Stocks slip, Applied Materials earnings: Market Domination Overtime

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Applied Materials News

Dow Jones Industrial,Mark Rayfield

The Dow Jones Industrial (^DJI) briefly touched over 40,000 for the first time in history, though it did end the day lower. Applied Materials (AMAT) posted...

ADVERTISEMENTWe touched down 40,000 earlier in the day between 10 and 11 a.m. and then we didn't stay there.

So that has potential room to run even though short term overbought and then here's unprofitable tech arc invest. And obviously when you talk a ma you talk China because A A is restricted in what it can ship to China.Um And a lot of the company sales come from outside of the US, um applied materials just coming out as we talked about and reporting those better than expected results on the top and bottom line.Joining us now is Corey Johnson for futur um chief Market strategist.

What about uh you, you heard uh Julie I talking about China here, you know, A and A A Corey B like a lot of names, I mean, restricted what they can ship to China and just, I want to get your thoughts about this general sort of tension. So it will be curious to see again on the call and and when I read the release a little more from a at what they did with China and what their business was like into China.

So going forward, how do you think Corey about, you know, you talk about A I competition geopolitically, how do you sort of think about who's ahead right now if you were asking us or China?And um because all the, because there's freedom and creativity and people wanna develop here, they want to develop in Silicon Valley in particular.I mean, you know, you were in the Bay Area for a long time and I've been there for even longer.

What's also interesting is that NVIDIA and we'll see how this plays out, but NVIDIA has also jacked their gross margins. Now, I doubt that Google Meta Amazon, um uh are all gonna be able to create chips as good and as well as NVIDIA has, they're gonna, it's, it's hard to do.So they might not have the same kind of success.

The S and P and the NASDAQ also lower Walmart was the standout though both in the Dow and the S and P was the best performer up by 7% following its earnings.And construction of new homes rose 5.7% in April at a lower clip than economists were in fact projecting recent data, suggesting builders are cautious as mortgage rates hovered elevated levels but some good news for home buyers, mortgage rates edging lower for the second straight week.

You have, the large home builders are still building at a relatively good clip and having a good success.And you have a lot of uh weather impacted building going on for remodeling, whether it be after the snow thaws and the storms of the West coast now really building up on a lot of remodeling or out through the Midwest into the southeast, which has a lot of uh weather impacted remodeling taking place.

So we're always looking for, for talent in the business and the labor market and, and attracting labor has gotten better again off of the really challenging times of COVID.You need to have the right work environment.What we're seeing is the labor force coming in.We, we are decarbonizing the construction market trying to make the world a better home.So they want to have that purpose to come forward.

Maybe when you get below six, I think you start to see people start to unlock that the, the historic average of mortgages is in the 7% range if you take the long view of it.So taking a look at where we're at today, we did see WT I and Brent crude on our Wi Fi interactive.Brent crude also higher year to date.Now oil has been going a little bit higher over the last couple of sessions.

Moving over to the Federal Reserve will get some comments from fed Governor Christopher Waller in the morning is coming after a big round of fed commentary today including Cleveland Fed Press, Loretta Master Master suggesting that interest rates should stay high for longer saying that the recent inflation data indicates that quote, it will take longer to gain that confidence.

 

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