Stock market nowadays: Stocks climb as S&P 500 notches greatest 3-day mosey of 2024 | Can also 6, 2024

I'm sha Smith alongside RADS minutes ahead of the opening bell on the Wall Street the games coming on the heels of a weaker than expected jobs report Sparky investor hopes that the labor market might be weakening enough for the FED to keep a rate cut on the table sooner rather than later and we've got a slew of fed speak on tap Richmond and.

New York fed presidents Tom Barkin and John Williams respectively going to be speaking and then Neil casari Susan Collins Mary Daly Austin gos me and more spread throughout the week so let's get to it with the three things that you need to know your road map for the trading day Yahoo finances Jared bck Madison Mills and Brian sazy have more.

We are looking at Green across the screen stock futures Rising as Jobs data boosts optimism around rate Cuts Wall Street also awaiting another big week of corporate earnings according facts set 80% of S&P 5 companies have reported results with 77% beating profit expectations this week we're tracking results from paler Disney Reddit Airbnb.

And Warner Brothers Discovery among others and Berkshire has Way's annual shareholder meeting was this weekend the first without the company's Vice chairman Charlie Munger who died late last year at the age of 99 CEO Warren Buffett speaking out on a range of topics from Brookshire pairing its Holdings in apple to selling all shares.

Of Paramount then speaking about the AI boom as well which Buffett compared to the discovery of the nuclear bomb Buffett also answering questions around succession saying he expects Vice chair Greg AEL to make investing decisions after his own eventual death and the milin conference kicking off in California lots to talk about so little.

Time Yahoo Finance on the ground uh Monday and Tuesday all day a couple things I'm watching here the impact of higher for longer interest rates very important after the favorable Market reaction to that jobs report last week does the crowd here denounce a second potential Trump presidency and last but not least Elon Musk will be speaking.

Later on today what does he say about Ai and the coming vote on his pay package well good morning everyone let's chat Buffett's big weekend shaa you were on the ground in Omaha we got to get some of your key takeaways here yeah Brad it was a really it's a remarkable weekend it's so much fun you were able to speak.

With so many well-known investors very influential investors here over the last days also I was able to speak with so many people who have been following Buffett for such a long time and very familiar with past Investments and exactly what he was saying over the weekend maybe what that could signal here going forward so we have three.

Takeaways at least my takeaways are from this weekend first we got to start with apple because that was one of the big headlines coming out of the report that was released ahead of the meeting on Saturday morning Berkshire reducing its stake in apple by about 133% I think initially many shareholders many on the street who were watching this were.

Wondering whether or not his stand on Apple Chang and he was very clear in the fact that he remains extremely confident in apple actually Tim Cook the CEO of Apple was in the audience on Saturday so that was very cool but he was remained very upbeat on Apple saying he thinks that apple is a very very likely outside of something catastrophic happening.

Apple will remain its top of holding within its portfolio by the end of the year so really signaling the confidence here in apple then AI that was my other takeaway and kind of some of the commentary cautious commentary that we heard from on AI over the weekend he was extremely cautious likening it to when the.

Development of nuclear weapons saying that we let the genie out of the bottle with the development of nuclear weapons AI is somewhat similar and it's partway out of the bottle and he was talked about an experience that he had with his own image and his own voice saying that it would actually be tough for his wife or for his kids to even realize that.

That was a deep fake so just talking about some of the downside risk which we have talked about many times here at Yahoo finance talking about how exactly that relates to Ai and then real quick Paramount was also a key takeaway for me because the company or Berkshire no longer having a stake in Paramount Buffett taking 100% of that quote.

Unquote blame for it saying it was 100% my decision we sold it all and we lost quite a bit of money beyond that he didn't really have much to say about Paramount to no surprise but again Apple AI Paramount were the three big takeaways for me yeah he was kind of jumping the questions anticipating what was going to come forward both uh in.

Interview and also from the audience and crowdsource questions there from the investors and you mentioned Apple here just to come back to that because we're tracking shares of Apple here pre-market and of course a lot lingering on what Buffett says about Apple continuously and he still said that we're going to have apple as our largest investment as.

You were mentioning a moment ago but it's interesting to also see where an investor such as Warren Buffett and the broader Brookshire hathway Community are looking at this opportunity as a building of cash position type of opportunity too said that I think when people look at the alternative of what's aailable the equity markets and I look.

At the composition of what's going on in the world we find it the cash position and building that cash position quite attractive right now so that was something that was interesting to take away too yeah and and and further to that point he said that I don't see anyone sitting at this table has any idea how to use it effectively and.

Therefore we don't use it we was talking about the fact that once again their cash pile is at a record high the fact that they did take uh some profit here from Apple during the quarter and then I also asked uh GRE Gregory Warren over at Morning Star who covered burshire just his thoughts on the fact that they did uh reduce their stake with an apple and.

He was saying that it actually makes sense and it doesn't hurt to take a little off the top here at this point saying that this does not concern them at all because apple is such a large position within their portfolio specifically at the end of the year so anything to lessen that exposure is Good from a diversification perspective there.

So again alleviating some of those fears out there initially fears or maybe concerns or questions is a better way to put about whether or not Buffett stance on Apple has changed but at least for now doesn't seem to have changed at all all right another big earnings week this week with a shift in focus from Tech to the consumer a slew of names reporting.

Giving investors a better look at how consumers are spending to break it all down the bigest risks right now to the market we want to bring in Samir s well as Fargo investment Institute senior Global Market strategist smir it's great to have you here so first let's just take a step back and take a look at where we are trading today with the Dow.

The S&P and NASDAQ not too far from those record highs what do you make of today's valuation and whether not maybe we could see some profit taking at this point yeah I mean that's a great point I mean we would say you're probably a little bit above fair value our yearend Target is 5100 to 5300 for the S&P so you know again we're kind of right smack.

Dab in the middle of it which tells me that there's maybe a little bit of asymmetric risk to the downside just given some of the events that are out there right you could still have you know tensions kind of flare up in the Middle East you could still have the FED disappoint and not cut at all you could have some combination of economic data.

That you know kind of rolled over without inflation um kind of cooling off so I think there's just a lot of different risks that you know if you can take some chips off the table at the all-time highs it's a pretty good idea I mean just reading through some of the review and statistics coming out of this earning season Samir I was looking at.

Some of the fact set data and it's really showing that companies and the market right now is rewarding positive earning surprises less than average here and that also means that they could be punishing some of those negative earning surprises a little bit more uh typically seeing an average price decrease for companies who report negative earnings.

Surprises for the first quarter of 2024 with a price decrease of about 3.3% 2 days before the earnings release through two days after the release and so that's larger than the 5-year average I mean what is that all tell you about what investors are looking for in some of the reports coming through over this season and the forecast even into the rest of.

The year I think what they what they're looking for is a pullback right I think what they notice is a market that's only gone in one Direction I think it makes them nervous because I think it probably means that a lot of players have forgotten what volatility looks like and it tells me that you know with all the events that are out there like the.

Elections like some of the currency volatility that we've seen recently it tells me that a lot of people would probably head for the exits all at once leading to episodic volatility and so I think there's a lot of investors saying you know what this may be near-term as good as it gets and so unless earnings are just blowout or unless the stock has.

Pulled back before those earnings which leaves some room for upside surprises I think they're just saying you know look I'll just kind of take my money you know you just mentioned Buffett and his largest holding right again he's not bearish on it but he's taking some profits and again there's nothing wrong with that so then where does that leave.

Just the investment opportunity that you're seeing right now when you talk about the outperformance or recent outperformance that we've seen in a handful of tech names when you talk about the outperformance and communication Services is the time maybe to rotate out of some of those top performing names you know we haven't.

Liked those for a while now we are neutral so those are full weightings but what we came into the year with was energy materials Industrials and Healthcare and three of those four have done really well especially recently with kind of inflation expectations having ticked back up um from here from a timing standpoint I think energy makes.

A lot of sense you've seen oil kind of dip back down to below 80 and I think healthcare makes a lot of sense you know there's a lot of kind of meta trends that are going on there that are maybe underappreciated and then otherwise you know kind of sluggish market and so additionally here you know as we're thinking about what the theme of this.

Earning season will have to really kind of signal about the rest of this year and outlasting some of the larger catalysts that could actually push markets to the downside I.E rate cuts and not getting as many as the market anticipated or none as we've increasingly discussed and then the election as well here where does that.

Leave some of the company Executives in this near-term and the spending decisions that many of them are still making especially on the generative AI front right now so you're seeing extreme amounts of caution especially on the labor side and I think elsewhere you're also seeing quite a drive for efficiency so what.

That tells me is corporations are getting ready for possibly two-way risk again you do have elections coming up you do have you know rates that have been high now for a couple of years which are starting weigh on the consumer a lot of the consumer oriented companies have mentioned that caution on the part of consumer so I think companies are.

Getting ready for again just kind of that two-way risk I think unfortunately investors aren't quite yet ready for it Samir Sano who is the Wells Fargo investment institute's senior Global Market strategist thanks so much for kicking off the week with us thank you well we're also kicking off our coverage of the milen institute's global.

Conference today with discussions on everything from AI to geopolitics our very own executive editor Brian sazy and Akiko Vegeta standing by on the ground in Los Angeles SZ what are you hearing so far here uh Brad while the room is filling up here at Beverly Hilton in California good to see you of course and for me you.

Know just continuing a lot of the great reporting that Shauna did at Burkshire and of course what Warren Buffett said about AI you know I can't wait till we talk to IBM Co Arvin Krishna I mean I here's a company that somewhat argue was behind in the AI race is now starting to catch up pretty good earnings report a week ago I am fascinated by what they.

Say on how their business will power the future of AI after Warren Buffett really struck a cautious tone on the impact of AI on society yeah AI a general theme Here among many it is about AI business as you point out with uh companies like IBM it is about the ethics the regulation what's interesting about milkin to me is always is just how.

Global the reach is and so it's not just about the US companies we've been talking about this you've got the Sovereign wealth funds from places like Saudi Arabia as well as the UAE who are huge huge investors in some of these AI companies building potentially some of those AI chips as well so that's going to be an interesting conversation here.

On yeah that that was a good theme called out by you uh Keiko and of course Elon Musk Elon Musk is speaking speaking what 5:00 p.m. tonight uh the stock has been on fire since the company reported earnings a couple weeks ago as they teased uh a smaller electric vehicle I would love to hear Elon make the case on why they think or he thinks this is an.

AI company not a car company yeah I mean there's going to be a lot of questions that investors are going to be looking for in this very conversation it is about why they're doubling down on Robo taxis is that cheaper alternative in terms of a car what is that going to look like are you going to take one of these too are you are you going to get.

In that Robo taxi I'm not I don't know about the robo taxi but here's what's interesting the conversation about whether Tesla is going for a cheaper model coming at a conference where you've got Stella Lee from byd who is offering the cheapest price point globally you've also got Volkswagen here so there's going to be.

Some really interesting conversations in terms of the transition overall particularly in the clean energy space it's just interesting to talk about electron electric vehicles at Kiko with all the you know Lamborghinis and Ferraris floating around here it's just to e welcome to e Brad I know you're waiting for your Ferrari I think it's on.

Order right uh yeah I I got the one that Hasbro or Mattel is making um so that one is on back order right now what what interviews though I mean there's going to be a lot of interviews that we can look forward to as well out there here yeah well we're about uh moments away from starting our our coverage here.

With Mark row and Apollo uh the co of Apollo Global Management of course Apollo is the parent company of Yahoo I'm very excited about the interview a lot of good things that Apollo's doing uh in Retirement services so we'll hear more from him mentioned IBM Co Arvin Christian Kiko I know you have a big one a bunch of big ones as well well yeah.

We're going to speaking uh with Kevin Rod who's the former prime minister of Australia also now the us or Ambassador Australian ambassador to the US he's always got really good Insight on what's happening in China specifically so I'm really interested in that conversation we'll also be speaking to Kevin hasset the former chair of uh and was float's.

Potential what Fed chair and this guy he's having a moment yeah so a lot of conversations that are going to be happening on the ground here of course you already hit on some of the themes here Brian it is about the questions around higher for longer what does it mean for businesses the election certainly be going to big one it's not.

Just about the politics of it what does it mean for something like the FED what does it mean for policy as we pointed out a global conference here on the ground so there's going to be a lot of people looking for some cues on what a potential second Trump presidency yeah I'm really curious uh Brad and Shan too how a lot of these leaders are planning.

For potential Trump presidency so far uh you're not hearing much of that being talked about on these earnings calls but this is really the last big conference before the election uh so this is the time for leaders to speak out and say whatever they want to say yeah look forward to uh getting their insight and also for your conversations with all.

Those great guests that we have lined up over the next couple of days Aiko and S you guys are going to be busy we'll let you go thanks so much all right well we are just getting started here on the morning brief the Spirit Airlines posting a wider than expected loss in the first quarter as its CEO warns that the current.

