Stock market this day: Dow snaps 8-day glean drag, GameStop soars as meme frenzy reignites | May maybe well maybe 13

hello and welcome to Market domination I'm Julie Heim and that's Josh Lipton live from our New York City headquarters we are giving you the ultimate invested Playbook to help tune out the noise and make the Right Moves for your money and here's your headline Blitz getting you up to speed 1 hour before the closing.

Bell rings on Wall Street roing Kitty the account behind GameStops a Reddit phenomenon just three years ago is making his first appearance on X since 2021 looking at that inflation side right where the FED kind of set up uh you know just a couple weeks ago where they said we're really squarely in this.

Wait and see uh you know kind of sort of moment right that does seem to to me suggest that you have you know a little bit more asymmetric risk to the upside from a market perspective if we were to get a little bit better than expected U you kind of inflation report they would like to move towards easing uh but the problem is when you've.

Got core Services running at 4.8% and you know again as you highlighted earlier that just uh the the traditional core rate uh X food and energy is running you know at around you know 3.6 3.7% I it's very hard for them to start signaling that you know they're ready to ease.

We have got one hour to go until the market close so we're taking a look at the major averages sponsored by tasty trade and then Jared's going to help us walk through some fireworks that are happening in today's session but first let's look at the major averages here we've got the Dow down about 6263 Point St that's drop of about a fifth of 1%.

The S&P 500 almost exactly unchanged right now as we look at it and the NASDAQ moving up by about a quarter per. why are we not seeing more action well investors are looking to inflation data the we get later in the week uh both producer prices tomorrow and then followed by consumer prices the day after for more Direction um on a macro.

Basis here that's also reflected in what we're seeing in yields today also not seeing much change they're hovering just under 4 and a half% also we're watching what's going on in the crude oil Market there a gain of a little more than 1% we're going to get some more details on that oil trade later in the show but in the meantime we got to get to Jared.

Because he is taking a look at what is going on with the meme stocks today yep it is not 2021 Jared you know I woke up this morning I didn't expect this gift but uh we have been treated guess what roaring kitty is back the volatility is back the volatility pauses are back as well so here are our meme stocks today and let me sort by performance cuz we.

Got some eye watering numbers I know it's excuse me really small but AMC in the upper left that is up 83% GameStop up 76% Tupperware remember that that's up 40% cost just a little bit less than that New Egg and I could go through the names beyond meat uh Virgin Galactic and the list goes on here I haven't seen a lot of these names.

Pick up in a while but I would say over the last couple weeks some of these some of these have been showing strength and in fact I was writing about this in the morning brief um specifically I was looking at clusters now this map this chart goes all the way back to 2021 the beginning of the mem stock phrase anytime you see an orange dot that's.

When you have a cluster of meme stock volatility outbreaks and what we saw in 2021 this happened at various intervals uh not really predictive as to the General market but then when we got into 2022 anytime you got a cluster they were laggards money was rushing into the laggards it was a good time to sell the General market but this latest lag up.

Since October I've seen mem stocks kind of interpers randomly or maybe somewhat evenly uh I don't see the predictive power there and what I said a couple weeks ago is that uh mem stocks is probably just another example of risk on and that may be what we're seeing today so a couple of uh or actually more than two roaring Kitty V videos later here is.

Where we are let me just show you a stock of GameStop this is intraday and what it did what it did here this is about 120 130% up at the highs and much like I saw in January of 2021 you would see this kind of settling down you'd find the market come to an equilibrium before launching off again so gonna be really interesting to follow this trade.

All week guys thank you Jared with the mem stock frenzy back in the spotlight let's bring in Yahoo finances miles adarn here for more so Miles Keith Gil roaring Kitty he posts on X proper name for the for the first time in a long time right GameStop rips what do you make of it this is can I just say yeah this is Miles like favorite subject and.

That's why I wanted miles to I don't know about oh my God it's is that true miles miles and I lived through the first meme craze together and I saw how much joy it brought him to talk about this stuff I think the still bring him Joy I think the reason that I remain so drawn to Business Media is that it's it's much more fun than most other media.

Things that you can cover it's just not that serious like there's a lot of money at stake and people though they try to assign seriousness to something well I I I mean there is some seriousness it's you know trillions of dollars and all this and it's people's retirement etc etc but the vast majority of that is spoken for in you know conservative time.

Tested strategies with all like an incredible amount of regulatory um you know apparatus around that but there are these things that exist within markets the entire crypto Market is basically this meme stocks are the equities version of it where I mean it doesn't make like it actually makes complete sense I think people over.

Intellectualize something that's pretty simple which is that there's now huge amount of people aggregating their you know conversation on the internet mostly on Reddit in this specific case it can be other places it could be the Yahoo finance message boards it could be YouTube comment section etc etc and there is like a very clear momentum when.

A certain person in this case Keith Gil also known as Ren Kitty speaks about a certain stock in this case GameStop there is an Impulse to buy it because of what has happened in the past and because pretty much everyone who's involved with this knows it's a joke but it's also up 80% today so you know go for it there you go it's just money and.

Just to be clear here all of this was set off by a tweet that he tweeted he hasn't tweeted since June of 2021 that is a picture presumably of him or of someone in a gaming chair leaning forward locking in leaning forward after sitting back for a couple years he's now leaning back forward and then that tweet by the way was followed by like a bunch.

Of mashup movie meme kind of tweets throughout the course of the day one of them had the theme of run so you know run I I I took it to be like run stock the Stock's going to keep running or it's been on a run and it will continue running um Also let's not forget like Keith jumped onto the scene with a series of extremely Earnest and detailed.

Uh fundamental breakdowns of GameStop's business in the summer of 2020 when literally no one was paying attention to it it was like I mean I don't even know split adjusted what it was at this point it was a single digigit dollar stock and he's like it's definitely worth way more than that and who knows what he's done with his portfolio right like the cynics.

In us could say he went out and bought a ton of short-dated calls this morning and then he sold them all and he's made all his money and jokes on everybody else but he is he was a True Believer way before there was any meme he literally just liked the stock as he put into the official record when he testified before Congress so your point.

Being miles maybe just see this as what it is to a lot of people which is which is fun which is entertainment which is Dave pornoy now jumping in he's posting about it Porto will be the first one to tell you I'm not an investor I'm a gambler yeah and I think also like as Jared was was outlining for us there has been this energy within the market of.

Pockets of enthusiasm pockets of risk on I think the more serious versions of it is look at what we've seen with Chinese internet stocks over the last month they have ripped higher look at what's happened with utilities over the last month they have ripped higher there's a lot of energy in markets right now you know coming back to a more serious tone.

Uh for people seeing mag 7 goes up that group has divided away but there's this sense of if rates are going to go lower over the next you know year or whatever uh equities are probably going to be a beneficiary of that what isn't played out and we've seen that money move around um and maybe you could make the argument that if the meme stocks have.

Been dormant for some time maybe that's not played out I mean AMC ultimately was the more meming meme stock than GameStop right and that stocks up more today which I think tracks like AMC is the real play thing GameStop like has a more real business I would say than AMC does yeah I mean you know well speaking real business I was looking at the numbers.

For uh GameStop in terms of what's happened to it sales over the past few years I mean last year its net sales were about $5.3 billion its net income was $6.7 Million but if you look at the chart of the trajectory for either its sales or its income over the last few years you know it's been downed to the right.

It has not been a good trajectory but you know you H like how much of this is just it's fun if people are having fun AB I I and I think GameStop is more fun because if you look at what the management at AMC has done over the last two years it's actually not that fun uh they've like explicitly buil all the shareholders who piled into the thing.

They got this weird you know the ape share structure that got folded back at AMC everybody loses a ton of money the CEO gets paid a ton of money he says don't worry I'm not actually having the money but like he does cuz he unloads all the stock that's not really that fun that's a very cynical and dark story I think within markets I think GameStop.

While Ryan Cohen has his issues and he doesn't talk to anybody it's Management's perogative not to host an earns call that's open to analysts um and a lot of analysts you know kind of stopped covering these companies too especially GameStop right they gave up on it um so I wouldn't say you know GameStop's all like you know roses and.

Sunshine but it doesn't quite to me have um some of the I don't know like the the slickness that has gone on at AMC oh interesting I mean I'm not the only person saying this this is this is a wide this is this is a broad take I think if you look at the the minations that have happened at that company well miles sudin I'm glad to see The Gleam in.

Your eye when we discuss these issues hey thank Keith Gil right the other thing is this will be over tomorrow probably and then we'll just it'll be you know let's hold this preview CBI and then we'll react to CPI and then we'll discuss you know next week's Nvidia earnings that's why the meme stock is trade is so fun because it.

