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Oct 16, 2024
Wolfspeed CEO on CHIPS grant, Kinetic Automation CEO talks AI: Asking for a Trend
On today's episode of Asking for a Trend, Host Josh Lipton breaks down some of the biggest themes and stories of the trading day. EV chipmaker Wolfspeed (WOLF) is set to receive a $750 million CHIPS Act grant from the US government. Wolfspeed CEO Gregg A. Lowe explains that the funding will go toward expanding two of its facilities in North Carolina and New York, and ultimately drive scale, which will "help keep the advantage of this technology in the United States." With the government's efforts to reshore critical industries like chipmaking, Lowe tells Yahoo Finance, "the semiconductor industry is definitely taking a very strong position of rebuilding that capability here in the United States." He emphasizes the importance of keeping its silicon carbide technology in the US to dispel any worries about trade secrets and intellectual property. Kinetic Automation founder and CEO Nikhil Naikal joins the show to discuss how the startup backed by PayPal (PYPL) and Palantir (PLTR) founder Peter Thiel, leverages artificial intelligence (AI) and robotics to provide repair services to electric vehicles (EVs). "Cars today have transitioned from being predominantly mechanical systems to being digital systems... And when things break, the types of repairs that are needed to bring them back to their originally engineered state of safety requires a lot more thought, precision, and efficiency," he tells Yahoo Finance. All three major indexes (^DJI,^GSPC, ^IXIC) closed lower on Tuesday, and Yahoo Finance markets and data editor Jared Blikre breaks down his key takeaways from the trading day. The financial sector (XLF) leads the market so far this month compared to all other S&P 500 sectors as Big Banks report third quarter earnings. Oil prices (CL=F, BZ=F) diverge from inflation expectations amid macroeconomic uncertainty. Bitcoin (BTC-USD) shows signs of breaking out as it hovers around $67,000. As the bull market marks its two-year anniversary, Market Domination Host Julie Hyman breaks down how the current S&P 500 rally compares to previous bull markets. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. This post was written by Melanie Riehl
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Oct 15, 2024
The S&P 500 could hit 8,000 by end of the decade: Ed Yardeni
The bull market is officially two years old, and as investors head into the third year, Yardeni Research President Ed Yardeni explains what could lie ahead. Yardeni expects earnings to continue to push the market higher, especially as valuations are "already stretched." He adds that if valuations increase, it may spark a melt-up, which he tells Yahoo Finance, "You can make a lot of money still from here. But then you got to figure out when to get out. And then you have to get out pretty significantly." Overall, he expects earnings to drive market growth and support a bull market: "I'm thinking that the market goes up on earnings and that earnings, which were probably about $250 a share this year, go up to $275 a share next year, and $300 a share the year after that. By the way, by the end of the decade, I think we could be at $400 per share, which times a 20 multiple or so gets us to 8,000 on the S&P 500 (^GSPC). So I think it's still a bull market." With this market backdrop, Yardeni explains that he is Overweight on technology (XLK), industrials (XLI), and financials (XLF). On the other hand, he is "not too keen on" utilities (XLU) and other interest-rate-sensitive areas: "We don't think interest rates are going to come down as much as the market has been discounting." Watch the video above to hear what Yardeni thinks about the bond market (^TYX, ^TNX, ^FVX). To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. This post was written by Melanie Riehl
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Oct 15, 2024
3 investable themes, categories outside of the AI trade
While Nvidia's (NVDA) record high on Monday — the stock has since retreated in Tuesday trading — pushes the tech sector and hopes for the AI chip industry higher, perhaps there are still some opportunities for investors that lie outside of artificial intelligence. Alger Director of Market Strategy Brad Neuman sits down with the Catalysts team in-studio to talk about the three categories or investment themes he is seeing outside of AI: homebuilders, drug developers, and alternative asset managers. "Structurally, we're short homes in America... maybe 2 million homes. So there's a supply-demand imbalance," Neuman tells Seana Smith. "So it's an attractive market from that perspective. And cyclically mortgage rates are kind of elevated relative to the general interest rate picture." In the homebuilder category, Neuman names Builders FirstSource (BLDR), NVR, Inc. (NVR), and Trex Company (TREX). Neuman also makes the case for structural-cyclical dynamics in the biotech and pharmaceutical space: "The pipeline is growing, so it's a growth industry. That said there was an inventory overhang after COVID and the volumes have waned over the past couple of years. But we think they're on the upswing. And next year is setting up to be a normal year, or perhaps even better than that." He names Repligen (RGEN) and Danaher (DHR) for this category. Lastly, Neuman turns to alternative asset management firms, and lists Blue Owl Capital (OWL), StepStone Group (STEP), and Hamilton Lane (HLNE) among potential opportunities. To watch more expert insights and analysis on the latest market action, check out more Catalysts here. This post was written by Luke Carberry Mogan.
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