Inventory market this day: US shares tumble after Meta’s truth test, soft GDP print | April 25, 2024

I'm Brad Smith alongside Shauna Smith this is Yahoo finance's Flagship show the morning brief stock feature sharply in the red this morning the 10year at the highest level 10e yield at the highest level that we've seen in 5 months this coming after the US economy grew at its slower Pace than expected in the first quarter the latest GDP printed.

A Reviving talks of the fed's ray cut timing and exactly what that could potentially look like when when will they do it plus Tech also moving lower meta disappointing on earnings and dragging the NASDAQ lower with it the next of The Magnificent 7 to report Microsoft and alphabet both after the Bell today so let's get to it with the.

Three things that you need to know your road map for today's trading session Yahoo finances andz foray Jared blicky and pro super Manan have more meta's big spending plans shocking investors shares of the social media Giant Sinking following a softer Q2 sales Outlook CEO Mark Zuckerberg urged investors to be patient after meta revealed it will.

Spend more a aggressively on investments in artificial intelligence meta is set to wipe out $200 billion in market cap at the open and the tech sector is under pressure this morning the NASDAQ 100 down more than 1% with about half of that decline coming from meta Tech investors hoping to see a turnaround for the sector with results from Microsoft.

And alphabet after the markets closed today outside of tech we have results from two Airlines this morning Southwest shares falling sharply after the company posted a wider than expected loss and warned that that Boeing's airplane delays will hurt growth in 2025 the company now expects to receive only 2737 Max planes from Boeing this year much.

Less than the 46 they previously thought but shares of American Airlines are moving in the opposite direction the company expects Q2 profit to come in better than expected ahead of a busy travel season well good morning everyone today's top story Futures are sinking after a.

Downbeat GDP report the 10year treasury yield at its highest level in 5 months let's take a look at some of the wider Market action that this is triggering ahead of the opening cross as well here as we've got a look at the Dow futures and we're getting over to some of the yields here that we're tracking this S&P 500 futures we'll stay we'll stay on the.

Futures for right now S&P 500 futures right now you're seeing that move lower by 1.2% and the NASDAQ futures also down by about 1 and a half% yeah we saw this real move lower right after the GDP print was released again 1.6% growth in the first quarter well below what the street was expecting and Brad you just mentioned yields very quickly and taking.

A look a closer look at some of the movement that we're seeing there at least for futures when you take a look at the pricing action obviously a huge selloff there a lot of that tied to what we learned about prices within this print obviously higher prices clearly a worrisome sign here for the market for the economy and we're seeing that.

Reaction in treasury yields we're seeing a spike in yield a drop in prices here so something to keep an eye on and then outside of that GDP print that's not the only thing driving Marcus this morning we're also seeing some action here when it comes to Tech and that move to the downside here that we're seeing in the broader markets a lot of that has to do.

With that move lower that we're seeing in meta here this morning and take a look at the extended action and look at that a drop of 15% here ahead of the open so we're seeing that huge move to the downside and of course the question is what exactly this means for alphabet and for Microsoft which are both set to report here tonight after the Bell.

Absolutely all right well driving the market action in the NASDAQ today that disappointment from meta Shares are off just about 15% here in the pre-market action after the tech Giants big spending plan spooked investors well meta will likely wipe out $200 billion dollar of its Market capap at the opening bell for a deeper dive into the.

Company's results we want to bring in Brad Erikson RBC Capital Market Market internet analyst Brad it's great to have you here so when you take a look at the reaction that we're seeing in shares shares off just about 15% here in the pre-market does that make sense to you given the report that we read last night uh yeah probably an overreaction.

To be upfront about it but nice to see you guys thanks for having me by the way um I I think from a revenue standpoint things are generally fine um they they beat sside consensus actually for q1 um and guided slightly ahead for Q Q2 I think the investor side by side was probably closer to an inline inline report the issue was obviously cost.

Right they raised the operating expense guidance modestly and then the capex was the big one they they they raised that 12% 8% ahead of the street um to us that's maybe a bit more of an appropriate magnitude so coming off of the year of efficiency of course it was celebrated given the stock price reaction that we had seen out of the.

Gate in the first quarter of this year now you get these results Brad what is this year for the company the the year of spending the year of capex totally fair question you know as we were talking to the CFO last night on the Callback that I think it's still obviously maybe not the year of efficiency is the quite right way to say.

It but they're still very very focused on controlling headcount costs they kind of called out that none of this increase is really owed to to anything from that perspective so I would say from that perspective perspective year of efficiency is still very much in play this is capital expenditure uh issue where they're.

Having to spend a ton of money to build uh infrastructure and obviously acquire gpus to run their AI research and uh and product development in the future BR what do you see that ultimately the impact that it's going to have the Gen AI Investments here what is that going to do to engagement here in the longer run what do you see it doing the impact.

It's going to have on revenue for years to come yeah for sure we we think it's a kind of the next leg of you know outperformance type growth relative to the ad Market in general um it does a few things right one is is that it it helps them develop we call these probabilistic models it basically means that they're figuring out what ads are.

Driving which conversions and then they're optimizing and and making those uh campaigns perform better and better um two you mentioned it uh it recommends content right everyone knows about kind of the Tik Tock uh killer algorithm has worked on that a ton with Reals in the last year and that's going to continue to get a lot better and cause people to.

To spend more time on it and then third is we call it kind of it's in it has the potential to increase users utility of meta and specifically it's things like using a virtual assistant as kind of a a research tool and a discovery tool on the internet and also think about businesses connecting with their customers and new ways not just customer.

Service but just maintaining a much more open line of communication with their customers that's adding actual utility that's Revenue growth for these guys so there's a lot of ways it contributes in the future how accurate will those engagements with an AI type of engine or interface need to be in order for businesses to feel comfortable.

Relinquishing that because they've talked about how successful conversions have been to drive purchase decisions and now we're talking about conversions with relation to making sure that you're not losing out on the digital body language or missing out on that and uh ultimately Dam in or hindering a customer relationship yep totally yeah I.

Think if you talk to most you know companies or a lot of companies Executives who have begun certainly the ones that have a customer service or support component of their business I think a lot of them will tell you they're still very much a human component they want to deliver the right experience that's on brand exactly what.

Their kind of mission as a company or product is I don't think any of that changes I think where with that said I think meta's capability on this front can fill in and and drive a lot of efficiency there there are still going to be a lot of sort of like trivial black and white things that customers are going to really appreciate a more.

Direct line to the company for even W without missing out on a lot of the value that I just mentioned digital body language was the term you used I like that I may steal that that I think that's still really important of course right when we talk about what exactly this could mean for some of the other larger players within the group we're.

Seeing a reaction in shares of alphabet here this morning amongst a long list of companies obviously that are taking a hit following the results here from meta does this signal anything just in terms of a reality check maybe that we could be getting from alphabet from Microsoft after the Bell here this afternoon yeah yeah just to be clear I won't I won't.

Comment on Microsoft because I don't cover the stock but for the other ones certainly the the advertising names I mean there's two read throughs right one is just on the digital ads Market um I would say the fact that that meta met expectations but didn't exceed um probably a a little bit of an could be a little bit of a net negative there um.

Just that we know meta is outperforming the digital ad Market um with Google there's data out there so investors kind of know have a sense of what the results are but I think for for everyone else given that meta is outperforming um it it could lean a little bit negative on that front and then on the capital expenditure side right that hits at the.

Cloud business and and the infrastructure build um it's it's a positive from that perspective all these companies are are spending more the issue of course is Google is both a spender on that category as well as as a uh as a beneficiary and so it kind of works both ways so it kind of is a mixed effect for Google from that perspective.

Brad just lastly while we have you I mean we're looking at about a $75 pullback on shares of meta this morning a lot of investors as they're charting their strategy for not just today's trading activity but looking out into the Horizon trying to figure out if this is a dip that they should buy in on what within this report tells them that there.

Is something that they can kind of hang their hat on if they choose to do so yeah I think uh you know Mark on the call talked about how they've been through some pretty messy transitions historically three in particular uh mobile uh when they shifted uh to stories as a new service and then most recently when they shifted to expanded.

Into reals uh short form video and they've always done it really successfully but it's always started out with a period of investment and pretty volatile downward reactions in the stock and I think this one's no different so the question you got to ask is as you think about are you know do you want to buy the stock on this pullback or not do.

You believe that AI is going to be this transformational driver for this company if you think that they can do a lot of the things I was talking about earlier buy the stock if you don't I guess not we we're we'd be buying it Brad Erikson RBC Capital markets internet analyst Brad always a pleasure to grab some time with you thanks so much thanks a lot.

Certainly IBM shares plunging this morning nearing their worst single day percent drop since 2021 the company missed q1 Revenue expectations and posted weak Consulting sales disappointing investors the Miss is overshadowing Big Blue's plans to acquire infrastructure Cloud company Hashi Corp you're taking a look at.

Shares down right now by about 10% and it's kind of like a bang bang thing here sure it's on the revenue side and a miss there but in the bang bang play of course that we talk about in baseball all the time there's also this other activity that's happening simultaneously and that is the acquisition and typically you would see an acquisition a.

Company making the acquisition shares move lower investors trying to price in exactly what the accretive nature of that deal would look like and then at the same time how much they're shelling out for hashy Corp a company that just went public at the late end of I think the last month in 2021 bang bang sums it up right there IBM's results the news of.

The deal and the stock reaction all summed up in just two words but let's talk a little bit more about why IBM is acquir baring Hashi courp because Brian sawser executive editor was on the phone with IBM CFO Jim Kavanagh earlier here today and he was talking about why this is a tremendous in kavan's words it's a tremendous strategic fit here to the new.

IBM of a hybrid cloud and AI company so talking about where exactly he sees the direction of IBM here going forward they have confirmed that this is the largest deal that they have made since the deal for red hat which was several years ago at this point so again the extended reaction here in or the pre-market reaction in this stock here ahead of the.

Opening BT when it comes to IBM the fact that shares are off 10% a lot of that tied to how much maybe they are paying for this deal not exactly huge surprise a lot of times you do see that company that is acquiring another one under a bit of pressure here on the heels of that news but he also went on to say that he thinks it's a major.

Transformational shift for IBM that's complimentary and that drives the next leg of scale of red hat in IBM as a hybrid Cloud platform so again talking about what exactly this is going to ultimately do here for IBM for the business for the bottom line in years to come as they do shift and focus more on AI and that hybrid Cloud strategy going.

Forward at least Kavanagh making the point that he views it and the executive team obviously views it as a smart move a strategic move for IBM at this juncture two words that this is about and there's actually a hyphen in between them open source and that's what it comes back to at the end of the day here IBM leaning more into their open source.

Strategy they talked about that on the earnings call after the earnings were released saying that they're going to be leveraging the open open source combination of AI models whether they're ibms or own models or open source models such as llama from meta Mixr from MRA as well which sounds like a rapper name I don't know but anyway all they can do.

Here is think about deploying these AI models across multiple environments and open source is really what Hashi Corp also helps out with on the open source project side with the community of users that they have they talked about that in their S1 when they won public as well so kind of a collaboration of the open source efforts there yeah not also a lot.

Of the focus here at least when it comes to the results was ultimately on the fact that we saw unchanged sales here for at least the Consulting side of the business overall Revenue had increased just about 1% 14.5 billion from a year ago free cash flow was 1.9 billion that was actually an improvement from the levels that we saw a year ago there but.

Again we're seeing some downward pressure on the stock a lot of that likely tied to this deal absolutely well let's go from the cloud to the skies even further I guess A Tale of Two Airline results this morning Southwest shares plunging after saying now expects to get 20737 Max 8 planes from Boeing in 2024 that's down from the previous 46.

That they anticipated the airline also saying that they expect Revenue to grow in the high single digits for 2024 that is lower than the previous expectations of double digit growth you're taking a look at shares right now they were down pre-market here by about 8% ahead of the trade and we're continuing to watch that very closely I think going forward here.

And it comes back to actually something that we spoke with Delta CEO at Bastion about and they had a profitable quarter Delta did and he predicted made this statement when I spoke with him about this most recent earnings period and what he anticipated from the rest of the airline industry let's play that real quick well that's uh that's the reason.

We were able to generate the uh the profit in the first quarter we expect we'll be the only if you believe the analyst the only Airline that's profitable only major airline is profitable in the first quarter so hash was right um and at the end of the day I think it really comes back to a few things number one it's the corporate.

Travel where corporate travel and the margins that that continues to provide Delta versus some of the other competitors out there where that is ultimately benefiting them and then additionally it is the aircraft uh capacity as well and how that's impacting capacity versus where they were expecting to take delivery for some.

Of the other major airlines we've heard from yeah and Bob Jordan in this earnings releas saying that he cited significant challenges this year and next on those reduced deliveries here from Boeing we talked about the impact that is having on United we talked about the impact that it's having on a number of the larger Airlines here obviously.

Like you were just talking about so clearly this is the latest Southwest citing that as a huge issue and something that's going to restrict Revenue here at least for the immediate future right let's take a look at another airline here that's also moving but this time in the opposite direction American Airline shares on the move to.

The upside climbing after the company said that it expects current quarter profit to be better than expected you're looking at a gain of just about 2% and Brad even going back to what you were just saying a minute ago when it comes to the rebound in corporate travel and business travel American Airlines calling that out as a real bullish.