Is an actually fun thing in a you know day in day out kind of grind through stocks that you know can can feel a little grindy yeah it can it can well this is a little ray of sunshine thanks so much mil appreciate it all right roaring kidy as we've been talking about bringing the meme trade back to Wall Street and Beyond a single post on X.

Sparking a massive rallying GameStop shares with volume hitting its highest level since 2021 it's not just GameStop as we've been discussing shares of AMC Tupperware remember that's a meme stock Blackberry they're all moving sharply higher joining us now tasty live founder and CEO Tom snof to talk more about this Tom uh thanks for being here um are you.

Having fun today too as much I mean you heard us just talking about it what kind of activity and chatter are you seeing today it's it's kind of yeah of course I'm having fun but it's it's all the chatter we're hearing today I mean there really isn't much else so it's been a slow week you know I mean last week was pretty slow so this week um everybody.

Came in all perked up and um yeah it's kind of dominating the the story time do you see Tom you know is this kind of a broader sign of just risk appetite ramping right now to you and and if so do you see that kind of playing out in different data points do you see that in the options Market well well for sure it I I think that it was a there was a real.

Lack of new ideas there was a real lack of kind of you know there was a lot of complacency in the markets and like I said the last two weeks were kind of slow and this rally has been kind of a grind to the upside and Val's been crashing so I think that you know it was this move today was really welcomed by especially by option Traders but also by.

Kind of everybody just as you know just as another level of excitement I I don't look at this at all like I did in 2021 when it was almost a transformational moment dragging you know tens of millions of people back into the marketplace that's not what we're seeing today this is just you know this is all the players.

Just um kind of transitioning or or moving into something that's actually active this is kind of like the old days on the trading floor when there's a lot of noise in one in one pit everybody would run to that pit that's what we're seeing today well Tom there was another aspect of this whole phenomenon in 2021 which was like The Narrative of the.

Little guys trying to stick it to the big guy right to trying to stick it to hedge funds and of course we know Gabe Plotkin um got caught up in that and there was a big short squeeze what's fascinating to me today is that there's still a short squeeze that 24% of the company's float was still shorted going into today according to S3 Partners.

We're looking at what $936 million in marketto Market losses as of earlier today in a single day like it's so it's so interesting to me that there were still that many people shorting this stock kind of quietly in the background I don't know well first of all the float is a lot the float's a lot bigger than it was you.

Know um three years ago and so that is one of the there's been a couple of splits there's been you know a lot of stock that's been that's been issued so it's a very different situation and you also have to remember that that those numbers are really misleading because there are huge Index Fund positions right now and on the short side of the.

Index funds because interest rates have been popping up there's there's a lot of short stock out there that is just tied into different index Arbitrage positions and you know GameStop's one of the bigger you I Russell 2000 stocks and so you're really talking about a lot of that that number is mixed in with just you know huge R positions and they don't.

Really necessarily they're not going after GameStop for example they're just they're just shorting the index because it's an R play and Tom who who's in GameStop right now is that retail institution both well I I would have to think that there's some institutional and some prop speculators but I would and I also think.

To day you're seeing so what happens when you have a move like what you're seeing today is that a lot of the high frequency firms um after they learn their lesson in in 2021 they try to get ahead of it so a lot of the volume is high frequency firms and Market making firms that know that there's going to be customers coming in on the buy side so.

They're just trying to get in front of it so that they have some inventory to lay out so I think that's part of it and that that's part of the excitement that's part of the huge volume but I would say that this is a lot more retail and a lot when we say retail now you know it's it's kind of a mix but but retail is very customer and I would say.

That today there's been a lot of customer interest especially like just in our own office I'm seeing it you know people are talking and a lot of you know people that just work here they're buying you know they're buying some GameStop they're buying some AMC you know they're just toying around with them it's it's mostly just kind of it.

Feels like play money but I feel like that's we're seeing more of that than we've seen in a long time and and what do you think is driving that time oh it's just you know like I said before it's just it's just there's the markets for Traders and and you know I come from this has been my world for a long time in the trading World Traders are just.

Attracted to noise and what's happening today is that there's an incredible amount of noise after being almost you could hear a pin drop for recently for the last couple of weeks today all of a sudden there's this you know incredible amount of noise it's like a stadium that erupts and you want to know who hit who hit the Home Run well that's kind of.

What you're seeing seeing today and it's just a lot of noise and everybody's attracted to the noise so all of a sudden you know you got to get involved I I think it's it's it's good it's good for it's good for the industry it's good for business it's good for what we do it's good for what you do and it's it's kind of good for everybody in a fun way.

I don't know how sustainable it is well that's I was gonna ask you T on this thing do you expect what we're seeing here in GameStop to continue or no you'd expect it to fizzle out pretty fast well as a as a hardcore contrarian I do not think you are going to see this is not going to be a repeat of 2021 and that whole you know that crazy mem stock.

Explosion where GameStop went from you know $15 to to 500 and back down to you know whatever a 100 or something I don't think you're going to see that I think this is going to be much a much more muted version of what we saw and maybe maybe two or three days but I don't think there's much more than that I do not think this is 2021 all over again.

But I do think there is an incredible amount of speculative Capital out there that is just kind of begging for a shot begging for you know um just just kind of I don't I don't want to call a lottery ticket but I do think there's a lot of speculative Capital out there that's just looking for a play and Tom finally just quickly do you think that.

Regulators are GNA be looking at Keith Gil again you know with that tweet kind of setting off this hug huge explosion I really don't I don't I I mean I know it kind of no I just don't think so I think that you know fool me once I get it but I don't think that's the same thing now I don't think this is at at the current levels we're at right.

Now Julie I don't think there's any chance this is there's any regulatory issues at all I think this is pretty clean fun at this point um I I just don't see it beyond that I don't think it gets to anywhere close to where it was in 2021 when there was you know industrywide issues and Robin Hood had those problems you know clearing issues.

And things like that I do not see that happening at all this time around there there's a very different there's very different margins there's very different you know the the float on the short stock side it's all the stocks are hard to borrow it's not that easy all right I like to hear that pretty clean fun thanks so much Tom great to catch up.

With you on this thanks guys we're just getting started here on Market domination coming up Apple is putting all its chips on the table announcing a partnership with open AI well break down what that means for the iPhone maker on the other side plus the latest episode of uh Yahoo finances video series next a glimpse at the future of neurot.

Technology that's in the 400 p.m. hour and it's the latest edition of our series goodbye or goodbye we'll take a deep dive into two stocks to help you make the best choices for your portfolio stay tuned more Market domination after this all.

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now open AI wrapping up a live stream conference earlier with Chief technology officer Mira Morad unveiling a flagship chatbot model called chat GPT 40 let's.

Take a look okay so chat gbt this is what I ended up with how does this look it looks perfect you've solved it and x equal 1 nicely done how do you feel about solving linear equations now yeah honestly i' I'm not pretty confident I can solve linear equations joining us now is Patrick.

Morehead founder CEO and chief analyst at more insights and strategy Patrick it's great to have you on set Josh it's great to be here usually I'm from you know in front of a uh uh computer screen but here we are in the big Studio you in New York and we had to make it happen so let's get right to the news Patrick so open AI announces this new flagship.

Model they say smarter faster first just give us your response to the news what you heard today Patrick and how you think it impacts kind of the broader kind of competitive environment we find ourselves in yeah so first off timing is everything so tomorrow's Google's big Google IO conference they're the king of search they're the kings of advertising.

And this was clearly time to give Google Google advertisers uh something to think about obviously we have apple WWDC in a few weeks and yes it impacts them because they want to get out and Define what the quote unquote best intelligent agent or assistant experienced is and this brought together brings together voice it brings together uh images and.

Videos and text in a very interesting and and humanlike interaction mode yep so what I continue to struggle with and I don't know if this changes the paradig okay so chat GPT comes out early you know late 22 early last year explodes an interest all of these Grand predictions about how it's going to change the world you and I are still sitting here in.

Person my life hasn't changed at all as result of this I know some people who use it as a tool fine in Corporate America they're integrating it to some degree but it's still kind of unclear like where where's the big deal where like where's the thing that's going to be this revolution that seems have been promised yeah so technology is always.

Slower to be adopted than we all think it's going to in Silicon Valley right it it it it comes overnight but the reality is to hit typical consumers and even businesses uh come years after use but you have to show off the latest and greatest to get people excited it's kind of like the beginning of an investment bubble right let's get everybody excited.

Let's show the capability we're going to hit the trough of disillusionment uh at some point but it's to get people uh uh tied in now when it comes to software and services we can use on our smartphones like jat chat GPT 4 uh it is a much faster time to use than let's say building a new product like the rabbit that you you know stick.