Environment quote remains challenging we will dig into that report next plus we'll continue our live coverage from milkins Global conference our executive editor Brian sazy he is going to to be speaking with global Apollo Global Management CEO Mark Rowan that's at 9:40 a.m. eastern time this morning you won't want to miss that plus in our new show.

Catalyst we will break down top takeaways from berkshire's annual shareholder meeting all this and more you're watching Yahoo finance.

Spirit Airline Shar is falling this morning after posting a wider than expected loss here for the first quarter the airline CEO saying that the current environment quote remains challenging.

Now these results coming after Spirit announc the termination of its merger agreement with JetBlue back in March we know that this is a result of the fact that it was not approved there and more pressure there questions about what exactly the future of spirit looks like now that that deal with JetBlue was not approved the fact that they did Abandon.

All plans to for that merder and exactly their ability here to compete or even remain viable at this point I know Brad you're closely covering this space but lots of questions just about how exactly SP can and will turn some of their momentum around I didn't mean to laugh um but the quarter was not good total operating revenues down 6.2%.

Year-over-year total revenue per available seed mile that trasm figure that every airline company talks about down 8% here and oh yeah here's the kicker when you think about the consumer environment right now and what the demand and environment right now especially at certain fair prices looks like remember this is in the ultra.

Lowcost carrier uh ecosystem here for Spirit Airlines really rivaled only by JetBlue and Frontier at this juncture their Fair Revenue per segment was down 16% year-over-year $488 is that figure that that it came in at and so if that tells you anything about what they're ultimately seeing right now and where consumers are not.

Only pushing back on prices but also looking for any type of deals that they can get and if this is true for for Spirit they could also be saying okay where can I get around some of the nickel and diming that certain Ultra lowcost carriers have been known to do Spirit has been uh perhaps one of the kind of logos next to the definition of.

That Miriam Websters at this juncture all things considered the company saying over the last several months the team has been engaged on working on this first phase of a new Standalone business plan comes back to your point shaa of they're already already planning to not see this merger go through and so now they're trying to figure out what levers.

They can pull that also means F Pilots they had already announced that going into this print and then additionally some of the mechanisms that they're going to have to enact on the fleet that they operate as well on the aircraft side delaying some of the delivery or um taking delivery of those aircraft yeah certainly a very very weak quarter and.

Also some of the commentary within this release we're getting more here on the call but some of the commentary within this release pointed to a pretty bleak feature at least here in the short term for spirit all right Robin Hood shares our trending ticker here on Yahoo finance this morning following after disclosing that it received a Wells.

Notice from the SEC now alleging security violations and the focus of the wells notice is the company's us-based crypto business now Robin Hood saying in response that it's disappointed that the agency decided to issue a Wells note is not a huge surprise there but exactly what this means on the potential action may involve a civil injunctive action.

Public administrative proceed proceeding here Andor a and desist proceeding so Robin Hood getting the SEC notice on recommendation of enforcement action against a crypto unit and that's clearly Weighing on shares here ahead of the opening belt today yeah we've reached out to Robin Hood for statement uh of course we've recently had Vlad and uh.

I've spoken with and we've spoken with Jason in the past Jason who is the CFO over at Robin Hood a huge kind of notice here that they they have to file on the wells notice and particularly within this 8K um that they in the form AK that they completed they said within there that as previously disclosed they received these investigative subpoenas.

From the SEC regarding the cryptocurrency listings custody of cryptocurrencies and platform operations um and that they are cooperating with this investigation right now so we're tracking shares of Robin Hood going into the start of today's trading activity yeah and I'm taking a look at a blog post here written by uh Dan Gallagher.

The chief legal compliance and corporate Affairs officer at Robin Hood saying that after years of good faith attempts to work with the SEC for regulatory Clarity including our well-known attempt to come in and register we're disappointed that the agency has decided to issue a Wells notice related to our us crypto business so again we reached.

Out Brad reached out to Robin Hood and of course we'll update you with any uh further updates that we're getting here on this breaking story absolutely well speaking of crypto let's talk a little Bitcoin here this morning Bitcoin pulling back slightly hovering just above $63,000 here for more on these moves.

We've got Yahoo finances Jared Blick J what are we seeing here well as soon as we put the wi-fi interactive up behind me you're going to see a bit of red this is just over the last 24 hours uh salana bucking the trend there that's in the green up almost 4% but you can see more red than green especially for some of the bigger names now last week was.

Notable because it was the first huge week of outflows from Bitcoin ETFs in fact the biggest one we've ever gotten I'm going to put a year-to DAT chart here so we can kind of see what's happening now Bitcoin has been consolidating above 60 ,000 all the way up to its record highs just north of 70,000 and now very characteristic.

Characteristic of Bitcoin it is dipped below and then it has risen back above a key support level I've seen this so many times with Bitcoin are is Bitcoin in the clear it's too early to tell but now we have this recent low that we can Mark as a stop so I would say 57,000 you don't want to see that price if you're a bull uh but if we're above especially above.

60,000 as we are now that is a pretty bullish sign and if I sort by equal weight I'm going to show you something else there is more green than red here so when we see and just anecdotally I've noticed that when we see broad participation in these crypto rally runs it's kind of like with stocks you want to see a broadening of the rally that's.

Kind of what we're seeing right now um over the last three days I'll get you that total before we leave here Bitcoin roughly flat ethereum uh basically flat as well guys all right Jared thanks so much appreciate it we're going to continue to track all things btcusd plus salana and the other cryptocurrencies that you mentioned as well we're so.

Watching paramounts this morning after it formally opened acquisition negotiations with Apollo and Sony according to a report from The New York Times this comes after its exclusivity period with Sky Dan it ended Friday Yahoo finances Alexandra Canal joins us with the details hey Al hey Brad yeah at this point we're just waiting for an.

Update from Paramount special committee when it comes to these bids that special committee evaluating all of these potential offers and per these media reports all of the offers are still on the table that does include Sky Dan along with that new deal from Sony and Apollo now like you said Brad the exclusive negotiation window with Sky.

Dan officially expired on Friday which is why Paramount is now able to entertain these other offers investors overall seem to pre prefer the Sony Apollo deal now this is a 26 billion all cash deal for the entire company both Sony and Apollo are standing by the equity so no financing is needed and it would make Sony a majority shareholder.

With Apollo global acting as that Minority shareholder there now Apollo is the parent company of Yahoo finance we should mention so that's the preferred deal for investors however National amusements which is a holding company for Paramount they seem to prefer this deal with Sky Dan now the sky Dan deal is a lot more complicated hence why.

We're seeing this hesitation from investors it would involve Sky Dan purchasing a major a majority stake in National amusements and then merging that company with Paramount so a bit of a two step deal there a bit complicated investors seem to think that deal unfairly benefits shie Redstone which is a controlling shareholder of Paramount.

She is president of National amusements so we'll see where things go here at this point though it does seem like all the offers are currently on the table it just depends on what that special committee says and then you have to think that regulation that's also going to be an overhang in the background as well yeah Ally I was out of brickshire.

Over the weekend and clearly Paramount was a topic of conversation there was lots of talk on Friday night leading up to that uh expiration of the exclusive offer there for Sky Dan but let's talk about what exactly we heard from Buffett clearly exiting the stake in Paramount but really as what that could tell us about how investors are thinking about.

Investments right now or lack of opportunity within Paramount given the uncertainty yeah and Buffett took full I don't want to say blame but he basically said that he was the one that wanted to invest in Paramount and that they took their exit at a significant loss and we've seen how uh back and forth this stock has.

Been right there's been linear Network challenges the company is bleeding money in its streaming business they've attempted to rightsize the business and fix its balance sheet but that's included moves like slashing the dividend which we know investors don't really love and at one point Buffett was Paramount's largest non-voting.

Shareholder he purchased a stake worth 2.6 billion in May of 2022 he eventually added more shares later that year but again we we seen this company really struggle and media overall is at this inflection point so at the time it did surprise Wall Street that he was so invested in this company both liter literally and figuratively but he's a.

Media guy he he got to start in newspapers and I think he really had a soft spot for this company but with all of the murkiness surrounding m&a with all those challenges that these media companies have faced it's it's it's not a great time I think for for someone like Buffett and and he learned that unfortunately the hard wi by yeah yeah.

And also was it was interesting what he said in the past just in terms of the fact that he has been a bit critical of the streaming industry just saying that he does expect to see consolidation down the road of course we're looks like we're seeing that now but also what stuck out to me was what he had to say about it's going to make him think twice.

Or maybe re-evaluate how people spend their Leisure Time right and exactly what that means for so many of these streaming Giants going forward and exactly how many winners we will likely see or lack thereof I guess within the space right Ali thanks just minutes away here from the opening bell on Wall Street again you're looking at gains for.

The Futures all three the major averages set to open the day and the week in the green we'll be right back up.

Bing Bong my goodness look at figs ringing the opening bell at the NYSC I mean I'm so envious of the people who I see on the sub Subways the healthcare workers are great healthcare workers in this state of New York and more broader across the 50 states and around the.

World why not those who Rock figs I mean it looks stylish they do look stylish I remember when they a little bit but yeah they look very very stylish Reon why they've been a hit yeah cognizant ringing the opening bell at the end the NASDAQ as well think about some virtual Funfetti we love them too anyway let's take a check of the market sponsored by.

Tasty trade here the first trading session of this week taking a look at the Dow Jones Industrial Average it's up right Now by about half a percent the NASDAQ and the S&P 500 also in the positive gains party as of right now fractional gains for both the tech heavy average and the S&P 500 right now yeah Brad when you take a look at let's take.

A look at the treasury markets here just checking in on that that movement that we started to see last week on the heels of that weaker uh jobs report we're also seeing yields move down once again today off just about one basis point but taking a look at the sector action as we kick off this week you're certainly seeing a lot of green on the screen at.

Least here at the open you've got materials outperforming as well as financials coming up in the rear you have technology a bit of an underperformer when you compare to the broader moves that we're seeing more broadly here this morning also Consumer Staples two sectors to really focus in on here as we talk about the trading.

Week and some of those results that we will be getting out later this week all right Jared blicker is taking a closer look at some of those key technical levels that we should be keeping an eye on Jared thank you shaa we're going to put up the Wi-Fi interaction behind me I'm going to start with the S&P 500 I'm going to show you a year-to DAT chart.

And put the 50-day moving average average this is just uh the average price on a moving uh basis of the last 50 trading days so here we are we have now punched above that key level I'm going to show you the Dow very similar just punched above that here's the NASDAQ similar story as well hard to see that little dot there but we are above.

And the Russell 2000 uh so all all systems go here from that uh from the perspective of some technicals that also happens to be about the halfway back of this period of this uh length here where we dropped from those highs to the lows so we'll have to see if anything comes of this going forward but one of the things I wanted to track here was our.

Leading uh markets and we see a lot of green here we just uh overviewed crypto a few moments ago we also have the New York Fang that would be the mega caps leading cannabis stocks Arc invest so that's a disruption trade to home builders what's not working is Chinese stocks now we had a great two weeks with them I'm going to show you that's Arc.

Innovation and here's China that's what that's looking like today but you look at the trail month Here China has been a very depressed sector and you can see it's finally finally starting to jump and come back it's uh been a fits and starts uh admittedly over the last few years and it's disappointed quite a bit but nevertheless we have the makings of.

Another potential rally here for Chinese stucks all right Jarry thanks so much for breaking that down for us well markets are still betting that the FED is going to cut rates in September this after the weaker than expected jobs report that we got last Friday feds speak on Deck this week May give a little bit more insight or more clarity.

On the exact timing and the possibility here of a r cut to break it all down we want to bring in Sam stoval CF research a chief investment strategist and Sam it's good to see you so let's talk about the moves that we saw at the end of last week we saw gains here we are again opening the trading day here on a new week we're pushing even further here to.

The upside lots of optimism that we're going to get a Fed rate cut do you think that's the right read hey Shauna yeah yes I do think we're going to get a rate cut actually I think we might end up with two Poss be first in September and then the second in December um and no September is not too close to the election interesting.

But if you go back to 1992 when the FED really started uh telegraphing fed funds rate changes every presidential election since 92 except 2012 saw a rate hike or cut take place in an election year and many of those took place in that third quarter so there is still the possibility that the FED will try to let us know that they are apolitical and do.

What they think is right for the economy I mean there's two meetings that are prior to September as well here that are still on the docket Sam so what can take place in terms of the trend that the FED is looking for perhaps being thrown off course to the point where they would need to recalibrate their own assessment morning Brad well I think certainly uh.

Looking at the employment data uh this week we're we're pretty ho hum in terms of economic reports but next week when we're looking at CPI and PPI the encouraging uh bit right now is that the street is anticipating that uh the April data will end up being softer uh than the March data and that could uh further uh encourage investors that maybe the.

FED is closer to their first rate cut uh of this period so I I would tend to say obviously that the FED reminded us that they are data dependent and they will continue to monitor everything and make the decisions based upon that Sam what do you expect to see just in terms of the Improvement on inflation we've kind of been trending sideways now.

