Stock market this day: Tech leads stocks lower amid combined earnings, charge reduce worries | April 17, 2023

Side Brad Smith and this is y morning stock futures pointing to gains at the open as the market looks to rebound from recent Market weakness here the Dow snapping though it's six day losing streak and the S&P 500 I am a little bit of a comeback here the moves here coming as investors digest a higher for longer interest rate Mantra from the Fed chair.

J poell saying that it's likely to take quote longer than expected from play to reach the central bank's 2% Target so let's get right to it the three things that you need to know it's your vote map for today's trading day Yahoo finances Jennifer shamberger Rick Newman and pru Manan have more Futures hanging on to gains this morning even as Federal.

Reserve J Federal Reserve chair Jay pal says it will likely take longer than expected to gain confidence that inflation is moving sustainably back towards the fed's 2% Target likely signaling it will take longer to begin cutting interest rates right now given the strength of the labor market and progress on inflation.

So far it's appropriate to allow restrictive policy further time to work and let the data and the evolving Outlook guide us Pal's comments marked a shift in the fed's Outlook after three straight quarters of hotter than expected inflation plus President Joe Biden looks to raise tariffs on Chinese medals the.

White House says it is exploring the possibility of tripling the current 7.5% tariff on Chinese steel and aluminum Imports the Biden Administration also calling on the US trade representative to probe beijing's potential unfair Trade Practices in ship building Biden will make the announcement in his address to Pennsylvania union workers.

Later today plus United soaring past Wall Street expectations shares up 5% on the results driven by strong demand and a rebound in business travel but United faced high profile issues this quarter including challenges with the Boeing 737 Max n groundings that cost the airline 200 million in profit speaking of B the latest company whistleblower testifies.

In front of the Senate later today well today's top story stock futures are rising this morning holding on to gains after they Dow snapped a sixday losing streak on Tuesday this comes as earnings once again take center stage while the FED continues to signal that rates will remain higher for longer.

So let's take a look at the broader Market action that we're tracking here on the day first and foremost you're taking a look at where things moved yesterday for the Dow Jones Industrial Average let me pull up the Futures here for a hot second here as we calibrate the Wi-Fi interactive and dust off the Dow futures here taking a look at that.

That's up one1 of a per NASDAQ 100 Futures that's pointing Higher by about a quarter of a percent as well and the S&P 500 futures also also pointing Higher by about 3/10 of a percent I'll show you some of the NASDAQ move that we're seeing here pre-market as well and we'll just put the extended hours on this so you can see a little bit of.

What's shaping up coming into today's trading activity for some of those Mega cap tech stocks largely seeing some fractional gains across the board and for the sector activity that we're also tracking you're seeing mostly green looks like energy is set and poised to open up the day just a little bit lower here but just toggling back very briefly.

Want to take a quick look at some of the yields that we're tracking this morning as well as that four the five the 10 and the 30 year you're seeing those fractional declines across the board still hovering above 467 for the 5year and then additionally here just take a brief look at gold we'll ride out with that as we're kind of continuing to keep.

A close eye on where things are moving in all business of gold and as of right now sitting at400 so all you people who bought gold bars at Costco that's your update for right now Jah all right BR thanks so much let's start off with that broader Market action here we got to take a look at the S&P 500 because it's dropped just.

About 4% this month as investors worry about the FED potentially delaying its first Ray cut despite though those recent concerns we've got our next guest who says a higher for longer scenario actually isn't necessarily bad news for stocks Brian bsky joining us here at the desk Capital markets Chief investment strategist so Brian weigh in.

Everyone's worried about it you can see it clearly reflected in the market but maybe it's not necessarily bad news it is shaa thank you so much for having us good morning Yahoo uh just great to be here with the Smiths um you know we became a little bit more cautious on a near-term basis about six weeks ago and several people question you're not.

Bullish anymore no no no we're bullish and in fact 12 years ago today we launched us straty product at bimo and we said listen stocks have entered a 25e secular bull market and that call Remains the Same however we do believe that momentum and the fomo trade and got a little bit ahead of itself I think the key thing that you said in your your.

Preamble was earnings Remain the the litmus test the key and from a fundamental perspective earnings are stronger than everybody thought I think most people I know most people thought we were heading into this March cut I I I I think the last time I was on your network I talked about I saw no analytical evidence that we're going to.

See some sort of a March cut but yet so many people are so macro focused in that they're looking at fed funds Futures and giving fed funds Futures so much credit whereas I think we're missing the kind of force through the trees here's the Force Through the Trees since 2007 this has not been normal this has not been normal since the great financial crisis.

Pre that very normal and in fact if you look at the the correlation between interest rates in stock markets it's basically meh however in a higher interest rate environment certainly higher than 0 to 1% or 0 to 2% stocks traditionally do very well so I think we're recalibrating that we still think from these levels stocks are higher at.

Year end now our official year end Target is 5100 our bull case is is 5500 we published that in November so we we think that we're going the the market post earnings could get a little bit softer and give us an opportunity to be a little bit more aggressive in terms of buying stocks lower does that mean new all-time highs then would expector.

Investors should expect even if we don't see any rate Cuts this year yeah so it's a great question and so when we came out with our year ahead in November of last year we said there's a very good chance that fed's not going to cut at all because the employment situation fundamentals are so strong and I think you know people didn't really.

Notice that because again so many people are so focused on fed funds Futures but what we think is going to end up happening is this return to normalization uh in terms of the normal the average 10-year treasury over the last 75 years is 5% so if we can hover between this four and 5% range and still have strong employment but most.

Importantly have very strong earnings and and all by the way cash flow I think the market can do very well as we continue to to migrate and understand that North American stocks are the place to be yeah talk us a little bit more about that Norm ization process in terms of where investors should be positioned maybe companies or even sectors.

Specifically that you expect to hold up a little bit better as we do see that normalization so we have the very good fortune at at bimo to run uh 12 separately managed account portfolios for clients uh real life clients in both Canada United States and then two ETFs so we look at stocks from a Bottoms Up basis and we think that that most.

Investors are massively underexposed small midcap doesn't mean that you're going to over uh go and buy small midcap for instance if you had $100 okay if you had $100 uh only eight of that $100 is comprised of small midcap stocks in a publicly traded base in the United States that's Apple and half of Microsoft think about that so if you're.

A stock picker right you're salivating at that because then you can say I can have tracking a in my portfolio and add some really great small midcap franchises that being said to answer your question from a large cap perspective we like Tech and financials and not all not all the Magnificent 7 because remember the seven aren all tech.

Stocks that's number one financials we love the money center Banks uh the really small Banks so bifurcated very big Banks and very small Banks and asset managers and Brokers and then in midcap areas we like communication Services consumer discretionary as well as Tech you know when you talk about this earning season and what we're going to.

Be listening for what is the theme that needs to Prevail this earning season in order for some of your targets to be within sight great question uh you know earnings consistency is the key and and I I think from so far that we've seen especially in the big financials they've beaten numbers for all intensive purposes and and analysts have been very.

Negative financials and we think a big part of that has been over reserved and I think we're going to see more BuyBacks and more dividend growth but at at the end of this it's not just all about AI right it's not just about uh those big cap stack stocks that have an AI attached to it it's really more about productivity and continued gains going.

Forward and from a from an earnings perspective as well free cash flow yields is is very important Brian when it comes to investor sentiment right now because like you said a lot of people like to still call you one of the biggest Bulls on the street but your price your target for the S&P is still 5100 is that right officially y any odds.

That you're going to increase it just given the runup that we've seen I know you're talking about the return to normalization and what that's going to look like here in the market but any reason to be a bit more optimistic than maybe you were at the end of love to tell you my secret I just love to but I love my job more uh but so here's.

Normalization okay let's just because I this is my 35th year on Wall Street I'm the Doogie Houser of Wall Street you can look that up Millennials and Jen's years if you don't know what that is so um High single digit to low double digigit performance in the stock market same thing for earnings a a trading range for treasuries whether not it's three and a.

Half to four four and a half or three or four to five okay in average multiples do you know that the average multiple pre pre uh great financial crisis was actually two multiple points higher than the LA since 20 7 so again I think we're heading into kind of a mid90s environment before Tech uh and where we were really more stock Pickers and if.

You look back to the early 80s too we were small midcap and and more stock picking too so I think that's the environment we're heading into for the next three to five years Brian bsky Capital markets Chief investment strategist Brian great to see you as always thank you appreciate it absolutely thanks for setting up today's.

Trading activity with us also another huge story that we're tracking ahead of the open and more broadly President Biden looking to Triple tariffs on Chinese Metals this coming ahead of his visit to the United Steel Workers headquarters in Pittsburgh today for more on this we've got Yahoo finance reporter Rick Newman on set with us hey.

Rick what do we know about this so far uh well not unexpected Biden has uh been paying a lot of attention to China uh and let's just remind everybody Trump was the first to put new tariffs in place on Chinese Imports and Biden left those in place and now he's uh saying we're going to push them up a little bit so the Tariff now is about 7.5% on.

Chinese steel and aluminum Biden is saying let's P push it up to 22 23 24 25% and when he by the way when he says he's asking his trade representative to look into this that means he's going to do it that doesn't mean the trade representative is going to say n not not such a good idea it's going to happen so we have more protectionism I mean this.

Is this is the way it's going um if Trump uh wins in November uh and becomes president again he's talking about 60% UH 60 60% tariffs on Chinese Imports now um what he did last time was he said a number uh I think back then it was 45% in 2016 he didn't do 45% he did about onethird of that um so if Trump says 60% let's assume it wouldn't be 60% but he.