Assign here for the quarter also the expectations of a strong demand in the upcomer summer travel season very similar to what we heard from United very similar to what we heard from Ed Bastion in your conversation uh there in terms of what some of the other large domestic airlines are expecting here in terms of demand coming up over the next.

Several months I also highlighted uh some of that robust travel not only here domes Ally but also what they're seeing in terms of interest for international routes this summer so I think this all points back to what we have been talking about what exactly the prices are going to potentially look like here this summer and when you've got demand couple.

That with the fact that many of these airlines are restricted in terms of their flight routes they're not able to add the number of flights or add the number of planes in the skies that they initially had planned could lead to higher prices eventually yeah you know I only highlighted one thing within this American Airlines earnings report.

Usually I mean my entire thing is like just look at that the whole front page highlighted but anyway the only thing that I highlighted for this one is really coming down to the forecast and what they're forecasting here going forward something that you heard across the airline space here even as you think about what United is saying and it.

Really comes back to what you were mentioning a moment ago the demand for this current quarter expected to remain high expected to remain elevated and then additionally here talking about where their operation they're expecting the best operational results in Revenue uh for that quarter and so we'll see EX exactly how they're able to deliver upon.

That at a time where they're going to be navigating some of the broader kind of aircraft and Fleet that they do have I think the fleet is something to pay attention to as we go on throughout the rest of this year this means more maintenance if they're unable to take more aircraft you've got more circulation of those you might even have.

To see some leasing also enter into the expense uh expense mix equation as well all right well we have so much to get to here just this is just a taste of what is up ahead for the next hour we've got more on the earnings front coming up on the morning brief first just how much are people willing to pay for burritos well more than you might think Chipotle.

Shing off higher prices in its first quarter and delivering a huge earnings beat we are going to speak with the company's CFO Jack Hartung later this hour and coming up the theme of the day is AI shares of service now sliding despite a beat in the first quarter the company tting new AI Tools in its report service now CFO GM masuno is going to.

Join us in just a bit plus shares of Microsoft fact rubric will begin charting on the New York Stock Exchange today our executive editor Brian sa is going to speak with their CEO on the closing bell show Market domination you won't want to miss that came right here on the morning brief.

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this morning's GDP report showed the US economy growing by 1.6% that's well weaker than the 2 and 1 half% that was expected but with consumer spending remaining strong what does that mean for inflationary pressures and potential rate Cuts.

Joining us now to discuss former Federal Reserve former Reserve board econ Economist Claudia Claudia great to have you here on the program with us you know maybe I'm just flabbergasted trying to figure out what this print means for the fed and how it changes the tenor of their conversation at the next meeting if at.

All the going to look at data big picture right so one number particularly thinking about oh it was a surprise on what the markets thought that is not you know enough to really move their thinking and in particular and you mentioned this consumer spending looks really good under the hood business fixed investment so set aside those.

Inventories the investment business making are really good considering interest rates are a lot higher and so that's what we think of is kind of the underlying Pace the where do we think GDP is is headed today we got hit by Imports had a bigger drag that's a very noisy series inventories were a little in the play these are not things that.

Should change our view on the economy it's been strong it continues the underlying Pace continues to be strong that's not bad for the FED right we had a strong Pace last year inflation came down frankly the FED thinks it can lean on a strong economy a little bit get it some time to get comfortable with inflation Claudia when you take a look.

At this number when you take a look at the fact that maybe PC is going to surprise here to the upside if we do see any sort of elevated uh print here tomorrow before the Bell from pce what does that signal just in terms of what the FED is then likely to do how far out could we potentially be pushing that First Rate.

Cut everyone said and absolutely the FED Jay Powell when he's been out talking towards the end of last year you know there had been some real progress last year but it was going to be a bumpy ride well we got our bumpy ride in the first quarter and the progress really slowed there has been progress it's just been really slow.

The target index for them the personal consumption expenditure index has looked a little better but still it's slow they want to build confidence confidence takes time so we are pushing out I think where the FED probably will start their cutting and yet we are set up for them to cut this year and probably more than once but you know what they're going to.

Be driven by the data and there's a lot of data we don't have yet yeah Claudia that's a good point and I want to bring up the move that we're seeing the action that we're seeing in the yield market today because that bump higher and yields obviously tied to that pricing a data that we're getting in this GDP print but you say that it is likely that.

The FED is still going to cut before the end of the year what do you think then is going to what does the FED need to see in order to be confident to make that first cut and when we talk about the Improvement I would guess that you're expecting then to see on the inflation front where do you see inflation then trending between now and.

Year end there is a very clear path given what we know now there is a clear path for inflation to slow and in all likelihood we're going to see a pickup in that disinflation maybe not as much as last year but we're going to get moving the fed's Target price index is within a percentage point less than a.

Percentage point of the 2% Target and they have told us over and over again and it is good practice they will not wait until 2 % to cut so we got to see more progress to 2% things can't stall out and goodness they cannot inflation pick up again the fed's going to be driven by what it sees happening in the world and yet we know things like the.

Shelter prices the owner's equivalent rent we got more data on the rent people are like the contracts they're signing now have really come down so it's in train we we see it but we have gotten surprised and there could be other surprises down the road so I understand why mark markets are having a hard time getting a read on the data and yet we.

Should remember that the FED doesn't wake up look at One release and go wow we have to totally change our thinking where do you think the the data especially on that housing front needs to continue to Trend towards in order for the FED to feel confident with its cut decision when they do make that the FED is looking for things back to normal.

Which doesn't mean it has to look exactly like before the pandemic say in terms of inflation but if you at the pieces of the quote unquote excess inflation so like what pieces of spending are running above the inflation before the pandemic the leader is the shelter particularly the owner's equivalent rent we have every reason to.

Believe we're pointed in the right direction of that slowing do we know how much or how fast no I mean it's coming much slower than what we had expected the other piece I mean there are some other pieces of services and some of it's pretty eclectic and Echoes of covid I me in the Consumer Price Index motor vehicle insurance is another big excess.

That isn't as much in the pce but it just shows we've got we have far fewer enemies in the fight on inflation than we Claudia we really appreciate your Insight especially on a day like today thanks so much for hopping on early with us here in Yahoo finance Claudia Assam Assam Consulting founder thank you well we are just.

Minutes away from the opening bell on Wall Street we're going to take a look at some of the biggest movers that we are seeing here in pre-market action again a huge sell off that's going on across the board when it comes to the major averages that's tied to that weaker than expected GDP GDP print also within that print we saw a spike here in.

Pricing so exactly what that means for equities we're going to break it all down when we come back.

10 seconds away from the opening cross here this morning yes it is Friday's Eve Thursday and let's get this quick check of the market sponsored by tasty trade as of right now you're seeing the opening cross play out at the NYSC and.

The NASDAQ at the same time that we're tracking us major averages poised to begin the day down here so let's see exactly where things open up as of right now it's looking like the Dow opens lower by and I'm squinting to see what that number is 1.4% here is the initial read that we get at the opening cross the S&P 500 that down by about 1.3% and.

The NASDAQ on your screen there calibrating right now that was down pre-market the future is pointing lower and indeed as we get that first official trade here down 2% right now to start the day yeah bad when you take a look at the losses here a lot of that really accelerating obviously we saw Tech Under Pressure early in the pre-market that.

Was on the heels of meta's a disappointing report that we got after the Bell last night and we saw those losses start to accelerate here we saw deceleration to the downside as after we got that GDP print that showed growth was much weaker than the tree had anticipated also the fact that pricing surging here in the first quarter at.

Least relative to expectations and also relative to what we saw in the prior quarter so we saw the spike in yields but let's take a look at a lot of the action that we're seeing on an intraday basis when it comes to those larger Tech names because we are seeing a tremendous amount of selling action you don't have to look any further than the losses that.

We're seeing in meta here at the open off nearly 15% and that is dragging a lot of those larger cap Tech names with it we're getting Google we are getting Microsoft after the Bell here today you're looking at 4% a loss here for alphabet at the open you're looking at a nearly 4% loss here for Microsoft and that's not all.

You've got a name like Amazon also under a tremendous amount of pressure so we're seeing the street take a look at meta's results so far and asking themselves whether or not this is almost a reality check to some of the other Tech names that we are going to be hearing from Over the coming days and exactly what that could ultimately do to that.

Market's momentum here whether or not it's going to put maybe some pressure on the larger uh Market space here going forward absolutely well let's talk about that larger market space here too Yahoo finance reporter Jared blicky taking a look at what's trending on Yahoo finance's trending ticker page Jared tell us you got some green for us man.

You know I might have a little green I was checking Altria uh before the market but unfortunately uh they their report is being called uninspiring by City And maybe we can get that quote behind me but here's city which r stock and neutral we do not expect much change to consensus EPS estimates and there it's up 1% that is some green we do not.

Expect much uh change to consensus EPS estimates and with no Catalyst coming out of the print we expect the shares to be flat after this uninspiring report now here's Jeff with a buy saying it is hard to get excited about much in these numbers today and now if we can move on to Caterpillar I'm afraid we got some red there that's going to be be down.

About 6 to 8% as it was there you go about 67 % as it was in the premarket and this is joining meta uh in just kind of leading the market down Industrials caterpillar is the biggest company in that group and they're concerns that they're showing weakness outside of America North America also they forecast second quarter sales to be lower than a.

Year earlier and finally I got to hit Southwest Airlines this is another uh negative print here it looks like that's down almost 10% um that would be the worst in about a couple months here I think you have to go back to march to see something but they reported an adjusted loss per share for the first quarter of 36 Cents that was wider than.

Consensus City rates it with a neutral but they had concerns as well so lots of I would say more more earnings disappointments than good news here before uh before the I guess five minute Mark in the open all right Terry thanks so much for breaking that down for us again lots of R across the screen today we got to talk a little bit more about.

That GDP print coming in much weaker than expected 1.6% making the feds Pat of rate cuts a bit more murky potentially here now this report set a major indices down and we're also seeing a spike in yields a lot of that being attributed to the rise that we saw in prices within this GDP print so here to break it all down what.

Exactly this means for the market we've got Ryan Dietrich Carson group's a chief Market strategist here with us Ryan it's great to see you so we're looking at weaker underlying growth when you take a look at this GDP print we're also looking at higher prices so what exactly does this signal maybe to the possib that we could see more downward pressure.

On the broader markets here at least in the short term yeah let's start with the markets and thanks for having me back good morning everyone you know let's not forget we were just up 30% the past year on a total return basis for the S&P 500 up 27% 100 trading days off that late October low when you look at some Jared thank you Jared he actually shared one.

Of my charts in your morning uh the daily briefing email that went out when you have a big start to a year in election year you tend to have some indigestion right now your average election year from now until about Memorial Day maybe even a little bit early June tends to be a little weak so after that rally we think this is kind.

Of normal now to get to the GDP I love the conversations to have with Claudia because again yes the headline looks weak 1.6% at that we were about to have seven in a row above 2% we missed that obviously unless it gets revised higher we'll have to wait and see on that but if you take out inventories and exports actually GDP was 2.8% if you take out.

Government spending which is a little bit weaker is 3.1% what's that tell us well final demand is still really strong so we can get into the inflation part of it next but overall we're not too overly concerned the econom is just slowing down because it sure doesn't look that way when you kind of break it down a little bit more so if we do get a.

Revision and I guess that's what the markets are trying to figure out should we be banking on a revision or should we just be taking this as it is on Headline and then moving forward with thinking about whether or not the FED because in a in a bad news is good news then that would say hey this bad GDP print should actually see the markets moving higher.

Because of the prospect for a potential cut here that's not what we're seeing though no you're you're right Brad I think we just move forward right I mean we we can slice and dice is all we want we know the Market's a forward-looking mechanism I mean again why are Futures down well we know right caterpillar Jed just talked about obviously meta and.

Then if you peel back the onion a little bit you've got higher prices now that's monthly pce tomorrow I'm sorry quarterly quarterly pce tomorrow we do get the monthly PC maybe it's giving us a clue maybe it's not I mean similar what Claudia said before I came on we're optimistic we're trending the right way right we've got low unit um labor costs.

We've got higher productivity wages are strong but also coming back so yes inflation is not perfect it is a bumpy ride we're still optimistic though guys that we could have you know potentially two maybe even three Cuts still this year I know we need better inflation data but who knows it might it might start tomorrow so let's not get too.

Overly um you know too overly worried here after this one data print three Cuts not many on the street are still saying that at this point but ran why why we have you let's talk about earnings because we've got meta really moving the markets here this morning we're seeing this selloff here in Tech when you take a look at meta's results.

Does this signal any worrisome signs here for what could what we could see for the rest of big Tech this earning season yeah they're one of the first big ones and obviously it's not so good I guess Tesla but they're not really Tech are they I guess but I mean I mean you think about it I mean what they say well things were strong they made money.

Revenue was strong it's all because they're going to continue to spend and they shocked the street how much you're spending so you know that's that's a little oneoff we we'll see I mean it's hard to just say one company matters for everybody obviously and in big picture and I know caterpillar is lower right but this year we came into this year.

More neutral Tech after the rally it had we you know that's that's a that's pricey what's pricey in the market well the big cap Tech we're pricey so we're more neutral as areas we think Industrials and financials we added some industrial financials in the models we run for our Carson Partners a few weeks ago and again I know caterpillars weak.