For just a bit why is the market so confident that we are going to see that further Improvement then to the downside well I I guess you could say that investors are uh a little bit like hyperactive first graders playing musical chairs always trying to out anticipate the other as to when the music will start or stop uh and then.

Knowing that we're not going to be seeing a rate hike chances are um so therefore a cut is the next step and investors are anticipators uh traditionally there has been an 11mon separation between the last rate hike and the First Rate cut uh we've had six of those uh five of the six times going back to 1990 in which the market Rose.

The average increase was about 14% so essentially investors are saying we know that a rate cut is coming we just don't know exactly when but we are going to play in into uh this optimism by buying whatever dips there happen to be and that's why as Jared just mentioned there's a good likelihood that because we're closing above the 50-day moving.

Average could be encouraging that this pullback uh of only five and a half percent has concluded yes Sam you triggered my own memories of making a bunch of jab steps towards the chairs during musical chairs trying to time the music here so thank you for that you know ultimately investors trying to figure out if they need to be doing any.

Reposition going into an amid an environment where we're hearing for Less rate rate Cuts than anticipated to start this year especially off of Friday's employment situation data and you know God forbid an investor took took the day off or started the summer Fridays early after we got that weaker than expected print well I think what's interesting is.

We're starting to see more attention be paid to some of the defensive areas of the market in particular utilities uh I think investors are saying know it this group is trading at a more than 20% discount to its long-term relative PE uh it's been under pressure because of the uncertainty surrounding uh the rate cycle but I think that because.

Valuations look relatively attractive and we are in the traditional sellin May period which is sort of uh challenging for investors in election years since 1990 the S&P has gained only 1 half of 1% from May through October where whereas the more defensive sectors Consumer Staples Health Care utilities have posted increases in excess of 3% so.

I think investors are are sort of playing it safe by adding to their positions with utilities Sam Stovall CF research investment uh Chief investment strategist Sam great to speak with you as always thanks so much for kicking off today's trading activity with us my pleasure thanks absolutely well crude places are climbing today this is hopes.

Of a Gaza Israel ceasefire our slimming in Saudi Arabia is Raising prices for some regions to break down the price moves Yahoo finance reporter anes Fay is here hey anes hey Brad yeah and just taking a look at crude right now we are seeing that it is higher part of this has to do with Saco raising its prices for its Asian market so uh its Asian.

Customers are now seeing higher prices from Saco that is sending the price of Brent the international Benchmark High also WTI is higher as well as far as OPEC plus is concerned as some analysts are expecting OPEC to continue with its production cuts into beyond June there are some analysts that feel that perhaps OPEC could bring in more Supply bring in.

More capacity because they do not want uh to lose market share to the US and others but nonetheless uh a broad expectation is for these production cuts to continue especially if we see prices with Brent below $85 a barrel with WTI below $80 a barrel as far as the geopolitical front the probability of a ceasefire slimming that has been also.

Sending crude prices higher so some of what you're seeing right now may be on those renewed geopolitical risk guys all right NZ thanks so much for continuing to track this for us appreciate it all your markets action Straight Ahead everyone stay tuned you're watching Yu Finance.

.

Sh now welcome back to Yao finances coverage here at the milk and Conference in California lots of focus in these Halls on the outlet for interest rates and the.

Economy joining me now as a very special guest Apollo Global Management Co Mark Rowan good to see you again thank you thanks for having me appreciate it so with did the the businesses that Apollo Lo what have you seen or what has the impact been from higher for longer interest rates very little very little very little we you know the the way I go.

Through it is you think about what's happening in the economy and what's happening in the US 3 years ago we decided to build infrastructure there's no infrastructure opened two years semiconductor plants no semiconductor plants opened a year ago inflation reduction act none of those plants opened we've been reshoring our supply.

Chain us has been the largest recipient of foreign direct investment last three years in a row something tells me we're ramp defense production all of those things are stimulative to employment and it does not surprise me everyone who wants a job has a job which means it's very hard to Dent the economy maybe financial markets yes but the good the.

Underlying economy is strong So Soft Landing achieved you think I think we've had a soft Landing um when rates have gone up 400 basis points and the wheels haven't come off the bus as they say uh I think that's the definition of a soft Landing will it continue I think so do high interest rates even do they matter to a business.

Like Apollo look interest rates the level of interest rates always matter um I'd say it it matters almost in Reverse I think investors kind of deceived themselves that they were good investors for the past decade rather than riding an era of very low interest rates I mean look at what's happened in real estate look at what's happened in other.

Interest sensitive Investments you thought we you were the best investor in the world you moved to Austin Texas you bought all multif family it was going great yeah the changeing cap rate has haved your investment and now your 3 1/2% mortgage is being refinanced at 7 1/2% you did everything right you just didn't watch what was happening to.

Interest rates I uh I'm an avid listener of your earnings call Mark so I will go back to the recent one and you talked a little bit about Investors being levered to Nvidia apple and Amazon what do you think the impact on markets have been because of that being levered to those stocks look we we are are um in a liquidity driven an interest rate driven.

A sentiment driven market and you know I sometimes I ask particularly academics do we even have price Discovery anymore in US markets it's not clear especially when you look at what a hard time active management of equities here are people who have spent their whole lives becoming good investors and they as an industry have failed to beat the market.

93% of the time for 20 years did these people get stupider no but did the structure of Market Market change so that we have positive reinforcement of cyclical flows into index funds and other forms of passive investing I think we have fundamental changes in Market structure that we have not dealt with as a society yet so to the investors that.

Are look I seen on yaho finance they love these stocks they love these companies what's your advice to them is now the time to rethink how you invest so I look I'm I'm not in the stock picking business but uh very few people come in every day and try to buy 45 or 50 PE stocks it's just not what we do I look at the broader Trend we used to.

Have 8,000 public companies we now have 4,000 public companies people think most of the action is in public markets 80% of companies over 100 million of Revenue and 80% of employment is in private companies how do investors have exposure to private companies well the answer is they don't institutional investors have it through a product private Equity but.

Most investors don't have any exposure to private markets we are just as an investment World dipping our toe into private credit so if you think of the two big buckets that investors have debt and Equity debt is going first in debt there are things like rating agencies that tell investors the level of quality between public and.

The level of quality between private and if investors can earn higher returns and have better diversification in private markets or by adding private markets to a public portfolio they'll do that it'll take time and Equity but I I joke that not only they may not own private equity in funds but they will own Equity that is private and it's our job as an.

Industry to create products that allow investors to come into this Marketplace to get the benefits of higher returns and diversification I can't think of really anyone that could speak to this better than you mark are we in a retirement crisis and then how do we get out of something like this look we we are worldwide it's not just we in the US.

Everywhere in the world uh we have Western World at least we have aging populations we have governments who are doing less and we've had an era of very low interest rates for the most part people have not saved appropriately for retirement how do we get out of it slowly there's no magic bullet you look at places around the world where they've.

Done an amazing job take Australia super annuation funds what what's been the secret well the secret in part has been for savings on an annual basis matching from employers but a big part of the return superannuation the design of it was to give public investors access to private markets under professional supervision contrast that to what we're.

Doing in the US we have between 123 trillion in 401K plans what are these people invested in they don't know well I'll tell you on the whole they're invested in Daily liquid mutual funds and ETFs for 50 years why are they daily liquid for 50 years I don't know we haven't thought about it in a really long time giving people access to the.

Tot ity of a Marketplace public and private markets I do think is heading our way I think for our industry not just for Apollo this is a very bullish thing we have built a whole industry out of a very small bucket called Alternatives we are branching out now and taking over pieces of the fixed income bucket of our large investors.

Particularly the investment grade private credit bucket it will not surprise me on the horizon to also think about Equity across public and private markets and not just in private equ quy fun format uh in the couple minutes that we have left Mark I I have two just two final topics you really one of the first leaders to speak out on anti-Semitism at.

College college campuses and since then things have really hit another level I think USA USC campuses are closed today what's your take or or read on the current situation and ultimately what's the end game with this look it's it's hard to give you the end game but uh I I say very tongue and cheek unfortunately the fight against anti-Semitism is a.

Growth industry uh and that's what we're seeing right now now the protest we're seeing on college campuses are they anti-semitic they are absolutely anti-semitic are they anti-American they are anti-American they're actually anti-western we have we're thought of as these protests are leftists I used to think of the left as liberal now the.

Left is illiberal where is this going I think the vast majority of professors at these universities the vast majority of students the vast majority of people in this country totally get that there is a way way and a right to protest people should have free speech people should protest but there is also a way to take over to cause damage to threaten and to.

Intimidate and this is a failure of leadership you look at places like University of Florida University of Texas and vanderville where the leader came out and said free speech Yes right to protest yes time and place appropriate they don't have the problems that you have on other campuses where the leader was somewhat uh IL defined in.

Terms of the and the notion that we've been catering to a small group of people who hold extremist views they're entitled to those extremist views what they're not entitled to is to impose their will on the rest so I do think we're getting a little bit of a snapback here where people are just tired of it I know a lot.

Of people appreciate you speaking out on this Mark and last but not least and look I I understand you can't talk a lot about any potential bid for for Paramount I get it but what is where does a policy value in an asset like this that can you help us understand like the thinking behind it look we we are a purchase price matters value.

Oriented firm and the way value is created today is usually in places that are undergoing substantial change so media as an industry I don't have to tell you uh sitting in Yahoo that media is undergoing substantial change the notion that you could come in and build on a a great business and try to navigate through these turbulent times I.

Think is where we create value we historically have been long investors in media we've done it across almost every sector in media obviously right now we are invested in Yahoo we are also invested in legendary and by bringing along an respected industry partner Sony I think we look at this as just an interesting opportunity to create value.

In an industry undergoing change we will leave it there thank you for always giving Yahoo and Yahoo finance time Mark Rowan COO of Apollo Global Management good to see you again we appreciate it total pleasure thanks for so much we'll be right back Happ.

sh.

we're keeping tabs on shares of Boeing today the Aerospace giant set to launch its first crude flight crude space flight to the International Space Station this is coming Monday night this is a key final test before NASA can authorize Boeing to conduct routine.

Flights to and from the space station for the agency now if it's successful it would enable Boeing to challenge Elon musk's SpaceX but it's a critical time for Boeing which is facing a safety crisis after a door panel came off of a jet midair just yesterday ISS recommending shareholders vote against the outgoing CEO David Calhoun's pay.

Package so a lot certainly swirling around shares of Boeing over the course of this year in 2024 far however this would be a a very serious step forward in a business segment that is outside of the large plane manufacturing division for Boeing right now we're taking a look at shares up fractionally here this morning by about half a percent yeah.

This is significant because we know Starliner has been pled by a numerous technical issues over the years so what's happening tonight that launch expected to happen right around 10:30 p.m. here from Florida it's going to be a key test here just in terms of whether or not Boeing is able to successfully and safely bring people up to space now.

We mentioned that that could obviously be a catalyst potentially here for Boeing in the short term we also got to talk about the CEO pay package and some of the PUSH Pack that we're getting against that not necessarily a big surprise given the events that have played out here at Boeing over the last several months but to put this pay.

Package in perspective it's just around $32 million now the ISS citing some concerns over the specialty Equity award and the sizable increase in the long-term incentive Grant it would be about 45% of a pay jump here from what he earned a year ago so 45% jump for this P perer potentially given the fact and this is.

In light of the fact that Boeing has had several issues lots of questions about what what exactly Boeing's future looks like not to mention Calhoun is going to be stepping down by the end of the year so questions just about the leadership structure going forward who best and who is going to lead boing in this new era after Calhoun does step aside so lots of.

Push back not a huge surprise on this massive pay package here for Calhoun yeah it seems like every year for the past few years here there's been a major vote on pay packages whether it be Tesla most recently and Elon Musk you go back prior to that Netflix Ted randos uh and the co-ceos there and then additionally Intel just the year prior I believe that.

Was in 2022 as well here all right well coming up keep right here on Yahoo Finance Madison Mills is going to be joining me for our brand new show cataly you won't want to miss that we'll be right back.

.

it's 10 a.m. here in New York City I'm Shauna Smith alongside of Madison Mills and Welcome to our brand new show catalyst fromi to Commodities we're decoding Trends and uncovering the drivers behind today's market moves our.

Team of experts they're here to help you navigate all possible outcomes to make the best decisions for your portfolio it's Monday May 6 so let's dive into the Catalyst moving the markets today first up Market detention is likely back on earnings with some major names outside of big Tech set to report results from Tyson Foods Disney and Uber among the.

Long list reporting this week so guidance on the consumer is going to be closely watched but it's not over for Tech AI spend will yet again be in Focus later today when software company paler reports plus waren Buffett's cash pile hitting a record high and he's happy to keep building it up the Oracle of Omaha adding that Berkshire haway will.

Continue to hold its favorite companies among them American Express Coca-Cola and apple though it did trim Holdings of the iPhone maker this quarter putting some pressure on the stock and lots of fed speak here on Deck Richmond fed president Barkin and the New York fed President William will speak later today Friday's goldilock.