Says 100% tariffs on electric vehicles uh and we basically got both parties at this point saying we need to do something about um China basically flooding Global markets with cheap Goods uh and I think this kind of protectionism is here to stay economists don't like it um you know it's it's a barrier to free trade but I think it's.

Just a political reality at this point Rick how is the body Administration balancing it are they balancing it because when you square this with the Diplomatic Outreach that has been going on at least recently among the administration we just said yelling in China meeting with top government officials last week what is this going.

To ultimately do you think do to us China relations well I I think that there is an important difference between uh Biden and Trump on this what Biden has done with regard to China is very targeted um so uh one one big uh part of Biden's policy is export controls on Advanced Technology from the United States trying to limit those product.

He's saying certain things you can't send to China no matter what you what tariffs are no and that's mainly with regard to uh Miss uh uh weapons programs that um China's developing so Biden doesn't want sophisticated American Technology in Chinese weapons again that's very targeted Trump just came out and said um across theboard tariffs on.

All Chinese Imports but then he he kind of backed away from that so what Trump did was uh new tariffs on about half of all Chinese Imports that was just across the board and mostly what Trump did was he targeted components um you intermediate products that aren't don't land themselves on shelves so consumers wouldn't see suddenly the price jumped.

By you know 15 or 20% it would go into the supply chain he basically Exempted consumer products like computers Electronics things like that toasters so that people wouldn't see that price change um but uh Trump was more more across the board so Biden is being very targeted and let's also remember every time this happens the target country.

Basically retaliates uh with with with a similar tariff on uh US exports to that country so when Trump was doing that uh China was putting tariffs on a lot of American Products including um food uh farm products uh soybeans pork things like that which cause a lot of Heartache for farmers in the United States so um for Biden to say very targeted tariff on.

Only this one set and by the way we don't even get that much steel and aluminum from China anymore um maybe he will limit the you know retaliatory damage and not sort of you know be scoring an own goal by hurting us producers I mean and the other thought about this too is how much of this kind of tit fortat is also trickling down to.

The mindset of consumers and being more nationalist almost with their purchases at the same time well it's a funny thing because um when you add tariffs to Imports stuff in the United States gets more expensive right um I mean that that literally raises the cost somebody has to pay that cost and everything we're talking about here uh more tariffs on.

Chinese Imports whether it's you know small targeted tariffs or across the board that is all inflationary and when Trump was President we didn't really have much inflation to worry about we do now um so I think this is another reason for Biden to be very targeted and uh and by the way these I I think it's a good guess these tariffs might not even go.

Into effect until after uh the election by the way we still buy a ton of stuff from China um if if anybody who thinks oh we're you know all that stuff on Amazon now comes from Vietnam or India it ain't so just look around on Amazon most of that stuff still comes from China I was say gets pretty obvious obvious pretty quickly all right Rick.

Thanks so much let's take a look at United because United Airline Shares are taking off this morning after posting a narrower than expected loss for the first quarter the company though did cite a $200 million hit from the Boeing groundings despite that though you're still looking at gains about 6% Pro super remaining here to break this all.

Down and PR pretty strong results especially in the face of the hit that we were just talking about from Boeing grings yeah yeah I mean that narrow the unexpected loss if they didn't have that that loss because of the groundings they would have been they would had a profit for the quarter so I think there's some some enthusiasm there from investor.

Community better outlook for the quarter coming up from a profit point of you we're seeing robust demand for both domestic and transatlantic travel so that's really good there but you mentioned that both hit the $200 million hit because of the groundings uh you know CEO Scott Kirby not happy about this talking about how um Boeing needs.

To kind of own up to these things and then need to re they basically make up for the loss that they' that they've suffered here uh they're going to go to Airbus with some other planes to kind of match up what their missing from Boeing's kind of delivery schedule coming up so not all good news here they to cut pilot hours as well so um it's.

Looking good from a point of view of a demand point of VI but but also a little bit shaky from a can they get enough planes to do what they need to do for the next couple years yeah it's really interesting especially on the pricing side too and you know we were having a conversation over near our desks just about where the demand has actually.

Outpaced in the early Innings of 2024 2023 which was that new marker post pandemic of okay now we've got a top 2023 numbers and 2024 is doing that and the question of how much that's actually passing through to the revenue that these companies are seeing right now I mean revenue was really only up per available seat mile by about 1% in this.

Quarter for United as well here yeah I guess it's kind of hard to top those good numbers last year I mean I know you're you spoke to the Delta CEO too also they're seeing the same kind of growth as well uh both domestic and I think I'm sorry both uh business as well as uh Leisure Travelers so I think that's sort of I think people are.

Surprised at the sort of uh activity here travel activity here both from like res um commercial and also uh just people like you and I absolutely all right PR thanks so much for breaking that down we're going to have analist reaction coming up later in the hour but first we're going to take a look at Tesla Tesla is asking shareholders to.

Vote on Elon musk's compensation package yet again we've got that story and more of today's top trending tickers when we come back.

now Tesla has once again asked shareholders to vote on a 56 billion Compensation Plan and package for CEO Elon Musk this is the same package that was voided earlier this year by Delaware Court they.

Are also calling for a vote to move the company's incorporation from Delaware to Texas this comes as Barclays this morning warned that next week's Tesla earnings could drive the stock price even lower they you're taking a look at shares right now they're up premarket by about 7 tens of a percent but let's show a year-to DAT chart if we may because.

It's been a slippy slide here for TSLA shares and it's shareholders certainly wondering okay when will things start to turn around is it management decision of course this is the company that also just amounts a layoff plan of about 10% of its Workforce and so that also something that investors have had to price in in recent sessions too yeah.

Exactly I think this is just really building up all the pressure that Tesla is going to be facing not only in its earnings and earnings call here that's going to happen uh in just about a week from now but also looking ahead to that shareholder meeting that's going to take place in two months and Dan eyes is out with a note here from web Bush earlier.

This morning and I think really just putting it into context here for everyone just saying that there is fireworks right now into this shareholder meeting clearly the performance has not been up toart to say the least you've got shares off more than 30% since the start of the year he called the last two Tesla calls calls.

Have been a quote train wreck bad comedy shows with no adult in her room he's talking about the lack of guidance the lack of communication and you can see that frustration I think clearly reflected in the stock price in shares off 36% since January 1st and really no stopping here this trend to the downside we talk about the fact that a number of.

Factors are obviously challenging Tesla's position at this point obviously one of the or the biggest factor is the lack of demand that is something not only Tesla struggling with obviously many of its Rivals are struggling with as well but you can clearly see that shareholders are frustrated at this point and I've saying that the clock is.

Struck midnight for musk now to lay out the growth strategy and give realistic delivery and margin goal poost here for shareholders I'm still just hung up on this use of the word fireworks I mean that's such an absolute value term coming from IES there where it's either striking and amazing brilliant to the eye when you see it go off in the sky or.

It could drive your dog crazy I mean at the end of the day one way the ladder yeah I think he really uh threaded the needle with the use of that one there so good friend of the show Dan excellent stuff there all right guys let's take a look at Abbot livs because that's on the moves this morning reported earnings that beat expectations for the first.

Quarter and also raised the low end of its full year profit guidance Yahoo finances andeli kamalani has the details for us an yeah that's right and as you saw on the screen the stock is down just a little bit looking at the volume of trading there is what uh investors are saying they're just waiting to post the call to see how it works but uh looking.

At what uh you know the company reported we know uh they beat on uh not only for the quarter but also raising guidance so about 10 million there for the quarter and that is despite the fact that they are still getting a little bit of drag from the covid testing uh that diagnostic segment still a little bit down as you look at quarter over quarter.

But on the upside they're new Libre or rather the Libre product the medical device for uh glucose monitoring that's been their strong point up 23% and that is also something that's interesting is part of the glp1 story because despite the fact that you've seen other companies sort of get hit with negative uh outlooks based on that they're.

Actually seeing an increase in use of their glucose monitoring devices as glp 1's take off so that has been an interesting story for the company meanwhile uh looking across at the of course the nutrition uh sector we know that the baby formula story is still uh you know is actually in their past right now they're definitely picking up pace.

From the uh loss that they experienced a couple of quarters ago so all in all you know kind of a flat I would say on balance uh quarter for the company so that's sort of where things stand right now all right an thanks so much for bringing us the latest there on that again Abid Labs a name to keep in mind in today's trading session let's also.

Take a look at shares of of Adidas because they're moving to the upside up 8% the company raised its profit Target for the year a bit of a surprise here for investors and shareholders as a company gets a boost from strong demand for its Samba sneakers Rick Newman I think was just wearing them on set here with us moments ago and the remaining.

Sales of its Yeezy brand so again it looks like at least Adidas uh regaining some of that loss momentum it has struggled just a bit here over the last several quarters so again these results Brad coming as a bit of a surprise here to the street and as a result we're seeing that reaction to the upside wish shares look on track or right it is.

Actually trading to the upside up just about 8% yeah better than expected is even how the company defined it themselves better than expected performance during the quter increased their full year guidance expecting currency neutral revenues which actually in q1 were up by about 8% versus the prior year levels they're expecting that.

To increase at a mid to high single digit rate and for all the Yeezy fans wearers I mean it's not Rick Newman Rick Newman's got the SAS as we saw on set very fashion able man by the way also the easy drop here we got to point back to that revenues of about 150 million euro operating profit about 50 million in the first quarter but this is the.