What they had to say but there's still some uh some positives out there in our opinion on the global economic front that that suggests the cyclicals will probably do a little bit better I'm not saying money flows out of tech into cyclicals maybe a little bit we you think those those areas going to hold up better the rest of this year I'm sure.

Tesla would take issue with you calling them not a a tech company and well they're in consumer discretionary I me that they're in consumer discretionary don't don't yell at me Elon you're right you're right yeah I know it's it's Elon that would say well hold up we're computer on Wheels and we've got junk in the front Point all right thanks so much.

Ryan Dietrich who is the Carson group Chief Market strategist thanks so much for taking the time here on day thank you absolutely Ford pairing back its gains after its commercial Ford Pro business saw Revenue jump 36% from a year ago offsetting the 1 billion loss that it saw from its EV unit Yahoo finances Pro super Manan joins us now.

With the details here Pro you have just been clamoring waiting to talk about this with us you've been on set for like three blocks at this juncture tell us about Ford mentally preparing myself Brian Sai is here also this is a big All-Star crew here but yeah strong earnings that's the kind of big picture EV still the drag you know Revenue up 3%.

Nearly $43 billion that really surprised the street but Ford Pro like you said really the star here 18 billion Revenue three billion in ebit basically they're overcompensating for that loss in in in in EVs and and for actually their Outlook they they boosted some of their Outlook metrics but they only said that their profit Outlook would be the high.

End of its range of 10 to 12 billion part of that is the eeve business that Jim Farley called it drag on the call last night but then also a slower than expected roll out of the F-150 the brand new F-150 was sort of collecting on lots of dealer Lots couldn't they couldn't ship it for various reasons so fing that's coming out but that's going to.

Affect their profitability for this year how long ises that expect is it just till the end of the year and when you talk about that slow revamp because Jim fry did call that out on the ARs call the the slower ramp I should say with for the allnew Ford F-150 when is that going to have a more material impact here on Revenue in the future they said.

They're already shipping to dealers they're seeing High uptake from customers so it'll be they they'll catch up but not as much as they thought they would before the year started so it's going to be a little bit of a drag maybe they'll maybe they'll up it maybe they'll see strong results in the up it then after Q2 but we'll see all right PR.

Thanks so much for breaking that down for us again for shairs on the move here following results well Microsoft back rubric is gearing up to make its public debut on the New York Stock Exchange you just saw us a few saw them a few moments ago ringing the opening bell for the trading Daye today now the data management software company pricing it.

Shares at $32 a share that was above the initial expected range under the ticker rbrk here to break it all down what investors need to know ahead of the latest big Tech IPO Yahoo finances executive editor Bri sazy s what should we expect well this is a very simple one to explain they sell cyber security that protects Big Data what else do you guys.

Need no really I we got a jamack show need to know this is another one of those AI plays that of course it's a different company uh Reddit which came public got a great reception a couple weeks ago this is a tough day for rubric to come to Market also a tough company to understand full disclosure I read this perspectiv numerous times I do.

Think I know what they do now which is good but I think that is the bigger Point here with rubric and a lot of plays that will come to Market like this probably later this year they have a lot of I think work to do with Wall Street to get people to understand what they do why it's important the size of the market and then ultimately how they will.

Make money rubric points out in its perspectives they've never made money since their Inception in 2014 they lost a couple hundred million dollars for the 12 months ended uh January 31st uh 2024 so a lot to prove inside of a growing Market of course as we uh explode into the AI a decade uh there's going to be a big importance.

Of protecting this new technology and cyber security companies like a rubric like a cloud flare uh those are the companies that should ultimately uh capitalize but really a big part of the story is in fact the co-founder and CEO uh bip El Cena uh who I'll be talking later today down at the New York Stock Exchange with um he has just a.

Phenomenal story longtime venture capitalist uh really points out in his perspecti this that he came from poverty in India uh and he came over here and just made it happen he founded rubric out of coffee shops next to the offices of Google and YouTube in 2014 so he's got a great success success story uh a lot of investors I talked to in the.

Leadup to this one in particular that is an early investor uh in rubric uh you're backing someone like this and the team that he has been able to build since 2014 so yes tough business to understand not a tough story to understand in the CEO who's just really truly made it happen and congrats to him yeah absolutely he says maximal thinking is.

How he lifted himself out of poverty built a life in America and created rubric with his co-founders real deal Real Deal all right looking forward to that conversation Brian thanks so much for joining us Brian's going to stick around actually because we've got much more after this break plus let's do a market uh check here quick check of the.

Markets as we're taking a look at the Dow the S&P 500 and the Nasdaq all down across the board the NASDAQ the biggest decliner on a percentage basis by about 2% right now we'll be right back.

a tootle posting strong results for the.

First quarter the burrito chains at same store sales jumping 7% from a year ago foot traffic climbing over 5% we're looking at gains in the stock of just around 4 and a half% the quarter also getting positive feedback from the street Oppenheimer Piper Sandler Barkley just some of the analysts here raising their price Targets on the stock on the.

Heals of these results we want to bring in Jack Hartung Chipotle's CFO joining us now alongside Yahoo finance's executive editor Brian sizy great to speak with both of you jack let's talk about this once again very strong quarter here for Chipotle I'm curious what do you tribute the strength to and what what are your results do you think.

Really tell us about the state of the consumer right now yeah I mean first of all our Core Business is really strong right now and I have to hand it to our field teams our restaurant managers our crews they've done a Fant fantastic job of making sure our restaurants are fully staffed they've hired and trained terrific employees our turnover is at.

Historic low and they're executing our teams are executing throughput at the highest levels we've seen in a very very very long time and when we execute great throughput our customers love the idea they can come into Chipotle um they'll be served fast they can customize their meal um it's very very affordable and it's the kind of food that they really.

Want to eat but it all comes down to execution I think in terms of the customer when we look at our customer base um our customers are very healthy when we look at our income uh cohorts from low medium and high they're spending at the same level they're increasing their purchase their visits and their their purchase uh you know uh.

Habits when they come to Chipotle at the same level for the low income as they do at the high I know there's other patterns out there uh but so far I think chip because Chipotle is Affordable I think our customers are still able tojoy the meal that they love at poing Jack it's Brian here good good to see you so look the the Market's tanking today I.

It's a bad day for the markets really because GDP is is slowing down it suggests the economy might be entering some type of soft patch are you concerned that the pace of growth that you saw in the first quarter and looks like it continued into April that that slows in coming quarters yeah you know we're going to watch the health of our.

Consumer very very closely so far so good there's not much we can do if there's going to be a macro event meaning consumer confidence and consumer spending declines one thing Brian that though we've seen in the past when consumers are under pressure If we're executing at a high level customers tend to keep Chipotle in their budget longer.

And than they will keep other dining experien and and other um you know things that they want to do um they will keep the Chipotle in their budget for a longer period of time we like the underlying trends that we saw in the first quarter they've continued into April so far um and we're just going to keep motoring and you know our our view.

Is if we keep executing at a high level customers will keep visiting uh Jack regarding the the California wage increases now 20 $20 an hour took price increases that came at a time where the economy was was doing good you know but like we're talking about here the economy might be slowing down I how big a pickle it would a Chipotle be in but.

Also the restaurant industry at large so you have now these have these high structural wages in the key Market of California and the economy is slowing down and then maybe you can't push through more price increases yeah you know from a macro standpoint in California this is going to put another layer of inflation on top of inflation.

That's been really there for the last two or three years we know that generally consumer are getting inflation warry and so we're going to watch that very very closely U one advantage we have Brian is that our prices in California have frankly lagged the rest of the country considering California is a high cost of doing business but our.

Prices in California before this last action was similar to what the average price throughout the country would be so we have a value and pricing Advantage going into this uh we did have to take a six to 7% uh you know increase of so far we've not seen any resistance but there could be this kind of macro across the state.

Impact in consumer confidence and consumer spending it is another layer of inflation on top of inflation that people are you know frankly they're they're they're ready to move on from it you know Jack uh earlier when we were talking about Chipotle's earnings before you came on sea had mentioned clearly people are just willing to pay whatever.

For these burritos and it felt a little bit like a personal attack because uh it's me uh I keep buying into this experience and I think a lot of consumers are also looking for what that next big menu Innovation that drives demand is going to be from Chipotle what is that what's on the docket yeah so we're still in this.

Cadence and we like this Cadence of having one to to uh limited time offerings during the year uh we're still running Chicken al pastor right now our customers love Chicken al pastor and so as soon as we announced that we were bringing it back customers came in right away was a great response uh that will sunset uh probably sometime in the third.

Quarter we haven't announced what we're going to do in the fourth quarter uh but we're going to come up with something to keep our customers excited about what our chefs are cooking in the kitchen Jack when it comes to AI new automation implementation of those plans how was that going and how do you see that ultimately impacting Chipotle's bottom.

Line here in the next couple of quarters yeah it's early days we're starting to experiment with Gathering customer data C Gathering what are the visit habits what are the buying habits when they do visit um and using AI to help us understand when customers habits are changing is there some action we can take like if if somebody is starting to.

Visit less or if they're starting to spend less when they come um if that happens what can we do in terms of making an offer that is relevant to that customer we're very very early days uh I think we're you know we're very excited about where AI can go but we're going to take this a step at a time we're not going to get ahead of our ahead of.

Ourselves on this one Jack what's the water cooler Talk inside of Chipotle headquarters when you see a journal story a couple days days ago saying that your Ro results are being driven by by muscle building powerlifters I mean I'm not a powerlifter I'm in the gym all the time I usually do go to poly after I work out I mean I'm I'm okay with it I.

Already pumped iron and burned a th calories that's awesome I think you should have two burritos today uh so so listen usual order Jack actually is my usual order we we we love that listen I I don't know that we use the same language that was used in that article but we love the idea that people who are fit.

People who are athletic and people that really uh seriously take care their body Chipotle is their go-to place they can they know they can get the right amount of protein the right amount of car they can get exactly the diet we get contact all the time by you know not just amateur athletes but professional athletes and you know college division.

One um athlet that they love Chipotle because it fits in with their workout routine and we think we think that's fantastic yeah I'm trying my best Jack just to keep up with Sai but anyway just lastly while we have you here we're thinking about next week and the Trove of employment situation data that's going to be coming out uh and the.

Workplace is really being redefined I'm wondering how's chippy doing is especially knowing the type of productivity that you expect to see from Investments like that yeah so chippy is still in our lab and we've got some challenges with chippy uh frankly we've got a couple other innovations that we think are likely to uh move into our.

Restaurant sooner uh than chippy one is the avocado uh and that would cut core and peel avocados that's a very timec consuming uh task that our uh restaurant teams do uh we make our guac guacamole fresh every single morning our teams right now are making guacamole in our 3400 restaurants so that's a task that we do think that we can uh make make.

Easier and more pleasant for our teams and the other one is uh hyphen which is an automated uh digital make line um about 37 38% of our business is on that uh that digital make line and this will automate at least the making of the bowls it won't roll the burritos that's another thing that business really tends to come in concentrated periods as well.

And so that would also relieve kind of a choke point in a restaurant those are two things that we expect will go into at least one restaurant this year we'll see how it works in a real restaurants doing great in the lab so far for the next step would be to get it in the restaurant and have our crews really interact with it when they're serving.

Customers all right we're getting the group order fired up jackart decline push-up here there we go I'm ready to go let's go Jack har who is the Chipotle CFO alongside yaho finances executive vedor Brian sazy thanks so much thank you guys coming up everyone this morning's GDP report continues to show signs of an economic boom somewhat here.

What could it mean for inflation of course you've got to back out a few things in order to still see that boom we'll speak with an expert on the other side.

a now.

let's take a look at this LOF that's happening right now on Wall Street we are 30 minutes into the trading day and you're looking at the dowal dropping 650 55 points right now you've got the S&B also amount under a tremendous amount of pressure off just about 1 and a half%.

Taking a look at the intraday chart you can see we are right around the lows of the session the NASDAQ also under tremendous amount of pressure here this morning off just about 2% a couple of things that are going on one that GDP Prim putting some pressure on the broader market and that's on the heels of meta's weaker than expected earnings.

Results after the Bell last night that's a big reason why the NASDAQ is the worst performer of the three major averages but let's talk about what's going on with that GDP print and I want to take a look at what we are seeing the action that we are seeing in yields and you could see yields spiking higher up seven basis points getting closer to that 5%.

Level the reason why we were seeing yield spike is because of what was in that GDP report not so much about that headline number which was 1.6% yes that was slower growth than what the street was expecting but when you look inside that report and take a look at core pce and what exactly that looked like there for the first quarter that was running.

Much higher than what the street had been anticipating there rain 9 some of those fears surrounding inflation the fact that the FED is far from getting to that 2% Target that they have been talking about now for quite some time so worries here about higher prices that is sending yield higher we're seeing yield Spike to the highest level that we have.

Seen in several months all right from Cars to Machinery caterpillar shares moving to the downside this morning after seeing sales in both of its construction and resource units fall from a year ago the company which is largely seen as an economic Bell weather also forecasting lower sales in the second quarter yaho finances and Sr.

Joins us now with the details on that n s yeah Sean on caterpillar's Management on the earnings call just now said that it foresees a weak economy continuing in Europe and a softening economy in Asia Pacific not including China the maker of heavy machinery posted lighter than expected Revenue but his profit came in stronger than expected now keep in mind.