On on your lapel that unfortunately bombed early but um I I think it's a good Testament to what we should expect to see from a Google an apple and even a Microsoft do you do you think Patrick though for big Tech investors who are listening right now how concerned should they be that users start using open eyes chat gbt more and more and relying less.

And less on big Tech voice assistance so it is a risk I don't think it's a midterm risk uh but if Apple and Google don't get in there and plug the hole or potentially for Apple's case align with open a it could spell trouble because if you look at the biggest applications that that just took took the World by storm like Facebook it was initially.

Free Google search was free with no ads right so you weren't paying for it and this has the same type of risk if you get eyeballs and experiences coming in you could op uh open AI could monetize that multiple ways through a service payment through advertising through essentially sending you to another chatbot for a company that does make.

Money a Food Services Company an Airlines that's how it could be monetized and that is a potential risk to both Google and apple and speaking about Apple there was also a report that apple is indeed going to be partnering with open AI for some version maybe of its chap a or on the upcoming phone cycle do you think that that is going to.

Happen do you believe that that is going to happen and then what are the implications not just for Apple but for Google in that case yeah so I put the odds at about 5050 that we'll we'll see the two come together there could have been some of the leaks that saw the Mac OS desktop app that was announced today and they took that to the next level but.

Apple does need help in in certain areas and there's two types of AI there's on device AI which should be on the iPhone and the iPad and the mac and then there' be the cloud-based service I believe if there's going to be any deal it would be cloud-based Services maybe a type of deal where Google pays Apple today 20 to 30 billion dollars to get uh Google.

Search as the default search on the iPhone maybe this is a deal like this or maybe a it's less of a payment but more of a quidd pro quo Apple has to have um very good on device AI or or or literally uh it's going to spell trouble for Apple because that's what it does it's all about on device it's not about the cloud Apple's biggest level of.

Sophistication on the cloud is backups and streaming media and video which in in aggregate aren't that uh complex and if you recall back things like mobile me were just complete disasters I do believe that we will see a Seri relaunch at WWDC uh and it will incorporate generative AI potentially some a help.

From open Ai and again it's not just one model you're looking at probably 40 models that have to be address in between what's on the device and at the cloud to do different types of things and you on a point which I want to touch on Patrick because let's say apple and open AI get this deal done Tim Cook and Sam Alman they work it out the lawyers.

They sign the paperwork your point is you think it's possible that Sam Alman pays Cook's company because Alman thinks you know what yes I'll pay to get in front of these billion plus iPhones yeah this could be the long-term play for them right let's get people hooked on open Ai and chat gbt and that would pay dividends for years in a very similar.

Way I mean open AI is losing a tremendous amount ount of money today a lot of money and uh they can either invest it into infrastructure advertising product or a potential deal to get on the most pervasive uh brand out there which is Apple I out of here on this Patrick a different headline reports that arm is going to develop AI.

Chips the key word being chips there no one knows arm better than you um what do you how much credibility you give that report or you think it's bogus so creating actual products meaning you buy a chip from them I put very very low probability what I do put a high probability against is them getting into them licensing the intellectual property.

Like they do uh to Apple like they do to Qualcomm like they do to AWS and Azure which enable other people to use their intellectual property to build AI accelerators for for phones for tablets for PCs and even in the data center I do think that will happen and quite frankly I think that's priced in might be priced into the stock already when you look at.

The multiples that that that it's trading at right now investors want to see more tangible AI goodness even though they're the processor behind it and a lot of AI is done on a CPU they want to see specific AI IP Patrick we didn't plan it this way but you were the perfect guy to have today on set we maybe we did plan it I don't know thank.

You for coming my friend thanks for having on thanks Josh moving on time to check in on today's top trending tickers shares of Walgreen boots let's start there allance higher today on the back of report the pharmacy giant was looking to sell its arm of drug its arm of drugstores in the UK this acquain to Bloomberg so this was an interesting one.

So the news and again this is per Bloomberg Julie Sig signing sources they are kind of reaching out it sounds like to kind of gauge interests in the drugstore chain um early stage discussions apparently possible bidders we're not sure no formal sales process yet but the chain could be valued if it goes through at around 9 billion in an.

Exit which explains investor reaction yeah I mean what's interesting here is um it was just about a decade ago that they became Walgreens boots because they bought the thing in the first place and it was sort of a series of different transactions and stages that led to the deal going on but Walgreens has had a really lousy year the shares are down.

Sharply here it hasn't been growing cut its dividend um and so you know it looks like it might be coming from a place of weakness certainly rather than strength as it tries to figure out whether this would make sense yeah I mean to your point it's been under a ton of pressure to pull up a chart there and the Stock's been hammered with the capital returners.

You mentioned lower the profit Outlook talking about consumer spending not great on non-essentials they said so investors May getting some relief from that headline yeah and then there is another potential deal that we got to talk about shares of craft hindes we're watching those as well today that's after a report the company's looking to.

Sell its iconic Oscar Meer brand that's according to the Wall Street Journal which says that Oscar Meyer could go for between 3 billion and5 billion in a sale it's interesting the shares are not moving much and I don't know if that means that uh you know investors are not taking this terribly seriously or they don't think it's that likely to happen.

Um craftin shares down a little more than 1% this year there is a new CEO of craft Carlos uh Carlos Abrams Rivera who has been sort of looking through the portfolio and trying to figure out what makes sense yeah you could strategically you could you could understand it because it kind of we know the company's kind of been moving with the times are.

Trying to Consumers are more interested in health and nutrition less more concerned we know about sugar and sodium so they're making moves there and so you understand a broader strategic sense how it could make make sense but it doesn't sound like we we know right now who might be curious is that a is that a PE firm or some food industry giant yeah.

Maybe that's another reason why it's not moving that much it's sort of very like open-ended and vague about what the outcome of this could be we a wait specifics yes we do coming up it's the latest edition of our series goodbye or goodbye stay tuned for Market domination after this.

up.

Is it's a big noisy Universe of stocks out there welcome to goodbye or goodbye our goal to help cut through that noise to navigate the best moves for your portfolio today we're parsing through.

The banking sector and joining me here to discuss is Jay Hatfield infrastructure Capital advisor CEO Jay come on down here so we can get to uh the stock that you like first let's start there and it's Goldman Sachs so Goldman Sachs interestingly has already had a pretty good run over the past year you can see the stock has moved higher.

Moved higher again after its most recent earnings so let's let's get to why you still like it here first of all you say it's still trading at a relatively attractive multiple yes in fact we're actually carrying estimates 10% above consensus so it's 11 times consensus and we're at 10 times and the main reason that we're above consensus is they were.

More optimistic about Investment Banking and really Goldman is the pure Investment Bank of all the investment Banks and I think most people don't appreciate I used to work at an investment Bank um and they don't appreciate the synergies between investment banking and capital markets so when you do deals then that generates.

Extra trading for the trading operation and you saw that in the first quarter where really the whole firm just outperformed yeah and let's dig into that a little bit more because we seeing that we're seeing fixed income uh underwriting we're seeing also that sort of capital markets are perking up a little bit in some areas there's a.

Little more m&a coming out there're a little more initial public offerings so you think that's going to be good for gold do and even in 25 you just had an AI great AI segment we think that the AI IPO boom will start in 25 which it normally does because that's why the US capital markets are so efficient is that we um you know high valuations of the.

Public companies generate IPOs so we think it's a little bit of a longer term play that's why even though the stock is working now we don't think it's overvalued and even will get better as we go through the summer have rate cuts at least from the ECB and then have a rally in 25 right and I think our last one was that derivative AI play there's.

Also the fact that they exited the consumer business and S now now they're even more well they were a pure play then they got into the consumer business it didn't go so hot and then they got out of it so they're back to being more I think that's why the multiples lower like Morgan Stanley trades at 13 times they were more resilient during the down.

Term because they have more steady wealth management Goldman's more is about 80% banking Investment Banking and Morgan family was 40 so we think it's time to kind of rotate from the safe safer I mean we wouldn't be out of Morgan family but we're short it certainly but going to trade pretty well together but you get more leverage to.

Banking from Golden Sachs gotcha a little more oomph we always like to talk about what the risk is in this situation and in this case it's you know if markets don't do as well then they could be a victim of that because they don't have that insulation right ABS this is absolutely a bull market play I remember when I started on Wall Street at Morgan.

Stanley during a down cycle in ' 89 we were trading at point4 time book I mean used to be these investment Banks just got smashed so they're high beta stocks 1.2 beta very correlated Market if we're wrong about we're bullish on the market we have 5750 Target but if we're wrong about that you don't want to be in financials and certainly not in.