Last time that they're expecting to see a profit there no further profit contribution during the REM remainder of the year is what they're saying they expect uh as the remainder of the inventory and the sale of the remaining Yeezy inventory during this year in 2024 is going to happen on average just at cost so what it cost them to make it.

That's what they're expecting it to go out the door and the price realization yeah UBS saying that these results is going to make Adidas one of the quote Best earnings momentum stories in the space so a name at I guess to keep on your radar here if we do continue to see that momentum to the upside as they work through what was a very challenging 2023.

For the comp you know what I I will add this it's been a big year in the basketball category for them uh especially thinking about the success of Anthony Edwards Anthony Edwards has absolutely become and cemented himself as a household name in the NBA over the course of this year he's got a brand new shoe that's out and I picked it up.

Actually you know I do my channel checks I did my Foot Locker Channel check s i looking well these are the book ones um but for the uh for the new Anthony Edwards shoe and the launch of that and the entire campaign they put around that I think it was really well executed so in the performance category that's perhaps where they're also seeing a.

Little bit of pickup this year too yeah we certainly are seeing that momentum here to the upside all right we'll keep right here on Yahoo f as we got much more of your Market action ahead again you were looking at all three of the major averages on track to open the trading day in the green we'll be right back.

.

now oh yeah big opening bell energy lots of green at the NASDAQ love to see it team coordinating outfits we should have done that when we rang the bell this we kind of did we'll do it next time we did our.

Best anyway we open the markets and that's all that matters they're doing the same there at the NASDAQ and at the end NYSC you've got a live look at both as as we begin today's trading session all right what are we seeing out the game see a bit of a mixed picture here let's start with the Dow the good news the bright side of things at least here.

At the start moving to the upside up just about 150 points you got the S&P also trading to the upside above the flat line here at the open and as we wait for the NASDAQ here actually opening right now to the upside so all three of the major averages opening the session in today's in positive territory taking a look at the bond market action.

A bit of a reversal from that move higher that we've seen in yields over the last couple of trading days now falling just around five basis points and also Brad the sector action here and what we're seeing on an intraday basis energy and real estate the only sectors here opening the day in the red yes but look at xlb my goodness materials.

Ripping to the upside by about 7/10 of per to start the day here and of course over the year-to day scale it's been one of the positive performers up by about 4 and a half% here of course we've got even more coverage of the opening B we certainly do Ali Canal standing by in the news room with a closer look at some of the trending tickers on our platform.

Ally hey sha yes let's kick it off with the number one trender on Yahoo finance right now and that is asml the Dutch company is the biggest supplier of equipment to computer chip makers but it did report weaker than expected new bookings in the first quarter which is why we're seeing shares fall today down about 5% it's been a mixed reaction on.

Wall Street with some analyst saying that order intake was expected to be a bit lumpy as the industry has been dealing with slowing demand demand over the past year or so as well as higher prices that being said though 2025 is is expected to be strong amid greater demand for memory chips along with the AI Boom the company also reiterated its.

Full year outlook for 2024 which is another bullish sign for investors next I want to bring it back home to United Airlines Shares are jumping today we're seeing it up nearly 8% right now after The Airliner reported a narrower loss than expected in the first quarter with operating Revenue also beating estimates guidance for the current quarter also.

Came in strong although the company did post a 124 million net loss following the 3-week grounding of Boeing 7379 after a door plug flew off an Alaska Airlines jetliner earlier this year Boeing of course is going to be in the spotlight today with back-to-back Senate hearings in DC that's something we'll be tracking all morning and then.

Finally I want to round things out with a little luxury LV MH the company which owns designer Brands like Tiffany and Dior saw shares rise despite the fact that we saw a decrease in quarterly Revenue overall though the results were pretty steady especially given the fact that there's been greater concerns over slowing demand as prices remain high.

Especially in China so overall a better than feared outlook on Wall Street with analysts saying that the worst has largely already been priced into the stock so by and large sha people are still buying Louis bags and for now now that's a positive for investors certainly is and a positive for those who are able to afford it right now all.

Right Ally thanks so much let's take a look at asml one of the stocks that Ally was just talking about there asml Shares are under pressure now this comes after Europe's biggest Tech firm's net sales fell nearly 22% compared to just a year ago now to break this all down and the tech Giants earnings and what it means for the.

Broader chip sector we want to bring in Yas ver steg ins singer gillison's equity's senior analyst is here to discuss yes it's great to have you here on Yahoo finance so first just give us your reaction to that drop that we're seeing in shares of asml and what this really signals maybe about lack of demand or maybe worry about demand here.

Going forward no that's absolutely not the case there's absolutely no lack of demand and uh you also said already said it that the uh the order flow is all always very very lumpy just remember that in the last four quarter of 2023 there was an order inflow of more than 9 billion and in the second half of.

The Year 13 billion so it's it's just lumpy and asml already said for a long time that you never look too close to the order INF flow because yeah it doesn't say too much it doesn't absolutely doesn't Express that the market is weak at the moment so do you think the Market's getting it wrong then the fact that we're seeing this drop of.

5% if you're not worried at all about that this doesn't throw any cold water on the optimism for 2025 yeah absolutely they also said it and I'm absolutely not shocked by it but if you look to the semiconductor monthly sales like the ca the siia always uh uh produces you'll see that the uh the upturn is is a little bit hesitating we.

See for four month in a row year on-year growth but the last two months it was declining a little bit to semiconductor sales so the market could be a little bit hesitating and then when you see this order inflow of asml I can understand that people get shocked but yeah uh as already also said sometimes that uh there it could be that there is.

An order and they are already working on an order and still uh the the order is not officially checked in sometimes even when they're on the on the point of exporting it to the the client it's still not signed because when you sign the order they have to pay a down payment sometimes it's difficult to pay that down down payment so order inflow I.

Just say don't look at it it's just a long term and they were very very positive about the long term you know still uh for 2025 they said they only need 4 billion for the coming three quarters so 4 billion per quarter only 12 billion to get an revenue of about 35 billion in 2025 and that's 30% higher than 2024 so.

No worries for asml for me I I think what a lot of investers are trying to figure out is how long of a tail does the AI trade have with Rel relation to asml in comparison to some of the other large semiconductor plays that are out there right now yeah I think this will continue for many many years they already made an.

Estimate for uh uh 2030 that in the coming years the uh the semiconductor Market will will double to more than uh one bill uh uh yeah billion but a thousand billion I think so today it's 500 billion worth so it will double in 2013 that will be a growth of more than 10% so the market is very good for uh semiconductors there's lots of demand.

For logic in the uh in the AI chips but also for memory in the hi Ai chips high band high bandwidth memory there's a lot of demand there so I I'm absolutely not worried about demand for for asml in the long run especially when you look to a but also uh we we see a very strong trend of electrification uh we try to get our.

Energy from windmills and and from from the stun and you also need a lot of semiconductors for that uh we see a strong uh Trend in electric vehicles so there there's a very strong long-term demand for semic conductors and asml is exactly in the right spot I think yeah so talk just about what the price in strategy looks like here going.

Out and some of the pricing trends that you're comparing to when you take a look at what asml is able to produce here how that stocks up to some of its Rivals within the space well actually they don't have no RI they actually don't have Rivals they are the only ones who can produce the the the the most advanced machines they.

Still have Nikon and and canon in Japan but they only produce low-end machines and um there are no real competitors pricing for asml it has everything to do with uh how good the machine works and they just made a new machine which works very very well is much more efficient than the other machines so they can ask a higher price.

For that and uh most of the clients especially all the clients are happy to pay a higher price if the machine is more productive and so I I guess that's the key question here too is that if you have enough clients that are willing to produce what they need to with the the lithography system and then resell there's kind of that secondary Market of.

Used equipment rather than just having to buy a brand new lithography system and I think that was something that was a concern prior yeah sometimes it can be in the short term but I I think the ReUse of systems is a very small market and it's not anything to worry about that for for for asml the point is actually that.

These machines they are uh good for a very long time nearly all the machines the modern machines from the 90s I think are are still working so they there is a a market for reuse of the machines but it's very small it's it's it's never a big concern for asml yes I'm curious just in regards to the US Crackdown on on China when it comes to access to.

Chips and also Europe being brought into some degree uh into the standof that's happening right now are the tensions that are rising between the US and China how exposed is asml just given the fact that they do rely on China for a large portion of their business is this something that's worrisome to you at all and and if not.

Why yeah that's a good question because when you look at the the the revenue from system sales it was nearly half of the revenue China but that had everything to do with the low Revenue in the first quarter uh from the fourth quarter last year to the first quarter now was a decline of about 30% you look to the revenue part of uh tsmc Taiwan it.

Was only 6% so the biggest client had only 6% Revenue in the first quarter so and that makes it that China is relatively big in this quarter but normally it is about 20% or so from the total revenue of asml and then asml is still able to to sell lower end machines and mid- critical machines to to Chinese companies and it's only about the.

High-end machines and there it is a little bit trouble and when you look at that in Revenue amount that it's about 5% or less so China is not a big worry and they always say like if if if they don't build it in China the high-end chips they will build somewhere somewhere else and I think about half of the the uh the the chip companies in.

China are foreign companies and they will go out China so it will only be lower end Chinese companies and they buy the lower-end machines will still buy it for a long time and they're very much investing in it so they want to really want to to to to to to win that market so they invest a lot of this low rent machines all right top trending Ticker.