Jobs report putting a possible Ray cut back on the table investors are closely watching for any indication of policy timing in today's commentary so let's start there this morning R cut optimism from Friday's jobs report continuing to push markets higher in today's trade Trader is now pricing in a ray cut in September joining us now we want to.

Bring in John stus he is oppenheimer's asset management Chief investment strategist John it's great to see you again let's start with the new not that you just put out this morning and was titled The Song Remains the Same so what does that setup then look like for equities and how much upside do you really think we have from here well.

Thanks for having me on the show Sean I I would have to say uh at least we think upside from here to the end of the year you know our Target of 5500 for the S&P 500 uh Remains the Same uh our our expectations here are that you know near term we're bound to have volatility the longer it takes the FED to actually give the market an idea that it wants to.

Believe as to when it's going to cut rates that's all another story with our thought is uh the risk in terms of volatility increases the longer the FED remains on hold uh and the economy continues to slow the question will be when does the economy go into a recession we think the the FED thus far after two years of raising raising rates.

And pausing what 11 hikes seven pauses now with no recession has probably got a good chance uh to avoid a recession here but it's it it will be it'll be kind of you know it's going to take time we don't think the FED Cuts until the second half of the year do you have a date on that John December you know December is our.

Favorite one it almost seems inevitable we think that'll be the uh uh thank you uh thank you and good night you know in terms of closing out 2024 for the FED uh and will would be elegant in the sense that it will avoid any uh uh comments from different corners of the market about the cut being politicized by a presidential election year and I think.

The independence of the FED is very valuable not only to the United States economy but also to the FED itself and for its Legacy well John in your note you say that the fed's data dependent continues in your view to be the best course of action to deal effectively with the vexing sticky inflation that we have seen uh but as you know that data.

Dependency is causing a lot of whipsawing particularly in the bond market we're seeing the two-year move 30 basis points over the course of the last week after some of that data is that whipsawing a problem associated with data dependency or is that a necessary symptom of it uh I think it's an inevitable symptom of it in the sense.

That you know the the bond market in essence usually uh uh the short end of the curve is very much tied to where the FED is which means no uh no cuts for now higher rates at at the near end while at the far end the thought is the Fed is going to do the job but on a uh so you don't you do have a somewhat inverted yield curve not necessarily suggesting a.

Recession in this environment uh but the other would be the thought is here that the uh the the markets expectation within the bond market and the pricing of bonds will remain volatile likely with the the 10-year hovering likely from as low as perhaps uh around 3.8% like we seen I think earlier this year to as high as probably getting close to.

5% from time to time because that's going to be a lot of emotion and excitement and day-to-day training you know an opportunity uh for Traders to to make money and for intermediate to long-term investors to buy babies that get thrown out with the bath water whether it's in volatility hitting equities from time to time or hitting.

The bond market attractively uh L secur price Securities will be available uh uh through the process of volatility but it's not the end of this bull market we don't think it's the end of the uh the no recession uh environment with the FED in hike cycle John let's talk about earning season so far because you crunched the numbers it was in your most.

Recent not about 5% earnings growth so far this quarter it's the highest level that we've seen in nearly 2 years I'm curious to get your perspective here on earnings so far if if it's enough whether or not it's enough here to support those future gains but then also just looking underneath the surface here and talking about what is driving that.

Earnings growth how much of it is driven by the cost cutting that we've seen well you know probably a lot of it is driven by cost cutting but it's also uh uh driven by CAPA uh in the sense that uh when we look at I'm look have to look at my screen for this because this moves on a pretty well daily basis but earnings for communication services with 12 of 19.

Companies having reported earnings growth is up are we sitting down 42.2% uh year-over-year on the quarter uh then in the case of consumer discretionary earnings up 40.5 6% which gives indication that there is interest interest in in uh uh in in in search Services advertising and in terms of the consumer the consumer is still buying.

Stuff if switching necessarily away from more expensive items and more private label or big box kind of delivery for what they're buying so then John extrapolating that and also pairing that to going back to your comments earlier when you talked about the economy it might be slowing a bit when you take a look at the jobs report that we got out.

Last week when you take a look at ism suggesting some slowness there what does that then tell us just about the short-term trading action that we're likely to see well it it it'll certainly bring in more questioning uh from uh both sides of the not political aisle but here both sides of the uh investment stories you know the the uh the Traders.

Versus investors uh aspect uh and will likely create as we mentioned before the opportunity to pick up things cheaper uh for uh investors from time to time I don't think drastically cheaper at this point uh and for Traders you know the day-to-day action that can be found in uncertainty uh but for us when we look at it this you know Sean gosh I've been.

In this business for a little over 40 years it's going to be 41 sometime between May and July if I'm correct and I've seen every boom bust in recovery cycle and the extraordinary one about this is um is that you've got such changes in Innovation that really enable both the corporate entities as well as the uh analytical Community the.

Economists and the consumer to navigate tougher times with technology more effectively and it's enabled the FED to deliver this so far recession uh uh recovery process all right John thank you so much always great to speak with you and congrats on that upcoming anniversary we we'll be sure to send you a note then thank you.

So much that was John stus joining us from Oppenheimer there well investors are closely watching palente here today ahead of its earnings report that is expected to come up after the Bell the big Focus remains on any further developments from the company's AI applications shares of paler are up 45% so far this year so the big question.

Shaa are they going to be able to continue that growth and of course our very own Bull in front of the show Dan Ives saying that they absolutely will be uh but he's particularly watching growth of the US commercial segment of paler expecting them to get a significant chunk of the1 trillion Global Market for platforms like their own yeah and I.

Think the other big question is going to be what the pipeline looks like for some of those larger players and exactly how that or how paler sees that developing here going forward and then also what customer demand looks like for their AI platform and AIP is what they abbreviate as and exactly what that adoption rate looks like we know when you look at the.

Performance of paler you mentioned that year- to-day performance over the past year I think the Stock's up just around 200% or something like that so a lot of that has been driven by optimism surrounding AI exactly uh what paler role is going to be in that AI adoption story here going forward so any sort of disappointment there look at that again.

Nearly 240% so any sort of disappointment there of course could potentially weigh on the stock here going forward right a question about whether or not they might be priced to Perfection but if they keep delivering then who cares all right well you got keep it right here on Yahoo finance much more coming up on Catalyst.

We're going to have reaction to Brookshire Hathway's annual shareholder meeting and that's coming up stay tuned.

now let's do a quick check of the market.

Sponsored by tasty trade you're seeing green across your screen here across um the major indices plus across various sectors the S&P up 610 of a percent similarly with the NASDAQ and the Dow Joneses in the green as well I'm taking a look at which sectors are performing well across the S&P 500 today it's looking like a sea of green here not a.

Lot of laggards in the space pulling this sector down and specifically seeing a lot of good movement in some of our big Tech names here you've got Nvidia in the green as well as some of uh the other major chips players smci of course in the green this morning as well um some of the specific laggards are smaller smaller guys on the street so.

They're not hitting this Topline number very much and that larger picture of post jobs report still seen some gains across your screen as we enter the trading day this morning taking a look now at shares of Tyson Foods after reporting second quarter of results a food Processing Company posting an earnings beat even as.

Sales slip the company starting to benefit from cost cutting measures you're looking at a drop of just about 6 and a half% when it comes to the quarter and some of the demand trends that Tyson has seen they were talking about some Tailwinds from their chicken business that it was enough to offset the Slowdown and beef we have seen more and.

More consumers as they have been under pressure here from inflationary pressures here turning to more affordable options chicken producers chicken manufacturers they're benefiting from that so Tyson able to offset some of the Slowdown within their be within their beef business from Tailwinds that they're seeing within chicken but they.

Did have some cautious commentary when it did come to their chicken business going forward they said that the US chicken production issues is not a short-term fix so because that and because of some of the other uh updates that we're getting here from this call we are seeing a bit of pressure on the stock here this morning this to me feels.

Like another story about a stock that was able to be defensive but not offensive this earning cycle I guess that Brad and Brian are beefing up the beef sales this quarter so we're seeing that I didn't real I feel like everyone's buying chicken as an inflation hedge but there you go people are still buying beef uh having said.

That Micron Shar is also raising uh here after bared upgrading the stock to outperform from new Neal noting meaningful upside opportunities ahead for micron and what's interesting about this upgrade is that this was one of the guys on the street that was really holding out here so that's why we're seeing a big movement to the upside.

After that upgrade in particular because he had really held out for a significant amount of time and so there wasn't necessarily an anticipation of that coming he did admit that the call was a bit late but noted that the shares have pulled back recently they are down over 10% from their record high close in early April but as I said they do see a.

Meaningful UPS side to come for micron here yeah so they're naming them ad or adding them to their list of top semiconductors ideas just to give you a better perspective of some of the other names that they see outperforming here at least in the short term they have Nvidia broadcom and Semtech also among the leaders or among the members of.

Their list there that they say leading the way for the chip stock and like you were saying a lot of this it seems to be a valuation play yes there are trends that are improving within the sector but also this comes after the recent pullback that we've seen in Micron stock so they're saying it's a bit more affordable at the standpoint they're.

Upgrading micron on adding it to their list of top semiconductors ideas and as a result we're seeing some movement here to the upside in shares this morning and John was talking about that too this idea that the PE Ratio is looking a little bit better valuations are looking a bit better so question of whether or not that could eventually be a bearish.

Signal if they continue to decline here but so far so good uh we're going to move on to one more trending ticker here shares of proficient surging as eqt agrees to buy the global digital consultancy in a deal valued at about 3 bill ion dollar including debt there you're looking at a huge surge in that name that is ticker prft up over.

52% this morning and this comes after a slew of similar deals from eqt particularly looking in the AI space so it's interesting to see that that is sort of continuing to be their MO at the moment at least when it comes to some of the deals that we've heard from them as of L sha yeah this deal has been unanimously approved here by Provisions.

Board the companies here said that Tom Hogan is going going to continue as the chief executive as CEO while the current management team will also remain in place so again we're seeing a bit of a reaction no surprise the proficient stock here up just about 52% on the day all right we're also continuing to cover the biggest headlines coming out of.

Berkshire Highway's annual shareholder meeting this weekend you talked about everything from the record high cash pile to Apple to Paramount to AI so who better to speak to about this then Cole SME he's a CEO of SME at Capital Cole it's great to have you so I was actually out in Omaha with Bill over the weekend we were listening to what the Oracle of.

Omaha had to say I'm curious from everything that you heard over the weekend what was the number one thing that stuck out to you uh the most surprising thing was that uh Todd and Ted are fairly sidelined in other words they're going to pick stocks for Brookshire hathway but they're not going to be the primary.

Capital alcator which is actually going to be Greg so I think that was surprising that was unlike we' heard before um it was really new information maybe the board was privy to that but I think shareholders uh should be more surprised at that what does that tell you about Brookshire stock moving forward and their performance does that.

Lead any kind of concerns to you yeah I I it it's really I think it's a different company compared to what we know is the Charlie and Warren stick of the past um I say that because they were investors that became operators um you know what we're talking about now is Greg as an operator to be an investor I think that's a much tougher transition I.

Know a lot of ators who are really good at what they do and then when you go to ask them to invest it's just a different person to ask that kind of uh need but I I think also one of the most interesting questions of of the uh of the day was when a young man asked about Buffett if he'd rather be doing what Charlie recommended which was buying a you know.

A few great companies at a fair price or going through the Moody's manual you know the 20,000 pages of the Moody's manual and here we sit where Buffett is sitting on this massive cash pile he's selling his app giving what I'll I'll call it some compre reasons for doing so and he's saying there's not a big 10 billion investment opportunity and he.

You know he's saying if he had less Capital he'd much rather be digging around for the vast number of opportunities and I think that's a good picture for investors I think that was the the biggest uh you know megaphone experience people should have had is in the big opportunities out there there are few and when I say big let's say.

Berkshire can't own bigger than a 10% stake and they got to invest $10 billion all bu saying is any company a hundred billion dolls or greater there is no opportunity and I I think of that against everything we're talking about the stock market with driving the stock market it's nothing but a hundred billion dollar plus companies so um I.

Think investors should very much wake up to that and I think the only difference between this and the past is Buffett if he was 40 like I am he would be telling everyone how terrible things will be going forward in stock market returns like he did in 99 at Sun Valley he's just old and you know what it's just not in his best interest at this point to do.

That so cool what does that them mean for berkshire's growth going forward what does that mean for their priorities and when you talk about the lack of investment that was something that Buffett mentioned many times and what you were just referencing there over the weekend how long do you think it's going to be until we see Berkshire start to.

Put more of that cash to work yeah uh well let's just use 2020 as an example you'll see that they put very little cash to work back in 2020 so um if someone says you know what would it take probably like a 35 40% bare Market in the P 500 they have to have the biggest companies get smashed and by the way I think that will happen it will.

Happen and most people don't believe it can happen I only point that out because I think the most analogous picture you know you had you had the Oppenheimer strategist on just a second ago he talked about how all wonderful these things are yes when Cinderella was at the ball it's always wonderful it's fantastic the drinks are great and then.