That the company has beaten earnings in all but one quarter in the past three years but sales were impacted by lower volumes cater pillar was able to offset that through pricing the results sales of 15.8 billion flat compared to last year and short of analy expectations and uh earnings of 5 $5.60 versus estimates for.

$513 guidance for the second quarter came in light caterpillar expects sales this quarter to fall from the same period last year and looking at the caterpillar segment energy and transportation that was an important segment that saw gains seeing Tailwinds from infrastructure are spending a think of uh energy like gas uh generators.

Power plants as well now taking a look at the stock the stock had been trading near record highs coming into the print year-to dat the shares were up more than 20% so some of this may also be some profit taking guys all right Yahoo finances Zone andess fre andess thanks so much for breaking caterpillar down for us here this morning we've got some.

More Media Earnings to digest today as well adding 3 million paid subscribers on peacock in the first quarter it's boosted by its partnership with the NFL to exclusively stream One play off game now the company did however report a wider loss in Broadband customers than expected shares reacting down by about 6% as of right now and as I've been.

Continuing to look through this report just to put some number on the total customer relationships for connectivity and platforms that decreased by about 166,000 customer relationships to 52 million and then addition ly going on further talking about that video Revenue that video Revenue decreased due to a decline in the number of video customers.

Offset by an overall increase in the average rates and then they say a positive impact of foreign currency but other Revenue decreased primarily due to lower residential Wireline voice Revenue as well that they mentioned yeah exactly I think you can setm this up as being a mixed quarter here for Comcast yes there's a lot to take issue with in this.

Report but Revenue though you have to remember was stronger than expected and looking under the hood at some of those uh more worrisome Parts within this uh report here they did lose 55,000 residential Broadband subscribers 10,000 business broadband subscribers there for a total of 65,000 so some of that weakness really showing here within the.

Reaction to this report you can see shares under pressure today off just about 5 and a half% and I think the question here going forward is obviously when you take a look at these numbers core cutting that momentum picking up steam it's on full display within this report exactly what the company is going to be able to do to offset some of that.

Pressure there yes we did see peacock out a substantial number of subscribers whether or not though that is enough to offset the losses that they're seeing one a very uh lucrative parts of their business there historically I think that's a big question for investors for analysts here going forward yeah a lot of marketing dollars have to go into.

Getting subscribers on that that impacted the margins adjusted eah margin decreased to 56.7% yeah and that's something it's not only Comcast but obviously industry head wins here across the board all right coming up at the top of the hour more Fallout from meta's latest earnings results and later we will we will be.

Speaking with the CEO of Astra zenica he will join us for the latest on their earnings report and of course at 11: a.m we'll be hosting wealth with me hey redin CEO Glenn kelman's going to be joining me to tell us why home costs in the US are higher than ever we'll be right back.

now.

welcome back to Yahoo finance I'm shaa Smith alongside of Brad Smith 30 minutes into the trading day let's get to our biggest stories of the day first got to talk about that selloff that's happening right now and taking a look at the pressure that we're seeing on the broader Market this comes on the heels.

Of that softer than expected GDP print that we got and also faster inflation here in the first quarter the Dow now off nearly 700 points and you can see the S&P falling back below the critical 5,000 level and the NASDAQ taking a massive hit as well with about half of that drag coming from meta platform shares of the tech Giants sinking after.

It disappointed investors with the second quarter revenue forecast below expectations plus announced plans to spend billions more than investors expected driven by artificial intelligence Investments and investors now looking to Microsoft an alphabet to hopefully set things back on track although you can see pressured there.

Across the board with for those two stocks both Tech Giants reporting after the Bell here today and the eye is going to be on whether or not we're seeing any proof of the massive bets that both companies have made on AI we want to get some breaking news on the housing front we've got pending home sales those Rose 3.4% in the most recent month here the.

Estimate was for a growth of 4/10 of a percent so better than expected there we take a look at some of the trends that we're seeing on a Regional basis here Brad you've got Northeast that was up 2.7% Midwest though actually fell 4.3% on a month over month basis in the South we saw a rise of 7% and in the west it was up 6.8% so again the Midwest being.

The outlier here within this report with that drop that we're seeing on a month-over-month basis yeah this report just screaming big Northeast Corridor Amtrak energy here with those signings rising in the Northeast one of the huge things though to also think about is what they're saying and this is from good friend of the show n Chief.

Economist Lawrence Union who's saying meaningful gains will only occur with declining mortgage rates and Rising inventory here uh however this pending home sales index at 78.2 they mentioned as well marks the best performance in a year Still Remains fairly narrow range over the past 12 months without a measurable breakout here as well and.

Soor to keep an eye on this because this is often viewed as a leading indicator of existing home sales so again maybe if we get a strong print like this at least stronger than expected I should say of a rise of 3.4% this could potentially indicate maybe some strength or maybe a rise that we could ultimately see here in existing home sales in that next.

Sprint yeah expecting to see median home prices increase by 1.8% in 2024 to a record of 396,000 now seeing up to $40 billion in capital expenditures in 2024 this is coming off of y's meta's year of efficiency where the tech giant honed in on cutting costs but now the game has changed as every tech company races to.

Be a leader in AI meta CEO Mark Zuckerberg seemed to be seeking patience from investors on the earnings call Wednesday night this is what he had to say we've historically seen a lot of volatility in our stock during this phase of our product Playbook uh where we're investing in scaling a new product but aren't yet monetizing it I think.

Kind of smart investors see that the product is scaling and that there's a clear monetizable opportunity there um even before the revenue materializes an analyst at hard Greaves land down said about Mena spending that it can't afford to take its eye off of the Core Business which is advertising so how could this AI bet impact the.

Company longterm joining us now we've got Roger mnam who is the elevation Partners co-founder here Roger thanks so much for taking the time here with us this morning you hear what Mark said on the call last night what was your reaction well I'm sure Mark is right but I think investors who are selling the stock today are more right meta as a.

Stock has just had a fantastic past 12 months and it did so in the face of rising regulatory action in Europe and legal cases the United States that jeopardized the core of its advertising business and I think all that's going on today today is that after a big run investors are pausing taking a look at this thing taking some gains and asking.

Some very basic questions like how real is generative Ai and how real is mixed uh media glasses is that a real business or is that just something that you know CEOs fall in love with when stock prices are rising Roger we spoke to a an analyst of meta last hour Brad Ericson of RBC I want to play a quick sound bite of what.

He had to say he was talking about metas capex spending exactly what the plans look like how that fits into what he still sees as a year of efficiency I want to play that quick sound bite and then get your reaction on the other side I think it's still obviously maybe not the year of efficiency is the quite right way to say it but they're still.

Very very focused on controlling headcount costs they kind of called out that none of this increase is really owed to to anything from that perspective so I would say from that perspective perspective year efficiency is still very much in play so he's saying year of efficiency is still very much in play I'm curious so and you're.

Saying it's hard to grasp some of these AI plans are exactly what it's going to mean ultimately for the business but from an investor perspective is it in a sense making meta relative again given that under performance that we had seen previously before they started announcing some of these AI initiatives if you believe that generative AI is.

Real then these Investments May well work the challenge that we have here is that this is a class example of a product category where the demos are mindbending but the reality is something far less than that and I think that we have seen consistently in use case after use case that the actual performance in the field has real issues and the.

Industry itself is trying to pretend like it's not a problem that the amount of electrical power it requires is greater than the largest states in the country that it needs more water than a small country that the architecture itself appears to be deeply flawed that as you increase the data geometrically the performance of the product only.

Increases in a linear fashion and that's the exact opposite of what technology is supposed to do it is entirely possible that we're going to look back in five years at generate Ai and realize that the whole thing was a mistake and the big tech companies have all made a giant bet on this and the bet they're making I think literally could Cascade into.

Effectively a bare market for the big tech companies because they're so overcommitted to this that in Google's case they've allowed generative AI to really undermine the quality of its search product which is the core of Google's business and I think at Microsoft I have no doubt they can sell tens of billions of dollars worth of.

Generative AI but I have great doubt that their customers will get any value from it and you know again I'm not saying here that gener AI is not going to work I'm simply saying that essentially 100% of of the market is betting that it is the next big thing and that feels a lot like a Mania to me and the odds of disappointment are very.

Very high I mean you're talking about hundreds of billion dollars uh of market cap being wiped out potentially trillions of dollars of market cap being wiped out if it does not come to fruition so for a company like meta like we've been discussing what are the key pillars of generative AI that they need to get right in order to solidify their.

Own positioning as they're kind of making these Investments and looking across the entire kind of pillars that Mark Zuckerberg has put out there before the applications the models and then one area that they don't participate on the chip side well to be clear I'm not sure there's anything it can do if you look at this from an architectural point of.

View the inefficiency of generative AI is greater than any technology product that has ever come before it I mean I had always thought that crypto was the most inefficient technology product ever invented but generative AI is much much worse than that and again if you're just looking at it without listening to what the promoters say and just look at how.

It actually works it's not impressive at all the product was designed to fool people right to pass a touring test and in order to do that they optimized it to make it persuasive so the product itself can't distinguish between fact and fiction and you apply that in an Enterprise setting that's actually not useful if you apply it to search it's.

Not useful no one wants to fact check their search results and so my only point to you here is not that gender of AI is going to fail but rather that 100% of the people expect it to be the biggest thing ever and therefore the chances of disappointment are unbelievably High and the chances of a catastrophe are high enough that we.

Should be paying attention Roger let's talk about Tik Tok here and ultimately what that means for meta because we got the news earlier this week obviously lawmakers of Biden Administration essentially Banning Tik Tok unless is sold here to another company outside of China here when it comes to that Tik Tock band you've.

Brought it up as a massive issue here for meta in the past Tik Tok being a competitor to meta in the past How likely one do you think this band is going to be the fact that it's actually not going to sell bite dance is not going to divest Tik Tok here in the US and the two ultimately what that would then mean for meta so getting rid of Tik.

Tok if it were to happen would be the greatest thing that could possibly happen to meta because it would give New Life to Instagram but you know I just can't tell exactly how this is going going to go down the bill itself is ridiculous the problem if you're worried about National Security in American data the things you have to ban in order are.

You need to ban the use of of uh excuse me data Brokers data Brokers selling to foreign countries is obviously a huge issue and right now there no rules against it there are there's talk of rules against it but right now it's still a big deal and anyone China any country can buy tens of thousands of data points on.

American citizens for next to nothing you can also take that data and then use Facebook and Google and other products to Target Americans and you know as long as those two things are true Tik tok's a relatively small problem yet Tik Tok is a competitive issue for Instagram that is taking away all young people and so if this ban does go through that will be.

A tremendous gift to uh to meta without doing a darn thing to improve our national security Roger mamy I wish we had more time we'll have to hopefully have you back soon here on Yahoo finance Roger elevation Partners a co-founder thanks so much for taking the time to join us here today pleasure take care let's get to a trending ticker here on.

Yahoo finance shares of Merc on the move to the upside up just about 2% the company posted strong sales results for the quarter driven by demand for one of its key Cancer drugs K truda Yahoo finances Angeli kamani joining us now with that story an that's right CH yeah K truda of course the name that is assigned to Merc and the drug that it is.

Known for Blockbuster coming in with 6.9 billion in sales up 20% previously and up 4% versus consensus meanwhile total revenue came in at about about 15.8 billion for the quarter really good 3% above consensus there for the company as well as their gardisil vaccine that's also one of the profit drivers for the quarter 2.2 billion up.

14% compared to the previous year so that's all that was in line with expectations but all a good story for MC this quarter all right an thanks so much for that right stick with us here because we also have our eyes on another Pharma giant that we are watching here this morning and that's Astra zenica taking a.

Look at that stock that's on the moves on the heels of its q1 results you see gains just about % the company beat the Street's estimates for a deeper dive on those results we want to bring in Pascal sorio a CEO of Astro Zen and our very on Angelie Kimani leading the charge on that interview on take it away thank you shaa Pascal so good to see you again and.

Thanks for joining us a really good quarter for you guys and really playing out the sort of focus of the company on core areas and getting the profits to follow that what can you tell us about how this is playing out and what that means for the Outlook for 2024 yeah thanks Angel it's great to see you again uh we had a tremendous first.

Quarter uh overall our Revenue grow by 19% um but the most exciting part of it is every portfolio of products grew oncology 26% cardiovascular grew respiratory Immunology grew rare disease grew by 16% every geography grew 19% in the US and Europe the most remarkable was the grow in the Emerging Market outside of.

China 40% growth it really shows that we are bringing our medicines to lots and lots of patients around the world um and our company is really doing very very well uh across the geographies and across the portfolio absolutely adcs in particular helping to drive profit for the quarter so that's a really good Buzzy area to be in I'm glad you.

Mentioned China because I know that there's a lot going on broader picture if we look at us China ties we of course know uh the biosure ACT is in Congress right now and you have had ties with China I know you have operations independent as well as Partnerships as well as a Target $1 billion fund what can you tell us about how if this act.

Passes and is signed into law what kind of pressure that can put on the company well I mean China is certainly a very important country from the point of view of having to serve 1.4 billion people but also more importantly recently from the point of view of the Innovation that is happening in China especially new technologies Cell Therapy.

