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S&P 500, Nasdaq close at all-time highs: Market Domination Overtime

On today's episode of Market Domination Overtime, Yahoo Finance's Julie Hyman and Josh Lipton delve into the dynamics of the financial markets and the forces shaping the corporate landscape.

Stock markets are on the rise, with both the Nasdaq (^IXIC) and the S&P 500 (^GSPC) reaching new all-time highs. Yahoo Finance's Jared Blikre breaks down the primary drivers fueling this market performance.

As markets await the release of AI leader Nvidia's (NVDA) quarterly earnings report, the show welcomes Raymond James Managing Director Pavel Molchanov. He offers insights into how the transformative power of artificial intelligence is transcending the tech sector, delivering growth for industries like utilities (XLU).

Furthermore, in the wake of DoubleVerify's (DV) mixed first quarter results, CEO Mark Zagorski joins the program to dissect the report and shed light on the current state of the digital advertising landscape.

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This post was written by Angel Smith

Video transcript

That's the closing bell on Wall Street.

And now it's market domination over time.

We're joined by Jared Blicker to get you up to speed on the action from today's session.

So let's start with where the major averages ended up here.

Slightly positive is where they ended up by and large.

We had the dow up just about 1/5 of 1% near the highs of the session here in the S and P 500 up about a quarter of a percent.

As was the NASDAQ composite.

All of them drifting a little bit up to the highs of the session.

By the end of the day here, we continue to talk about the broadening of the rally in the market, but the S and P equal weight index actually finished a little bit lower today.

But we have been seeing it sort of catch up and out pace as of late.

Maybe that's changing as our eyes turn to NVIDIA.

I don't know, but Jared's got a closer look at today's action.

Hey, Jared, it is that NVIDIA drift that we were talking about yesterday, the stocks did just slowly creep up into the important and now.

So whether or not that's the case, I don't know, but we do have utilities behind me in the number one slot today.

Up 9/10 of a percent on an otherwise pretty boring day in the indices.

After that, we have consumer discretionary.

That's XL Y then financial staples.

All those outperforming energy.

The biggest laggard here down a whopping half a percent and looking at the leader board, it's split two on the upside.

We have solar and cannabis.

Those were the two biggest winners and not by a large margin.

And then to the downside, we have Chinese stocks that's K web internet stocks in particular down 2%.

Also crypto now down a little bit.

And let's just forward to that board.

I thought we were just talking about all these crypto prices, guess what crypto prices are recorded on a 24 hour basis.

So even though over the last two days we are up 4.5% 24 hours ago, we were a little bit higher and the same for Ethereum, it's up 8% uh an hour ago, is up 22% or there about.

So that just accounts for some of the differences.

It's one of measuring uh but let's go through some of our heat maps here, here is unprofitable tech and you can see Tesla up 6.66% today.

Uh in Oman, maybe a positive one.

We're not seeing a lot of bullish accent or action in some of the other stops, shop, Shopify and Draft Kings each down 3%.

So is roadblocks and unity it looks like.

Uh but here are those Chinese stocks that we are taking a look at.

Netty is down 5% down 4%.

Baidu down 3%.

If we take a look at the one month trailing, we're going to see a lot higher prices here and that's as Chinese stocks have simply become wildly overbought.

So not surprising to see a little bit of a push push back today.

We can also take a look at the banking sector and here we go, we got JP Morgan.

If I can get my print here, JP Morgan, up about 2% there.

We do have uh Wells Fargo up 1% and Bank of America up 2%.

I'm gonna have to send it back to you guys.

I've lost control of the Wi Fi Interactive, but uh I'm sure you got things covered.

We do.

Thanks dear and appreciate it.

And uh you know, we, as we see this higher close today, the S and P and the NASA in particular actually closed at record highs because of this sort of slow push that we've been talking about, particularly in large cap tech.

If you take a look at the NASDAQ 100 on the Wi Fi Interactive, um which I brought up here.

Uh You know, NVIDIA is creeping a little bit of, uh, did creep a little bit up in today's session up about two thirds of 1% Microsoft up 9/10 of 1% Tesla.

A real stand out here.

Jared was just talking about that up.

666 today, 6.66%.

Uh, but basically we do have, it's not as though there are fireworks in the market right now on an index level at all.

It's actually pretty quiet but it's just sort of, I don't even know.

Would you call it a melt up with the maybe?

Sure.

Let's call it a melt up.

It was interesting.

Kevin mom, we were talking earlier in the show.

I mean, really, we asked Kevin all eyes on NVIDIA and everybody else where the bar is really high.

