United earnings, small-cap rally takes a breather: Market Domination Overtime

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Julie Hyman News

Nasdaq Composite,United Airlines,Earnings Per Share

On today's episode of Market Domination Overtime, Hosts Julie Hyman and Josh Lipton break down the market close and some of the biggest stories to watch on...

) lag from pressure facing the chip sector. Kestra Investment Management CIO Kara Murphy says,"If you look at over the last six months, 80% of the constituents of the S&P 500 have underperformed the index... Now all of a sudden, we get a couple of good inflation prints, a couple good labor prints. Looks like Fed can start to cut interest rates, and all of a sudden, the macro environment starts to change. And I think this is a hint of what is going to turn out to be a broader trend.

The company's third quarter adjusted earnings per share forecast 275 to 325 analysts had been predicting on average $3.38. It had seen $6.5 billion so unclear how much below that it's gonna be spending, but it seems to be signaling they're gonna be spending a little bit less this year.Meanwhile, stocks close and mix today with the tech heavy NASDAQ leading the day's losses, the rotation out and away from mega cap names in the past few days.Fed Governor Christopher Waller saying in a speech that the fed is getting closer to cutting rates though, not there just yet joining us.

Now, the technology sector is interesting because that's an area that's done incredibly well and there's a real fundamental change with this threat of higher tariffs or, or penalties. So there's still really good, interesting opportunities there, there's also really good fundamental earning support. Everybody's been rushing into that S and P. So if you step down just a little bit of market cap, you get a really rich area for stock picking.

It's also one of the very few policies that both sides of the aisle can agree on now, they might implement a little bit differently.So yes, it's policy dependent, but we already have a lot of spending that's in the pipeline, that hasn't actually been spent yet.And my guess is that whoever ends up in the White House is gonna have to focus on this and have additional programs to support it as well.

Well, I think, you know, post COVID people are, you know, the people really want to travel and, uh a lot of capacity was added by, by all the airlines, particularly in the domestic market, you know, would open up first and everyone headed to Florida, Texas, California. So the impact here, you know, in the, in the third quarter, which you're just, you know, a couple of weeks into is, is really being felt and frankly, you know, most bookings are done here and then you're going into a very soft period in the fall.

We, we've had these ultra low cost airlines really make, you know, inroads, but it's the front of the plane where like the major carriers recognize that there's an opportunity and they're chasing, they're chasing after it now how they attract those, those clients is very interesting. And that is why like the United and the Deltas and the Americans have done a little bit better than, let's say the domestic only focus carriers are the ones that are heavily focused on domestic jetblue Spirit, Southwest, et cetera.Well, the election outcome in November not likely to do alphabet any favors among regulators amid its reported bid to buy Wiz here with more than the likely scrutiny ahead for what could be alphabet's biggest ever acquisition.

Maybe they say a second look, that's a more in depth look and maybe even a full review may be a challenge long road to get there.You can expect that this is gonna take some time.I know on Yahoo Finance say, uh you know, predict that there's 0% 0% chance of regulatory push back here for one.

 

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