T- cell engagers and many others um so we are very much uh engaged in China and we have been for many many years having said that of course we have considered all this geopolitical tensions and we have established a very resilient supply chain uh we have manufacturing sites in China for China and some other countries and the emerging markets in particular.

And of course we have Supply that is dedicated to what you might call the Western World the US and uh and Europe for instance we are right now in the process of building a s manufacturing site in Maryland so we really have a very resilient uh supply chain that has shown that uh it can sustain a crisis and the covid was a good example of this.

Absolutely moving on to one of your drugs Fara I know that that has been of course a focus for the US as well engaged in negotiations with Medicare you've already said in the past that you're pretty good with where they're coming in from what can you tell us about the response that you're getting for the initial back and forth uh you.

Know for the negotiations and how much of a Delta currently exists between where you're looking to land and where the government is coming from well it's a great question the uh first of all I should say FASA is a very important medicine for the treatment of diabetes but also kid disease uh heart disease and it has really made a tremendous.

Difference to patients around the world um and also the class the so-called sglt2 class has made a huge difference in the United States FASA will lose pent protection early 2026 so those uh pricing discussions come on the back end of the life cycle of of Fara in the United States I cannot really specifically comment on the.

Discussions and negotiations that are on ongoing um but suddenly we will make sure that uh we retain the ability to serve patients uh leverage those discussions to make sure that the product is more affordable and more patients can benefit from this very important medicine speaking of affordability for patients you are in.

The ADC space I know there's a lot of energy around this uh anti antibody uh drug conjugates for cancer and that seems to be an area also where it leads to the conversation about newer Technologies and the expense that patients have to take on as a result what can you tell us about how you're thinking about moving forward in this.

Space and the different therapies that are coming to Market and how it's going to affect the wallets of patients yeah so actually uh for your viewers a very quick explanation of what an antibody drug conjugate is it's essentially combining an antibody with a toxin and they very different type of toxins and the antibody will Target the.

Cancer cells and deliver the toxin into the cancer cell um and it's essentially uh aiming at replacing traditional chemotherapy and it's much more targeted of course so you deliver High efficacy and better tolerability another typee of such products is so-call Radio conjugate where you attach a um radio isotop to an antibody and essentially you can.

Complement or replace radiotherapy and Target much smaller t tors in the body that radiotherapy could not traditionally Target or or reach so those are really transformative agents and we intend to combine those with our antibody imuno imuno imuno oncology products especially our by specifics and we think we can transform the care of.

Many many cancers and of course the cost of those new agents is is higher and suddenly we are around the world looking at solutions to make sure that U patients actually can afford them uh in the United States Medicare covers those injectable products so it's a little bit easier but suddenly patients still have co-ace to to cover absolutely we'll have.

To leave it there for this quarter thank you so much Pascal Soo astroica CEO thank you very much back to you shaa all right an thanks so much now let's take a look at the markets here we're just about an hour into the trading day you're still looking at losses across the board although the NASDAQ well off its lows of the session you actually.

Have the Dow as the worst performer now of the three major averages off just around 640 points the S&P off about 1.2% and you're looking at the NASDAQ under pressure off about 1.4% coming up we are speaking with the strategist who's going to give us the three Catalyst that he sees for the markets this year we also get a take on.

That GDP print that we got out before the Bell this morning that is the Big Driver in today's market action we'll be right back.

we are 60 minutes into the trading day let's take a look at some of the selling action that's taking place right now this Market check sponsored by tasty.

Trade you can see we've got the dial off 648 points and you can see we are just off the lows of the session here so a bit of a bounce if you want to call that higher at least for the Dow although it is the worst performer of the three major averages here this morning you're taking a look at the N at the S&P 500 also sliding here off 1.2% but now back.

Above that critical 5,000 level and you've also got the NASDAQ under tremendous amount of pressure right now off about 1.4% some of that selling that we're seeing taking place in Tech TI to meta results that we got after the Bell last night but when you take a look at that broader Market sentiment right now you also got to check in on the spike.

That we're seeing in yields today you got the 2-year right around 5% you got the 10-year up seven basis points at 472 so getting closer and closer to that 5% level a lot of that is because of the what we got out from that GDP print here this morning inside that print showing that inflationary pressur is remaining sticky that of course is a concern here.

For the market so we're seeing that reaction play out in the bond market also in the equities markets today well stock selling off on worries of that slower growth and and sticky inflation the S&P 500 briefly falling below 5,000 now just above that level the weaker GDP print coming on the heels of meta lackluster earnings report which has.

Also put some pressure on Tech you've got the NASDAQ now falling just about 1.4% on the day over the last five days off just about 7/ t0 of a percent we want to bring in binging chat Deutsche Banks achieve equity and Global strategist Binky it's great to see you here so let's talk first about that GDP print because that is a big driver here.

Of the markets today lots of questions about what exactly this could signal we're seeing the reaction in yields play out how are you looking at today's print so what I would argue is that there's actually you know very little to take away from uh the GDP print and I think it has uh uh you know very few implications basically going forward and.

If anything I'd argue it's positive so what do I mean uh if you take GDP print and you start thinking about you know the components the largest component of course is personal consumption expenditure uh pce uh and and that's you know close to 70% basically of GDP that came in at 2 and a half% growth believe it or not.

That happens to be the 10-year Trend so that's why I say there's not a whole lot to take away from the largest component if you think about you know the second very important component especially basically you know at a cyclical turning point which is what we think we are at that's really investment spending that's telling you about you know corporate.

Confidence how corporates think about the future and and capex really you know has come in uh basically better than most people expected you know the housing part actually looks also like it's recovering so we have consumption at its 10year Trend we have growing at its 10-year Trend We have basically investment picking up so you know.

Slightly better than expected uh but in line with the view that we are turning up so why do we get this bad print it's you know coming from basically primarily the two largest noisiest components of GDP which are basically inventories and the trade balance because we measure them as contributions to growth so you know if you take a quick look at what.

The trade balance did the GDP took off four four and a half percent from the headline number I think people forget that GDP is a very volatile number the qu is about 1 and a qu% and if you're talking about Trend growth of 2 2 and a half% that's a rather large proportion of noise um so not taking away too much uh I think uh growth you know is really.

About consumption and investment responding basically to the outlook for consumption and those two major components look absolutely fine so bingy is this a bit of an overreaction then when you take a look at the fact that we are seeing a bit of a sell off here in the markets and we are seeing yield Spike I I I would say it's in keeping.

With uh the Market's Behavior which was impacted hugely by 2022 but I would remind that we are in 2024 now uh but the market is still you know very much if we have good growth or strong growth that means higher inflation I would disagree I would say you know yes of course growth matters for inflation but the growth that we've had has not.

Mattered for inflation uh I if you think about you know inflation relative basically to growth which I would measure as basically by uh unemployment I mean we we've been study for about two years give or take decimal points here and there so it's it's not really coming from uh you know uh the main driver in the so-called Philips scar which.

Actually works rather well in explaining inflation historically we would argue or or the other Big Driver of inflation which is the US dollar which is you know as as as high as as as it is basically at the top of its bands it is all really coming from outside um and and and it's really about US inflation and because us growth's been stronger than the rest of.

The world there's a tendency to believe that basically you know that inflation is coming from uh the very strong us growth um what you know I would point out is that uh this pretty strong consensus and read and view you know sort of across basically Economist the market the ECB that European inflation you know is is is behaving well it's.

Well on its way down to the Target of 2% uh and and and you know the Market's priced in and the ecbs told us they might have got rates in June uh it's important to keep in mind that uh Europe uses a price index called hicp it's the harmonized index for Consumer prices well you know the hicp also exists for the United States and if you look at the.

Hicp for the US it actually you know got down to 2% before it did in Europe and it's been sitting at 2% since June July of last year so we're in nine months of 2% inflation the US indices you know uh uh the CPI and the pce of course running higher and I would argue that the main culprit there is uh you know owner's equivalent rent which is an imputed.

Price nobody pays it uh and and that's what's keeping uh US inflation measured by our you know indices that we focus on U whereas if you looked at US inflation in European terms you know you would come to the opposite conclusion that uh I mean European hicp core inflation is actually catching down to US inflation so bigy let's talk about then what is.

Ahead given all that given some of the trends that we have been seeing I want to bring up a chart that we've been following very closely here at Yahoo finance it was initially included in Yahoo finance's chartbook a few months ago but it's still relevant today and it's comparing where the GDP prints or projections have been relative to.

Consensus and we have seen this catch-up Trend play out here over the last several months is this something that you expect to continue here for the coming quarters or coming months uh you know we we got a poor print today so I expect that uh nobody's going to be in a hurry to raise their growth numbers I think underlying GDP growth in the US is.

You know about two and a half percent uh and I think that simply because if you look at the largest component and this is something that I mentioned earlier if you look at the largest component which is uh uh personal consumption expenditure you know and as I pointed out it's about 70% of US GDP uh you know it's growing steadily in a trend Channel.

At 25% annual rate it was doing that for the 5 years before the pandemic we had of course the pandemic blip down we had a recovery back into exactly the same channel and and if you started you know by looking at the data and you the largest component I mean there's actually nothing to see there it's doing what it's been doing and that's why I.

Call it a 10year trend of Two and a Half perc so I would argue U you know relative to the chart that you put up which was this you know sort of six quarter roll forward of imminent slowdown around the corner uh you know there had been basically an improvement U but you can still see the gentle sort of you know down move so I would argue.

You know the macro consensus has sort of remained cautious to pessimistic and sort of you know and and I expect with today's print it will remain so but I would argue that provides an opportunity because underly growth does look stronger as I mentioned all right Binky Chata always great to get your Insight we look forward to.

Having you back here soon Binky Chata Deutsche bank's a chief equity and Global strategist thanks so much thank you coming up service now is out with their latest earnings print how is the software companies push into AI working here benefiting here the bottom line we're going to talk all about that when we come back.

a.

Ving software company service now out with its latest earnings report the company has been integrating generative AI technology into its software adding to some excitement surrounding that investor story but customers though.

Might be being a bit cautious as companies look to continue to cut costs here amid this uncertain macroeconomic environment so here to discuss the latest results we want to bring in service now CFO G M tuno Gina it's great to see you again thanks so much for taking the time to join us this morning thanks sha it's great to be here again.

Nice to see you as well so let's talk about this most recent report because when you take a look at the top and bottom line numbers you beat the Street's expectations on both yet it looks like investors are focusing on the guidance that you issued there the overall Guidance just falling just short of the Street's expectations talk to us.

Just about some of the trends that you're seeing within your business and whether or not you're seeing a pullback here on company spending yeah we're really excited we off to a strong start with an outstanding q1 performance as you said we beat the both the top line and the bottom line and in fact raised our full year guidance which uh at a at.

A rate that's higher than we usually do so early in the year and so subscription revenues of 24.5% operating margins at 30% free cash margins at 47% um so we're really excited that we're out of the gate really strong in q1 um we saw sign ific large deal acceleration as well so from a demand.

Perspective really strong um our deals greater than 5 million up 100% deals greater than 10 million up 300% so again really strong start to the year and raising that Topline guide for the full year by more than our beat in q1 um so again really proud of what the team has executed against so far G I'm curious what your message is to investors here.

On a day when there's a lot to celebrate we ran through a number of the beats a number of the positive trends that you're seeing within your business I know you're not focused on individual moves like the one that we are seeing today but I'm curious what your message is to the street on a day like today when your stock is still off.

6% yeah the message is strong execution you know we're seeing Global expansion in our most important geographies um Japan which is an investment area for us landed its largest deal ever in the quarter we have incredible customers such as Ulta Beauty um the governments of Italy and Australia Suzuki um ana systems um from an industry perspective.

Tech media and telom grew more than 100% year-over-year education grew 50% and so I'm really trying to focus our investors on the execution and The Innovation that continues to come out of service now Gina give us a better idea of some of that demand that you're seeing for the higher price tier that you launched the platform that includes generative AI.

What do those numbers look like and what do you expect growth to continue to look like in the coming quarters yeah you know every CEO and CFO that I'm talking to is leaning into what gen can do for their business you know IDC is talking about 11 trillion impact from gen over the next three years and businesses spending half a trillion uh.

In US Dollars on AI by 2027 and so we've been innovating on the platform with our gen SKS and in fact we just launched two quarters ago and our gen SKS are the fastest growing product launch that we've seen in our history um and so it's been in seven of the top 10 deals this year included gen um we have customers like Microsoft nardis Hitachi energy.

Really leaning into our geni offerings and it's just continuing to innovate on the platform and giving our customers more capabilities as they look to strengthen their AI strategies over the coming year Gina m wish we had more time we look forward hopefully to continuing this conversation at a future date Regina M tuno CFO of service now thanks.

Thanks coming up more on this morning's GDP Report with the former chair of the Council of economic advisors Jason Ferman he will join us right after the break stay tuned.

now stocks are in the red this morning after the latest GDP print showed a sharp slowdown in economic growth and also pointed to persistent inflation dashing.

Investor hopes that rate Cuts could be coming anytime soon inflation worries also sending the yields on the 10year treasury above 4.7% the highest level that we had seen since the start of the year for more on this we want to bring in Jason Ferman the former chair of the Council of economic advisers under President Obama Jason it's great to have.