Investment Banks gotcha and you have you guys have a pretty decent position in this our largest position in IAP so we're pretty um bullish about it but it's a sector we know we're in Manhattan I work in Investment Banking understand that that uh when things start going this is just the beginning in our opinion got of the of the boom all right.

Let's get to an area you don't necessarily want to be and that's in more in the regional Banks and here we're showing PNC Financial as just one example of the Regionals which largely have underperformed some of the other uh some of the larger financials over the past year so there you're looking they they don't have the benefit of being as.

Much in the Capital Market they're 5% to pick on PNC they're just 5% Capital markets gotcha so that compares with Gman that's that's all of it right exactly so one reason there that they're not going to benit um net interest margins have been under pressure and talk to us about how that's working for the Regionals relative to.

Rates as well right so PNC is forecasting themselves about a 5% decline in net interest margin and the problem is when rates go up really fast the deposit beta they call it or the sensitivity to interest rates start hitting which is just a complicated way of saying people realize they can get 5% so they're not going to leave money in a.

Checking account or a six month CD so they've seen those outflows which means they're an IND smart pressured and also they have slow loan growth too as well um they're probably being conservative about putting credit out right now so those two things are putting pressure it might get better in 25 but you have something that's declining with.

Regionals and something is booming with the Investment Bank focused and also they tend to have less exposure to net interest margin as well and the other thing we've all been trying to sort of read the te leaves on the consumer you know in from the payment companies by now paying later from the Regional Banks themselves from retailers and it does.

Feel like they're starting to see some deterioration on the on the lower end at least definitely I mean if you just think about it it's sort of there's a Have and Have knots in the US consumer anybody who owns a home did really well from the inflation and anybody who doesn't did really poorly because they had to pay really high rents that are.

Flat now but not going down so if your wages didn't keep up so there's definitely pressure on the lower income consumer unclear how that's going to unfold but if you look the more Investment Bank oriented they have particularly Goldman's now getting out of it they have less exposure to that these these large Banks the credit.

Exposure is hard to track they're not like reats where you can model every building so we don't really know what's going on there but it's a potential downside and could we see defaults for example that would affect they Rising slowly already we don't think they're going to be terrible but if the FED didn't cut rates we might have slowing.

Economy recession so it just further risk um without the upside of bank and so conversely we'd like to talk about what could go right for the Regionals and it's what you kind of just referred to that the FED could cut and maybe cut a little more aggressively than expected right if they if the yield curve de inverts and were're well into 25 so the.

Longer term Story the banks are going to do fine and by the way if there's a bull market they're going to go up their risky stock cyclical stocks so it's it's probably could be a situation where invest in 25 maybe investment banking's kind of already full at full force and then it's time to rotate into and and benefit from the net interest margin.

Slowly getting better in 25 and as for the Regionals do you have any position there are you sort of underwe we're we're intentionally completely out of regionals and in not just in the investment Banks but in the money center Banks they tend to be better hedged less dependent on net interest margin have more Capital markets upside so they're.

Just better positioned in our opinion in this market okay so let's summarize what you're telling folks here you're saying you would recommend buying Goldman Sachs given that reasonable trading multiple potential benefits from Avenues like fixed income underwriting other Capital markets and air related IPOs coming down the pike and you say avoid Regional.

Banks there's limited upside from Capital markets they're not as exposed there's possible pressures on profitability from rate cuts and potential for credit metrics to worsen thanks so much for being here J good to see you and thank you so much for watching goodbye or goodbye we'll be bringing you new episodes three times a.

Week at 3:30 p.m. Eastern Oil edging higher on improving demand from China and the market is waiting on CPI data on Wednesday Yahoo finances inz Fay here with the latest inz yeah Josh and we did see today WTI up about 1% we also saw Brent crude higher now WTI has been trading within a tight range uh since around May 2nd so.

It did settle above $79 per barrel Brent crw on our Wi-Fi interactive settled above uh $83 per barrel and we have been seeing uh oil off of its peak from um April and that's basically because of the unwinding of the geopolitical uh risk uh in the Middle East but nonetheless a lot of analysts are saying that look uh Brent crude it's up 10%.

Year-to dat around 10% and you are going to see Brent sealing at around $90 per barrel they do not think that that Brent is going to go past 90 OPEC plus doesn't want it to go that high because then you will see a recession worldwide so uh OPEC plus also by the way analysts are expecting the oil Alliance to extend its production Cuts beyond.

June and inz sticking with the oil space but getting company specific here there are some new developments in the Chevron H deal and some big if not opposition at least I don't know maybe a flying the ointment here yeah that's right this is from a proxy advisor and proxy advisers are hired by big shareholders like uh mutual.

Funds uh like Pension funds to advise them on murder on what they should do how they should vote in uh merder deals and this one is with respect to the Chevron and hes deal so hes shareholders are being told by this proxy advisor that they should abstain from uh from voting on that uh acquisition of Hess at the end of May basically with this proxy.

Adviser saying that uh this entails that the deal entails risk that it may uh break down and then there will be no compensation in the end for shareholders now I did reach out to chevron chevron said that they look forward to this H uh H shareholders voting on this deal but look this all comes down to the Guyana stake the Guyana operation of hes this.

Is why Chevron uh wants to buy hes and Exxon Mobile has taken the companies to arbitration basically saying that Exxon Mobile has a right of first refusal for that block Exon Mobile has about a 45% stake in that block and says that it has a right of first refusal uh for that block so uh wait to be seen what happens with this deal all right Nez thank you.

So much appreciate the update yep coming up stick around more Mark of domination still to come.

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Sh stocks are mixed just ahead of closing bell on Wall Street as investors await now key inflation data on Wednesday for more on what to expect from that April CPI print we want to welcome in Jim.

Smigel CI CIO Jim it is good to see so markets and look at the major averages uh kind of modest moves today Jim but we do have that uh big inflation print on Wednesday CPI is on Deck what do you expect to to see there Jim and how important is that for the market good to see you Josh thanks for having me I'll start with the latter.

Question first it's very very important for the market All Eyes definitely focused on on this number uh we had three hot prints in a row as most investors are are aware uh and the FED is really running out of room here here in order to deliver the cuts that I think most investors would love to see and that the fomc wants to deliver.

Themselves so one data point doesn't make a trend so they're going to need a few more uh uh after this one even if this one does come in light I will say the The Whisper uh that we are hearing around Wednesday's numbers that we should expect slightly weaker uh but even if we do get it get something slightly weaker you're still looking at.

A three handle on probably both headline and core uh still leaving the FED in a in a pretty tight spot if uh they would like to see rate Cuts coming in calendar year 2024 so Jim um how you then sort of position yourself going into that do we just assume that rates are going to stay where they are for a little bit here and and sort.

Of strategize excuse me uh accordingly we're actually taking a little bit of a more pessimistic stance as it as it uh comes to rates uh we are a little bearish we do expect a 10 year in particular to try to maybe retest that 5% level that we saw about a year or so ago uh and even at the very least get that 20 or so basis points back uh.

Post the last fomc press conference where really what chairman pal went ahead and did is took any talk of a rate hike completely off the table so uh you know with the trend that we've seen recently a bit of a reacceleration in inflation the market began pricing in the probability however small of a potential rate hike coming in here uh uh.

Pal went ahead and squashed that and we had the 10year kind of rallying below 450 so you know from a positioning perspective we're you know we're taking you know relatively modest moves at the margin but our view is for rates actually higher between now and the end of the year you know Jim we talked about that CPI print this week but another.

Date on the calendar for investors is NVIDIA their earnings are coming up as well could that be a catalyst for the market Jim I think it absolutely uh could be look that it's if you take a look back uh last 12 months maybe even 18 months Nvidia in in one way kind of all that's really mattered I mean as much as we.

Talk about the Magnificent 7 and whether that's turned into the I don't know the Fab Four now or the terrific three whatever who's ever left standing Nvidia is clearly the Juggernaut uh of the bunch so you're trading at you know 40 50 times kind of forward earnings uh when we look at when we look at that as a possible event we're looking at that.

Relative to the vix so uh Equity volatility we think has been unusually low given everything else that's kind of happening in the world and just given the overall importance of of this one individual name uh the earnings the percentage of investment the percentage of earnings that this one name the percentage of performance I should say.

Year to date that this one name has been uh has delivered and delivered not just year-to dat but also in 2023 uh a lot of uh a lot of importance writing on this one number um Jim talk to us about utilities a little bit because that's an area that has been rallying I believe you like it as well um why you know and this is not.

Typically a group that does well when rates are High um do you think it's going to be able to continue to run here yeah we're a little skeptical on that so we're kind of neutral utilities um it I think you're it's great Point Jolie because you know this this hook in the utility performance if you track the chart on Yahoo finance you know you you.