On the Yahoo finance platform just reported earnings and they're expecting 2024 total net sales to be similar to 2023 we'll see what they put forward and continue to give us updates on Yas versic we certainly appreciate the conversation this morning in singer gillison senior analyst thank you well coming up everyone United.

Airline shares moving higher after posting a narrower than expected loss but the company could not Escape Boeing problems we'll break down the report after the break.

a now.

let's take a live look at United stock look at that shares jumping now up over 10% they moov to the UPS side coming after the company reported better than expected quarterly results and this comes despite losing $200 million due to troubles with Boeing's Max 79 Fleet the.

Company is only reporting a loss here of 124 million in q1 again that was better than what this streight was bracing itself for so we want to bring in Nick Owens wining star Industrials Equity analyst Nick it's great to have you here so first just your take on United's results here and really what that signals about maybe Boeing troubles.

Isn't going to be as big of a drag on United going forward as many analysts had initially feared yeah I think that's fair I mean in a way you could say that the damage here was pretty limited they had whatever it was 50 60 planes that they had to ground and inspect and uh you know on 11 billion plus in revenue for.

The quarter they're saying it was a $200 million hit um which was the difference between them uh making money or losing money so to me that just goes to show how narrow the margins in Airlines really are you know I'm I'm taking a look at and and comparing some of the broader industry stats specifically on the TSA traveler throughput looks like.

They kept pace broadly with the roughly six% uh higher passenger throughput that we're seeing in 2024 versus 2023 but on on pricing and the revenue per annual seat mile looks like an aggregate that was only Higher by about 1% just wondering what you make of that Nick well I would say um first quarter is not usually the best quarter or the.

Most representative quarter so they're kind of positioning for the the busy summer and so not not all the um revenue and cost stats will necessarily uh be representative from the first quarter um in my view the the um what I did notice was they had uh a nice jump in the Pacific routes which they tend to benefit from and that's I think because.

Of the slightly delayed reopening that you know came out of China Nick you there still some more legs there yeah Nick when we look at maybe a little bit of a longer term view you are still a bit cautious what what are the biggest challenges facing United and is that could you make that same argument with its rival some of the other larger.

Competitors as well yeah I would say that the group faces a common set of challenges and and to flip that around a little bit they are benefiting from a common set of Tailwinds right now so um even though it's frustrating that they can't get their hands on the planes that they ordered um and they maybe can't hire couldn't hire as many Pilots as.

They wanted to and the FAA can't hire as many air traffic control what that's doing is actually putting a crimp on capacity expansion for the industry which means they get to charge more for the same seat so uh you know they've been booking record revenue and record yields on less than 2019 capacity um my concern then is that if you fast.

Forward a year or two and the planes and the pilots and the air traffic controllers start coming back online if you will uh and if consumers take a break or sort of level off their spending what does that look like for profitability for the industry within that United I think is fairly well positioned they have a nice premium.

Offering they've been doing a great job mizing their cabins and they look a little more like Delta than they used to um and and so they they might do okay but here we are on a 10% up quarter 11 billion in revenue and they barely broke even so so um I just think that um when CEOs are saying things like I've never seen such a constructive environment you.

Want to ask yourself how long will this last right right and and commentary that we'll probably he continue on the earnings call that is not until 10:30 a.m. eastern time I believe here so we're going to be sitting waiting on the edge of our ergonomic seats here as I always say for what that commentary is what do you need to hear from the.

Company and the executive team right now as it relates to the Myriad of headwinds that you laid out but specifically how they're going to need to lock in the demand environment here from consumers given the Resurgence in corporate travel which is tending to provide them a little bit more on the margin side plus this Leisure traveler that we're going.

To see exactly where the propensity to continue to spend into the airline experience looks like yeah I like I said I think United is doing a good job and um what I what I think we're seeing is the the column The Big Three Delta United American have positioned themselves to be able to take share from so-call lowcost uh providers.

Uh so I I've been thinking about it in terms of they they're doing a better job job and even with like the evolution of the business traveler and the bleer travel and so forth they moved away from uh rigidly segmenting on business versus Leisure and they're just saying how much are you spending on your travel and you know what can we offer you um within.

That I think of it as the back half of the plane looks a lot like a Southwest or a frontier cabin um maybe even with a slightly better experience and so they're they're able to compete on some of those routes um and they're taking share there so um that they've been talking that up you know in terms of direct relationships with the customer.

Through the app um you know refitting their cabins and so on they're also talking about paying down debt which is great um and and that's what i' like to hear in terms of just being positioned to withstand what would be a normal downturn some here in the next couple years should customers expect prices to go higher from here.

Nick yes um you know it will be I think another year year and a half before boing has has uh gets a go-ahead to produce more 737s and so I think you'll see a kind of plane shortage story unwinding so so they'll be using older planes a little bit longer and so on and so forth um and just generally not being.

Able to grow the capacity quite as fast as they had originally hoped you you saw some talk in the announcement here about reshuffling their order book and so on and other airlines are doing that too so what I'm driving at is slightly less growth in capacity and as long as we still have this resurgent postco travel demand that just means prices will go up.

By how much um I don't have a percentage but I I've been joking with friends and family that like 400 is the new 250 for an air fair you know interesting Nick thanks so much yeah seriously right Nick thanks so much for taking the time really appreciate it and we know you'll be listening in very eagerly to that.

Earnings call once it starts as well Morning Star Industrials Equity analyst Nick Owens thanks so much thank you coming up everyone AMC surging today we dive into what's behind the upswing that's next.

m now.

taking a look now at AMC which is up again this morning yesterday the stock Rose over 10% despite no apparent news their largest percentage gain since February last week AMC chief executive Adam Aaron did say that chapter 11.

Bankruptcy is quote inconceivable really interesting here uh as we've continued to track the moves in AMC entertainment over the past two days yeah we talked about that move yesterday net net in aggregate two days up 16% right now yeah and I think this also just points to some of the frenzy that has been surrounding these types of names and.

Meme stocks when we talk about the the volatile movements that we've seen in AMC especially over the last several weeks comparing that to some of the Val moments or the valital moments that we've seen in Trump media taking a look at that stock that has really been among the trending tickers here at Yahoo finance over the last several days and.

Take a look at the recent drop that we've seen and then actually today's gain a bit of a bounce back here of just about 70% but the stock though has plunged nearly 70% from the peak last month so a lot of selling action in some of these names that really are not trading in uh in tandem with fundamentals clearly that is a topic.

That we've been talking about nothing new there but when you see these Wild moves in a name like Trump media in a name like IMC clearly it's getting our attention it's getting retail investors attention and and much of that action be really being driven by the activity of retail Traders and then also the public debut of Reddit as well that has also.

Put the spotlight on this meme trade once again yeah absolutely it's it's getting mey again mimic is what it's short for uh everyone just in case you were wondering the scientific terminology behind it but at the end of the day looking at some of these wild moves higher and the swings that we've been tracking I companies like fun.

Ticker simple P hu n I'd seen that tracked that move higher a couple times this year by about 400% during a single trading session on multiple occasions here and so all these things considered I mean it's it's almost like once again buyer beware there's not a get-rich quick that you can just easily execute more often than not and you know for.

Some of these companies that are totally detached from fundamentals it it's wild to say the least to still see this happening yeah and you got to keep that in mind right if you're going to be buying into one of these names clearly maybe you could be lucky and be buying on one of these dips and see massive gains but on the flip side you also got.

To be ready to lose it all right because it's it's not trading any sort of a fundamental AB base and clearly then that really lacks any sort of trigger that really could be to the one side or the other or really any reasoning behind some of the movements that we are seeing all right we'll keep right here on Yahoo finance much more ahead Madison Mills is.

Going to be joining me here at the desk and we are going to be continuing to cover today's top stories that's including Boe whistleblower set to testify to Congress that's going to get underway in just a bit this morning that's right and I'll be back here at 11:00 a.m. for wealth where we will we're going to be discussing United's.

Earnings and what it could mean for your summer travel plans stay right here sh.

oh.

Welcome back to Yahoo finance I'm Shauna Smith alongside Madison Mills we're 30 minutes into the trading day here are top three stories that we are following first starting off with stocks coming off a three-day losing streak following hawkish messaging from feter JP who said that it would be appropriate to give restricted policy more time to work.

You're looking at gains across the board the Dow now up just over 120 points and those Gams following that hawkish commentary but also fueling the gold rally with gold holding steady near its record highs looking flat to relatively unchanged and that is coming despite higher bond yields and a stronger dollar both of which are typically headwinds.

For the precious metal and Boeing is back in the hot seat as two Senate committees are set to scrutinize a plane manufacturer safety culture the first hearing is getting underway now a panel of Aviation experts are testifying in front of the Senate Commerce Committee then later on this morning at 11:15 a.m. eastern the latest Boeing whistleblower.

Will testify before the subcommittee on investigations now for a deeper dive into one of those big stories that we are watching we got to start with Boeing an independent expert panelist testifying before a senate committee on Boeing safety culture now this hearing will be followed by another at 11:15 a.m. eastern time where we will hear.

From a whistleblower who's going to lay out some concerns about the company's 787 Dreamliner jet during is now what we can expect what this ultimately means for Boeing our very own Alexis Keenan Alexis hi lady yes so this first hearing it is basically an agency within the FAA that's going to be giving a report to lawmakers about their findings on a.