The clock strikes 12 and everything turns back to pumpkins and mice this is a Galt in that we think these Technologies and everything is greater than it really is when we're running massive deficits and we're paying stupidly High multiples for things and the question is can those two things hold if they don't we're going to find.

You know economic growth that might not be as as good as we think and we're going to find that stocks aren't as great as we thought they were and so I just point that out because that's really what Buffett's playing for that's what they're building Burkshire for and a 20% bare Market in 2020 did not cause them to deploy Capital you know 2022 did.

Not cause them to deploy a lot of capital they're looking for a smash drag out kind of market and I don't think most investors think that can happen to be honest okay well let's talk about one investment opportunity that Buffett got invited to over the weekend uh Buffett said that auto insurers like Geico obviously owned by Brookshire are at.

Risk if self-driving cars do hit the market to which Elon said come on over uh do you anticipate that relationship starting yeah I I love this question to be honest because a je answered this and um he pointed out that the incidence of uh you know problems with you know self-driving cars is lower than the human and I I would agree I mean I live.

In Phoenix Ariz I I send my daughters in Whos to the mall okay self-driving cars taking my daughters to the mall it's a picture of the future in my opinion because my time is worth more but here's the catch to a jeet's point that car costs so much more that when a problem does arise the insurer is insuring a larger total policy so if you take the.

Likelihood of occurrence times the price of the occurrence you're going to end up with I think a very similar economics for the insurer and you're probably going to have fewer insures because it will require more cash per occurrence so I I I think those economics don't ruin the insurance business um you know if you're musk if there's anything you'd.

Love to do youd love to raise price that's one of his biggest problems as he can't necessarily to get people to grow EVS but I I agree with the G I think I think the cost of cars will continue to climb because the quality of cars that we drive continues to climb with it so ultimately do you think Buffett's ever going to show any interest in.

Tesla uh not a chance in God's name all right pretty simple Cole great to have you thanks so much for taking the time to join us here Cole SME SME a capital CEO thanks we got much more of your Market action ahead stay tuned you're watching Yahoo finance.

It's a jam-packed hour focusing on the biggest movers and shakers on Wall Street this is Mark the domination and here every day is game day we have 1 hour left until the market close it's game time for investors to make their final plays the clock is ticking and we've got you covered with our quarter by quarter Playbook we're.

Bringing you in on all the market action with step-by-step analysis of our biggest trending tickers an expert insight into the day's biggest headlines we'll bring you the closing bell and get you to the Finish Line This is Market domination tune in Daily from 3: to 4:00 p.m. Eastern.

m.

do treasury has set to auction 125 billion worth of notes and bonds this week we're watching demand at these auctions as an indication of how the market is thinky about the fed's moves going forward joining us now is Michael cudel Pimco senior Bond portfolio.

Manager Michael it's great to have you here let's start with the treasury auctions that we are going to see this week we've seen yields move just a bit lower what are you expecting to see demand wise for these upcoming Au auctions and then ultimately what that signals here for the fed and the Market's path.

Forward yeah uh thanks for having me appreciate the time this morning um certainly uh you know significant size of Treasury auctions for this week and for the foreseeable future although treasury auctions won't be increasing they are at at at record high levels and so a lot for the market to digest um but nothing the market can't digest we've.

Seen the market digests similar levels of supply and and they'll continue to do so whether it's at slight concessions to where we are now um but these levels of rates just peeling back the lens are are quite attractive to to investors and and we can we can dive into that a little bit deeper but you know the rates on offer today 510 on on the US a um you.

Know real yields of two and a quarter percent uh these are these are levels that uh aside from four months in the past 15 years uh you haven't seen and so these are are yields that are are attracting investors uh and and whether or not there needs to be a slight concession this week to absorb these auctions um you know bigger picture.

These are yields that are attracting investors and uh given what the Reserve told us last week uh it seems like these are these are levels that you want to start adding duration to portfolios what does that duration look like then so again given the fed's reaction function uh which all those being equal either they'll stay on hold for a little.

While longer uh maybe eventually cut rates but but a hike is an extremely low probability something they push back on on several times and so from that standpoint you know we kind of like the belly of the yield curve the the five to seven year point of the of the yield curve that will be correlated and respond to to the FED lowering rates um.

And all equal you know gives you gives you a little bit of uh cushion um in into higher rates if if if that were if that were needed uh so again we have a a four and a half four and 3/4 fiveyear note that you've only had four months in the past 13 years um and that's and that's something that you know investors are are finding attractive and so so.

From that standpoint we kind of like the belly of the Curve we like being we like holding hands with the FED uh and at some point they will begin to lower rates uh maybe it's a little further out than markets uh had thought uh and that and that gives us comfort that at some point that will that will happen either either this later this year or sometime.

In in 2025 now Michael pal did dismiss the potential here for to raise rates but I'm curious from your perspective what is the bar for the FED to hike I think the bar is pretty high right now um the FED has this uh this belief that you know inflation has moved materially lower from its peak so we had we had inflation.

At 9% at the highs it's it's down to a core pce of 2.8 uh you know whether or not it ticks back up to you know three something this is not the inflation that it was uh a year and a half ago and so the FED views themselves as restrictive whether or not they are restrictive I think we can we can certainly have that conversation um.

They view themselves as restrictive and so they will need to be convinced uh with a fair amount of data that the economy is strong and and and momentum is is strong and inflation is not only holding but reversing and moving moving a fair amount higher and so Michael are is the Fed restrictive from your perspective uh I think that is an open.

Question I I think uh based on their models of of where they think real the real neutral rate is uh they are restrictive I think based on the levels that we've SE and growth uh based on the acceleration in in inflation uh I think you really have to squint uh to see the FED uh and rates being restrictive I think if you saw the first quarter that.

Took place in in credit markets the borrowing that took place in credit markets whether it's investment grade high yield and bank loans that was record issuance uh so folks borrowing and putting that cash to work to me doesn't tell me that uh that rates are necessarily restricting activity uh so I I I think I think it's an open debate I.

Think on the flip side uh you can argue with for lags you can argue most recently we've seen a slight slowing and maybe that'll continue and so I think it's an open debate and I I think you know we'll need more time and more data but the fed's going to need a lot more data to be convinced uh that they need to potentially move rates higher again.

Well I wonder if the lag time that we need is going to be 30 years because we know that and this is from Torsten slock 95% of mortgages on 30-year fixed rates so is the lag part of lawn and variable lags going to take three decades because we're seeing so many people not impacted by rate hikes yeah so I I definitely think the the locked in mortgages have.

Have certainly a lot to do with uh the strength of the US consumer uh the last time we had five and a quarter mortgage rates 30% of mortgages were floating today 5% are floating debt debt to G the Consumer Debt to GDP is the lowest it's been in 23 years consumers in in great shape uh it won't take 30 years uh the average uh human stays in their home for.

About about seven years uh but it could take more time uh and that just means the consumer is more resilient not only are the locked in rates uh the consumer has more equity in their home than they've ever had in history they have $ 32 trillion of home equity in their house and that's also making them feel more confident in spending maybe saving.

A little bit less because they've saved so much in in their home so given that if the FED is at their 2% inflation Target we're looking at a crystal ball of the future here what is the unemployment rate going to have to be at yeah I mean we think the employment rate needs to move a little bit higher in order to achieve that 2% inflation.

Objective if you just look around at other developed markets so 6% Michael seven perc no no no I think six or seven percent uh could could lead to a one and a half two percent inflation but that would also be a very different type of environment uh we think four and a half to five on the on the unemployment rates so another um you know six 610 to a.

Percentage Point move in the unemployment rate uh would get us probably all the way back back down to the fed's objective uh but we don't think the fed's going to necessarily Target their objective uh 2 point something on the inflation rate with some confidence that we're you know moving in the right direction is.

Probably enough for them to begin cutting rates again we can argue if that's a mistake or not but that seems to be the the fed's current current rhetoric and and and way of thinking data dependent as always Michael thank you so much for joining us we really appreciate your insights that was Michael cudel pimco's senior Bond.

Portfolio manager there now a slew of fed officials will be speaking this week to break down what we can expect from the Hawks and the dubs Jennifer shamberger is here with us hey Jen good morning Maddie this week kicks off a heavy list of fed speak Following last week's fed policy meeting where we'll hopefully get a better sense of.

Just how different members of the FED are viewing inflation the job market and what that means for setting interest rates in the face of higher than expected inflation during the first quarter last week fed official said there was a lack of further progress on inflation dropping while Fed chair pal said that a rate hike was unlikely he.

Took a step back from his easing bias removing a prior statement that at some point it would be appropriate to lower rates the feter also reiterated it will take longer to gain confidence inflation is moving back towards 2% then came the cooler than expected jobs report last Friday offering hope for markets eager for a rate cut so on the back of that.

Report Traders have bumped up odds for a rate cut in September up from December but still only looking at one rate cut this year after that cooler jobs report will the tone shift again well today we'll hear from Richmond fed president Tom Barkin who tends to lean a little bit more hawkish along with New York fed President John Williams who's considered.

A voice close to Pals Tuesday minneapolis's Neil cash Cari who has said the FED may not need to lower rates at all this year Wednesday brings Boston's Susan Collins and fed Vice chair Philip Jefferson also a close uh voice to the Fed chair and later this week San Francisco feds Mary Daly and Chicago fed president Austin gby both of.

Which have taken a step back from three rate cuts that they saw earlier this year guys on the back of this cooler than expect ed jobs report on Friday it's unclear that really one report would move the needle I think that fed officials would probably need to see uh a slew of cooler jobs reports for for that to really change their view of.

Course it'll be interesting to hear all these members of the FED speak this week to see what their views are whether they've changed and whether that could change the calculus for rate Cuts all right Jennifer thank you so much as always really appreciate you joining us there we are going to have all of your markets action ahead including a look at.

What's going on with Paramount so stay tuned for more you're watching Yahoo finance it's a jam-packed hour focusing on the biggest movers and shakers on Wall Street this is Market domination and here every day is game day we have 1 hour left until the market close it's game time for investors to make their final plays the clock is.

Ticking and we've got you covered with our quarter by quarter Playbook we're bringing you in on all the market action with step-by-step analysis of our biggest trending tickers and expert insight into the day's biggest headlines we'll bring you the closing bell and get you to the Finish Line This is Market domination tune in Daily from 3: to 4:00.

P.m. Eastern.

Paramount sharers are on the move this morning after the company formally opened acquisition negotiations with Apollo and Sony that's according to lace.

Report here from The New York Times we're looking at Paramount shares up just about 3% now this news coming after it its exclusivity period with Sky Dan ended over the weekend Robert Fishman is MAF nathanson's managing director and equity research analyst joining us now it's great to see you so talk to me just about your view on this Apollo Sony bid.

And what is the more attractive potential outcome here for shareholders well it's interesting that you say for shareholders what we have to Define uh which shareholders we're talking about point so for independent shareholders based on all the Press reports I think it's it's pretty clear that the uh Sony and Apollo bid is the.

Best possible outcome but of course uh there's still lots of uncertainty here and there's still controlling shareholder um in terms of uh what which direction that she's going to choose to go so what do you think the path forward then looks like from here I mean really day by day it continues to swing um clearly what we've.

Just as you mentioned um exited the exclusive window with Sky Dan and now that opens up other potential possibilities um the company is also proceeding as if there's a potential for No Deal to happen so there's lots of uncertainty that comes to play with with all these different scenarios and there's some risks involved in that too.

So as an independent shareholder um really you've been uh swung around and and trying to understand how the future of this can go because as an independent company going forward there are still significant challenges ahead and that includes fundamental challenges uh on the business that that we follow well our own Brian sazy spoke with the CEO of.

Apollo earlier about the potential deal here's what he had to say we are a purchase price matters value oriented firm and the way value is created today is usually in places that are undergoing substantial change so media as an industry I don't have to tell you uh sitting in Yahoo that media is undergoing substantial change the notion.

That you could come in and build on a a great business and try to navigate through these turbulent times I think is where we create value we historically have been long investors in media we've done it across almost every sector in media obviously right now we are invested in Yahoo we are also invested in legendary and by bringing along an a.

Respected industry partner Sony I think we look at this as just an interesting opportunity to create value in an industry undergoing change and as he mentioned there I should say that Apollo is the parent company of Yahoo but I want to get your take on that it sounds like he's sort of touting the benefits of working with a.

PE firm in this deal but I wonder to what extent folks should be thinking about the potential drawbacks particularly given the regulatory environment that we're in right now yeah I mean clearly we're in a uh more heightened regulatory environment and that would put at least some of of the potential upside of a deal uh more.

At risk given the uncertainty that that comes with that and and the administration current Administration and how they look at these types of deals um but as far as uh some of the value that that can be extracted from a deal clearly combining uh two Studios would would extract some Synergy value there.

So understanding that but also it comes down to what what are they going to do with the linear assets and there are some better linear assets and some significantly challenged ones as part of the cable network portfolio that the viom holds I want to bring up some of the comments that we heard I was out of Berkshire this weekend War Buffett.

