and they've got the the very deep pockets to do it.

So, um Cairo has, has a very broad, uh you know, we are a mission driven company and, and achieving that mission to really fulfill the potential for nuclear and, and the role that a complaint decarbonization is essential to, to the company. Um But, but for us, it really is a partnership and understanding kind of how we're going to transition from where we are in the development and demonstration phase and work with them through the early deployment of of of the first fleet of reactors.

He did warn though that although that will be a boost to the stock in the near term shares could ultimately fall in the long run as expectations of the company deliver full year 2025 earnings of 25 bucks.Now for full year 2024 analyst pulled by Bloomberg expect earnings to hit around $19 a share in 2025.So the expectations are really high for this company in the current quarter.

We also get a read on the housing sector will be getting new home builder confidence State for October in the morning.

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