Can see that uh it's been pretty pretty recent rally there uh and I think a lot of that has to do with this kind of dobest stance that the fomc came came out with so everybody knows we started the year with these huge expectations six rate Cuts kind of kind of priced in or or or investors trying to bake in the cake for 2024 that's been walked all the.

Way back uh and now we put a few more back on uh thanks to the dness from the last uh press conference and I think you know utility is always a bit of an income play uh whenever there's expectations for lower rates you would expect utilities to kind of hang in there and that's what we've seen recently especially with that kind of.

Strong uh performance post uh press conference so Jim you said you're a big skeptical of utilities what where do you see opportunity right now Jim what sectors look attractive yeah it all kind of goes back to the same point which is uh kind of our view for rates we we you know we think rates head higher we think inflation is going to be stickier for.

Longer uh and if we have that view that's going to probably not too surprisingly lead us into to the direction of more kind of value type names and what represents kind of good value right now uh it is financials uh good conversation in the last segment uh on financials very very diverse uh part of the market for sure investment Banks.

Money Center Banks look pretty attractive right now forward earnings and 12s and 13s and 14s relative to the broader Market at 22 uh we're also looking at things like materials and energy so uh things that really have aren't overly geared to an interest rate kind of move or at the very least are going to benefit uh if we do see uh.

Rates kind of drift higher from where they are today Jim thanks so much for joining the show today appreciate your time thank you while wrapping up today's market domination don't go anywhere we've got you covered with all the action following the closing bell stay tuned for Market domination overtime.

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yeah and there's the closing bell on Wall Street now it is Market domination overtime we're joined by Jared Blick ree to get you up to speed on the action.

From today's session sponsored by tasty trade so let's see where the major averages ended up here kind of at the lows of the session but still not seeing big declines today the Dow off about 81 points about a quarter of 1% the S&P 500 still very little change the NASDAQ up almost a third of 1% a lot of what we talked about today people sort of.

Waiting for the inflation data to come later in the week as we know most the action and excitement today came from the meme stock trade which I'm sure Jared's going to talk more about but GameStop just consistently the top trending ticker of the day after Keith Gil AKA woring Kitty tweeted a cryptic drawing earlier in the day of him sort.

Of sitting forward or someone sitting forward and then a bunch of videos of the rest of the day AMC off its highs of the session up only 80% on the day but it was a fun little flashback back to 2021 Jared wasn't it well I'd like to think there's more to come and we'll have to see what happens here uh but it was a bit of excitement that admittedly.

I wasn't expecting when I woke up this morning now here's a sector action today I'll even get to the meme stocks in a minute I just want to point out that on a day when most of the sectors were in the red only Tech managed to make it to about half a percent we saw a lot of fringy uh Behavior investment behavior in the markets so let me show you what I.

Mean by that with our leaders first of all crypto Bitcoin up about 4% then you have Chinese stocks which are absolutely battered then we have unprofitable Tech that's Arc then we have retail then solar also hit hard this year cannabis really hit hard this year and so you find all these pockets of strength which are really On The Fringe of the market.

And not in the core and when I say that you can look at Tech here's software even Tech was up half a percent but it's a mixed board there's software here's semiconductors a little bit more green than red and then when you get to unprofitable Tech that's what you see the most screen so a little bit of a head scratcher there we'll have to see.

If anything comes of this in the days and weeks to come uh let me just show you the NASDAQ 100 here uh this is a this shows a mix board with respect to the mega caps and then I did finally promise the meme stocks here's uh let me just sort by performance go through the final numbers AMC just short of 80% GameStop just short of 75% Tupperware.

Over 40% cost over or almost 40% New Egg 20 6% the list go goes on so a lot of these names haven't seen too much uh activity from in a long time and then some of them we have uh beyond beyond uh meat for instance we were writing about a couple weeks ago uh we'll just have to see how this falls out we'll keep watching Jared thank you my friend big.

Move for the market today it's all about memes join us now with the takeaway of the trading day Yahoo finance's very own Josh schaer Joshua should I be leaning forward is that what we're doing yeah we'll do that so we'll start back here and then lock all right locked in we're locked in we're ready to talk mem STS right guys of course we are talking.

About the meme that was posted last night right by roring Kitty and that's sort of igniting this meme rally that we saw today I think one of the broader takeaways I had from this was that if you guys remember we were talking about meme stocks I think it was last week or two weeks ago and how were starting to Bubble Up GameStop had been moving right.

It was like we looked up one day and it was like wait GameStop's up 30% in 3 or 4 days and it wasn't today which was pure kind of classic meme stock Mania right with all the stocks going up but I did find it sort of interesting to think like okay we haven't it hasn't necessarily come out of completely nowhere there's been random interest in.

This stock for a little bit now over the past month and really kind of brought her in the markets as I know you guys have been talking about through the hour too like we've seen people speculating in different areas even you just think about sort of the crypto chatter that we've had over the last couple months and obviously you can't really explain.

Why Bitcoin is going up but it just has has right it's your number go up meme Julie and so I think we've really sort of had this sentiment maybe bubbling and this maybe set us off I don't know how far it goes of course no one knows how far it goes but to me that was one thing that I was sort of thinking about today just like okay we've kind of been.

Inching toward this and it is also important to note that from a broad sense a lot of Market strategies say sentiment has not nearly gotten as frothy as it has in 2021 we've talked about that a lot over the last couple months we're not in bubble territory it isn't no matter what real metric you use we're not near 2021 from a frost.

Sentiment standpoint but this is perhaps our first sign that maybe we're getting closer maybe I don't know what did you make of the argument Josh that really the mem stock trade it never went away it just found different names different vessels I mean how much have we talked about on this show djt super micro sweet Green Oh no for sure right and it just.

This brings us back because it is roaring Kitty it is sort of that Wall Street bets Crow it brings us back to the original meme trade but you're right I mean we've been talking about meme stocks on and off since 2021 really right it's me stocks by other names right whatever they may be people have labeled carvana as it in the past right.

And now I mean they're having a fundamental turnaround there that you could maybe argue the company is actually doing well but it's still there's a short squeeze aspect of stocks like that right and that's where the interest really comes from and that's sort of how you see the shares shoot up yes it feels like we haven't fully lost.

It mean even read it when it went public two months ago the one of the first the first short report to come out on it an analyst was already calling it a meme stock right they were saying this has mem likee characteristics to it it's trading dis attached from fundamentals the stock is way too high and so that phrase is Ian I don't know we use that.

Phrase a lot now so it does feel like we're always still talking about it but it hasn't been necessarily GameStop in AMC so I guess that's kind of the AL they come up I love the idea though like like the image in my mind of like the sleeper cells of like all of the like uh Reddit Traders or Wall Street bet Traders and then they were awakened like.

The code word was was uh I was ask were you surprised like how quickly this all happened I mean or not surprised because that's just kind of how it work surprised but not shocked I don't you know what I mean like you know this is kind of how this thing works as we talked about earlier there's a nice like sort of fun aspect to it um that it's.

And it's fun to talk about I mean you know I do wonder what's going to happen from here are we actually going to get more direct communication from foring Kitty or you know because that his his bag was always as we pointed out earlier in the show him on camera giving the fundamental case for GameStop this is much more cryptic and sort of he's.

Posted you and I were talking earlier you know he's been posting all these like movie meme mashups today to try to communicate something to people so I don't know if we actually hear from him directly that would be fun or is there are they looking at something like everyone just immediately jumps to GameStop right and that's sort of where.

The target has been today but there hasn't been a lot of online discourse that there's like a little bit of discourse but like remember in 2021 we got to like what are other stocks that are shorted heavily right and that was sort of where like the specular bubble went next and I guess when you look at the action today maybe you did see some.

Of that a lot of the shorted stocks that Jared was highlighting were up but like is that of where the discourse goes next what is r and kitty even talking about I think it's something I'm stilles he come out does he come out and make the a fundamental case for another stock entirely that would be fun Tupperware stock T maybe I want to see him back the.

Fundamentals of Tupperware J okay that's my ask Tupperware party at a Keith gills house all right thanks thanks so much Josh all right let's Brun it back out because markets were mixed at the close with the Dow snapping eight straight days of gains but we did we do have big economic data on Deck with the Consumer Price Index out on Wednesday for more on.

What to expect we've got Gus fet Chief Economist of PNC Financial Services Group Gus it's good to see you so we've been talking all about this anticipation for the inflation data I know that you have been doing a lot of work on this and also work on kind of how the inflation data relates to the job market how the FED is viewing that so put it.