You here on Yahoo finance thanks so much for taking the time to join us let's talk about that print that we got out this morning because I think when a lot of people are taking a look at that GDP report they're taking a look at that headline number asking themselves a little bit worried about the fact that maybe we are looking at an economy.

That's considerably weaker than we initially thought is that the right take or if you look underneath the surface is there reason though to believe that this print actually isn't as bad as that headline number suggests yeah I think there was very little to be worried about in terms of real GDP and real growth in this print there was a lot to.

Be worried about um in terms of inflation um on the first most of that Miss was volatile stuff um you had um inventory subtracting almost half a point from growth you had net exports subtracting even more from growth those are not factors I would expect to persist going forward if you look at something more like core real GDP growth.

Consumption and fixed investment that was up 3.1% annual rate in the first quarter that's really quite healthy real GD P growth Jason let's talk about maybe the worrisome side of this when it comes to inflation the pricing pressure sticky inflation prices that we are seeing what do you think the signals just in terms of how much more work the fed maybe.

Still needs to do before we can even talk about lowering rates yeah the big surprise here was that at an annual rate in the first quarter core pce inflation which is basically what the FED is looking at was a 3.7% annual rate as recently as two months ago that was expected to be 2.1 forecasters thought mission accomplished instead we now have.

A red flashing warning sign the FED will not be able to be reassured enough about inflation to cut rates anytime this year maybe in December probably not the only thing that's going to get us Fed rate Cuts anytime soon is a much more rapid deterioration in the job market than I expect to get or hope to get but that's the contingency under which the FED Cuts.

Rates before December so Jason what do you think looking out beond beond December into 2025 what that rup picture potentially looks like then for the FED look I think we're in a world where the neutral interest rate is almost certainly higher than what we thought a couple years ago but we have no clue no idea how much higher it is um my guess.

Is the Fed is probably absent a recession not able to lower rates much below four and a half that there aren't that many Cuts there absent to recession but you know look over a long enough time Horizon and eventually recession uh accumulative probability of recession becomes near certainty um so at some point they're going to respond but I do.

Think that's not going to be because they're reassured about a soft Landing that's going to be because they're worried about a recession and right now there's nothing in today's data um to increase your recession worries very much if at all and Jason when you take a look at a number like we got today or taking a look at the recent Trend that.

We've seen in inflation the fact that we haven't seen Improvement we've actually been trending to the upside there has been a bit more talk in recent weeks about maybe the FED could actually end up hiking one more time is it at all in play is that at all under consideration for you um I hope it is for the FED um it should be um right now Financial.

Conditions have tightened all on their own so we've had the equivalent basically of one Fed rate hike over the last month maybe one and a half after today's data so the market does that on its own I think if we in is you know persisting into the second quarter at a rate above 3% absolutely they should be very seriously considering more hikes.

Jason Ferman always great to talk to you we hope to have you back here on Yahoo finance again soon former chair of the Council of economic advisers under President Obama thanks so much thanks for having me checking the movement in the bond market today we've been talking about it all morning treasury yields are on the rise you're taking a look at the.

Five the 10 and the 30-year yields on your screen right there the 10 year y yield right around 4.71% a move to the upside of just around six basis points on that move coming and hitting at the highest level that we have seen in just about five months after that GDP print showed that first quarter showing that weaker growth and also sticky inflation.

Clearly a worrisome sign here for investors let's talk about that reaction with Alia ESP spinosi as saxo Bank head of fixed income strategy AIA it's great to have you here so first just your reaction to the to the jump that we're seeing in Yi today well shaa it's pretty simple the bond market is sending the same message.

That has been sending in the past couple of weeks which is if inflation is not uh going to drop sustainably towards the Federal Reserve Target of 2% in inflation there is no way that we are going to see a bond bull rally you see sha when we look at bonds inflation is their main dri if inflation remains sticky or there is the risk that it.

Might remain bound because of several factors including escalation of tensions in the Middle East that's bearish for bonds so when we look at the 10 years at 4.7% right now what is telling us is that investors are expecting real growth to remain at Trend around 2% and inflation to remain sticky well above the 2% Federal Reserve inflation Target.

I do you think we could see the 10year yield hit 5% do you think it's going to continue to Trend to that upside given what you were just saying absolutely 5% is now a very high probability there is also a very high probability that yields continue to rise towards 5.25% however to see a break above of.

That level we need to have a second wave of inflation we need the Federal Reserve to talk about hikes again and right now that's a little bit of a taale scenario Alia when it comes to investment opportunity or what investors should do at this juncture right now when it comes to the bond market what are you advising a clients to look.

At well sha I think that this is the moment to remain cautious to try to limit credit risk and duration risk so we really like the front part of the yel curve There is almost no uh way to lose money in the two years teners you see if we assume a holding period of one year and yields rise from 5% to 11% you will be still in the green yelds need to rise.

Well above 11% to lose money on that position it's very different when we look at the longer part of the in curve especially the long longer part of the yield curve which is very dependent on bets on interest rate Cuts so is a very much more directional kind of bet Alia how closely are you tracking the geopolitical risk developments because.

At least when you take a look at the reaction that we see play out across the equity market across the bond market it almost seems like that worry is on the back burner for now how big of a challenge or risk do you see the the rise in geopolitical escalation here presenting potentially here for the bond market I think it's huge shaa because uh.

What that we have learned since tensions escalated in the Middle East is that commodity prices remain very sensitive to what happens uh in terms of geopolitical equilibriums we saw oil resuming its rise we saw Metals prices going up and that is a bullish for inflation and it might cement a second wave of inflation which is a bearish for.

Bonds and that's why our message is to remain cautious to if you look at bond market remain in the front part of the ill curve up to five years but maybe the 10 years can still offer some value in case of a edge against of a market crash because it offers a good risk reward ratio issue but beyond that tenor it's important to remain cautious all right.

Al spinosi we appreciate your Insight today sexo Bank as head of fixed income strategy thanks so much for joining us here Alia thank you very much do a quick final check of the markets at least for right now we're taking a look at the markets Under Pressure here across the board 90 minutes into the trading day you've got the Dow off nearly 700 points.

The NASDAQ now back off nearly 2% you've also got the S&P back below that 5 ,000 level coming up next our brand new show wealth dedicated to all of your personal finance needs Brad Smith has you for the next hour where he will be digging into whether the latest GDP print what it means for you and what you should do about when it comes to your Investments.

He's got that for you stay tuned.

welcome to wealth everyone I'm Brad Smith and this is Yahoo finance's newest guide to building your financial footprint our community of experts will give you the resources the tools the tips and the tricks that you need to grow your money on today's show we're heading into a busy travel season how.

Much debt are you willing to take on for fun experience and helping your team become financially Savvy will bring you three money lessons that all young adults should learn before heading off to college plus we'll talk big toy maker earnings and the competitive Retail Landscape all that much more on today's show but first we got to take a look at.

Some of this Market action that's transpiring 90 minutes into the trading day take a look at the red across the board here after a fresh GDP print showed the US economy grew at a slower Pace than expected in the first quarter the Dow the S&P 500 and the Nasdaq all down we're looking at an annual growth of 1.6% versus 25% that was the.

Expectation stocks reflecting that soft reading the Dow off 600 plus points S&P 500 off right now by about 1.3% and the NASDAQ also slipping by 1.7% so that lackluster GDP number fueling further losses in Tech today as the NASDAQ is really bearing the brunt of that on at least a percentage basis jousting right now with the Dow for the biggest loser.

And meta shares plummeting on light Revenue guidance CEO Mark Zuckerberg spooking investors after revealing meta will spend more aggressively on investments in general uh generative artificial intelligence you know it is geni in your hood plus let's talk a little IBM big blue IBM shares plunging this morning after the company missed q1.

Revenue expectations and posted we Consulting sales that disappointing investors those investors sending shares lower by 9% well we've got much more to discuss let's dive a little bit further into the market action today with that Dow off 600 plus points heading for its biggest drop of the year a soft GDP print.

Fueling the sell off across all three major averages here with more on this yeah we're going to an expert and what this means for your portfolio we've got Ben ller who is the eoro global market strategist here I mean Ben we wake up we get a fresh GDP print that disappoints you get earnings that came out yesterday after the bell and so you know you've.

Got to put on at least some uh safety goggles here as you go into today's trading activity here give us perhaps some fresh perspective on what we're seeing transpire or you could just roll over and go back to sleep um I do I do think we all need to just take a deep breath here um markets were overdue a.

Correction you know we've had this low volatility 20% plus rally since October we've forgotten what a pullback looks like but hey we get three of them a year your average S&P 500 intra-year draw down is 14% so I think we've just got to keep that out of the back of our minds firstly and secondly this GDP number is is not great but it's not as bad as it.

Looks you know the bits that we care about inflation sorry um business investment and the consumer are absolutely fine this weakness was all about the things that we don't really care about and probably bounce back next quarter which is trade and which is inventories yes I'm a little bit spooked by the inflation number but you know.

Just hold that for 24 hours because tomorrow we're going to get the monthly pce number uh which will give us a lot more information as to how much we should really worry about this today and you know markets have already begun to sort of push back on uh these rate Cuts expectations and then just finally you know on the earning side you know yes.

You know tough crowd out there when you a company the size of meta reports nearly 30% revenues on the stock comes off um but you know overall earning seasons's been fine 80% of companies are beaten all sectors uh have beaten so yeah this piles a little bit of pressure on Google and Microsoft you know tonight but I still think the glass is half full.

Here not half empty you know I'm going to come back to earnings in a hot second but just to follow up on what you were mentioning with GDP we typically hear this phrase tossed around bad news is good news especially when we're within the environment that we are for the fed and trying to figure out when that First Rate cut will come why isn't bad news.

Like we've seen with this GDP print actually good news for the markets given what the typical reaction would be the typical reaction presupposes that weak growth is going to be good for markets because it's also going to mean weak inflation and interest rate cuts the problem this time is the combination that this is the worst case scenario if.

You believe the numbers and I'm not sure I do but this is the worst case scenario of lower growth lower earnings but higher inflation and therefore I'm not going to get the rate cuts and that's a combination that's the nightmare combination for investors right it means earnings are coming down and valuations are coming down so that's how I lose a.

Lot of money that's what you'll seeing a little bit today I'm not sure I believe it Ben just lastly while we have you here on the earnings season and and you teed this up perfectly you know as we think about what this pertains for some of the other major companies that are set to report either after the belt we're going to hear from some of those.

Two of those Max 7 companies or even later on into the earning season what is the tenor that meta platforms IBM even may have struck with their earnings that's put the rest of the street and investors here on notice as they're kind of doing calculus with their own portfolios so the earnings are great we've had 80% beats meta's earnings were.

Fantastic uh the problem is not the earnings the problem is the guidance and the fact that investors are so sensitive to this tells us that they're nervous and tells us that you know we've got the sort of macro tea leaves sort of changing a little bit here um so that with my first point and you know that helped Tesla earlier in the week Tesla.

Earnings were terrible but the guidance was better meta earnings were great the guidance wasn't so good so you know it it's sort of Shifting around you know a little bit it you know we were expecting a lot from mag 7even earnings I mean remember the backdrop here is mag 7 is 30% of the index so it's a really big deal and they're growing earnings 40 odd.

Per and the other S&P 400 you know 93 are basically flat so you know we're expecting that to rebalance over time everyone else to catch up but the here and now is that we are very dependent on magnificent 7 delivering on the earnings front all right Ben you're setting number next conversation extremely well for us Ben ler who is the etero global.

Market strategist thanks so much for taking the time kicking off the show with us good to see you turning to Tech here and continuing the conversation on meta it's going all in on artificial intelligence at least based on some of the expenditures that the company announced spending billions of dollars.

More this year on what was already some significant spending on generative Ai and it's more than investors were anticipating here so what is mean for meta platform users here to break down meta's latest AI offerings we've got our very own Tech DH the designated hitter The Man Dan Hy Dan what do we know yeah Brad there's there's a few things here.

To to look at and obviously you know Mark Zuckerberg originally trying to uh like get out in front of the story basically and assuage concerns about uh Investments he obviously said that they've done this before with reals and stories and when they went to the mobile web uh kind of trying to get ahead of the narrative that they're they're.

Spending too much but what are are they spending on exactly well for the the average user uh there's the meta AI uh that's the AI bot that you'll see at the top of Facebook Instagram WhatsApp messenger and on uh the website met. that you can interact with essentially it's a a powerful chat chatbot uh using uh meta's llama 3 large language model.

Then there's on the the the the advertiser side there's what's called uh Advantage Plus and this is one of the areas where you're seeing meta actually kind of service a a consumer need or customer need uh with AI B basically what you're able to do with this is if you're setting up an advertising campaign you can more or less automate.

That process uh either to a small degree or nearly entirely uh using this service and so that makes it easier for advertisers to go ahead and set up uh their whole plan using meta is a way that the company is actually showing that AI is useful now there's there's all this talk about how you know generative AI is going to do this that.

And the other thing I mean depending on who you talk to it's going to be the the best thing since sliced bread or I mean I think uh one executive maybe it was it Google or Microsoft had said uh it'll be better than the internet or fire uh that's pretty wild I can't you know grill hot dogs with generative AI but maybe at some point uh but but a lot of.

What we've seen has been a lot of just predicting right not enough showing and so this is a company that's really showing look we have this generative AI we're using it customers are using it and it gives them a benefit that they're going to want to go forward with so this I think is something that's being overlooked a little bit uh.