Waited in on Paramount saying that the company exited the stake that they have had in Paramount talking about the amount of money that Berkshire has lost on that investment but what was interesting here in those comments to me at least was what Buffett had to say just about the fact that everything how everything has played out has caused him.

To think a little bit more deeply about how people spend their Leisure Time and we know he's talked about in the past the need here or the likelihood that we will see some consolidation within this base I'm curious how you're evaluating the potential winners within this space and how how many of these Acquisitions you think are likely going to take place.

Going forward until we get some more certain leadership within the streaming sector yeah it's a great question thank you so I think as far as how we think about this um we've been talking about since really a couple years already um that the streaming business is really not a great business and especially when you compare it to how good the the old.

Business was in terms of the payv ecosystem and how that you got paid regardless of Engagement and regardless of churn and all of the issues that come into play with streaming it's a much more difficult business to to be competing against and especially given the lead that Netflix has and how they've essentially already won the game.

So where you go from here is there needs to be consolidation we we've been talking about that for a couple years as well and you need to have more rational players at hand so that they can get better economics out of the the streaming ecosystem but that's not to say it's going to be as easy to match the success and the profit levels that.

That were generated in the old ecosystem well I'm curious then you talk about kind of the need for consolidation and some uh it sounds like basically more adulting in the room what would that look like what would success in that effort look like to you I mean success means that that you need to at least partner with with other.

Streaming platforms and not be competing against them especially for the subscale players so that will require different uh Partnerships or or combinations that that come into play there um and then really from there you need to also stop accelerating the demise of the payv ecosystem by leaking all of the premium content over the top and and allowing.

Consumers to watch all of the the musthave content primarily sports in the over-the-top world at a discounted price to what they're charging to the wholesale players and that leads us to the ongoing negotiation that Paramount is having with with Charter right now so let's talk about what we're going to hear about the space from Disney.

Tomorrow there set to report earnings before the Bell a number of key things that will be watched from the street when you talk about the impact on the parks business what the health of that business looks like when you talk about the summer box office exactly what they're seeing there but the big focus is really going to be on the streaming.

Business and what exactly demand looks like within that space I'm curious what are you expecting to hear from Disney and how big of a factor do you think that's going to be on some of these other larger streaming Giants here going forward yeah I mean we've been talking about for Disney that streaming is obviously the future and it's partly the.

Future of of their company too and so what do I mean by that what we are looking for is um a a a better strategy longterm in terms of how all of their different streaming platforms can come together to help them be that strong number two Global player in streaming and compete with Netflix given the assets that they have and not.

Compete on a pure content for Content basis because uh Netflix clearly has a different approach in terms of just the sheer volume that they bring to the table on streaming but given the assets with sports and with Hulu and with Disney plus most importantly and the library that they have on the Disney side um we think that Disney has all of.

The assets that can compete on on a global scale basis all right Robert we're gonna have to leave it there but really appreciate you joining us that was Robert Fishman mafa Nathanson managing director and equity research analyst well we got more news on Starbucks following its disappointing earnings results last week founder and.

Former CEO Howard Schultz is urging Chang at the coffee giant following those results he wrote in a LinkedIn post that the main problem for Starbucks remains in the United States yaho finances Brook Toom has the breakdown yeah good morning to you br let's set the siege here for a quick second Howard Schultz did step down as CEO last April.

And he does h i mean he does not have any formal role in the company currently but he is the fifth largest shareholder at Starbucks and he is the single largest individual shareholder for the coffee Giant and he has took to link or taken to LinkedIn many times but in the latest memo posted on Sunday evening Howard Shelt said quote the company's.

Fix needs to begin at home us operations are the primary reason for the company's Fall From Grace the stores require a maniacal focus on the customer experience Through The Eyes Of The Merchant the answer does not lie in data but in the stores and he encouraged all senior leaders and board members to spend time more time in the stores and.

This comes as you can see here sales across the board are under pressure in all segments of the Starbucks business he also added to that memo that the company needs to own the shortcomings without the slightest semblance of an excuse but Schultz is not alone Wall Street is also Los losing confidence take a listen to what city analyst John.

Tower told our Brian sazy on Friday I think there's a lot of frustration in the investment Community with what's happening and they want investors want to hear a better bigger Bolder plan from the company perhaps some hard decisions around their path forward in the United States and in China and as sales do continue to decline in China Schultz did.

Add in that memo that he was confident that the China business will return to health and become the company's largest market but as we know the company is taking multiple steps in their mind including value offerings menu Innovation speedier service in order to get those customers back get them spending more just like they used to and.

Ultimately turn this business around it is one year since luxman took the role and this is a pretty interesting time for the company broe I'm curious Beyond John Tower what some of the conversations that you've been having with other analysts what are their thoughts just on Starbucks's pricing strategy because we talk about time and.

Time again just how expensive Starbucks is especially when you compare to some of the cheaper options out there given the fact that inflation is still a real concern for so many Americans are they rethinking I guess you could talk about maybe some of that promotional activity that Rachel was speaking to us about but are they thinking about maybe.

Re-evaluating that strategy going forward yeah well John Tower added to the conversation by saying that there is a broad consumer push back that we're seeing right now and when we asked the CFO Rachel rer she said that they're not planning to lower prices but many analysts on the street are skeptical that these near-term fixes just are not.

Enough to corre cor this maybe too far to say sinking ship that we're seeing but definitely on the wrong course here and they're not confident that these changes these menu Innovation this value offerings are really going to get the consumer to come back and spend more and without plans to lower pricing many are skeptical that.

This is just not enough that there are fundamental issues that the company needs to address first before they're introducing say a boba tea or Pearl or lavender or spicy lemonade energy drinks and uh many saying that this is a significant reversal to what we saw previously so many are skeptical here if these are enough doesn't seem like the.

Former CEO Howard chelz thinks so and of course we've seen time and time again Howard chelz coming back taking a step in the company three times he has said publicly that he does not plan to come back you just never know until he does once again all right Brooke thanks so much well stock starting the week higher as investors hope that recent econ data.

Is going to put rate Cuts back on the table for this year one of the key takeaways today is that it might not be just the fed that's driving stocks higher we spoke to a number of strategists a number of economists but the but one of the conversations Baddie that stuck out to me was what we heard from oppenheimer's John stus and he was.

Talking about the strong earning season that we've seen so far this quarter and putting that even in more perspective for our viewers here we've seen about 5% growth so far this quarter it's the highest rate of growth that we have seen for earnings in just about two years and he was making the argument that that couped with the recent pullback that we.

Have seen within the market that's actually making valuations more attractive we know John is one of the biggest Bulls right now out there on the street he's seeing some upside uh potential here between now obviously and year end but I think that leadership is going to be the question and exactly where that further strength comes from.

Especially in the second half of the Year something that's top of mind for many investors and we've been talking for so long about valuations getting out of control and as he spoke with us about earlier it we're starting to see that subside a little bit also looking at a stat here uh from Bloomberg intelligence data showing that the S&P 500 outside of.

The mag 7 is exiting its profit recession so that is a huge indicator of the broadening narrative that we've been hoping to see and again kind of beefs up the bullishness that we heard from John this morning as well yeah because that's one of the key uh trends that investors are watching strategists are watching I should say just in terms of that.

Rotation out of the leaders that we had seen over the last 12 to 18 months and more broadening exactly what that could signal here in terms of potentially bullish action that we could get in the coming months all right let's do a final check of the markets here 90 minutes into the trading day you're still looking at gains across the board you've.

Got the NASDAQ up just about 6/10 of a percent coming up we have our new show wealth dedicated to all of your personal finance needs our very own Brad Smith is going to have you for the next hour where he'll discuss how retirees could potentially benefit from slower jobs growth stay tuned for that conversation next.

n.

welcome to wealth everyone I'm Brad Smith and this is Yahoo finance's guide to building your financial footprint our.

Community of experts will give you the resources tools tips and tricks that you need to grow your money on today's show how to invest like Warren Buffett we reveal the biggest lessons from the Billionaire's annual shareholder meeting and haven't received your tax refund yet don't panic we'll tell you what to do plus marriage and money we talked to an.

Expert about how you should handle your finances in every stage of a relationship ahead of the traditional summer wedding season all that and much more today but first let's start where we always do stocks are higher this morning pegs to investors hopes that the latest jobs report report points to possible weakening in the labor market.

And that weakening is just what the doctor or in this case the FED may have ordered here a softer labor market it actually points to some success in the fed's efforts to curb inflation potentially and that opens up the possibility of rate cuts which could help alleviate the strain of high interest rates on consumers so all of.

That considered what could this mean for your Investment Portfolio here with more we've got Sandra Cho who is the point wealth capital management president and founder great to have you here with us today just walk us into your reaction your thinking as you see that weaker than expected job Sprint come out last week and how that pertains to the fed's.

Policy pathway from here Sandra great to be here thanks for having me so yes it's exactly what you said it would be uh wonderful if the jobs report which came out which showed less than expected uh jobs out there it would be wonderful if that brought down inflation and that would mean that we would have you know less um you know less inflation it would.

Mean that perhaps the FED would be able to lower rates this year however I'm going to just let you know that here at Point well we don't see that happening anytime soon I would say if it's going to happen it would happen maybe one time this year um because inflation has been quite sticky so um you know it's something to hope for and so.

Specifically as people are looking across the the jobs figures here you know where does that ultimately point to you to believing that we are going to be seeing perhaps a trend that the FED is looking for where will that Trend begin to emerge they're looking at numbers really daily and they're looking at them very.

Carefully so hopefully jobs actually I mean as sad as it's to say it would help us if the jobs uh or unemployment started to tick up more if you have less jobs then there's less people to buy things you're going to be more careful with your dollars and then that would bring the price of goods down the price of services down and that would bode.

Well enabling the FED then to start considering a rate cut and so if we did see that rate cut become enacted I mean as of right now we're looking at the potential for September being the highest first moment and then additionally we're looking out to December there's also the apolitical nature that the FED wants to try and.

Signal as well here how does that play into this so one of the things that we're looking at is a possible rate cut maybe in September maybe even later in the year um you know we would hope that there is going to be unbiased uh uh consideration as far as the rate cut goes but you know there's always some.

Kind of bleed into um as far as in consider consideration into what's going on right now with the presidential election races that said also we like I mentioned we see jobs um unemployment ticking up and then inflation coming down that doesn't necessarily mean it's a bad thing and let's remember that on a daily level uh Main Street really looks.

At and can bode well for uh you know inflation coming down you're going to be able to see prices coming down in the supermarket in goods and services and hopefully you're going to be able to on a very personal level save more because if you're not spending more as far as you know just going out there going to the grocery store then you're.

Able to save more both for retirement and your own personal finance okay so let's get to the goods here um because a lot of potential and perhaps near-term retirees are trying to figure out how they can best position their portfolios what is the investment advice or knowhow that you're bestowing upon those who are getting closer to retirement right now.

Given the macroeconomic backdrop sure we see that the stock market has been going gang busters last year and even year-to dat as far as large cap growth um and large cap in general so big companies but not all stocks are made the same you see smaller companies like the Brussel 2000 really underperforming you see Emerging Markets.

Uh at better valuations and you see International develop markets like Europe at better valuations and you know that said we're really looking to see more um Market participation as far as you know equal Market weight kind of coming back up we're starting to really see that for retirees especially what's really nice.

Is you're finally getting a decent yield in bonds so if you're getting about 4.6% or so in bonds and bonds have come down as far as price goes about 2.6% year-to date um you know if B just come back up to where they were January 1 of this year you could potentially be looking at if your entry point was right now you could potentially be looking at.

A seven plus percent a total return in bonds that's really nice because you generally have less risk and bonds less volatility and um that's especially good for retirees who tend to be more conservative sandre Cho who is the point of wealth Capital Management president and founder thanks so much for taking the time here with us this morning thank.

You absolutely let's take a look at Spirit Airlines after reporting turbulent first quarter results which is a top trender on Yahoo finance right now shares of sa saved The Airliner posting a decrease of 6.2% year-over-year on total operating revenues noting it a decrease uh 8.1% in total revenue per passenger flight and then adding to that.

Yeah on the far right side of your screen that fair Revenue per segment that was down 16.3% in this most recent quarter Spirit Airlines citing adverse weather and air traffic control related delays negatively impacting the company's operational performance CEO Ted Christie saying the competitive environment.

Remains challenging due to elevated capacity in many of the markets that the company serves and while looking to the second quarter Revenue guidance is falling short of Wall Street expectations so what's this mean for you the consumer the company also acknowledge that it's actively planning for a future that does not include a.

Merger with Jet Blue plus plan to reduce near-term capacity so that's how it impacts you and some of those routes as well that customers have come to expect over the years we continue to monitor shares throughout the rest of the day also we're tracking Disney here this week Disney is a top trending Ticker on Yahoo finance ahead of its newest.