All together for us what are you expecting this week uh yeah so we're expecting to see a 0.4% increase in the overall CPI from March to April and then a 0.3% increase in the core CPI excluding food and energy uh that means we would see year-over-year core inflation slow from 3.8% in March to 3.7% in April uh that's good news from.

The fed's perspective but the FED does want to see inflation move even lower uh and so I think we see the FED on hold in the near term until they get more definitive proof that inflation is really slowing and and Gus how conf for you that we get back to the fed's Target in the next 6 12 months and what needs to happen Gus for us to do that uh I.

Think we need two things for that to happen the first is is that we need to see slower growth in housing costs so when we look at measured rents those are falling pretty quickly but we haven't seen that show up in the shelter component of CPI yet I think that will happen over the months ahead and so we'll get some uh help there and then I.

Think we need to see a bit weaker wage growth wages are growing around 4% year-over-year I think to get to 2% inflation we need to see something close to the 3 and a half% wage growth uh I do think with a bit softer job growth with perhaps a bit of an increase in the unemployment rate we will see slower wage growth and given slower wage growth.

Given slower growth in shelter costs I think we'll be back to that 2% objective by this time next year so what does that say about the fed's ability to cut before this time next year uh the FED doesn't need to see that inflation is at 2% to cut uh year-over-year what they need to see is that inflation is moving toward 2% Even If the Fed were to cut.

One two three times monetary policy would still be contractionary it would still be Wayan on the economy just not as much as it is now so I think that if we do see the inflation numbers start to look a little bit better we see that inflation is is indeed slowing then I think the FED feels comfortable cutting I would say sometime let's say at the.

September and then again at the December meetings 25 basis Points each time so maybe September Gus I'm just curious whether you think does it get tougher for the FED to gut cut though as you get closer and closer to the election Gus um you know I think the FED will uh take into account the election but I think if inflation is slowing I don't think the.

FED wants to wait too long uh I think they're concerned about uh waiting too long to cut rates that could uh increase the drag from monetary policy so I think as long as we see better inflation numbers the FED will be okay cutting in September and then they can cut again in December after the election um and you since you mentioned the election we have.

To ask you know how you think that's going to play into their decision making um I you know I don't see that as a big factor I don't think the FED is going to be cutting rates aggressively heading into the election I think that would look bad uh I also don't think the FED is going to see any need to raise rates heading into the election I do.

Think that we'll see slowing inflation and that will allow for cuts so I think if the FED Cuts once this year before the election I don't view that as a big deal that's not their attempt to influence the election that's just their attempt to stay on top of things and I don't expect that that's going to deter them one way or the other Gus uh.

Switching gears a bit you know we we do have some big retailers reporting this week Gus got uh Walmart we also have retail sales I'm curious Gus to get your take on the consumer uh how healthy and resilient the consumer looks Gus because we do hear this talk of uh you know consumer uh frugality consumers trading down what are you hearing and seeing Gus.

Um so we do except expect to see a bit softer growth in in retail sales in April we had a very very good March uh so I think you know we see retail sales up about 0.4% if you take out Autos maybe up 0.2% some of that is higher Gap gasoline prices but I think consumer fundamentals are still very very good good job growth.

Good wage growth slowing inflation uh Rising household wealth with higher stock prices and home values the big drag is coming from higher interest rates but overall I think consumers are in solid shape and they will continue to increase their spending throughout 2024 and into 2025 Gus thank you so much for joining.

The show today thank you coming up meme stock Buzz took center stage in today's trade we're going to speak to the Head moderator of Wall Street bets on the other side more Market domination overtime is coming up.

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let's get you up to speed on today's session or or recap it at least sponsored by tasty trade we had a mixed day here today as folks await the inflation data coming later in the week as we've mentioned its wholesale prices.

Tomorrow and then produ and then consumer prices uh coming on Wednesday morning the Dow down about a fifth of 1% the S&P little changed the NASDAQ down about a third 1% Industrials financials and Consumer Staples leading the declines Tech and real estate getting a little bit of a boost today mem stock Buzz taking center stage in today's.

Trade as GameStop shares soore the move higher coming after roaring Kitty the person behind the mem stock frenzy during the pandemic posted online for the first time since 2021 joining us now is nor Al head moderator of Wall Street bets nor it is great to have you back on the show so so let's start there nor it was the story of the day today um you.

Know roren Kitty posts on X GameStop rips what what did you make of it uh I just immediately knew as soon as I saw that tweet that retail trading is back and we're going to see more volatility than ever these next couple days so nor that's interesting because we've been sort of debating here like was this just a sort of oneoff.

Excitement and then it's going to fade it sounds like you don't think so no absolutely not I mean I think we've actually seen the buildup for today's activity over the past two weeks and even just three days ago when we were talking about DF liking a tweet for the first time in three years so there's presidence and there's been a lot of.

Buildup to this moment to today are you saying or you think the activity continues in GameStop or or no it's going to shift to other names I think GameStop is definitely going to be the stronghold um that's what we've seen in previous explosions of retail excitement uh but that's definitely going to spill out into other.

Stocks we saw AMC today up almost 80% even more than GameStop really so I think you'll see both you'll see GameStop explode and you'll see the others explode and sync with nor I'm really curious as someone who does what you do um in terms of and and that's your sort of side thing here that you moderate Wall Street bets what did.

Your day today look like after that came through this morning uh it's chaos I saw the uh dfbs tweet yesterday and I just knew wow tomorrow is gonna be an intense day I took the day off and I've honestly just been looking at Reddit all day uh hanging out in this court and making sure that you know the the millions of.

People that are visiting our subreddit our community are uh having a good time having a good experience so okay and are people super psyched are you seeing people are you seeing an uptick in volume are there people who've sort of been on the sidelines for a while who now saw this and came flooding back to the platform and back to the.

Markets absolutely we're seeing a huge uptick everywhere so page views are up uniques are up we're seeing more people tossing money at the market we're seeing people post their we call them YOLO and their gains uh people taking profits people throwing all those profits back into the market uh every stock you can name uh we've.

Been seeing elevated levels of activity on them today so I think this is just the beginning though do you know though and we've been talking to different guest about this today too so I want to get your take do you look at what's going on gme today and it's some broader tell to you about some serious Trend or theme in the market it's telling you.

Something about risk appetite ramping or do you see it in or for most people do you think it it's more just fun it's something to do it's entertaining um I think definitely people are having a ton of fun but it comes down to really just people seeing more opportunity in the market we know we've been sitting on quite a bull run.

For these past couple months uh spy is at all-time highs people want to take some money off the table realize those gains and toss them back into riskier plays I think that's what we're seeing nor can you tell us and Josh sort of asked this but if you can expand a little bit like is there buz around other stocks as.

Well yeah absolutely I mean uh we're just coming off fresh off the AI hype cycle um now we're going right back into the meme stocks so I think you're going to see all meme stocks move together um and really I think this just shifts a broader um shift towards you know narrative economics you know can companies tell their story in a.

Compelling way and really engage with their shareholder user base um so we we'll see both a trend from in investor appetite for those kinds of companies and hopefully uh a shift in companies and how they manage their investor relations I mean the irony of this though is that GameStop is not doing that nor like at all they don't talk to.

Anybody right they don't have conference calls if they do have conference calls they don't ask questions there's not a lot of transparency around what they do why do people still love GameStop that's a good question I think you can look at companies that overc communicate and companies that under communicate people believe that GameStop.

Has a plan and is executing on that plan we're seeing them swing from tremendous losses in previous years to actually a net profit last year although it was small we're seeing their underlying business kind of uh grow and and and Trend closer towards green and I think in the absence of their Q&A and answering those hard questions people.

Are coming up with their own narratives and so narrative economics doesn't necessarily mean the company has to create the narrative but that narrative is being created and that's why it's so important to stay close to the source close to social media for these stocks yeah I love that narrative economics uh quickly nor I'm curious given you saying.

That are you a believer in the GameStop story and do you have the shares uh absolutely you know today is just day one we saw plus 80% today who knows or 75% today who knows what tomorrow will hold nor always love having you on the show thank you for joining us thank you so much time now for to watch Tuesday May 14.

President Biden is quadrupling tariffs on Chinese electric vehicles as early as tomorrow total tariff on Chinese EVS is going to rise to 102.5 and 27.5% according to a report from Bloomberg Biden will also sharply increase levies for other key Industries sometime this week moving over to the.

Economy we will get some key economic data this week starting with producer prices coming out tomorrow morning Economist forecast PPI will tick up slightly while core PPI holds steady this reading will come ahead of April's CPI reading or Consumer Price Index on Wednesday and after the PPI print we're getting another round of fed commentary.