Something that proves that meta uh is making this actually uh these Investments pay off to a degree uh obviously the huge amount of money that they're going to be continuing to pour in uh not just this year but uh as uh the CFO season Lee said uh in the Years head it's still got investor spooked but they are making this work yeah I mean.

Look Dan you gave the grilling example generative AI should be taking the U out of you grilling your hot dogs at the end of the day if it's infused into your Trager or your Weber grill I don't know which brand is your preference but we will leave that up charcoal there you go we will leave that up to the companies determine how they Infuse that into our.

Broader summer Delicacies thanks so much Dan appreciate it all your markets action Straight Ahead plus more here on wealth on Yahoo finance stay tuned.

let's do a quick check of the markets sponsored by tasty trade the Dow right now moving lower by about 1.6% as is the S&P 500 down by about 1 and A4 per and about the same as the Dow on a.

Percentage basis is the NASDAQ that's moving lower here on the day by about 1.6% the NASDAQ was already being dragged lower by earnings from meta platforms but all major averages certainly reacting to a softer than expected GDP print here well gross domestic product also called GDP in your neck of the woods is out today for the.

First quarter the US economy grew at a rate of 1.6% falling short of the 2 and half per that the street and economists expected but let's break down what in the world GDP is in the first place GDP is the total monetary value of all final goods and services produced in a country in a specific period of time and this number essentially is a way to look at.

The health of a country's economy and growth rate so how's it measured well here's the equation you've heard of Sigma before right well for GDP just think signex GDP equals consumption plus investment plus government spending plus net exports C consumption that's how much individuals are spending on goods and services this is the biggest.

Component of GDP in the US then there's I the investment business investment or Capital expenditures as businesses buying machinery for example and then the G well that's the government spending that's how much the government spends on things like military equipment infrastructure etc etc and then we get to the NX which is net exports which.

Which is exports minus Imports so if a country exports more than an Imports that's a positive contribution if a country Imports more than it exports then that's a negative to the GDP equation so let's take a look at us GDP historically since the 1950s there have been notable periods of steady GDP growth and adversely periods of.

Contraction for instance 1990s amid the oil shock the 2000s during the com bubble and of course a negative shock during 2008 and 2009 with the collapse of the mortgage Market in the last 10 years we've seen GDP stabilizing upward Trends in 2016 2017 and 2018 but then screeching Hall of course comes the covid pandemic the US suffered its worst.

Ever quarter a decline of 28% in Q2 of 2020 you see that on the far side so we've seen recovery since and all that puts today's number into perspective GDP growth of 1.6% year-over-year and then zooming out from the us the international monetary fund or IMF recently posted its World economic Outlook calling it steady but slow their.

Baseline forecast for global economy is 3.2% during 2024 and 2025 that's the same Pace as 2023 the IMF also calling for a slight acceleration in GDP growth for advanced economies that's offset by a modest slowdown in emerging market and developing economies the forecast for Global growth 5 years from now is at 3.1% the lowest in decades so all this.

Being said the global economy has largely remained resilient despite higher inflation levels which central banks are globally trying to push back towards healthy long run levels well we've also got a fresh read out this morning on the housing market pending home sales increased 3.4% in March that's according to the National.

Association of Realtors you can see here on your screen that home buyers are looking to buy houses in the Northeast the South and west region as opposed to the Midwest which recorded losses last month so with housing demand reaching its seasonal Peak how can buyers navigate this crazy market and shortage of homes for more on what this means for.

The housing market I'm joined by Glenn kelman redin CEO hopping on wealth here Glenn great to see you thanks so much for joining the show first and foremost I mean I tracked you guys' data all the time there's a trove of insights that you're able to really extrapolate from where the numbers are moving and where people people on the other side that.

Make up those integers are moving as well here so walk us through what you're seeing in this market right now as we just got a fresh read on housing this morning well that number reflects March but I think people aren't as excited about as we normally would be because interest rates Rose since then from about 6.85% to 7.5% which is a sharp.

Increase so that means there are fewer buyers but what we've noticed about those buyers is that they're also more serious so we think there will be fewer sales than expected in the middle of the year but it wouldn't be the Calamity that it was last year because people have already waited so long to buy a house they can't put it off another year.

So we think buyers are going to hang tough but it's still a really hard time to buy a house because affordability is under so much pressure well when you say fewer buyers in the middle of the year then does that lead you to believe a lot of these buyers are rating for rate cuts to come through Glenn they are they are so affordability.

Right now is really Under Pressure normally when you have rates increase this much home prices go down but actually home prices are up 5% and if you compound that with what's happened to interest rates the median mortgage payment is up 133% so buyers just can't catch a break in places like Florida and Texas where it's easier to build houses.

Prices have been stagnant but in other parts of the US we have seen prices continue to zoom up and so I think buyers are under pressure and there's still not enough inventory so the best news in the market is that inventory is up about 10% so I think that will drive some sales but mostly this Market is waiting for a rate cut and that looks.

Like it's only going to happen later in the year if at all this year what does this all mean for firsttime home buyers Glenn what should they be anticipating in this market well they're the ones that are really Under Pressure so if you look at the survey data about 177% of people renting a home believe they'd never buy.

A house last year but that number has zoomed up to 40% so I think firsttime home buyers are losing faith in the American dream because more inventory has been slow to come to the market rates have been really high if you are a homeowner who's just trying to move up you at least have the consolation that your current Equity is worth more every.

Year but if you're just trying to get your foot into the door that door is being slammed on your big toe because in 2020 2021 2022 it was easy to get into the market you could move from California to the middle of the country and cut your mortgage payment in half now um it's gotten really hard because home prices are higher almost across the.

United States so let's give folks some actionable tips here as well Glenn when we think about those who are on the sideline waiting for rates to come down or waiting for a prime opportunity to jump in toss their bids in perhaps how can they prepare themselves in advance so that they can perhaps Outlast the competitive bids or the marketplace as.

Well once others dive head first in as well well I know I'm going to sound like a real estate broker but that's what I am and my advice would be to date the rate and marry the house so you can refinance a house later we have seen multiple offers bidding wars ease somewhat so if you're trying to get into a property right now it's a little.

Easier to do that if you can afford the mortgage payment and 6 months from now a year and a half from now you can refinance that mortgage and still have a house uh that's cheaper than what you would have paid in 2025 or 2026 so that's my first advice and then my second piece of advice is just to really be careful about that house the easiest.

Way to lose money to just destroy wealth is to buy the wrong house if you buy the right house you're going to be able to own it for five or 10 years there's no way that investment isn't going to pay off and if you buy the wrong house no matter what happens to the housing market you'll regret it because the transaction fees will eat you up when.

You flip it 18 months from now because you're miserable there Glenn I can't believe that's the first time that I've heard that date the rate marry the house Glenn kelman redin CEO with some actionable tips folks can remember out there thanks so much for taking the time good to see you good to see you man bye see you well from housing to hospitality.

American Airlines Southwest and Royal Caribbean also reported earnings this morning and companies are forecasting strong travel demand in the coming months despite a more cautious consumer inflation and tight budgets don't seem to be too much of a concern for Americans this summer in fact a new bank rate report shows that more than.

Onethird of Americans are willing to rack up debt just to fund that lucrative and luxurious summer vacation and well needed for more on some of the biggest travel Trends this summer we're joined by Ted Rossman who is the bank rate senior industry analyst Ted good to see you as well well thanks so much for hopping on first and foremost I mean.

People willing to take on debt to make sure that they can get some time in the Sun or or hey maybe they're going somewhere cold to offset all of the heat especially if they're in the southwest us so what are we seeing in terms of some of the trends right now we're still seeing really robust demand it surprises me because 2022 was supposed to be the.

Year of Revenge travel right and in many respects it was but the surprise was that 2023 topped it the TSA actually processed about 165% more passengers last year than they did the year before and then this year it looks like it's going to be another record so far that pace is up about 6% from the same period last year so I.

Think really throughout the travel industry we're hearing robust demand whether it's cruise lines like Royal Caribbean reporting record bookings or airlines are upbeat hotels this pent up demand seems to still have room to run and so all of that considered how can people actually plan to budget for their summer travel.

Plans I think it's really important to set that budget ahead of time set money aside from every paycheck that way you're building a vacation fund you're not going into credit card debt credit cards going to be great if you pay in full that's the thing because then you avoid interest you get rewards use those rewards points and Miles by the way.

That's a good tip to offset costs and be flexible about your travel schedule maybe let the deal dictate when and where you go that might involve flying midweek instead of on the weekend or driving instead of flying or going somewhere during the shoulder season or the offseason I think flexibility really pays who who is showing the most.

Propensity to take on debt right now to to finance the summer travel plans I mean is is it baby boomers is it the Forgotten generation as they have been called as well Gen X Gen Y I mean who who is it gen Z it's Millennials actually Millennials love their experiences and they're the most likely to be splurging on travel you know where.

It really stood out was a different recent study we did and we asked not just about travel but also dining and concerts and sporting events and other live entertainment that's where people under the age of 40 really stood out more than half of Millennials and more than half of Jers were willing to take on debt this year for those kind of.

Things versus only 30% of Gen X and 25% of Boomers you know it it's interesting I mean us Millennials have lived through so much so um I'm not going to fault any of those Millennials out there those fellow Millennials for taking that vacation much needed and a lot of other people too just lastly when you think about the number of businesses that.

Already know what the demand environment is like right now are we expecting any kind of price moderation in this near- term one bit of good news is that travel prices have actually Fallen a little bit year-over-year rental car prices are down about 9% airfares are down down about seven and hotel costs are down about two all of that's according to the.

Latest CPI so prices have stabilized a bit they really spiked a couple of years ago and now they're kind of back where they were preo I think that surprises people because costs in other areas have gone up so I think that's squeezing the budget but the travel plans themselves may not have quite the same sticker shock they did a year or two ago Ted.

Rossman who is the bank R senior industry analyst Ted thanks so much appreciate it no problem thank you absolutely coming up everyone workers are pretty confident about retirement we explore how you can be too that's up next.

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now let's retire now that's a statement that everybody wants to make but ultimately a lot of people are putting off some of those conversations maybe they shouldn't.

This week we spoke to Ali kaar from the US Labor Department on retirement planning here's what he had to say for a lot of people um retirement is Within Reach time isn't on your side when you're um planning for your retirement and the earlier you start saving the better off you'll be and so one really important initiative is to.

Make sure that things like 401ks are available to as many Americans as possible and planning early can help you feel a bit more comfort able with your outlook seven out of 10 Americans feel confident they have enough money to live comfortably throughout retirement according to an employee benefit Research Institute survey that's out.

Today to break down how to set yourself up for success in your golden years Robert pal retirement daily editor and publisher is here great to have you back on the show with us okay how can people even if they're hearing some of these stats about preparedness how can they take that first step to ensure that they're at least starting the planning.

In the correct way yeah so what's interesting uh about the EB study is first of all how confident people are but what's to me more even even more interesting Brad is the notion that there's a high correlation between planning for retirement and being very confident that you'll be able to enjoy the same standard of living in.

Retirement that you did in your working years um and and that's really important that people plan um the other really interesting note is that people who have a financial advisor are also more likely to feel very confident about how their retirement will be and so I think put those two things together um do the calculations.

Figure out how much you need to save for retirement and also if you need to hire a financial advisor or at a minimum maybe find a financial adviser who will charge an hourly fee and who will be your sounding board especially if you're working and you're young um having those two things in place will definitely not only lead to higher confidence but I.

Also think to lead will actually lead to higher success in retirement you know the principal Deputy assistant secretary for the employe employee benefits uh Security Administration that we spoke to yesterday Ali kaar I had asked him the question essentially about what the real figure is like and that's different for everybody right based on how you intend.

To have a lifestyle in that retirement whether you plan to have supplemental um income or you know just how you want to maintain a mentality and what not we got kind of a quasi answer but I I guess it's a quasi answer because it's so different for everybody right and so where has that kind of average um average you know goal moved towards.

Where is that goal line now yeah I'll give you sort of two rules of thumb Brad one is to sort of think about how much money you need to accumulate relative to your salary so companies like Fidelity tro price um Lincoln others have said maybe what you need is somewhere between 10 to 12 times your final year salary set aside in your nest egg to in order.

To fund your desired standard of living the other folks say another rule of thumb would be to look to replace 75 to maybe 80% of your pre-retirement income in retirement as a way to sort of make sure that you'll have the same standard of living I think those are great places to start um but there's no substitute for actually crunching the numbers I.

Always think of retirement income planning as a Excel spreadsheet I think of it as a row by row and column by column exercise now the one thing I'll say about both these numbers is it varies by income so for folks who are in the highest income quintile they may not need to replace 80% of their pre-retirement income they may only need.

To replace 50% uh for folks in the lowest income quintile on the other hand they mean they may need to replace 90% of their pre-retirement income and the bulk of that money at least in the lowest income quintile will probably come from Social Security and for those in the highest income quintile Social Security will represent a very small.

Portion of their retirement income maybe 15% so you're right it varies and it varies mostly by income levels but also education levels and um and and race for those who want to enjoy retirement but also want to stay you know active to a certain extent are there common jobs that you find people gravitating towards even in retirements to enjoy you know a.