Report that was looking into the safety culture at Boeing and what they say in this report that is on paper right now we'll hear their testimony to get more color on this is that there is a disconnect between the Senior Management at going and the rest of the organization and they say that is causing problems in internal safety.

Culture at the company but secondly is this 11:15 hearing and that will also be in front of Senate lawmakers and that is going to be from Boeing quality engineer turned whistleblower his name is Sam salipur and he is expected to call for the worldwide grounding of the 7 87 Dreamliner that's that widebody jet that Boeing has struggled to get off the.

Production line in the expedient fashion that they had wanted to back in 2011 when these planes started to come off of the production lines there now there are 13 of these planes in service but what salipur is saying is that in his experience working on the Dreamliner he says he was since retaliated against by Boeing and moved to another section of.

The company but he said that gaps in the fuselage of this plane which is made by different companies and comes together at the Boeing factory that the gaps which are about the width of a human hair that they're too big and they're too wide and that under the stress of flying conditions over a long period of time that the plane could actually break.

Apart in midair now those are some serious claims that's why he's saying he wants this plane to be grounded but in response here is what Boeing is saying they say that these claims about the structural Integrity of the 787 are inaccurate the issues raised have been subject to rigorous engineering exam examination under FAA oversight this.

Analysis has validated that the aircraft will maintain its durability and service life over several decades they say and these issues do not present any safety concerns Boeing held a reporter's uh briefing on Monday to elaborate on what they mean here and what they say is that the stress conditions the testing that they have put this aircraft under over.

Its time uh being in production that they have gone far beyond the lifespan in testing this aircraft from what would be expected they say that uh they have put it through 165,000 takeoff and Landing pressurization scenarios and that that would be 3.7 75 times the designated lifespan of.

This aircraft so they're saying something widely different than salipur is saying but we're expecting a lot more detail as we listen to him later this morning and we're looking at live footage right now from Capitol Hill as well as this first hearing that you mentioned starts to kick off I'm curious though how much are we going to learn.

Today how much news can we actually get out of this particularly given some of the executive changes that have been going on at Boeing right so we aren't going to hear from Boeing at this hearing they were invited to have a voice here so we're not going to hear that we're not going to hear a response uh certainly I would think Boeing would.

Want to have a controlled response to these very very serious planes these planes are in the air there are 13 of them that have been delivered to customers uh but look we don't know uh he's represented by Council salipur uh so we might very well learn more about the details of these gaps uh Boeing has put out quite a lot of information about.

Their design and their testing uh but maybe he will have some insight as to why he thinks that that 165,000 hours is not enough Boeing has certainly said along the way that already the aircraft in service they've been tested as well they undergo regular service requirements and they say in those conditions then too they did not see any.

Uh problems with these gaps in the aircraft uh so maybe a lot to learn maybe a little to learn but we'll certainly bring you the information on the backside of this hearing all right Alexis thank you so much for bringing this to us and for covering it as it breaks here really appreciate it we are going to continue to cover stocks here.

Moving higher after over half of the S&P 500 stocks hit their one month lows on Tuesday that is the most since the 2023 banking crisis and this comes after fed share J Powell said that it could take longer than expected to tame inflation investors are now repricing the likelihood of rate Cuts this year with a 58% probability of rates staying at.

Their current levels in that July fed meeting that is according to the CME fed watch tool for more on this we are joined by Jerome Schneider Pimco head of short-term portfolio management thank you so much for being here with us this morning I know that you've mentioned that there's a lot of noise in fin financial markets and that's why we're.

Seeing so much whip sign when it comes to the data when it comes to Fed speak what do you make of the reaction that we've gotten to Fed chair Powell's commentary yeah we've come a long way over the past few months and rationally investors have continued to recalibrate the data that's come into the marketplace with regards to inflation.

And more importantly with regard to the more higher than expected growth patterns that we've witnessed from that perspective we actually are getting an emphatic response from the central bank here both chairman pal as well as Vice chairman Jefferson yesterday emphatically said that we are simply seeing inflation too high in the data.

That they can't ultimately move to a lower Benchmark rate as a result so the easing bias that many people had expected earlier in the year seems to be evaporating here pretty quickly the markets have actually digested pretty well this information especially over the last few uh pieces of not only job data but also inflation data but from.

That perspective we're seeing the markets really digest that we are going to have higher rates for longer and in doing so we are finding that risk assets generally have tolerated it yields have moved higher in calibration expecting this higher for longer Mantra and investors really should begin to think what that means for their portfolios.

Longer term and ultimately what we're finding here is that yields are relatively attractive really attractive compared to where we've been in the longer term but in the near term we're finding that there's a lot of fair value to be had in the front end of the Yi curve really the 0 to 10e space uh to be more precise and in that construct what.

We need to do is construct portfolios think about the opportunity sets that the FED has effectively afforded us because the fact that they're going to be on hold for a little bit longer than they expected and more importantly when we ultimately see them begin to cut put yourself in the position to have some price appreciation in bonds by adding a.

Little bit of interest rate exposure to this point given the rationalization and recalibration to the higher rate regimes that we've seen in the recent weeks 30 basis points over the past four weeks or so across the curve is something to really be be put us into that fair value range and we think that it's an entry point for investors to begin to consider.

Adding a little bit more to their fixed income component of their portfolios yeah J it makes sense just the opportunity that you're seeing here for investors to kind of lock in some of those higher yields I I want to get though more specifically to the movement that we've seen higher especially when you take a look at the move in the 10.

Year when you take a look at the move in the 2-year here how much higher do you think yields are potentially going to go at least at the short end of the curve with this concern about this higher for longer scenario I guess how much of that do you think is priced in at this point great question shaa we see we're ultimately seeing a rationalization that.

There's probably going to be a little bit less than two rate Cuts over the course of this year and a handful of rate Cuts next year I think there's uh you know while one hand we're probably in the vicinity of fair value for both the two-year and the 10year point um I think investors are trying to be a little bit too precise in terms of.

Handicapping and and actually trying to predict what the Federal Reserve is going to do while there is a non negligible possibility that the FED does not cut rates this year the reality is they're probably going to signal at least some accommodation along the way however modest it is for from a practicality perspective it's probably.

The 2025 Outlook that investors really need to be begin to think about not necessarily from the fixed income perspective but what higher rates or longer mean for risk assets Al around around the world and ultimately if we don't see as many rate cuts that are forecasted in 2025 come to fruition that could actually have some type of effects.

On the pricing of risk assets and the appetite of risk Assets in the longer term so in the near term we actually expect the Federal Reserve to do two things probably continue to push out their expectations of rate Cuts in the near- term and then more importantly pivot to a less less uh less um less important uh but less important facet of.

The policy effort which is f focusing on their balance sheet and begin to adjust their quantitative tightening which is in the background and really doesn't necessarily have much impact to rates and risk appetite but is an important component of monetary policy as it has been in recent years so we'll begin to see some modest adjustments in their.

Messaging along the way but again Jerome pal has been emphatic in the near term and will continue to be so about defending inflation as we get longer into his term and closer to the 2026 expiration of his term he's going to be really focused on one thing which is focusing on how inflation has been has been diminished and approaching that 2%.

Threshold and he's going to do what it takes to do so even if it means delaying the rate Cuts along the way near-term I think that this delayed easing cycle will unveil a series of opportunities as I mentioned to really optimize allocations around the investment World favoring a little bit more fixed income along the way despite the prognosis that.

Feder fed Cuts might be pushed out a little bit longer at this point in time and I'm curious as we start to wrap up here our conversation about what we're seeing in the 2-year and the 10-year are those is the growth Story the same for both of them is one a growth Story one an inflation story are they moving off of the same narrative or is there a.

Difference there it's very possible but a s very very important that growth and inflation are coming in a metric for across the curve but the inflation metric is is a little bit more poignant in terms of that 10 year point for several reasons while the two-year point is more susceptible to Federal Reserve policy changes specific speically.

Benchmark rate changes which currently are affected by inflation data longer term the term premiums that you'll see further out the curve in the 10year sector and the 30-year sector are really predicated upon term premiums driven by longer term inflation expectations as well as Supply considerations and so when you have that in play you're really.

Thinking about how the shape of the yield curve which is still negative mind you by about 30 basis points needs to recalibrate to a more normalized level where 2-year yields and 10year yields are equivalent and eventually reflect a normalized yield curve where 10e yields are higher than two-year yields that will happen over time but currently.

Doesn't reflect that and in that case inflation and term premiums have much more effect out the yield curve which is why at Pimco we're thinking about the yield curve as having a steepening bias over the intermediate term and ter outside of the US are you seeing opportunity in international bond Mark Bond markets and if so where without a.

Doubt and I think this is where a differentiation and where the US exceptionalism is actually cre ating opportunities for investors uh on one hand while we think we're pretty close to fair value and some yield determinants in in the United States when we look around the world we're going to see some more aggressive.

Central Bank policies toward easing reducing Benchmark rates in the near term those places are such as Canada Australia uh even England in that matter and the ECB we could find ourselves in the world where those central banks move more aggressively versus the United States and create some outperformance meaning their yields will move lower.

Creating some price appreciation compared to the United States fixed income position so we are finding some of those relative value opportunities across our portfolios not only in the short term as we encourage investors to move out of bills and into some longer term fixed income but also more broadly speaking as we look at to relative value.

For investors who hold for the longer term fixed income in their portfolios Jo mider we really appreciate your Insight thanks so much for taking the time to join us here this morning Pimco head of short-term portfolio management thanks so much well coming up Boeing's first hearing is underway on Capitol Hill we.