Quarterly earnings report set to come from the Magic Kingdom in those first results since winning a board seat brewhaha against activist investor Nelson pelts for more on what you the consumer should be looking out for in Disney's earnings our very own J slip and joins us on said hey Josh Brad good to see you brewhaha yes you don't hear.

That talk you really don't that sets the drama just right Disney shareholders do Brad have to be feeling good heading into this earnings report that stock is enjoying a strong run it's already up about 25% so far this year and analysts on Wall Street who cover the entertainment giant are fans More than 70% say you should buy the stock when.

With Disney report second quarter results Wall Street is looking for earnings per share of a buck 10 on revenue of 22.1 billion dollar Jamie Lumley is an analyst at third Bridge group he tells me he is focused on the company's entertainment segment of course remember that does include Disney's traditional TV division film.

And streaming business as for traditional TV lumbley not expecting much we all know that industry is broadly facing challenges as more consumers now opt for those streaming options but there will be a lot of attention we know on Disney's streaming service Disney plus and how many subscribers they picked up in the first.

Quarter we in the first quarter it's usually kind of soft for the streaming industry overall so Lumley is betting here that if Disney did add subscribers it will probably be just low singled digigit Millions if that he says that he is more curious though about what the profitability and margins can look like longterm for the streaming Division and.

Remember there's also Disney's sports segment that includes ESPN there is a new ESPN Standalone streaming service we know that's set to debut in 2025 investors though still have plenty questions about that service what features and content are going to set it apart from the competition and of course importantly what is the price going to.

Be finally there's Disney's experience segment now that includes the company's theme parks this has been the most consistent division for Disney showing strong growth especially on the international side investors are curious about whether Disney can keep that momentum going Disney did say it plans to spend $60 billion to expand its theme.

Parks and cruise lines over the next 10 years Lumley say says he is still looking though for more information and details about how and where exactly that money is going to get deployed bottom line Disney CEO Bob Iger should be coming into this earnings report feeling pretty positive his stock it's moving in the right direction and he recently.

Defeated activist investor Nelson pelts in that bruising high-profile proxy fight an ongoing question however is who is going to take over from Iger one day what is the succession plan like at Disney investors don't know and Doug CZ an analyst at TD C says there actually no easy answer CZ tells jahu finance that AER is a proven tested leader but.

He has not developed a deep internal bench of possible candidates at the same time Disney has a unique strong culture so bringing somebody from the outside C says could be risky Brad back to you all right thanks so much great setup here for what we're expecting from the house of mouse Josh appreciate it you got it and we're also gearing up for a busy.

Week here on Yahoo finance including some special content that you don't want to miss it's Small Business Week here at Yahoo finance Broadley small business is Big opportunities we're diving into the key themes challenges and advice for business owners every single day starting today May 6th through Friday May 10th plus here on wealth we're doing.

A deeper dive of our own health is wealth we'll get the top savings smart spending and health investment tips from industry experts and wellness Executives across teleah Health Pharmacy and physical fitness you can see an All-Star lineup for the week kicking off today at 11:20 a.m. eastern time coming up everyone Warren Buffett Buffy the stock.

Market Slayer answered shareholder questions this past weekend at Berkshire Hathaways annual meeting what it can mean for you and your portfolio next.

n let's do a quick check of the market sponsored by tasty trade you're taking a.

Look at the major averages at the Yahoo finance Jumbotron in studio here the Dow Jones Industrial Average you're seeing that Higher by about 210 of a percent the S&P 500 up by about half a percent and the NASDAQ composit up by about 610 of a percent this Market check has been sponsored by tasty trade they call it Woodstock for.

Capitalists on Saturday Warren Buffett answered questions in front of thousands of investors at the annual birkshire hathway shareholders meeting in Omaha Nebraska and to tell us all about the meeting as well as some key takeaways for you as an investor we've got Kathy Seaford who is the CF vice president of equity research Kathy great to grab some.

Time with you here first and foremost I mean we heard Warren Buffett talk about everything from artificial intelligence to Apple to Paramount and much much more here I wonder what jumped out to you from his investing methodology that investors have come to expect over the years that really stood out at this particular year years's.

Event well I think you know when we look at the what transpired on Saturday I think the one thing that stood out um given that succession is an issue um is that he really you know he was he was point on he was spoton he was very articulate there were I think there was one time when he was a little you know a little Meandering but you know I think.

That the dynamic um and the chemistry between Warren and Greg AEL was was a significant component of this meeting as it relates to his investment strategy I think investors can take away you know sort of two key tenants um diversification and um you know time is on your side he is not an active Trader he is definitely a Buy and Hold sort of.

An investor um I think people might have been a little surprised at the large um slug of Apple stock that um that works here um sold I think that's an appropriate rebalancing given how well the stock had done for the company I mean it hasn't done that you know that great this year but historically for birkshire it's done well so you know in.

Some respects it was more of the same which is in some is comforting when your chairman is 93 years old do do you expect investors to also then kind of heed or listen into what Warren Buffett was saying about building up a solid cash position for right now now in order to have that that dry powder to be able to deploy later on and if that is the.

Thinking that many investors come out of this with where might be some of the areas that Warren Buffett is looking at that they might look at as well well if you look at you know if you look at Burk share in its entirety there's the operating businesses that tend to be you know it's an insurance-based conglomerate with.

Exposure in energy utilities rails and a number of consumer areas and then their F their Equity position tends to be barbell between financials and technology so it's an interesting combination of um it's a very Diversified mix between what they have Equity positions in and what they have as an operating basis now the average.

Consumer the average investor um can't necessarily replicate that um you can with a A broad-based you know a an ETF that tracks the S&P 500 um and honestly if you were to talk to you know the late Charlie Munger and Warren they would probably tell that of the average investor or you know invest in birkshire as a proxy for all of those.

Businesses um I think it's interesting though that when you talk about their cash hord um you know the cash keeps accumulating profitability is decent they've got really attractive yields and their investment income that's produ that's throwing off a fair amount of cash and I you know I get the sense and I've gotten this for a while that there.

Is a little bit of frustration about their inability to Target and close on a significant deal and so they've kind of tamped down investors expectations for what their deal making activities are going to be I mean it Still Remains a favorite talking you know topic of conversation among investors but that cash hord my sense is at some point.

There may be pressure on them by investors maybe after Warren is gone to pay a dividend um and do something with that cash you know coming off of this meeting I mean you mentioned the chemistry that the investors were seeing on stage and and really thinking about what the succession plan could look like does it does it feel like there's.

Confidence at this juncture in that succession plan and the decision- making would look like for burshire hathway even after Warren Buffett steps away well I think there was one interesting Revelation that came out of the meeting and that was a sort of off-handed comment that Buffett made um about Capital allocation and I think the.

Conventional wisdom was that the investment team would have a hand in some of the capital allocation but Buffet said that his preference would be to sort of consolidate all that power around Greg AEL and that's kind of a it was a significant um point that he made you know given that the way Berkshire has communicated their succession.

Planning they had a plan in place they weren't really articulating it to the investment Community um the fact that Greg AEL was the era parent sort of came out a couple years ago in almost like an off-handed comment by Charlie Munger so this was another kind of off-handed comment that actually had a lot of weight to it because Greg AEL would.

Consolidate a lot of power um whether or not he chooses to keep all that power something but it would in that under the plan that we're led to believe is is in place now he would acrew a lot of um the same powers that Warren Buffett currently has yeah then we'd have to figure out okay what what is the moniker for Greg Abel at that juncture I mean.

Oracle of Omaha is taken so we got to figure out something for him in that future Kathy seford who is the cfra vice president of equity research Kathy great to have you on here with us today appreciate it thanks well it's been complicated times for the health care space companies including Walmart and Walgreens they're.

Pulling back on their clinics tell Health leaders mwell and Tela do seing shares plummet more than 50% in the past year companies like United Health also taking a step back from direct to patient services to reassess the profitability equation amid industry challenges so what's behind the struggle here that's the big question and here.

With more on the next step in modern Healthcare is included Health CEO Owen trip along with Yahoo finance his own aneli klani Owen thanks so much for taking the time here with us today you know I guess the huge question is something that you've talked about before and and we've already seen T Health 1.0 a lot of people wondering all.

Right what's what's one and a half or or 1.5 or even 2.0 look like well Brad I think we're already well on our way to 2.0 and the good news is it's born by patient demand and patient experience expectations see the problem with tele Health 1.0 is it's just to put a quarter in the Juke Box listen to one song and then it's over.

You don't see the same doctor again you don't have continuity of care it doesn't connect with the rest of your experiences and yet members and patients have actually really loved that experience so in tellah health 2.0 it's an integrated experience it connects all of your Healthcare life not just your clinical and medical life like your.

Specialty or Primary Care visits but your financial Wellness too and that's really the expectation so this is a real growing up moment for the industry oh and good to talk to you again I know that one of the points that you've been harping on is also the fact that there's so much more uh interconnectivity right we've got all the wearables that are.

Coming out tech companies are really in this space but at the same time with the pullbacks that we've seen the idea being highlighted is that healthc care companies are really the only ones that can focus on healthc care retail Health hasn't really done a good job technology you know tech companies have been working for years to try and get into.

You to get their footing in the health space and we haven't really seen that come to fruition how is that affecting patients as the traditional Health Systems kind of falter well anelie you and I both know that this is an incredibly hard industry and it's attractive for new entrance because it's so large it's an everyday.

Expectation but to meet expectation of patients and members you do have to have that integrated care your primary care your Behavioral Health your specialty these things all need to be connected in a way that you experience that feels personalized that feels like you're treated like an individual member it's actually really hard to achieve and to.

Do it at national scale in 50 states 24 by S that's a new expectation coming out of the pandemic very few players are able to meet it and in order to meet it you really have to be committed and knowledgeable to healthcare itself and unfortunately I just don't think everybody who has stepped into this has that expectation looking forward I'm.

Optimistic that as we raise the bar and expectation around that that not only are we going to deliver better outcomes we're going to build some phenomenal businesses too what type of Delta and costs should people should um patients be expecting especially with more of the connectivity between devices and the information that is going to be able to.

Be leveraged in order to give someone some a plan that is more specific and customized to them I'm so glad you asked that because we need to get control of costs in this country it's it's our single biggest source of personal bankruptcy it is causing distress for corporations including the ones you've already featured on the.

Program this morning and so we need to look forward to not only Healthcare environment that's higher quality but one that's more affordable too the great news about virtual care and connected virtual care in particular is that you lower the costs of an experience because you don't have those fixed costes fixed costs of Clinics of buildings of extra.

Staff you can deliver a personalized experience wherever the member wants it whenever the member wants it at a fraction of the cost I'm really optimistic that this is going to relevel the playing field for the cost of American Healthcare oh and finally when we're looking at how you know individuals are looking to interact with.

This healthare system now right they're thinking about where their insurance plays A Part how much is Cash pay that has been part of the equation as well when some of these companies have faltered in the recent past so how do we what is the ideal solution for that how can you get the payment part of it to match what the consumer demand.

Is well I think the good news again here is that people are used to very flat and simple pricing for their teleah Health visits that's been a positive we know the data where teleah health and virtual care are available patients prefer it they rate it very highly they consistently rate it from an experienced perspective over the inperson.

Uh alternative now the answer I think is to make sure that insurance networks that offer this sort of care are offering really clear easy to follow pricing no matter where you are and who you are the good news is we see effort from the largest payers the largest insurers to do that we hope the largest Health Systems will follow and certainly.

Companies like mine are going to continue to lead the way in transparency and making sure that we put the member first and just lastly while we have you here Owen I mean we're trying to figure out what effect inflation is Contin to show within the broader Healthcare landscape and ultimately when people should expect some of the costs within.

The services that they're paying for to start to reced a little bit yeah this is concerning me um because Healthcare has actually been an inflation story for far longer than CPI and many of the producer price indexes and other things that this show follows so well and the only way that we're going to Tamp down Healthcare inflation is to drive down the cost of.

The actual experience and make sure that we're doing the appropriate visit we're not reproducing unnecessary testing we're not taking Pharmacy that doesn't work that we're personalizing care to the patient getting them what they need so frankly they get on with their lives in a better more financially stable and medically stable way that's the only way.

That we Tamp down inflation but again I'm optimistic because the outcomes from programs like these look really spectacular and as we scale nationally we should be in good shape all right um D duping some of the testing that is taking place certainly something that a lot of patients have become privy to asking do I need that test to be done or.

What's the benefit of having that test done as well here so that is a tip that's come up here before on wealth included Health CEO Owen trip and Yahoo finances Angeli Milani thanks so much for taking the time here today coming up here at Yahoo finance we're kicking off small business big opportunities week we're diving into the.

Biggest head wins for small businesses that's right after the break stay tuned.

N.

it's Yahoo finances small businesses big opportunities week we're taking a look at the landscape of the sector the challenges and the regulatory amid macro issues that impact them and you there are more than 33 million small businesses in the US making up 99 99.9% of all us businesses according to the US.