I mean, ie earning small after the bell, 90% move already this year.

Sky high.

How high is that bar?

It's a 93% this year.

I'm and if you look at say a five year chart of this stock, I mean, back when we were talking about video games in crypto that was in video.

Yeah, that was in Exactly.

So it's been pretty incredible.

Let's also talk about another group where we've seen a pretty incredible move in an unexpected one.

Investors are indeed waiting for video earnings after the closing bell.

Tomorrow, stocks move higher on that.

The focus is on tech when it comes to A I but there's another sort of corollary sector that is become an A I that we're talking about utilities.

As we pointed out earlier, it's the best performing sector this year.

Joining us now is the mo of James managing director focusing on renewable energy and clean technology.

About.

Thank you so much for being here.

Appreciate it.

Thanks for having me.

So this line that people are increasingly drawing between the power that's going to be needed for things like data centers and the growth of A I and utilities.

I guess, first of all, just big picture is this the correct conclusion that people should be drawing here?

I mean, after all, utilities are a regulated industry, how much upside are they going to see utilities have regulated prices?

That is absolutely true.

On the other hand, the amount of electricity meaning the kilowatt hours that are used by the economy that is ultimately up to the economy.

So if data centers uh for the first time in 20 years, create growth in the overall us power demand, that is a very good thing for utility companies across the board.

So volumes of their sales go up even though the price is fixed by state utility commissions.

So Paul's intrigue goes traditionally, if you thought of utilities and you know, you moved into them because you were hunkering into a defensive crouch, you know, it was the same reason you went to staples or health care.

But now it's, you know, it's a lot of people perhaps moving in because they wanna, they want exposure to that boom of interest in A I.

So should we think of pavel as it's both defense and offense?

Well, it's predominantly defense.

Let, let, let's be honest.

Um you, you know, when we talked about power demand growing in the United States, it's a big deal because we have not seen us electricity demand growing meaningfully for 20 years.

Uh That being said, that kind of growth we're looking at is, you know, between two and 3% a year, right?

So, you know, we're not, we're not talking about double digits, 2 to 3%.

That is a big change from virtually no growth since 2007.

Uh but it's still, you know, not, not exactly uh tech sector kind of growth.

Um And there has been talk that the uh power companies that will do the best are those that perhaps are in areas, physical areas where you have a lot of data centers, is that how you see it playing out?

There's a lot of regional variability here.

Yes.

So Virginia, uh you know, data center alley around Washington DC, Ohio, another big place to some extent, Texas, not as much along the west coast.

Why?

Because in California, power prices are very high and therefore the economics of data centers are just not as attractive.

So, you know, it's predominantly going to be in places where electricity is cheaper and you know, just to frame that California people pay uh you know, at, at the residential level 30 cents uh for electricity, national average is half of that.

It works a little bit differently in the, in the commercial or enterprise market.

But you get a sense of, you know how uh different these uh price structures can be depending on the state pavel.

Let's say you're a viewer.

You're listening right now.

You're very curious.

You too would like to play the broader, you know, grid modernization trend one way to do it pavel you say is Ge Ver Nova.

How come, why that name G Renova does everything for the grid, natural gas, nuclear hydro wind and also all the infrastructure.

So the uh transmission networks, the power storage, the software for utilities.

This company does it all and half of its revenue is recurring.

So its services in addition to the equipment itself, Pavel, thank you so much for joining us today.

I always appreciate the insight and the picks.

Thank you, stocks closing today higher as investors are awaiting those highly anticipated earnings from NVIDIA tech giant has gone from creating chips for gaming to becoming one of the world's leading A I chip companies.

Let's take a closer look now at what led to Nvidia's boom with beyond the ticker where we dive to the company's biggest moments.

Comcast, revealing the price of its recently announced streams saver bundle which includes Peacock, Netflix and Apple TV.

Plus Yahoo Fines is Alexander Canal here with the latest on the streaming, the bundling landscape, the bundling landscape and, and our first clue to how much some of these bundles will cost because we've had a lot of announcements recently when it comes to bundles.

Now, we know that the pricing of stream saver will be 15 bucks a month.

Now, as you mentioned, Julie, this includes Peacock Netflix and Apple TV.

Plus it is going to be the ad supported versions for both Peacock and Netflix.

It's going to be offered for Comcast, broadband internet and TV subscribers in particular.

So this is obviously a play to try and keep those subscribers which has been on a steady decline.

Customers can also access Netflix and Apple TV plus subscriptions through Comcast.