Certain lifestyle or a certain kind of Acuity maintenance yeah I mean you see lots of um folks who are going into retirement well two things I should note a lot of folks at the moment according to ebre do plan to retire at age 65 but also to keep working after they retire from their full-time jobs and I would say that's a.

Good plan for some and a bad plan for others um the reason it's a bad plan is according to ebre only half of those people who say they plan to keep working in retirement are able to do so so if you're planning to work out of need as as opposed to out of want I would say come up with a better plan than that um and then in terms of working in.

Retirement if you've been a white collar worker in the past maybe you want to dial back maybe you want to become a consultant maybe you want to become a contractor to the company that you previously worked for uh maybe you want to do something entirely different and maybe work um uh you know in your field but for another entity uh maybe for a.

Nonprofit for instance um and part of this working in retirement U is a matter of want and need or a combination of both if you need to keep working because you need to fund your living expenses that's a very different story if you're working out of want because you need the social interaction um you need somewhere to go in the afternoon aside from you.

Know maybe going to the local coffee shop and spending all day there surfing the web um that's a whole another thing as well and then for the other people in the middle it's a mix of both in some cases people do need the income in some cases It's a combination of need and want Robert pal retirement daily editor and publisher great insights as always.

Thanks so much Robert appreciate it thank you br certainly coming up everyone Chipotle reported its latest earnings after the Bell on Wednesday we break down what that means for you and me too I bought a couple burritos last quarter we got you on the other side of this short break.

now Chipotle posted better than expected.

Results as consumers like me continue to think of the burrito chain as a great value proposition here with the three things consumers need to know following the results is senior reporter Brooke DePalma hey Brooke good morning briad absolutely on Wednesday after market closed Chipotle beat the estimates That Wall Street had expected from the.

Company so let's break it all down what is keeping consumers coming back for their chicken or their steak burritos or their bowls well first thing you need to know is that CEO Brian Nichols said on the call it is seeing gains with all income cohorts lowincome middle income and high income consumers he said that every group says Chipotle is this a.

Great value proposition so what exactly does that mean well that means that consumers think that they're getting the best bang for their Buck paying for $9 chicken burito BS now the second thing you need to know Chipotle still thinks that it is pricing power here this means that as GDP grows at a slower rate and if consumers tend to pull back or become.

Under Pressure well he says that they'll still have money for Chipotle take a listen to what CFO Jack Harang said this morning when he spoke to her own Brian sazy when consumers are under pressure if we're executing at a high level customers tend to keep Chipotle in their budget longer than they will keep other.

Dining experience and and and other um you know things that they want to do um they will keep the Chipotle in their budget for a longer period of time and the third thing that you need to know if you're heading to California anytime soon and you happen to grab Chipotle while you're there well you can expect to pay slightly more you see on April 1.

The fast act went into effect in the Golden State which raised fast food wages to $20 per an hour now that caused Chipotle to have to raise wages but get this nearly 20% and to offset that cost it raised menu prices by 6 to 7% but the chicken breed bow there will still only cost you about $10 and Brad I have to say I recently went to Chipotle and I.

Did in fact only spend about $12 for a chicken breedable but it was my birthday month so I did get some free walk on the side work I'm I'm I'm upset I'm I've been running the tally on mine and it's average of about $15 so clearly I'm adding something on that is wrong and not getting me the guac double protein look I might just need to take you and.

Sazy with me next time to see how you guys hacked the Chipotle cost here uh but ultimately I will uh I'll give it a shot on my own and then we'll ultimately bring you back and see what happens but bro thanks so much for breaking this down for us appreciate it I'm frustrated now whatever let's end the show we can't do that we got to talk about this most.

Adults expect teens to worry about their clothes shoes dating maybe even their Chipotle orders but they probably don't expect them to be worried about money according to Wells Fargo's money study 83% of teenagers actually want to be better with their money so how can adults help set them up for Success joining me now we've got Emily Irwin.

Wells Fargo wealth and Investment Management managing director of advice and planning great to have you here on set with us Emily great to be here Brad so let's dive into some of these results here Mor teens they they want to be smart about their spending about their saving what did the survey really show and tell about how they're setting.

Themselves up for Success yeah well you've already mentioned 80% of them are really focused on wanting to manage their money better and that is an incredible statistic what's interesting is it's in direct conflict with the fact that most adults shy aggressively away from wanting to talk about money and so we have to as adults and as parents.

Really set that standard for them to be able to have these conversations other and so with that in mind I mean what's that what's the kickoff point for some of these conversations I mean it can it can be awkward it can be dicey when you're saying hey sit down junior I want to tell you about how you can really make sure that you're managing.

Your money right yeah let's bring the abstract and the concrete together for kids that's really important and so we can start small whether it's things like showing some of the finances that you might go through on a regular basis so I think one of the great ways to do this is by instituting both onetime expenses and Rec expenses with teenagers and kids.

So for example it might be easy to be able to set standards for how do we save for a bike or a new laptop but we also have to complement that with what the reality is you know we like to saay for vacations we also know we need to stay for rents and utilities we also need to make sure that our kids are able to save for cellone plans or maybe streaming.

Services how do you balance the two and you can help them start that by being able to help them set a budget for example and so teens right now does it seem like especially with finstagram fin talk that they're more excited to talk about money and financial planning they absolutely are they're out there they're talking about you know how do we save.

Money how do we budget how do we make the most of our dollars and they want to understand even Concepts that might be complex such as what is compounding you know how do we how do we make money on our money and so as parents what one of the fabulous things is to really set them up for success is to be able to sit them down and say okay you have $1,000.

From your summer job for example if you have an interest rate of 6% you're going to have after one year $1,060 great news you do that in year two you're going to earn $63 60 so all of a sudden you're earning interest not just on your original amount but you're earning interest on your earnings as well that can exponentially grow.

Introducing kids at a young age to that concept of money growing on top of money is really important compounding is is part of the three tips that we want to give people as well here you've got three actionable tips for kids who are or just young adults that are ready to go to college and planning for that as well what are they well savings and.

Compounding super important we definitely want to make sure we touch upon that understanding credit this is where I think kids for the first time you turn 18 you might be on a college campus and you're approached about open up your first credit card don't have that be your first introduction to credit let's talk about credit and.

Starting it early explain what credit is really made out of and why it's important it's going to help you borrow money lenders are going to want to let you loan M loan money to you two you're going to be able to do it at a more advantageous rate most likely and on better terms potentially they look at credit history credit um the amount of.

Credit to what you have outstanding and then of course your ontime payments that is critical maybe even consider having your teen as an authorized user on your card so they can start building credit and then finally budgeting at WS Fargo we have a a life sync in the mobile app experience where you can upload pictures get inspiration that is a fabulous way.

To start thinking about managing both your everyday expenses checking in with them intentionally but also understanding how are you going to be able to fund those longer term goals like spring break maybe oh yeah indeed a big funding topic there Emily Irwin who is the Wells Fargo wealth and investment managing management managing director of.

Advice and planning thanks so much for Tak the time here with us my pleasure absolutely well if you're still struggling to make a decision on which college you'll be attending in the fall you better make it quick the deadline for accepted students to decide their next step is traditionally May 1st but there's a lot of financial factors to.

Consider when making this huge decision yaho finances relle akufo joins us with more hey relle hey Brad so I want to focus on three key financial factors we should focus on your FAFSA and deadlines your resources and your return on investment so we'll start with FAFSA because there are lots of ways to pay for college but FAFSA the free.

Application for federal student aid is one of the most important so it gives you one centralized place to apply for Grants Federal loans work study jobs and more now recently scolly by Sally founder Christopher gray would joined us at Yahoo finance and talked about the biggest mistake perspective students make take a.

Listen I think that just being able to start as early as you can and if you do have to wait the last minute that's fine people have different responsibility but that is the biggest mistake waiting till the last minute um and then and and just having to rush into all those essays and applications you have fast reforms you have to do all those.

Things now of course that fast to deadline is June 30th but many schools give on a first come first serve basis and of course it varies by Financial need but keep in mind there are no income limits to qualify so don't think you or your family make too much you can still apply but of course do check for any variations when it comes to your.

Specific College as well as any state requirements as well next want to focus on resources now you still have to formally accept the offer they have just sent you an offer you do still have to actually formally accept it review and accept the financial aid offer as well plus send the enrollment deposit a lot of times people might be you know.

Celebrating saying you know buying all the merch please make sure you've actually accepted the offer and make sure that you check that specific colleges requirements before you that video now if you're a little bit nervous because you were weight listed or deferred follow up immediately with a compelling letter of continued interest.

With any sort of added accolades since your original application and don't forget to keep applying for funding for your next best college choices now third return on investment now of course we've got to talk about tuition now the College Board expects the average tuition for the incoming 2024 freshmen to range from just under 14,000 for a.

National public 2-year cost College to over 55,000 for a private 4-year College obviously a lot of range within this so make sure that you're you're picking college that makes sense for your pockets yeah and I was still at the top end of that range almost 12 years ago Michelle uh that's my own buy financial.

Decision it paid off a little bit but anyway costs go beyond tuition though here as well break that down for us in that factor and that's true that's something that people tend to forget one of the things obviously we've been talking a lot about housing you have to factor in your student housing beyond your tuition your transportation cost if.

You're going to be living off campus depending on your major your technology and lab cost requirements as well and then you really have to balance that with the value of the education that you're going to get is this the right place for you think about the alumni connections what that opens up for you some of these soft skills that don't may.

Not make sense on paper but when you're out there in the world trying to get a job do make sense also the job acceptance rates for graduates some of the salaries also not just for your major but from that school once you graduate so really take a holistic view when you're investing in your education here all right thanks so much Michelle.

Really breaking that down for us a lot for families to think about ahead of decision day thanks exactly clock is ticking everyone we've got much more on wealth after this short break you're watching Yahoo finance.

yeah e toy giants Mattel and Hasbro both out with first quarter results and both companies reporting sales declines in the first quarter Mattel reporting a sales drop of 1% from the year prior Hasbro saw a whopping 24% Revenue.

Decline from the year before there are a few positives though some of the results were a bit better than feared and we're seeing Improvement in inventories but there's no doubt the industry is facing challenges from inflation to increased competition from eCommerce Giants here with more we've got James Z editor and chief at the toy book and Senior editor.

At the toy Insider great to have you here on the show with us James what happened in this quarter what's the biggest trends that is that's rocking these companies right now these toy manufacturers well you know the toy industry is in a weird spot right now because we're coming off of a couple years with the pandemic we had all those.

Sales Booms that no one planned for and then they started to dive down that softness at the end of 2022 rolled into 23 and now we're seeing it again coming out of the first quarter of 24 uh the big things right now are that families are dealing with economic concerns they're paying more for groceries more for gas the excitement at retail really.

Isn't there because all the newness hasn't come in yet so we're still in kind of a wait and see until some of these new exciting products start hitting towards the middle of the year I'm reading through some of the notes Here on the overall industry and my God Furby came up yet again here walk us through this because this was a $60.

Furby last year I mean look that even takes me by surprise that it's priced at that level when people used to look at Furby as alt Investments so now we've got the $10 BLS yeah so I remember when the first Furby came out from Tiger Electronics in the late 90s and it was about 40 bucks the new Furby was introduced last year.

Did very well as a $ 6070 toy but again that prices some folks out so now we're becoming really price conscious and we're seeing the industry start to look at those prices again at the fives $5 $105 well Hasbro came around and they have fur Blitz now which are a $10 Furby that's about half the size of the regular one but that makes it accessible.

To a whole bunch more families out there you know I was speaking during the break with the Yahoo finance Chief toy correspondent Stow of Shauna smith fame and he was telling me about trucks and how that's his favorite toy I see an Optimus Prime behind you I know that that turns into a truck as well and that really comes back to toys that are.

Really tied into the movie goinging experience and the content experience where do you see that to still have legs perhaps in these next few years coming off of a year where we already see saw how well Barby did so we have a couple things to unpack here first of all it is a big milestone year for Transformers Hasbro's key brand.

There it's the 40th anniversary and they're going to sort of reboot things later this year with this CGI animated film called Transformers one it's a new telling of the lore that ideally will Captivate a new gener eration of kids that are going to be in Transformers for the next 40 years that's very important and when we think of content the content.

Really has to connect with kids now Barbie last year obviously huge smash one of the biggest movies ever but the toys that came out tied to that movie A lot of them were grown-up skewing like collector dolls and stuff so Barbie didn't move the needle in the toy department quite as much as some folks might have thought however back half of.

This year we have Barbie's 65th anniversary so we're going to start seeing more toy toys geared towards the cross generational audience the key here is can Mattel get another movie in front of cameras to keep that momentum going and if I were to bet I'd say Hot Wheels is the next obvious choice they've got about 15 films in development but the.

Vehicle's category for Mattel is just a behemoth Hot Wheels is in his sixth year of growth wow James a lot of our producers seeing in the background that you've clearly got that that Barbie kend doll back there of of the latest edition the Ryan goling Edition here coming off of the movie there we go all right is he KU is he KU this this Ken's job is.

Surfing all right thanks so much James appreciate it you're quite welcome absolutely that's James on editor-in Chief at the toy book and and uh we will continue to track exactly where uh people are dancing the night away here editor and chief at the toy book James Z joining us here everyone that's it for now I'm Brad Smith thanks so much for.

Watching wealth we've got much more 11:00 a.m. tomorrow m

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