Small business administration you won't want to miss a single day of small business week so stick with us here and kicking it off we're taking a look at macro headwinds facing small businesses today as a part of Yahoo finance's small businesses big opportunities week Yahoo finan is very own Brook DePalma is here to break it down for us hey Brook yeah.

Good morning Brad well small businesses starting off 2024 with a solid momentum and a solid start here but there are still key challenges es up against the mom and popop businesses first finding employees to fill open roles this comes as 40% of small business owners could not fill open positions in April and wage inflation that continues to grow.

Too up between 4 and 6% now two other challenges include inflation and high interest rates inflation is high up 35% last month and that means that anything small businesses need is a bit more expensive here so think food think clothing anything is more expensive for a small business owner to get and sometimes they need or they have to pass.

Off that cost to Consumers and that is only growing we spoke to Goldman Sachs aai Pompei last week here's what you had to say small business owners are feeling the bite of inflation 71% of them say that inflationary pressures have actually increased in the last three months and as we double clicked on the.

Drivers of that increase we see the cost of rent has gone up the cost of Labor has gone up the cost of goods and services have gone up and I think Brad one important thing to underscore is at that intersection of inflation and small business is that small businesses feel the impact of in of inflation first and they are relieved of it last now it's.

Important to be clear clear here that even with all these challenges that are facing small businesses a majority of small businesses do expect Revenue growth this year according to Bank of America survey and we'll be following to see if this pulse really changes of course so many headwinds that are hitting small businesses right now are.

Also hitting the seed of consumers which can in turn then affect not only small business but companies at large all right Brook great kick off to Small Business Week thanks so much for taking the time here turning now to taxes in the IRS has issued about 91.4 million tax refunds as of the weekending April 26th that is half a percent less than.

The number refunded at the same time last year and if you're one of the people still waiting on your money we can help tell you when you're going to get it here with more we've got Yahoo finance contributor and Mac onomics founder Ross Mack Ross how can people see when they should expect to get their refunds Brad thanks for having me so.

Here's the reality right the IRS issues roughly 90% of all their refunds within the first three weeks right or less however in the event that there is maybe a delay the good thing is on the IRS website you have the ability to now check your status so literally on the site irs.gov.

Backwars hyphen my hyphen refund where's my refund it gives you the ability to just put in your social your marital statuses as well as how much you're supposed to get on your refund and that alone will be able to show you what your status is all right so Ross once you have the refund what should you do with it I love the question right I think.

It's very important that everyone needs to be very thoughtful with their money right obviously understanding that hey this isn't just a magical bonus that the government was giving you they're actually just returning the money that you overpaid them the prior year so knowing that this is your money most people are probably inclined oh let me.

Go on a vacation or let me buy XYZ you know big purchase right a new purse or you know a new car or something I think being thoughtful so very first thing I want you to do and I'm G list them in order right first thing I want you to pay off any debt that you have right and when I mean by debt we're talking about that bad debt that credit card debt that.

High interest bearing debt next I want you to have a fully funded emergency fund right the average American can't have doesn't have a $ thousand saved right meaning they don't have a fully funded emergency fund I want you to do that and then step three then I want you to start investing right where the very first investment if you're not investing.

I want you to own a very Diversified portfolio coming in the the realm of a s&p500 ETF and then lastly and fourth in the event you have to go shopping right now you to make your big purchase but you want to make sure you don't have any bad debt you want to make sure you have that fully funded emergency fund and making sure that you're investing right.

The goal is to allow your money to make more money for you all right I would have spent it on Warren Buffett squish mows but here they're all going and sold out from the weekend here thanks so much appreciate it Ross my man thank you absolutely we've got much more on wealth after the break you're watching Yahoo finance.

n.

Now well we're deep into spring heading into summer and the wedding season is right around the corner we're talking money and relationships here on wealth 50% of us adults said that they at least somewhat supported the use of prenuptual.

Agreements but only one in five married couples have prenups according to axios money is a controversial Topic in many relationships but it doesn't have to be and to break down the conversations that you should be having at every stage of a relationship to Sandy bregar who is the experienced Chief client officer here with us Sandy thanks so much for taking.

The time I mean I I imagine a lot of people are going to be taking notes here myself included because all of us can learn a little bit more about how to discuss finances in relationships first and foremost I mean I I don't want to start with the hard pressing topic of pre- ups and when they should be discussed but when should couples start.

Discussing their finances and being able to really plan for the future together well Brad we think that it's never too soon to start talking about money all right date number one that's it it it works for some people money can be a challenging topic for people we all come at it from different experiences we have different mindsets about it where we've.

Heard different um scripts about it when we were children so being able to open up that conversation with the person you love early on and learn how to have those relationship or money relationship conversations can really help things along all right now we'll get into the Nitty Gritty when should people to start discussing prenups and and evaluating.

Whether or not that they are right for their relationship so I think premarital Agreements are really helpful tools for uh couples we talk about them with our clients all the time we work with corporate Executives family business owners entrepreneurs inheritors so they come up all the time as people are going through life and premarital agreements.

Can be helpful because they they sort of encourage that money conversation early on and it causes the couple to think about things not not so much on what happens if the marriage doesn't break up or doesn't work out which is what people think a lot is is the purpose of a premarital agreement but really it helps inform the couple about what the state.

Rules are around marriage in in the state where they reside it helps them learn what's most important to them and how to arrange their responsibilities and expectations within the marriage and that's really important in addition to figuring out well geez if the marriage doesn't happen what are the expectations we should set for each other and how.

Will things work out so that everyone both people are are coming into the marriage really knowing what's most important to them and how things will work out they don't have to guess and and and they just have some comfort and confidence yeah that's great wisdom on the the thought process and sounds like you're actively discussing that with.

Your clients something that you're also discussing with your clients is giving the gift of financial stability I mean walk us through that and what what that actually looks like in practice it's becoming quite popular among our clients because they see the importance of having these these open Money conversations so often times clients.

Will ask if uh they can provide a financial plan to a couple uh you know usually a son and daughter or the next generation of their family maybe it's a a grandchild or niece or nephew um but those are great ways for the couple to have an experience of going through the planning process sometimes they give uh coaching uh sessions to couples and.

Other times there are family wealth Dynamic experts who can come in and really help the couple with their communication and thinking through their money identities and what they're bringing to the table not so much in terms of their wealth but their perspectives and relationships with money wow yeah and that's really.

Important I mean because as you were mentioning earlier it's about the couple and their own experiences either growing up or even as their own Standalone Financial um abilities have transpired even prior to meeting each other how that can can moderate e and flow and then uh combining forces they amazingly important especially when you're.

Planning as well for children too what do those conversations sound like so they're much much the same what are our values what's most important to us what's our vision for our family if if the couple can think through all of those things before they get to the financial aspects of of planning a family that can help things out a lot I.

Can tell you as a financial planner if you focus on just the money aspects of of raising children that can be more of birth control rather than trying to plan plan um a family because there's a lot of expenses involved but if the couple is on the same page about what they're envisioning they can sort of chunk out all those financial aspects um first and.

Foremost how many kids are we going to have when are we going to have them how far apart will they be what is that due to our housing Arrangements do we need to move do we need a new home um what's it what does it mean for our careers and caregiving is one of us going to stay home is one of us um or are both of us going to work and we need to hire in.

Some help or is a family to help support this child or children as they they're being raised so there's there's all sorts of money conversations that come up as one is where a couple is raising their family and um you know just being Nimble and having those ground uh those ground skills for having effective money conversations along the way can be.

Really helpful you mentioned that housing planning as well here too and there are a lot of couples whose home ownership goals may be in limbo as of right now uh especially given the mortgage rate environment and just trying to figure out okay when can we adequately uh plan how can we adequately plan and save towards what is a moving.

Figure at this juncture how how are you hearing some of your own conversations and clients kind of navigate that planning well it all depends upon the couple what's most important to them what their own Financial factors are and sort of what their time Horizon is but we've definitely seen some clients who've chosen to rent for a little while.

Try out a new neighborhood make sure that they like it before really diving in and and committing to the home there um but certainly interest rates are high right now they might not always be so with mortgages there is opportunity to refinance so it's just a matter of making sure that they can afford what they're looking to afford right now it's.

A great reminder as well Sandy Brar who is the experienced Chief client officer thanks so much for taking the time in studio with us thank you Brad appreciate it we've got much more on wealth after the break you're watching Yahoo finance.

po.

what welcome back to yaho finances coverage of the milkid conference at the Beverly Hills Hilton here in California special guest with us uh right now IMF managing director crystalina georgeva uh manag director good to see you again congrats on the new 5-year term thank you very much uh really enjoyed the.

Panel you just got off moments ago and you talked a little bit and you have been talking about this the tepid 20s for the average investor out there or the average Economist what do you mean by that and what should you expect in terms of growth in the Tempa 20s uh what we have today is u a world economy that has proven to be remarkably resilient uh.

Just a year ago we feared recession that didn't happen but we also have a historically slow growth projected over the next years so if we don't take action to generate more impetus for growth we are going to end up with the decade that is disappointing just to give you the perspective before the pandemic on average the world would.

Grow 3.8% now we project just slightly over 3% and at the same time the uh population on the planet has increased the aspirations of people for better lives are there uh they are not going to be met with such a disappointing growth and this is why at the IMF we strongly recommend to turn attention to more.

Growth oriented fiscal policy monetary policy and of course recognizing that what would make the biggest difference is human capital and the foundation for a digital transformation for a green transformation can the US let's focus on the US can the US take take those fiscal actions given the high levels of debt the country has but the US is in a very.

Privileged position right now it is because of high interest rate strong dollar and very strong economy very attractive for financial Flows In fact onethird of the money that moves around in this world comes to the United States it was only 18% before the pandemic now if in this condition the US is still shy to take.

Action to reduce uh debt when the economy is strong and when Financial flows come this way then when would it do it uh and we believe that uh when we did a very careful analysis of the um revenues of the United States and the spending in the United States we identified plenty of steps that can be taken that are not affecting growth.

Prospect there are tax exemptions that are not growth enhancing that can be eliminated and also on the spending side us is still spending as if it has youthful population that it had some uh decades ago that has to be correct I'm pretty young I I'm well you are but you are but us as a whole unfortunately is aging I.

Mean it is being helped by being still the most attractive place to live so many young people are coming to United States but overall fiscal policy in the United States really needs to take care of this because with interest rates so high the burden of servicing debt is exceptionally High uh today uh the federal government spends uh over 177%.

Of its revenues just to serice debt in uh 2015 when interest rates were their lowest they were spending less than 7% That's a very massive increase and it begs for Action I need to get in your mind for a second because we have um former president Trump who has floated 60% chars tariffs on Chinese.

Goods when you hear that how bad would that be for us growth look I mean who is the president of the United States is the choice of the American uh people and we are never commenting on policies that are not being announced so we need to see uh what is the choice of the American people and then what policies are being put in practice that are in.

Place uh but what we need to remember in this context is that the reason the American people and people around the world have turned against globalization is very serious it is that for quite some time we all would claim that because globalization lifts up uh incomes on average it is good for everyone no it wasn't we had communities.

That suffered the negative impacts of their jobs being wiped out without sufficient attention and I actually think that for the future it is of course the issue of how one manages trade and Investments uh we are in favor of a more integrated economy because because it leads to better allocation of capital and higher um incomes for.

Everybody uh but to do so being mindful that if in society there is sense of unfairness of the economic uh story then people will be on the street and then we would see more push back on what has worked for us I mean just look at the last 30 years the tremendous benefit for everybody from an integrated uh global economy uh it would be really a tragedy.

If we are to lose it one of the things that us consumers continue to have a problem dealing with is inflation now we heard uh chair Jerome poell say last week he doesn't see stagflation he sees inflation coming back down do you see stag flation why is inflation still high well the reason uh inflation uh is going side Sidewalk not going down as it has.

Been for some time uh is uh it it comes from the strength of the U uh US economy the consumer is still pushing for goods uh and that strength turns into a problem for chair power by the way this is why it is important on the fiscal side to be more prudent so the fisal doesn't inject more risk of inflation staying here for uh longer uh let's.

Remember that chair power holds a lot of the capacity to cool inflation but not all what we see in the United States very important factor is the repair of Supply chains and the ability to meet this demand that is still quite strong in our Baseline we expect to see inflation going down to Target this year and we expect to see the FED starting uh.

To cut but to Cuts this year to cut this year but you know we it would depend um on uh on developments in the United States and unfortunately it also depends on on developments outside of the United States if we have geopolitics to push Energy prices up that would be very uh problematic uh for for chair power but it would be problematic uh for everybody.

Around the world thank you for doing this it was so nice to see you again I know you're a very in demand person here we'll let you get back to the action IMF managing director crystalina georgev good to see you again we appreciate it great to see you thank you Brad back to you all right thanks so much excellent interview there our own executive editor.

Brian szy let's do a quick check of the markets as of right now the Dow the S&P 500 and the NASDAQ holding on to gains I'm Brad Smith that does it for us here today on wealth on Yahoo finance we'll see you tomorrow at 11:00 a.m.

Sharing is caring!