Stocks jump on hope for September rate cut : Market Domination Overtime

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Julie Hyman News

Kamala Harris,Nasdaq Composite,Josh Lipton

On today's episode of Market Domination Overtime, Hosts Julie Hyman and Josh Lipton break down the market close and some of the top stories that dominated...

, stating,"if that 493, the other stocks, will catch up and the Mag 7 will catch down," potentially leading to a broadening out in the market.

Um, and I think earnings really will tell us if that 493 the other stocks will catch up and the mag seven will catch down.Um, that broadening, though I think, really is dependent on what happens with small cap earnings.And then there's one very late season, uh, mag seven earner.Um, but as has the economic backdrop, I think what's more challenging is when I think about 2025 estimates around 275 a share, That might be a little bit lofty.

As a result of that, the people have a lot of their money still in short term instruments in cash, et cetera.Because they're concerned that those 5% yields aren't gonna last forever?So I think that's a really encouraging thing.Um, because people do still think that those valuations assigned to some of those tech areas are still lofty, which means that maybe there's better opportunity elsewhere.Investors are so interested in such a quick, aggressive move there.

Uh, the economy is doing well and continues to improve, and yet there's just not much sign that that consumers are buying it.

Part of the problem here is is the message the problem or is, uh is our economic conditions really that difficult for that many people that they don't care that the rate of inflation has come down by a lot and is basically back to normal levels? Um, about the much promised much anticipated opening of the IP O market, which hasn't really entirely happened.Uh, when you look at the backdrop with the S and P at 15% this year after a 40% rise last year, the sixth best rise in history last year uh, you've got a lot of factors that are driving issuance.We're trading at 21 times on the S and P on a Ford PE basis.So there are a lot of reasons why issuers wanna bring deals to market.

But I still think of these huge unicorns that are still private that we've talked about for years coming to market.I think of stripe where we keep talking about the coming and coming and coming.And they just don't need to go public?It's been a challenging two year period post pandemic.The reality is that market is showing some green shoots.Uh, we're seeing less structure in in the current period.

We've seen a little bit of a trend over the past few years where you see an allocation for those folks.They definitely do through their institutionally managed capital.I think with the advent of a lot of technology platforms, you're seeing increased access for retail to IP OS. The company's second quarter delivery is expected to be lower compared to the first quarter, as the playmaker continues to overcome production scrutiny and taking a look at jobs.

 

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