Ford or Tesla, consumer staples opportunities: Market Domination

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Julie Hyman News

Wall Street Analysts,Investment Opportunities,Josh Lipton

US stocks (^DJI, ^IXIC, ^GSPC) are looking ahead to the closing bell when Google parent Alphabet (GOOG, GOOGL) and Tesla (TSLA) are due to report second...

talk the biggest stock market stories and receive expert opinions from Wall Street analysts in the last trading hour, all part of today's Market Domination episode.

Hey, one thing we didn't anticipate when we went into this tightening cycle was the impact that it would have on housing, how it has created what I would call golden handcuffs on so many homeowners today and has made uh affordability a huge, huge issue for potential home buyers.

By the way, if you pulled back a chart now year to date of UPS and its rival fedex Yikes down 20% year to date here for UPS. A couple of other stocks to mention Ge Aerospace up 7% here as it, uh, reports, it numbers profit there up 60% and the company raised its forecast for the full year. Um, and it seems like that there's just not a lot of confidence that they're gonna be able to keep up their strong performance.

Obviously, Capex has been huge for a lot of these companies that are diving in to A I meadow, one of them, uh Amazon, one of them Microsoft, you know, any of the the major kind of players that are trying to build out their own A I capabilities are spending huge sums on it. Here is a slew of key earnings this morning as investors feeling relatively bullish on stocks for more.

So we've been super concentrated and we know that in terms of stock performance and valuation, we've also been pretty concentrated in terms of growth.We're going to have to see earnings broaden out as well for those companies. So at this point, I think there's a lot more value in other areas of the market and that's what we're gonna tend to gravitate towards.Yeah, so, so I think within small caps, one of the biggest things that we've seen is the impact of interest rates.Uh small caps have a lot more variable rate debt than large caps do.Now, that interest rates will pull back.I like non consumer discretionary areas within small cap companies with really good balance sheets.

Uh, if you have a political bias, it tends to cabbage up your brain and I absolutely believe that so we try to look at things as clearly as possible and, and the way you do that is look at the policy and, and try to see if that policy makes sense. So again, there's been a nice deepening of that yield curve finally, which has been so flat for so long.

Wait a second the free cash won't go to zero every time there's a dip and it's interesting that it's not like the glamorous shiny new toy part of the business.Interest rates are high affordability is ok.So you really can't recommend Ford or General Motors for that matter in, you know, ahead of a recession or ahead of consumers really like, oh no, falling off a cliff, they're not gonna fall off a cliff.

I'm talking of course about Tesla which has had a big rebound as of late, which means that its valuation is climbing again.Now saying goodbye to Tesla means I will get lots of nasty emails and be excommunicated from the Twitter community or the ex community.I'm ambivalent at 200 now it's a 250.Even uh R BC analyst Tom Nan, who we're gonna talk to you later?I don't think the worst things that some people think about Musk in the business.

Now, starting off with Lockheed Martin companies surpassing earnings targets and raising guidance and shares jumping in today's trade.Now looking for revenue as high as 71.5 billion this year and also been looking for close to 69.8 also raised its eps view as well in the quarter. And ironically, of course, the announcement of this investigation coming on the same week that Delta is having a raft of cancellations related to the crowd strike outage.

And we're right in the middle of that, you take a look at the year to date chart right in the middle of this big range and uh probably not gonna be the catalyst that sends it above or below the range.And we're taking a look at some key charts and what they say about the economy and market check it out on the Yahoo Finance homepage.We've compiled more than 30 charts from economists and strategists across Wall Street for insight into trends for both the economy and the markets.

 

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