This time from Fed chair Jerome pow and fed Governor Lisa Cook Wall Street will look for Clues to see how the latest data affects monetary policy and finally more earnings coming out tomorrow we've got Home Depot Alibaba and on holding reporting among others Home Depot announcing first quarter results before the bell and analysts expect the.

Company's same store sales to drop drop by 2% coming up the gaming industry hitting a rough patch amid economic uncertainty elevated inflation take a deep dive in today's investor Playbook on the other side.

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the gaming industry hitting a rough patch amid economic uncertainty elevated inflation concerns of a slump in the video game industry is settle in after Roblox cut its annual bookings Outlook meanwhile investors waiting on results from video game companies take to.

Interactive and Ubisoft this week joining us now for the Yahoo finance Playbook wedbush Securities managing director Michael pactor Michael it is great to see you if we're we're talking video games we got to talk to pactor let's start big picture Michael um video game industry right now how healthy and strong and resilient does it look.

Michael it it's probably as healthy as it's ever been um I think that we had a lot of games that were cancelled and a lot of games that I think the Publishers have decided just aren't worth chasing and what that really means is that tastes have shifted away from buying the $70 game and in favor of playing the.

Free-to-play game uh overall revenues are growing nicely I mean growing definitely oh I think Michael we're having a little bit of issue with the connection there with Michael paor Michael you still there you are oh we we were I think we're yeah I hear you clear loud and clear okay well let's.

Let's are we gonna keep trying y'all okay we're going to keep trying U Michael what I was just going to say then as you talk about the sort of steady revenues from the these uh companies is they're not trading like they're doing well right we've seen most of them see slumps this year so what why the.

Disconnect uh because I think that the Publishers have recognized over the last couple of years that they can't just throw anything out there that they have to provide really premium content in order to charge a premium price and they've spent way too many of their resources expanding the brands so having that holistic approach to to Fe F which.

Is no longer called FIFA or to Call of Duty you know having a couple of uh free-to-play games to augment the premium game and so what that means is that the smaller games kind of get left by the wayside and the gaps being filled you know by smaller Publishers consumers still want that stuff it just doesn't pay off so think about it like the movie.

Industry we get more Marvel's Avengers and far fewer romantic comedies that's what the Publishers are starting to reconcile right now that they need to offer for big Blockbusters and 360 you know experiences where you're always playing mobile or or free to play PC in in addition to console Michael and just to follow on Julie's Point know you look.

At EA and take two both well in the Reds so far this year are those names you want to buy Here Michael yeah I like them both um I'd say I probably like take two a little more um we know that Grand Theft Auto is coming it's already been announced that it's coming we know it's coming in 2025.

Um even if the Rockstar guys were to to delay it it'll be late 2025 early 26 and that is a many billions Revenue enhancement um and I think the thing I like about it this time around is that Grand Theft Auto online which is the free piece of that game has been built knowing GTA 6 is coming so they'll incorporate GTA 6 into GTA online I.

Think you get a boost to the free-to-play game in front of the release of GTA 6 so I like take two a lot and uh unlike EA take two bot Zinga they are well along in you know kind of diversifying their their their game uh offering into Mobile they have a big hit called match Factory that nobody talks about I'm I'm about $300 into it already.

It's a great game my wife is and I'm also curious about Ubisoft which reports I think Wednesday day it is after the close of trading um this one doesn't have the sort of franchise like a Grand Theft Auto uh behind it but it's one of the bigger studios here and you guys like that one as well right we do and and for a different reason I mean.

That you're right that their biggest selling game is maybe 12 15 million units compared to Call of Duty at 35 and Grand Theft Auto at over 100 so you know it's a much smaller developer um what we like about it is that they they've kind of their lack of performance performance the last five years suggests that they're positioned to really perform.

Well in the next couple of years they've got a lot of content backed up and about to launch so I think you're going to get a big spike in revenue and profitability and then the other thing is in that Activision Microsoft merger the UK uh Regulators kind of stuck their nose in the middle of all of it forced Activision to sell the the global.

Streaming rights to its content to somebody else and Ubisoft stepped in and astutely bought up those assets for not very much money I think they're going to get big checks from Microsoft growing every year for the next several years Michael I also got to get your take on another story today GameStop uh you know roaring Kitty post on X the stock surges.

What what did you make of it yeah I listened to your uh guest immediately prior um he's right who knows what'll happen uh there's no fundamental basis for this and you know the story that Ryan Cohen has a super secret plan and if he tells us what it is he'll have to kill us that made sense in the fall of 2020 and throughout 2021 and two when he.

Hired all those Amazon Executives they're all gone nobody works there with a with a sea level title except Ryan Cohen and I'm not even sure he's there um I think that you know the inmates are in control of the Asylum uh the your former guest Ori gu said that they're showing solid Revenue growth no they're not they're declin mining by about 10% a.

Year and as revenues decline the only thing they can do to keep up is close stores it's a vicious cycle not a virtuous cycle uh sure they made $17 Million last year I'll take the under on that this year I'd say they have about five more years because of their cash position and then they're a zero so uh good luck anybody selling today.

Congratulations anybody buying today my condolences you've been consistent on this point Michael we appreciate that thanks so much for joining us today it's good to catch up with you it's my pleasure thank you that'll do it for today's market domination overtime be sure to come back tomorrow at 3 p.m. Eastern for all of your coverage leading.

Up to and after the closing bell but we're not done stay tuned we've got the latest episode of Yahoo finance's video series next a glimpse at the future of neurot technology don't want to miss that.

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hey Rodney I'm Madison it's really great to meet you this is Rodney and he's living with amyotrophic lateral sclerosis or ALS a disease that gradually inhibits all movement including your ability to communicate.

But Rodney has a special technology implanted in his brain it takes signals from the brain and translates them into commands on an external device like computer keys in other afterwards it reads his mind was it scary to be the first person to get the Sten Road not really that's cool that's pretty brave but he's talking to me.

Right now all the way from Australia thanks to the stod an AI powered brain computer interface developed by synchron a neurotech company backed by Jeff Bezos and Bill Gates this may sound familiar as Elon Musk is also working on neuralink the company introduced the first patient to receive its implant it was like uh using the force on a cursor.

The stod and neuralink are both examples of bcis that are implanted inside the body but according to experts the next big innovation in the space is portable products that live completely outside of the body like this this spectrum of devices falls under the umbrella of neurotechnology which is any technology used to either record signals from the.

Brain and translate them into technical control commands or to manipulate brain activity neurotechnology is on the agenda for big tech companies like meta and apple and AI is speeding up advancements in neurotech which can be empowering for patients but as the tech becomes less invasive and more accessible for everyday consumers it.

Could put our most valuable data our thoughts at risk this is our final Fortress of privacy and we've given up every other aspect of privacy that exists after first of its kind neuro rights legislation was passed in Colorado experts and activists are working to make Federal policies about our thought data this is what's next in.

Neurotechnology and data privacy meta is funding a team of neuroscientists who are pushing this field of research even further by using AI to understand how humans process language the company says the goal is to help people who've suffered traumatic brain injury to communicate we did a.

Research where participants watch images in a neuroimaging scanner and the goal is to train an AI system to reconstruct what they see Solly from brain activity and what's surprising is that it it works much better than what we anticipated volunteers sat inside a magnetoencephalography or Meg machine which measures the magnetic field.

Generated when neurons fire over the course of several hours volunteers viewed each image for one and a half seconds and the AI system learned those meeg recordings this is the image that was flashed in front of participants and this is the image that the AI scanner was able to recreate and so you can see that the images on the right are never.

Quite accurate but still it does capture a lot of semantic properties like when it is an animal it tends to be an animal that suggests that these Magneto graphy signals is brain signal that can be captured in the lab can be used to recreate the image that they perceive the first reaction was okay there's something we must have leaked some.

Training data in the test set uh that was my first reaction okay let's try to find where we could have had some bugs that could explain the quality of these results so you thought they were so good there must have been a bug yeah when I look at these images they did such a good job it it looks really good so makes me wonder like is this a.

Mindreading technology so this is not a mindreading technology at a given instance what we can try to do is reconstruct the image that they see at the given moment so we're really decoding perception what's has been shown in other research is that trying to decode what people think at a given instance on their own without being.

Triggered by something uh is actually much much harder in regards to the relationship with meta does that impact the outcome of any of the research so the the goal of our research is not to have a product Down Down the Line This is a research which fits a portfolio of research projects at meta the goal is really to figure out the key principles.

Of intelligence and what makes humans so able at learning things extremely quickly his team is part of fair which stands for fundamental AI research meta has been studying how AI learns language since before the company changed its name that F and fair used to stand for Facebook but the team is not attached to any medical or academic institution Kane.

