NVDA Jan 2025 930.000 put
- Yahoo Finance Video
This industry is getting a boost from the AI race: Strategist
As investors await Nvidia's (NVDA) highly anticipated earnings report, Raymond James Managing Director Pavel Molchanov joins Market Domination Overtime to discuss how the utilities sector is benefiting from the artificial intelligence race. "If data centers, for the first time in 20 years, create growth overall in US power demand, that is a very good thing for utility companies across the board," Molchanov explains. He anticipates growth between 2 and 3% per year as the AI race heats up. The strategist also points to specific areas of data center growth, like Virginia and Ohio, where electricity prices are more affordable. He says that investors looking to get in on the AI utilities play should pay close attention to GE Vernova (GEV): "GE Vernova does everything for the grid: natural gas, nuclear, hydro, wind, and also all the infrastructure, so the transmission networks, the power software for utilities. This company does it all, and half of its revenue is recurring." For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Melanie Riehl
- Yahoo Finance Video
What Nvidia, consumer spending signal for the market: Catalysts
On today's episode of Catalysts, Hosts Seana Smith and Madison Mills break down key market trends and the trading day's biggest stories. As Nvidia (NVDA) is set to report its earnings this week, HSBC Global Private Banking and Wealth Management Americas CIO Jose Rasco joins the show to discuss how the chip company and the overall AI push may impact the market (^DJI,^GSPC, ^IXIC). He explains that new technology, like artificial intelligence, is diffusing across all sectors as companies seek to find efficiencies and expand revenue. Rasco adds that Nvidia and the AI boom will ultimately drive deflation in the market, ultimately resulting in lower prices for goods and services. However, there are some geopolitical pressures facing the chip sector. ASML (ASML) and Taiwan Semiconductor Manufacturing Company (TSM) could disable their chip machines remotely if China were to invade Taiwan, according to a report from Bloomberg. JPMorgan Chase (JPM) CEO Jamie Dimon sparked speculation about his potential resignation after pivoting from his usual stance during the company's annual investor day and saying that his remaining time at the company is no longer five years. Yahoo Finance's David Hollerith explains what this means for the company's future and who might be considered to succeed Dimon. Lowe's (LOW) topped Wall Street's first quarter earnings estimates, posting revenue of $21.36 billion and gains of $3.06 per share. While consumer spending remains low, CEO Marvin Ellison points to loyalty programs and online spending as areas offsetting pullback concerns. Meanwhile, Peloton (PTON) is having a more difficult time dealing with the consumer sales slump as the home fitness company announced it is starting the sale of a $1 billion loan offering. Wendy's (WEN) and (TGT) both announced new initiatives to draw consumers back to their stores, from a $3 breakfast value meal to price cuts on five thousand items. This post was written by Melanie Riehl
- Yahoo Finance Video
Why you shouldn't be afraid of AI slashing jobs: Strategist
While Nvidia (NVDA) is set to report its earnings this week as Fedspeak is underway, HSBC Global Private Banking and Wealth Management Americas CIO Jose Rasco joins Catalysts to discuss how the two may impact the market (^DJI,^GSPC, ^IXIC). "The market is rebalancing risk and reward, and that's what you're seeing play out," Rasco explains. He points to the diffusion of new technologies, as companies across all sectors are looking to find efficiencies and expand revenues: "That's how we view the next phase of investing in this bull market, is the broadening out of the tech sector and the broadening out of these technologies throughout the other sectors in the economy." He adds that there are signs of growth momentum despite the cyclical side of the economy slowing. While consumers are cutting back on spending habits, "real earnings, real incomes are still positive. That's a huge factor." Rasco explains that secular drivers are a sign of an economic slowdown rather than a recession and that investors can play the broadening in a higher-for-longer environment by focusing on the technology, communication services, and healthcare sectors. As all eyes are on the Federal Reserve's next interest rate decision, Rasco believes the next move will be a cut. He says that Nvidia and the AI boom will contribute to deflation across several sectors, ultimately resulting in lower prices for goods and services: "I think over the next 12 to 24 months, that's going to help push the inflation rate down as well." He explains that AI flooding the market is not necessarily bad news for jobs, comparing the situation to the "Amazon effect." Rasco says, "Many, many politicians talked about the Amazon effect and how horrible that was because we lost 300,000 jobs in retail in the last business cycle. We gained 1.4 million jobs in logistics, distribution, warehousing, trucking, and they were higher-paying jobs. So yes, we're in for change. And yes, change is scary. But we think we're going to have a better economy, more resilient economy, and we think smarter cities and all that will benefit the average American." For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Melanie Riehl
