) earnings surpass Wall Street expectations. While tech companies have faced scrutiny for massive AI capital expenditures, Synovus Trust VP and senior portfolio manager Daniel MorganStocks are moving higher here.
That was below estimates here when you take a look at it was actually the lowest headline reading that we have seen since November.You also had a drop in inventories as well as production employment also declining as well. Both of those data points coming in after Fed Chair Powell focused on the labor market more than inflation in his opening remarks at the central banks meeting for the labor market, be a problem for the FED moving forward.In softer than anticipated.
I'm curious what your takeaway was from Fed chair J Powell's press conference yesterday because it seems like the market is hearing what it wants to hear, still looking at even when you take a look at today's news that some of that weaker economic is still being priced in as good news here, at least for markets.And I guess what does that then potentially tell us about?I think that the Powell comments were actually very much in line with how we're thinking about markets.
When you consider where we've been over history, what if we get 4.2 tomorrow, you would want to look at the, the what is actually driving now? And look, it's not that 25 basis points lower in terms of their debt service costs really makes a huge difference. Here's the Ceo Mark Zuckerberg had to say about the company spending plans going forward at this point, I'd rather risk building capacity before it is needed rather than too late.For more on that we want to bring in Dan Morgan.And we also want to mention that no owns shares of me.
But what is it about the management of the balance sheet at that firm specifically that's allowing for that to continue?That was the new thing, right?And then they kind of got away from that, dedicated those funds over towards A I. Everyone getting a mobile phone off a landline, the movement from a mainframe UNIX to a client server environment.
And what do you think that then tells us about the likely performance we're going to see from some of these tech names even when you compare and I know just a very small data print here. And NVIDIA and A MD sell the chips that allow companies like Microsoft and we're gonna get Aws with Amazon later today.So, you know, it's interesting Madison Shana because we've seen these huge multiple stretches, right?
So, um there's a lot of recalibrating going on right now based on these earnings reports as we continue to get evidence that A I is actually impacting numbers. Uh It's interesting to see A B be doing well when maybe some competitors from my understanding not doing so well.So when you take a look at those comps, the company now coming out slow recovering from that challenging year that they had.
Roughly 15.49 billion adjusted earnings per share coming in higher than expected at 90 cents versus 86 cents.The US and China both dragged sales overall lower.But the CEO did emphasize on the call that the US market remains very resilient overall.Um But Bud Light did reach a point of stabilization and they plan to amp up marketing ahead of the NFL.
Of course, we heard from mcdonald's and Starbucks a similar story there, but the company did reiterate its 2024 guidance of eter growth between four and 8% taking into account inflation and those macro economic conditions.We wanna stick with the theme of earnings and take a look. In terms of its forecast, the company brought down profit and margin goals for 2024 2 reflecting investments it needs to make in particular investment in the Chinese automakers like expend to bring new vehicles to market and cheaply in China and also Rivian here in the US investing in that joint venture with Rivian to make new software defined vehicles using Rivian technology.
Uh Pressure on pricing those high prices of thing that the automakers enjoy for quite some time because inventory now are rising.So sales are kind of coming down, people want more incentives and that's gonna hurt margins.
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