Now TV streaming platform, this is a new streaming platform.

They're trying to gain traction to that includes Peacock and 40 other channels for 20 bucks a month.

But for an additional 10, you can secure access to the Netflix and Apple TV Plus platform.

So obviously, we're in a moment right now where a lot of these companies are facing increased competition.

There's a lot of pressure to scale the services to make sure that you're not only attracting subscribers but retaining those subscribers over the long term.

And analysts have told me this is a big play to combat against churn, which is basically a practice of people signing up for a service and then immediately canceling it.

So if you can create some sort of value among the bundle, then hopefully consumers will sign up and will continue to stay over the long term.

So that, that is the big question here.

Yeah, it's so interesting because we talked about this.

I mean, it's tr I, I get it in, you know, in theory I'm gonna reduce churn, I'm gonna increase engagement.

But at the end of the day, I you it's, is it really about the bundling or you have to give me great content and you got to invest in that, that's what keeps me engaged.

Yeah.

And I think it's interesting to see which companies are partnering with whom they think is someone that could potentially offer that really solid content.

I think the fact that you do have Netflix, which has consistently been called the winner of the Streaming War with Peacock streaming streaming.

I think that is a big play.

But, you know, I think time will tell whether or not consumers are actually going to buy into all of this.

It's certainly an interesting time to be a consumer because it's hard to know what content to watch.

I can keep track of the bundle.

It's crazy.

And now with sports too, I mean, we have the upcoming sports joint ventures streaming bundle with Warner Brothers, Discovery Fox and Disney.

When I in the price that is going to be interesting, it's probably gonna be closer to about 50 bucks a month, but that's going to set a big standard when it comes to the other over the top sports streaming platforms.

ESPN is coming out with its own exclusive uh over the top platform in 2025 whatever it's bundle with Warner Brothers, Discovery and Foxes, whatever that is priced at, that should give us a good indication of what the ESPN O TT platform will be.

But pricing is going to be a big factor here.

They can price too high, but they also can't price too cheap or else you're not gonna make money.

Yeah, thank you, appreciate it.

Moving on Mary budgets continue to decline, falling to a post panem low of 7.7% this year.

But what does that tell us really about corporate spending and the economy here to help us break down the overall advertising landscape is double verify, Ceo Mark Zagorski, Mark.

It is always good to see you and maybe uh Mark, listen, I I'm always interested to kind of start high level, get your kind of general take mark on just the online ad market.

Uh How healthy and resilient is it right now, Mark?

And what do you see ahead?

Yeah, the the overall uh online ad market is in pretty good shape.

I mean, you're seeing certain pockets really do well, um you know, one of which you, you just mentioned uh with your last guest, uh you know, connected television, connected television, uh is growing substantially based on the fact that it's taking some dollars away from linear television for sure, but also pulling dollars from some traditional media publishers on, on as well.

Um You also have some growth areas like retail media networks um which are, which are booming uh right now, which are, you know, folks like uh traditional retailers who now are using their data to extend their power to the advertising space.

Uh Right.

So you can target folks who are looking for certain products um off those retailer sites.

So overall digital media spending is pretty healthy.

Um So I, I guess Mark, how should people read your recent earnings then as uh a prism into this kind of spending?

Because, you know, you, you, you guys, your stock got smacked pretty hard following those numbers.

Yeah, you know, we had some um concentration challenges with a few big customers.

But overall, you know, most of our customers said across all the different verticals is, is is relatively healthy.

Um And we're especially seeing growth in areas like retail media networks where we continue to grow over 40% last quarter, uh social uh which grew percent for us last quarter.

So you're thinking about social platforms like meta tiktok, uh youtube continue to be strong um and growth outside the US.

Um last quarter, growth outside the US uh uh topped 40% as well and for the first time, uh international growth or international spend was 30% of our measurement revenue.

Um And so we are seeing, you know, strong pockets of growth in certain areas and, and I think, you know, outside of that concentration that we had in a few big customers, uh you know, we're having a solid year.

So that's interesting mark just to kind of double tap on what Julie is talking there because it did sound like you guys were projecting slower growth.

But what it sounds like you're saying is, you know, this isn't some, you know, permanent secular downshift, this is just some uneven spending by some advertisers and you expect that that kinda even out here.

Yeah, we, you know, we, we, we called out a, you know, a cluster of advertisers that were having some challenges earlier in the year.

Um We think they'll eventually work through those and that we see strength in many other pockets of our business, like I mentioned, um C TV continues to grow retail media, social and in particular uh you know, business outside of the US.

