India's Prime Minister Narendra Modi declared himself victorious in a heated election race, but will likely have to rely more on allies to get things done. Global X ETFs Senior Portfolio Manager and Head of Emerging Markets StrategyI'm Julie that Josh left in live from our New York City headquarters.
But the real question here is the future of streaming and what they decide to do with Paramount Plus, we've got one hour to go until the market close. And there are a couple of reasons why one of those reasons is oil because if indeed we are seeing slowing growth here.So we've got oil futures that are lower and that then is translating into lower energy stocks as well.Indeed, commodities overall you got here, the XL B that is the materials index down about 1.2%.You do have real estate consumer, discretionary and health care stocks that are on the rise.
So that leaves us in a place now where the marginal buyer you ask yourself who's going to step in and buy this dip, right?And you say, OK, fundamental guys, where are they gonna be?haven't been producing as of late those inventory draws.I think whenever we get over negative and we talk about how bad things are.And I think we're getting close to those levels where we could get that type of bounce.
So I think they've given up the ghost on $100 crude and what they want now is just to find this $80.80 $90 sweet spot, Rebecca.It's a great question. Um So I think when we look at the travel data and the high frequency data that I'm looking at over the past couple of weeks, I think it's going to stabilize and get better.I think it's going to get better though and, and um Rebecca.
So I think that's that, that fear of inflation is still there and I don't think that's gonna go away until inflation broadly is more contained.We're just getting started here on market domination coming up.With consequential elections over the weekend in both Mexico and India, we'll discuss what the new leadership could mean for emerging markets.We'll take a close look at what's driving that turnaround, all that and more coming up on market domination.
So I think because of that, it's gonna persist that this negative correlation between rates and stocks uh for a while longer, you know, in the seventies and eighties, it happened because we had really high levels of interest rates and inflation.We just had these big high gaps between where rates were because of zero interest rates.
Not necessarily because there's still earnings growth there will, will the growth, uh, in, will, will stock prices go up as much without rate cuts or if the 10 year yield stays here?Um, I, I think it's, if rates stay where they are for longer, it's more of what we've seen with this large cap quality growth leadership, small cap value under performance.
Well, maybe, but with all of that said, we do see the jolts data coming in weaker, we do see, you know, softer underlying earnings uh when we look more broadly.Perhaps this is why, you know, some, some like me and others last year were wrong in calling for recession earlier because of these mitigating factors.
So, uh aside from that sector, uh generally just looking for stocks within different sectors and industries that have the best earnings momentum relative to their peers and, and just real quickly, utilities is unusual because it's already had a run.But you think they have more room to go if rates do come down.Utilities will be the last part of the market hanging in there.
It's a trend now that's continuing in 2024 and it's not just Warner Brothers, we also saw Comcast recently unveiled that in July peacock, prices are going to go up again just ahead of the Olympics.And, and you could argue that all of these streaming services were priced probably too low in that attempt to try and just grab as many users as possible.
Was that the Wall Street Journal article that uh maybe e trade thinking about barring him, which I think is still a fascinating part of the story that I'm going to play out.I mean, you know, I think that as we talked about yesterday with Miles H, this is just kind of a feature of the market right now that we, and, and not just right now, I mean, this is, even though this Gamestop episode is particularly acute, we have seen flare ups, so to speak of the meme stock trade really now and then.
Joining us now is Wy Mohan B of a security senior, it hardware analyst and he's coming to us live from the Bank of America Securities Global Tech Conference.WC Thank you so much for joining us.I know there's been a lot of talk about an A I powered Siri.I'm delighted to join here from uh RB fa Global Tech conference in uh San Francisco.From an investor perspective.
Like you're going from a smartphone, the step function change, you got from a feature phone to a smartphone, you're not replicating that kind of productivity improvement in in telephone, which which what we mean by that is really that you're going to have all these A I agents at the back end going and doing a lot of tasks for the users so making productivity significantly better.
But we think the real productivity announcements have to come about the hooks of what you can do from a conversational A I standpoint that, that they will enable developers to have those hooks in. But at the same time, you know, it's hard to get that in front of consumers directly in a quick efficient way.
And so what we expect is that there will be maybe an additional orchestration layer of sorts uh that that Apple might introduce to keep things true. I think if you've got something else, I think Apple is going to have to figure out a way in which you know, the responses that are coming back from the cloud are consistent in some ways with, with their approach.
And in general, yes, especially the past year or two, we've been at a bit of a premium towards its historical average, but now this is it, we just got a 6% pullback on on the whole market with no downgrade to earnings and the country is still growing 7% GDP this year.So, so this one's a little, a little difficult, more difficult uh say nuanced for lack of better words.
Um And then in India, I think that we're going to see people refocus on fundamentals on equity stories and not just buying momentum, not just buying small caps, buying beta anymore. So that what happens next is that's going to cut down on border encounters and then when the number gets below 1500.And then they suspend these stricter standards when it falls below an average of 1500 per day.
Um So there is some tension there but generally the, the two administrations have been getting along and I think most analysts think that will be that will continue to be the case and that's very present, very important for Biden to make voters think that he is making some progress, cutting back on migration on the Southwest border in five months leading up to the election because this has become a big deal for voters who are seeing this on cable news and think this problem is out of...
And um you know, so, and it's historically still inexpensive relative to where utility is historically traded uh versus uh bond yields and versus the I found it as well well, and kind of to Sophie's Point, Brett, what's interesting here is, you know, as the market more broadly has come to this hire for longer realization, normally that would not necessarily be a great recipe for utility stocks,...
And when you look out over the next say 6 to 12 months, um the expectation is pretty clearly that the fed will be cutting interest rates and, and between that and, and A I, that's, it's a kind of a unique catalyst I think for utilities and it's, it's part of the reason why it's performed so well this year.So if you come on the show and pat on the table for utilities, you know, it's not a new theme and, and investors have bid, bid them up broadly.
And even though it's, it's, we've had sort of this giant rally, whether you look back over the last few weeks or you look back, you know, year to date or even all the way back to, you know, back to November. And I think like it's, it takes probably a couple of years to build a gas plant, it takes couple of years to build a solar or wind plant.
So for example, not Virginia, that's been a data center, you know, uh haven for, for a very long time.But um anywhere in the in the country, like in other regions that can be accomplished faster and hope we see that its customers spread out and and Sophie just quickly before we leave, you are there particular uh utilities that you think are best positioned either because of where they're located or you know, their cost of, of, of power, for example.
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