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.
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