Um Something else that, that caught our eyes, a recent report in the Wall Street Journal that talked about marketing budgets overall getting cut back even as ad spending still seems to be ok.

So I don't know what kind of visibility you have in your business as to sort of how the bigger marketing budgets are being deployed.

Is that something that you kind of see reflected as well?

Yeah, we, I mean, we're seeing ads spend, go to places that can be proven to work.

Um So you see platforms and you know, advertising entities that can show a closed loop where, hey, I showed an ad and I drove an ro I um for actual performance that is eating up dollars.

So advertisers have no problem spending money.

They're spending marketing budgets on stuff that works and increasingly digital works and increasingly digital that has attribution attached to it.

So stuff like retail media networks, people like Amazon uh and platforms where you can show the exposure to engagement to actual sale.

Um You know, that's where the dollars are heading.

So I I would agree that, you know, marketing budgets may be uh you know, a little tight but advertising budgets that can prove lift, that can prove performance, I think are always going to attract dollars.

And increasingly there's great tools out there for the to show that can happen.

Mark, we have a big event coming up here, the Olympics kicking off in about roughly 60 days.

Mark.

What, what does that mean for the ad industry?

What kind of tailwind is that?

Yeah, I think you, you've got a couple of big events coming up.

You've got Olympics which obviously drive a lot of eyeballs, not just to linear TV anymore, but because of time shifting and in the way that uh uh you know, the, the, the Olympics are, are being, you know, uh displayed.

Uh There's a lot of digital spin that goes there as well.

So, you know, dollars follow eyeballs.

Eyeballs are gonna be watching the Olympics on multiple platforms.

So I think that will drive uh new spend, but you also have elections coming up, right?

And, and elections create lots of engagement.

Um It creates some good engagement, some challenging engagement, but it creates engagement.

Um And that drives uh dollars as well.

So I think we're gonna have AAA multitude of, of different tailwinds starting to hit the ad space over the next several quarters.

Um And talk to us about the Netflix tailwind in a little more detail.

Um You were one of the companies that was um named as a partner as they forge ahead with their ad supported strategy.

What is that gonna mean for you guys?

Yeah.

So we've been working with Netflix since their launch of the ad supported uh tier back in October 2022.

And, you know, that was, if you think about where they launched a year ago, they had about 5 million ads supported subscribers, you know, fast forward to today, you're looking at 40 million, which I think is, is, you know, much faster growth than I think people expected.

Uh That has something to be said with what they did with password cracking down and, and starting to tighten up who could have access, um which I think drove those numbers, but ultimately, you know, we, we think that C TV, particularly for double verify is going to be a growth driver for us in the future.

Um We mentioned uh recently we just did an uh attention study with Netflix.

And you know, one thing that's starting to happen with the C TV streamers is that they're starting to employ the same types of tactics that we saw with digital media, which is let's lean into data.

The upfronts were all about data, what we can tell you about our customer, what we can tell you about what they engage with.

Um And in this case with Netflix, you know, we shared data with them and work with data with them around how attentive or how much attention uh Netflix programming was driving.

Um And I think you're going to see more and more of this.

Um You know, as the C TV, streaming wars continue to heat up, particularly the ad supported C TV, streaming wars.

All right, as they heat up mark, we're gonna have you back on to explain it for us.

Thanks so much for joining the show.

Absolutely.

Thanks for having me time now for to watch Wednesday.

May 22nd.

We start off on the earnings front.

Of course, a make or break day for the market in video earnings are out tomorrow after the closing Bell Tech giant is the last of the magnificent seven to report this season and the stock has been on a tear over the last year rising over 200% closed at a record high today.

And I expect the company to report earnings of $5.65 per share on revenue of your $25 billion.

That would be a 400% and 200% gain respectively in the same time a year ago.

Is it worth talking about anything else?

Of course, let's talk about the Federal Reserve because that's the other big event, the Fed releasing its minutes from the May FO MC meeting in the afternoon.

We'll get more perspective and the Fed officials thinking around monetary policy as we look ahead to the central bank's next meeting in June.

And finally, you're going to be getting new data for existing home sales in the month of April in the morning.

Econs forecast that numbers go up this coming after last month's drop as high interest rates continue to pressure home buyers that will do it for today's market domination over time.

Be sure to come back tomorrow at 3 p.m. Eastern for all of your coverage leading up to and after the closing bell, but don't go anywhere on the other side of the break.

It's our new show asking for a trend I got you covered for the next half hour, the latest and greatest market moving stories.

So you can get ahead of the themes affecting your money.

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