Fed rates, Tesla Supercharger backpedal, Novavax's 'new chapter': Market Domination

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Julie Hyman,Wall Street Analysts,Market Domination

On today's episode of Market Domination, Yahoo Finance Hosts Julie Hyman and Josh Lipton break down the latest earnings and major trends Wall Street analysts...

) shares are rising after the company reported that its sales jumped nearly 60% year over year, largely due to AI demand.

Um We're definitely seeing examples of consumers trading down, uh looking to buy, you know, better priced items and maybe not getting the premium product.And that includes a co commercialization of the COVID vaccine.The combo flu and COVID vaccine that they've been working on for quite some time.We had a really strong quarter.

We've got the dow here, uh leading gains once again today and set for its eighth straight gain, uh eight sessions in a row.The S and P 500 up about 1/10 of 1%. Um and why we talk about them, they make chips for pretty much everybody we talked about on this show, right?Um And so when you see that kind of strength from TS MC investors, I think, begin to think, ok, well, maybe some of those customers are seeing some better trends ahead for their businesses too.

So what we would say is the sell off that we saw since uh late March uh was really more of an adjustment selloff, right? So look, I think there's some reasons to believe some of these surprises may reverse our official call at the moment is for still three cuts starting in September of this year.What do you think?And I would argue a lot of the pup if you will for NVIDIA has already been revealed because we just heard from all the big hyper scalar tech platforms over the last two weeks increase their capital spending.

And to your question, this is where you're truly starting to see some players starting to kind of gradually adopt A I and it's starting to see some improvement in their earnings now. This is playing out across frankly the corporate sector in terms of large versus small cap uh co companies that are strong balance sheet, net cash and strong free cash flow versus unprofitable.And we've heard about uh this kind of again, bifurcation among consumer spending trends in the last three weeks via earnings season in a way frankly, I have been seen as acute in years.

The way I'm looking at it is more so in terms of this being an unknown flight path coming out of this pandemic with historic uh inflation and then uh aggressive fed tightening.But the one thing that we continue to look at is whether or not the one track can continue to hold up the overall averages and I think there's some meaningful evidence that the second track is starting to drag things down overall pretty meaningfully.

Uh That, that is absolutely true and, and it makes the uh the company and the stock investable for many investors today, you know, more investable me. And then in terms of Neova being able to come to the market in a, in a timely way uh like uh in line with when we saw vaccines in the, in the pharmacy stores in the physician offices, how we saw from pfizer and Moderna that, that was just not the case but, but from what today's deal is telling us that, you know, under this new management regime which has seen, I think what's transformative here is the relationship that they built with their partners in, in including in the FDA, who are...

Back on our biotech strength, back on a platform based growth strategy that allows us to drive growth. Uh And then uh the combination points up uh vaccine would be in addition to that stand-alone flu vaccine. So that, that I think is, is the work that needs to happen for people to get comfortable in the story again.I'm just curious um how if at all, you think the news today kind of impacts that dynamic?

Those were already things they, they were uh you know, on track, on track with and hence, you know, you saw a partner like Sanofi buy into uh their, their strategic operational plan and, and how I, I think everyone uh it's a win win for everyone, including the activist investor who was uh uh vocal about about the company in the past few days.The Biden administration reportedly set to announce higher tariffs on clean energy goods from China electric vehicles expected to see a hefty levy.

Yeah, I'm sort of like a backtrack here for, for, for Elon Musk, kind of uh trying to fix the situation or, or chaos that he created in the first place by basically nearly uh laying off everyone in that superchargers team.

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