Will bring the latest from DC when we come back.

P sh Boeing is in the spotlight today with.

Two back to back hearings on Capitol Hill the first hearing is currently taking place where Aviation experts are testifying before Congress regarding Boeing's safety concerns you're looking at live pictures of that hearing right now on Capitol Hill now the second hearing is going to include a Boeing whistleblower which is set to start at.

11:15 a.m. eastern time this morning well Boeing has denied the claims surrounding the safety of its 787 Dreamliner aircraft we just heard from Senator Ted Cruz a few moments ago and here's what he had to say about boing's current situation while it is clear that Boeing's culture and safety management.

Needs drastic improvement we should not rush to legislate just for the sake of legislating for more on what to expect from these hearings we want to bring in Richard saffron he's Cort research Partners managing director and Senior analyst Richard it's great to have you here so so Boeing is facing multiple.

Investigations from Regulators also from lawmakers just your assessment of what we're expecting to hear from the two testimonies happening on Capitol Hill today and how significant this could potentially be here for Boeing good morning thanks for having me so um f first off um you know I'm I'm a a bit cautious and I think investors should.

Treat this with a bit of caution skepticism so far about the claims made so far in the 787 uh so I wouldn't necessarily act on what we've heard so far I think second point is I think a lot depends today to your question on the evidence that I understand from the attorney involved is going to be presented today you know if the claim.

Has Merit uh there should be some documentation that Boeing signed off knowing that there were were were defects in workmanship and that could affect the useful life of the airplane or at least some data uh that would support the claim uh that refute what boing's been saying that about the uh the useful life of the airplane now I if.

The claim has Merit to to to the impact question you asked if the claims have Merit big if uh obviously this this would be a devastating blow to Boeing uh on the order of of we've been seeing with the max um aside from the likelihood of another production cult if there is a known defect uh there would be penalties investigations all the.

Airplanes in service would need to be repaired at some point uh if this is determined to be a a safety of flight issue but you know I I think the main point here right now is that uh we we've seen no evidence whatsoever yet uh that I'm aware of or data to support uh support the claims that The Whistleblower has has been making so.

I'll be eager to see uh uh what's presented today if anything Richard how much do you anticipate us learning today given that executives are not going to be speaking I know you mentioned wanting to hear more about the data piece what are you going to be listening for given again that we're not going to be hearing from Executives at the top of the.

Company today well you know the company um H has has responded prior to this hearing to to these whistleblower hearings um and thought it felt it interest that they felt it they they went out and replied uh with two line managers on the 787 with data so to answer your question uh what I'm going to be looking for today is is the uh the.

Evidence that's going to be what I think we're going to learn is what evidence there is to refute what bowling has been saying uh the quality of that evidence and whether or not this whistleblower's claims um have any substantiation to them I think that's probably in my view uh the most important thing I think you're going to get out of the hearings.

Today Richard I think customers would probably argue the evidence is the plane having Parts fly off during flight what do you make of that piece of things the idea that consumers image of Boeing has already been tarnished by this and therefore of course that could put pressure on the stock moving forward well you know first off um good.

Point you know uh those issues you know with the uh W with the door of course we're on the Boeing 737 Max uh The Whistleblower appears to be making claims as far as I understand it on the Boeing 787 and some on the Boeing trip 7 so first off you know just a a bit of a a Nuance there but but but a a different one but your point is well taken uh you.

Know Boeing needs to do three things here uh they need to understand Lessons Learned develop a good understanding what the issues were what went wrong uh implement the changes and hopefully uh the new CEO and the 90-day plan that we're working on right now does that they need to execute um after the dust settles management needs to keep.

Execution is top priority and as you say um a major thing here that they need to do is restore the brand uh restore the public trust uh that includes Regulators customers uh as well as the flying public you know people like me um you know who want to get on these airplanes so I think that's really an important point right now uh as you say to that.

They're going to have to make an extraordinary effort to restore the brand and the trust and and Richard to that point also seen this willingness from Senator Senator Cruz we just played a clip at him um at the top of the interview included just in terms of ramping up that oversight what do you think just in terms of what we hear.

Today how today's hearing or do you think it at all is going to give us a better idea of how that oversight could potentially Shape Up and what it could ultimately look like I think it's pretty clear we're going to have more oversight um I don't think since the plan isn't complete um and there hasn't been a lot of time uh between uh you know when.

These incidents first cropped up uh that the FAA has a clear understanding of what actions it needs to take so I'm not expecting um a lot in terms of being able to answer your question today uh to come out of the hearing about what actually is going to be implemented you know there already have been you know certain changes made Etc but the uh the.

Changes that Boeing is going to make and The Regulators are going to need to make uh I think are still being ironed out um and I think you're going to have to wait at least until the 90-day plan is completed and they've had a chance to figure out how they're going to implement that Richard we're gonna have to leave it there but thank you so much.

For joining us and giving us your insights on Boeing really appreciate it that was Richard saffron seport research Partners managing director well Shar of Eli Lily are rising this morning on news that its weight loss drug helped reduce IR regular breathing in patients with sleep aptia and recent late stage trials here with the details we have our very.

Own health reporter anelie camani Angelie that's right this really adds to the list of what we know Zep bound Eli Lily's glp1 product is going to be set up for we already know that these glp products are being looked at for solving multiple problems and now Lily has an opportunity to it says midyear apply with the FDA for an expanded label for.

Zep bound this adds to what we also know Nova nordis just got which is the cardiovascular benefit if we look across the board there are a number of other opportunities that both Lily and Nova nordis are looking at that includes liver as and as well as kidney treatment so there are a number of other opportunities that we're going to.

Probably be seeing coming down the pike but as of right now uh Eli Lily gets this one with the benefit for sleep apnea improving the uh or rather reducing the number of incidents uh throughout the night in which the Airways are obstructed and so that is the good news that they've had in this late stage trial and like I mentioned.

Going to be applying with the FDA for that expanded label so doctors can prescribe it for that purpose as well as sorry the 20% reduction in weight later this year all right anelie thank you so much as always for bringing us that news now coming up here the S&P 500 has been on a wild ride this month is the path higher can be any smoother we're going.

To discuss that coming up next f.

stocks are climbing higher almost in now we're into the trading day looking like a mixed picture across the boords of the NASDAQ just switched over into relatively unchanged territory here not a ton of momentum though with the S&P 500 snapping their three-day losing.

Streak after dropping over 3% over the past couple of days here that coming after strong strong economic data and sticky inflation causing investors to question rate cut expectations so is the market still pricing in smooth sailing for the FED likely not our very own Josh schaer here with more Josh what's going on yeah probably not smooth sailing.

Right guys and I think that's sort of what investors should expect even though that's not what we got for the first quarter right so we wrote today in our Yahoo finance morning brief newsletter specifically in our chart of the day it was from Keith learner over a Crest and he highlighted this chart here which is your average decline that you see in the.

S&P 500 in a given year the average pullback there is your dotted line that's 14% right now this year we've only had an in-year pullback of 4% % this is basically to say on on average all else equal we normally come back a little bit more than this and I think it was just a good reminder for people after this just sort of ripping rally.

That we've had over the last couple months that it is okay for stocks to pull back it is normal for stocks to pull back there are plenty of strategists that would come on this air and might tell you it is actually good for stocks to pull back and not just go up in a straight line and I think the other thing to point out with that is if.

We do get a bigger drop down right and you think about some of the years you saw in that CH 2020 2016 2010 2009 we had rather massive draw Downs in those years you could see the light blue dots go significantly down pick out a year like 2020 just a couple years ago the the draw down is huge but stocks actually close higher for the year so.

Basically to say be patient weather the storm that seemed to largely be Keith learner's advice from TRU is here but he did say he thinks the path forward is going to be a little bit bumpier guys and I think we heard some of that this week in commentary from Cher poell and other news we have heard that and and also to his point there you look at some.

Of the fundamentals of the market right especially when we talk we were just talking to bski last hour and he was saying it all comes back to earnings right we could talk all we want about what the FED is going to do next yes ultimately does matter some point here but really the driver of the market this year and what is really riding on is how.

Strong earnings results are going to be not only for this quarter what we're in the middle of getting right now but also what that path forward looks like for the rest of the year and you couple that with the fact that the economy obviously has remained resilient which is good news here for for earnings here going forward and then also the fact that yes.

We have seen some volatility within the commodity Market but we haven't seen huge spikes to the upside right when you take a look at the price of crude when you take a look at some of the other movements that we have seen so so with those risks kind of being outlined and and learner talked about this and is no to it points the fact that yes to going.

Back to what you were saying this momentum to the upside here or reasons to be positive on the market going forward those calls still remain intact oh definitely right and we're going to get a lot more information on that over the next couple weeks too I think and I think that will help sort of maybe drive a more clear picture for the rest of the.

Year right now consensus expects earnings in Q4 to increase year-over-year by 17% that's a big number like that's a really big number we're talking about there and if you want to argue that since that's been consensus for a little bit now it's priced in to some extent as it comes down how does the market react what do.

We hear about guidance I think for the rest of the year out of this quarter is going to be a big deal right now one stat I was looking at this morning guys this was over from evercore which just stocks are seeing a much larger negative reaction if they miss on EPs and sales in the next day than they normally do only about a little over 50 S&P 500.