Stresses that consumer facing products are not the end goal of his research at the same time meta is continuing to work on consumer neurotech I think we'll start getting some consumer neural interfaces soon I'm not talking about something that Jacks into your brain I'm talking about something that you wear on your wrist.

That can basically read neural signals that your brain sends through your nerves to your hand to to basically move it in in different subtle ways that are maybe not perceptible to people around you but we're basically able to read those signals and and be able to use that to control your glasses or other Computing devices and I think that's.

Going to be pretty wild since 2021 meta CEO Mark Zuckerberg has touted an armband that sends these like nervous system signals to to your your your muscles and you can actually pick those up with um with with an EMG wristband EMG measures muscle responses or electrical activity in response to a nerve stimulation of the muscle they.

Have a prototype of the wrist device it's something that they're investing heavily in with reality Labs billions of dollars go towards that they are making progress in certain areas whether it's their arvr efforts or these kinds of efforts that will eventually feed into what Mark Zuckerberg sees as the future if not necessarily of the metaverse than.

Of technology in 2022 Apple filed a patent for airpods that use Electro andram or EEG technology the proposed earbuds could contain over two dozen electrodes that are configured to measure bio signals and electrical activity of a user's brain I think in EEG is going to be much richer data than e mg on the wrist for brain health and.

Wellness which is a huge potential Market when it comes to the products that are on the marketplace right now are they over promising or are they accurately to a degree with some noise reading our minds are they actually decoding you know like your private ruminations like you're thinking about what am I going to make for dinner those.

Kinds of things aren't being decoded by these today what they're decoding are basic brain states that can be averaged across the entire brain so things like are you sleepy are you paying attention are you stressed basic emotions are you happy or sad those are metrics that can be picked up and in some ways that's mind reading right it's still revealing.

Things about your inner states but it's not the kind of robust thought which isn't to say that isn't possible it is to say that none of the consumer based EEG devices that are on the marketplace can yet do that according to one estimate the neurotech industry was valued around $15 billion in 2023 and is projected to reach over $55 billion by.

2033 this comes as AI has fueled earnings growth for the biggest tech companies Tech giants like alphabet Nvidia and Amazon have all seen double digit gains this year following increased AI investment as AI power technology accelerates advancements in both medical and consumer facing neurotech one analyst says investors.

Should look at companies that are prioritizing privacy if you can monetize that data safely I mean that would be a great play for a lot of people I mean if you actually you know provided the right product and service I think people just don't understand what it means to live in a world of complete brain transparency the one space we have for.

Mental reprieve is really you know our brains and mental States it's the kind of final piece of the puzzle Dr rafhael uste is a professor of biological sciences and Neuroscience at Columbia University after years of research he discovered a way to control the thoughts of mice using lasers this.

Was actually my opener moment but at the same time I felt whatever you can do in a mass today you could do in a human tomorrow he basically did Inception in real life and it scared him so much that he started the neurites foundation which says it works to protect people from the potential misuse or abuse of neurot techn ology the foundation recently.

Evaluated the Privacy practices of 30 major consumer neurotech companies selling a range of devices including headbands bracelets and glasses for activities like sleep meditation and gaming upon reviewing the consumer user agreements the foundation determined that 30 out of 30 companies takes possession of all the.

Data of the user this is not dissimilar from most privacy agreements that users are familiar with which allow tech companies to collect your data the difference is these companies are collecting your neural data and Dr UST says that could warrant additional privacy protections the study found that over 66% of neurotech companies policies.

Mentioned they can share data with third parties while 30% of companies are unclear on the matter of data sharing that third party could be a company could be whoever they want they could be in a foreign agent so from our point of view this is not okay over half of the companies included don't even mention neural data in the Privacy documents.

Making it unclear whether that data would be protected the current regulation of commercial neurot technology is been treated as uh consumer electronics take Apple for example according to the company's privacy policy personal data is any data that relates to an identified or identifiable individual or that is.

Linked or linkable to them by Apple this includes data like your email address location Bank details and search history products like the Apple watch can also o collect your health data like your sleep time heart rate and respiratory rate but in no point in Apple's privacy policy is neural data mentioned that airpods patent came after CEO Tim Cook announced.

The company's focus on Healthcare I believe if you zoom out into the future and you look back and you ask the question what was Apple's greatest contribution to mankind it will be about health health data that can reveal a lot about an individual but also generate a massive amount of personal information when they.

Can correlate all of that information with the in EEG data suddenly they have a treasure Trove of information to not have you just Clos the circles for you know how many steps you've taken a day or how Physically Active you've been but your stress levels and your cognitive Fitness to really correlate what's happening in our brains with all kinds.

Of neurological disease and wellness kind of metrics neuro rights advoc kids say advancements in neurotech in recent years require urgency in the form of immediate regulation to protect our privacy and brains from being hacked manipulated and attacked the neuro rights Foundation developed a framework.

For potential neuro rights policy focused on mental privacy personal identity maintaining Free Will protection from bias and fair access to neurotech for those who want it we want to develop neurot technology we think is good for Humanity but we want to do it in a responsible fashion this is about respons ible Innovation Innovation that.

Could already be helping people at least according to synchron there's millions of people almost 8 million people here in the United States alone that have some type of motor impairment uh that where it becomes real challenged to use devices that we we take for granted every day like everybody walks with a phone Technologies like this can really.

Start to aid for those that can't do that even if it's tyring has the device made communicating easier for you overall yes I think that's the one thing that people really don't understand is that this is not like 20 years out it's not even 10 years out I I think we're in a shorter timeline than that for farahani.

The speed of innovation requires quick policy action her framework favors a broader approach that argues for more privacy overall with a right to self-determination over our brain and mental experiences that would give people a right to be able to both access and use the Technologies if they choose to do so a right to mental privacy as an.

Explicit part of the right to privacy and that would mean that we'd have a right against interception and interference with even the automatic processes in our brains and then a much more robust right to freedom of thought and I think of thought as like really the mind reading stuff right it's like what you're thinking and feeling and.

Being able to have a right against the interception the manipulation and Punishment of those thoughts regulators and governments are beginning to take action on this with the help of Dr uste in 2021 Chile became the first nation to amend its Constitution to protect the right to mental privacy and Free Will Mexico and Brazil have also proposed.

Constitutional Amendments for neuro rights domestically Colorado passed a bill that expanded the state's Privacy Act to include neural rights the first of its kind in the US similar legislation is on the table in States like California and Minnesota what is your biggest hope for what this industry looks like 10 years from now.

My biggest hope is that it is a tool of empowerment for individuals that people have really the ability to control their own data that we have a system of trust and rights that strongly favor individuals and their right to cognitive Liberty and they're able to use the insights to improve their brain and mental experiences their mental.

Well-being and mental flourishing what do you hope the device will accomplish longterm hopefully it will get to more people.

oh the United Auto Workers Union is setting its sights on the south again.

Mercedes-Benz workers in Alabama began voting today on whether to join the UA this coming after a historic victory at a Volkswagen plant tenness just weeks ago for more we're bringing in Yahoo finance's prize subaran priz yeah you know 5 ,000 workers down in that plant in tuscalo Alabama voting today starting today to potentially join the UAW you.

Mentioned this comes after that big win in Chattanooga Tennessee with VW uh that was a I think the third time that they attempted to join the UAW and in this time they they they pulled through a 3 to1 margin uh was the actual vote there so kind of big implications down in the South for unionization it's place that's not friendly to unionized labor but the.

Tide might be changing some workers are complaining down there about working conditions hours pay they're seeing what's happening in Detroit the benefits that they're getting the the the benefits of being part of the Union so I think it's a big vote if another Domino Falls here with the Mercedes plant I think Sean Fay and the UW can kind of.

Count on maybe potentially more moves down there uh as time goes on well we've seen very sort of contentious negotiations between the union and some of the US automakers what has Mercedes sort of vibe and attitude been towards this whole effort it's been really surprising actually because of the fact that they're heavily unionized in.

Germany uh in Alabama there have been a lot of been hiring anti-union speakers to come to the plant to speak to them they're playing videos in the in the factories about why joining the union is bad news we're working together we're a team we don't need the union and it's kind of been pretty contentious in fact the workers filed the nlrb complaint uh.

Against Mercedes and there's been some trait US Government Representatives complaining to German representatives in in Germany about the kind of actions Mercedes taking in this Union C labor sort of dispute so it's pretty high stakes right now and and I think it's kind of Germany's sort of saying marking the Line in the Sand that they don't.

Want to necessarily bring or I'm sorry Mercedes to bring unions into that that plant very interesting thanks a lot Pros well be watching the vote closely appreciate it well that'll do it for today's Yahoo finance live be sure to come back tomorrow at 3 p.m. Eastern for all of your coverage leading up to and after the closing bell.

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