Companies have reported in q1 this is per Julian Emanual but he saw a 10% decline in stocks that Miss on EPs and revenue the next day that is more than double earnings if you're not living up to those expectations or maybe if you're JP Morgan even raising those expectations to where people want them to be you don't quite see the stock.

Reaction right and again keep in mind a stock like JP Morgan Had rallied over 40% in earnings right so maybe it didn't need to go up any higher but I thought that was a little interesting tidbit when you look at a big company like that that has done very well this year not raising it to the level that people want I think will be something to watch maybe.

Perhaps especially into Tech earnings exactly the expectations are pretty high there yeah and that's great to point out right because just meeting expectations clearly not good enough for the market especially when you take a look at the current value levels like you were just saying and specifically and some of those names that have really.

Outperformed the broad Market by a wide Market we're still very close to alltime highs like that's something to keep in mind yes we've pulled back a little bit but we're still pretty close to as high as we've ever been you're going to need a real reason to keep moving higher yeah makes sense all right Josh thanks so much well the great rate debate.

Continues whether or not the FED is going to cut when the FED is going to cut Fed chair J pal signaling that rates could actually stay higher for longer as inflation remains stubbornly high so let's talk about what let's listen to what he had to say on that yesterday so we've said at the fomc that we'll need greater confidence that inflation is.

Moving sustainably toward 2% before it be appropriate to ease policy the recent data uh have clearly not given us greater confidence and instead indicate that it's likely to take longer than expected to achieve that confidence so let's talk about that rate cut timing and what it could look like joining us now on that path forward we want to.

Bring in Lauren Baker an economist with ITR economics Lauren it's great to have you here so much for joining us so just give us your perspective in terms of feter J pal saying hey maybe it would potentially make sense to wait a little bit longer for that First Rate cut what is your base case right now what does that ultimately mean here for the.

Economy well the CPI uh result last week and certainly his comments yesterday did push back consensus a bit we had been more confident in a a June cut I still think June is not off the table entirely I don't think three rate Cuts this year are entirely off the table but the movement at this point is pushing back toward a September uh for being the the.

Timing of the first cut we do have a lot of data uh coming still before that June meeting so we'll see if March was just a blip or if that is more of a consistent Trend what is it going to take to make not only the market of course but also the macro Viewpoint kind of suffer from the amount of data that we're getting I I understand that the commentary is now.

That this is Bumpy and this is just the path towards disinflation but when does that start to buckle and when do we really start to say yeah June is just it's not gonna happen well I want to be absolutely clear we are nowhere near the story of disinflation buckling so even though that March number did come in slightly.

Higher than expected there was a tick up especially in certain components we are still well off those highs of CPI that we saw last year so the disinflationary story is still very much intact um we never want to assume a trend out of just one month of data but again the path to 2% is what we're questioning how long does it take to get there I don't think.

We have to get to 2% J pal has been very clear on that we don't need to reach 2% before the FED begins Cuts but we do have to be moving as he said consistently in that direction what do you think is going to give them a bit more confidence what level would you say not exactly but just giving us a better idea if it's not 2% what do you think.

That range then potentially is I think what's more important even than the headline CPI number is the wage inflation data so the FED does want to see the labor market cool off wage inflation has been one very sticky aspect of inflation we see a lot of more Cooling in say the goods side of the world than we do in the service sector.

So service costs need to come down wages do need to cool off a bit um that's what's going to give the FED more confidence that we're moving consistently in that direction that cuts are merited and I know you know also that the US consumer continues to be strong with the labor market which of course is part of the fed's Dual mandate.

And that's certainly part of the thinking there Lauren thank you so much for joining us really appreciate it that was Lauren Baker joining us to talk about what's next for the FED now coming up does the gold rally still have legs we'll speak with a strategist on what's next for the precious metal that's after the break.

all right well stocks uh have really off to a strong start of the Year overall the AI excitement really fueling that momentum to the upside it's pushed the major averages to those all-time highs.

Now for investors looking to buy into this craze there's more ways to play AI they may be those obvious names when you're thinking Nvidia and Microsoft Morgan Stanley out with a recent note looking at companies that are actually actually powering AI calling out a few of those hidden AI gems joining us now we want to bring bringing Steven Bird.

Morgan Stanley Equity analyst to discuss Stephen it's great to have you here on Yahoo finance so talk to us just about your thesis here because I think a lot of investors when they're thinking about joining in on AI they want to get a piece of this massive rally they're thinking of those obvious names you're though looking at some of those.

Companies that's powering AI what's the real opportunity here for investors and why yeah thank you for having me the opportunity really here is around the infrastructure it it's very understandable the first Port of Call is in we we understand that and support that but the infrastructure required everything from power generation Power.

Electronics data centers themselves that growth rate is set to accelerate many of those stocks have not participated in the rally that the first derivative AI plays really have and that's essentially the call so talk to us then about your data center economics model in particular you talk about how the cost of compute is falling what is driving.

That and what is that indic to you about certain trends that investors should be keeping up to date with yeah I have to say uh I was very surprised at the results of our assessment of data center economics we see about a 50% drop in the essentially the cost of comput cost cost of computation in these data centers that's really all Nvidia uh it's these.

New chips that are just much more efficient and that's flowing through the entire ecosystem as those costs drop we think demand for a variety of geni applications will rise and that's essentially the thesis of our view of gen adoption across many Industries that's just going to Spur demand higher and that's going to create even more.

Demand for the infrastructure for the nuts and bolts all the power that's going to be required for uh for all these data centers Stephen how underappreciated do you think this opportunity is at this point by investors you know it's interesting the uh there are a few obvious plays that are part of uh the infrastructure.

Dynamic but there are many many companies that are key enablers that are not well understood so for example Bloom Energy a fuel sell company the stock has not done well and yet that's the type of technology that can allow data center companies to very quickly get new data centers operational whereas Constellation Energy it's a stock we.

Like very much ticker ceg stock has done very well we support that we really walk through in detail the economics for a big nuclear player like constellation it's very likely that we're going to see extremely large uh data centers really essentially supercomputers cited at existing nuclear plant so that idea has captured a lot of investors attention.

Whereas other names like Bloom really uh has have really has not gotten any attention at all and when you look at Bloom Constellation Energy and you mentioned that they're not getting a ton of attention which is great for our audience to hear maybe it's a good time to get in but what was the biggest thing you looked at in terms of the.

Fundamentals when sussing out those picks so we can try and kind of mirror your understanding absolutely so one thing that also uh surprised me about our analysis is is time what I mean by that is for data center developers or hyperscalers time to getting powered up is absolutely critical it's incredibly valuable economically so we looked at a.

Variety of companies that could essentially speed up the time to power constellation can do that with their existing nukes you can fairly quickly site data centers at a nuke Bloom Energy's fuel cells can be deployed in 50 days and so that's a very fast solution that I think the market is missing what we're using to seeing with.

Data centers just connect the data center to the grid then get some Renewables you're good to go that's running into problems now because the grid is so congested so Bloom provides a solution at a low cost uh it's just been missed because the conventional thinking hasn't really fully changed into this concept that look the grids are.

Constrained and time is absolutely critical so that that's really the lens we've been looking at and Stephen put this opportunity even in more perspective for our viewers how early are we in this adoption cycle when it comes to Ai and then what does that tell us just about some of the future gains and future growth that we could see from.

Some of these companies like Bloom Energy that we have up on the screen that's such an important question we think we're very early days and I say that because we look at the pace of Nvidia chip Evolution evolution of chips from others as well we look at the future compute that's going to be needed for Gen more broadly we see very rapid.

Growth gen growth in terms of electricity growth is is going to be about 100% a year from many years to come and what's interesting to me is as the cost of compute drops new use cases show up so the demand for compute is only going to go up and up we're extremely early days in this Dynamic and now investors are just really starting.

To look across what I think of as the value chain to providing the power to these data centers so we're very early days in that regard all right Stephen bird great to have you here thanks so much for hoing on with us on Yahoo finance Morgan Stanley's Equity analyst thanks so much Stephen let's do a quick check of the.

Market just about an hour and 1550 minutes into the trading day you're looking at gains for the Dow and the S&P the S&P just above the Flatline the Dow has I'm talking here falling back into negative Tor as well as the NASDAQ the NASDAQ off about a tenth of a percent we'll be right back.

a we're going to do a quick Commodities check here starting with WTI crew.

Dropping below that critical 85 bucks a barrel this morning and this is coming after a US Government report by the way showing that there has been an increase in inventory and of course following Iran's attack on Israel this weekend awaiting kind of that geopolitical tension to continue to fall out here but we see that oil has been moving a lot.

Over the course of the day I want to take a look at the past six days here just so that you can see the amount of volatility after oil had hit those highs last Friday I also want to take a quick look at what we're seeing with gold if we continue to see this bifurcation in the Commodities space gold up a little close to 2 and a half% over the past six.

Days here in this coming as we're seeing movement in the bond market going higher and also strength in the US dollar so that's a little bit weird when it comes to the movement that we are seeing in gold and then I want to end by taking a look at our old friend Bitcoin struggling here in the trade seeing that they're down about 8/10 of a percent I.

Want to pull up what Bitcoin has been doing year-to dat just to show that that's a little bit abnormal right we've been kind of around this trading range here for Bitcoin starting to see it dip below that critical level so question remaining about whether or not we're going to continue to see more downside for Bitcoin moving forward all right.

Maddie well let's a zero in on one of those Commodities that you were just talking about and that is gold because we have gold hovering just around that record high the precious metal up over over 15% since the start of the year thanks to Sticky inflation in the US also geopolitical tensions abroad so how much more room is there for gold to run.

We want to break it all down with Jim steel he's hsbc's Chief precious medals analyst it it's great to have you here James so let's talk about this runup that we've seen in the price of gold because we have prices studying right around those record highs what do you think the movements of the last few trading days what does that tell us then.

About potentially or lack thereof much of much more room uh to run here to the upside well I think you have to look at the uh thank you for having me by the way and uh I think you have to look at the Genesis of the move and in addition to geopolitical risks which are significant uh We've also had a lot of extraneous uh players coming into the.

Market in the past several months who I think are not so much interested in the price of gold as such uh but they wish to hedge their equities exposure uh there's a lot of debate in the equity markets about how high equities can go and many uh managers fund managers uh pension managers Etc have no uh alternative but to be in in equities.

But they do have a choice about uh if they hedge and if they hedge that risk and and gold is a proven Safe Haven in that regard um so we pushed it to levels where we've got a lot of momentum trading in now and I think that's where we have to be uh somewhat uh concerned that uh if we get some days where things are static we could get a pull easily.

Get a pull back uh in the price and in addition we're seeing a lot of demand destruction on the physical markets going on bars coins jewelry it's getting very expensive uh for Price sensitive economies to keep buying the underlying physical so is there too much greed in the gold trade right now well greed's a term that I that that.

I wouldn't necessarily uh use U but um I think what we've seen is is signals uh that have brought in a lot of momentum Traders and um they may or may not uh be be well versed in the fundamentals of gold but but the signals have been there uh to buy because as you pointed out the Market's gone to near record highs in uh nominal ter in in nominal terms I I.

Would point out for for your for your viewers that um gold hit $850 an ounce in January of 1980 which have converted into uh today's dollars is 3,000 around $3,200 now I'm not saying we're going to go there by any stretch of the imagination so please uh don't don't think I am uh but I would point out that.

From a realterm perspective uh we're not at historical highs what do you think these high prices tell us just about the odds that some of these central banks are going to liquidate some of their gold Holdings does that make it more likely and I guess what's the ultimate impact then on the price of gold well so far they've been good buyers um almost.

One out of every three ounces of gold that was mined in 2020 2 uh went into a central bank and not and not much less uh in 2023 now I think we have seen some slowness uh uh this this year uh you know they're aware of the price as well um uh and uh and it is high it's possible that for some gold producing countries um we could see some C Some.

Central banks um have been sellers the the IMF released data a couple of days ago that showed a couple of central banks uh were sellers in Market um uh but I do think uh over the long H That central banks are on on balance on a committed by program but they certainly don't have to buy at the repetitious rate they did in the last.

Two years Jim I'm gonna have a cross Commodities question for you in our final minute together uh we're seeing that the dollar is stronger yields are higher and gold is rallying and typically these things are inversely correlated what do you make of the movement that we're seeing across those different assets you're absolutely right.

And that's a very astute question and this is not usually a good sign um but there's a lot of fundamental economic argument to to argue that gold is the world's uh uh Supreme hard asset the dollar is the world Supreme paper us they should be inverse and they usually are and when they both move up together it's usually a sign of elevated risk but.

It also doesn't last in the long run all right well we're going to have to leave it there that was was really helpful Jim thank you so much for joining us Jim steel HSBC Chief precious metals analyst now the Bitcoin having is nearly upon us every four years the reward for Bitcoin mining is cut in half to reduce the amount of coins in.

Circulation to break down what this means for crypto prices and stakeholders we have our very own Brad Smith Brad hey yes one of the largest crypto events just days away why does Bitcoin having happen though that's the big question that many new holders or holders might be asking well it helps keep the currency scarce so it stays valuable in.

The past we've seen the price of Bitcoin rise after the having but it's not guaranteed on the other hand not great for miners companies like marathon and Riot the rewards that they generate will diminish and talks of consolidation will probably make its rounds here now take a look at some of these crypto miners that we've got pulled up here on the Yahoo.

Finance Jumbotron behind me and one of the huge things even if you look out more broadly over the year-to performance all of these companies are down and down bad when you think about the number of companies and the amount of output and energy that they need to continue to make sure happens in order just to mine now a smaller reward for.

Bitcoin that places even more pressure on their operating costs so that thrusts them very much into the conversation of whether or not they could be a target for an acquisition but all of these things considered it's going to be interesting to also track some of the other major cryptocurrencies as well here because that is noteworthy.

Especially in the Bitcoin having where there is another new event for many potential buyers to enter into the market across the cryptocurrency landscape but make no mistake about it it is the another another massive event for Bitcoin and for all the ETFs that have come about this makes it even more of onus on them to know exactly where.

They're purchasing Bitcoins to go or Bitcoin to go into their ETF holding that they have with new inflows of customers as well or purchasers into those ETFs so all these things considered Bitcoin year to date still up 38% larger question of where do we move after this newest having coming forward in just days shaa Maddie so technical.

Event but it sounds like it could have a massive Ripple effects here when we talk about the prices of Bitcoin and then of course the minors and everything that you just laid out there right Brad great stuff thanks so much got it well we're 90 minutes into the trading day so let's take a look at where things stand right now and you're looking at Red across the.

Screen dowp and Nasdaq all trating to the downside you got the NASDAQ as the worst performer of the three major averages off just about a third of a percent but stick it right here keep it right here on Yahoo finance because coming up our brand new show wealth Brad is right there with the W on the screen has all your personal finance needs he.

Will have you for the next hour stay tuned.

now you hear the music you know what time it is welcome to wealth I'm Brad Smith and this is Yahoo finance's newest guide to.

Building your financial footprint our community of experts will give you the resources tools tips and tricks that you need to grow your money on today's show oh my gosh yes vacation all I ever wanted vacation have to get away summer travel we have an expert to give you the tips and tricks to book an affordable affordable Fair out there and housing.

Hurdles quite like my being able to announce and pronounce affordable we'll bring you the math that's giving and keeping housing inventory so low plus your new family car Yahoo finance tries out the all new three row electric crossover SUV from Kia the ride along that you can't miss here we're about an hour and a half into today's trading.

Session though and we want to bring you three of the driving factors moving today's markets here with more we've got Yahoo finances Alexander Canal hey hey Brad first up let's take a look at the major averages we're looking at a bit of nothing here across the board all three major averages largely hugging the Flatline here as both the S&P 500 and.

NASDAQ Composite look to snap a 3-day losing day streak comment AR from fed share Jen pal pushed those indexes lower on Tuesday after the Central Bank leader said the FED needs to see more progress on on inflation before cutting rates and the travel sector also in Focus today with two back-to-back hearings centered on Boeing the first is underway with an.

Independent expert panel testifying now before a senate committee the panel saying there is a disconnect between Senior Management and the rest of the organization when it comes to Boeing safety culture as for the second hearing we just minutes away starting at 11:15 a.m. eastern a whistleblower will lay out his concerns about the company's 787.

Dream liner jet he is expected to call for the global grounding of those planes the double hearing comes as United Airlines reported a $200 million hit from Boeing 787 Max 9 groundings that happened earlier this year both United and Boeing are top training tickers on Yahoo finance today plus we are tracking oil prices crude falling below 8 bucks a.

Barrel the third consecutive day of declines following Iran's weekend attack on Israel gas prices have risen slightly over the last week with a national average sitting at $366 a gallon that's 4 cents higher from one week ago Brad all right Ally thanks so much the three things moving markets here today let's turn to a trending.

Story now United Airlines first quarter earnings report shares of the airline Rising after reporting an upbeat forecast for the second quarter despite incurring a $200 million loss in q1 from the grounding of the Boeing 737 Max 9 aircrafts the airline also cut its expectations for the number of ordered aircraft that the operator will receive.

This year if you're United traveler or just planning your next trip there is a big takeaway and it has to do with consumer demand in the first quarter United counted over 39 million passengers that's up nearly 7% from a year ago that percent changes slightly exceeding the increase in TSA screenings which is 6% higher compared to 2023 we.

Also know from United's report people paid about 1% more per available seat Mile in the first quarter for their flights so what does that tell us the demand for airline travel continues post pandemic and people are paying more albeit not too much more for their flights on the earnings call the United Airlines Executives saying that the.

Airlines continuing to see some positive demand across all consumer segments right now shares having their best day in about a year a little bit over that up by about 12% right now for ticker symbol U while United was the latest airline to report its quarterly results Tuesday despite its latest issues with plane groundings and safety concerns it.

Managed to report a narrower loss than analysts expected thanks to the continued high demand for travel that Airlines have seen these last few months so can we expect the demand picture to remain this hot through the summer that very topic that they were talking about on the earnings call joining me now on this we've got Brian Kelly founder of.

The Points Guy Brian great to speak with you great to get some tips from you as well even amid this high demand environment that all of the airline executives are speaking about I was listening into the United Executives on their call I spoke with Delta CEO at Bastion last week after their earnings how can consumers still find deals in.

This environment of high demand yeah there there are still deals out there you know I'm booking some European trips right now so I'm in the thick of it I actually just saw uh in August what I'm noticing in June and July I think due to the Olympics especially airfares are much higher August is normally the more expensive month but this year I'm seeing.

Better deals New York to parts of Italy for $4,000 in first class on British Airways I was Finding yesterday you know last summer we saw business class56 $7,000 Fair across the board so there is you know while I think I agree that airfare this summer is going to be about the same as last year there are still deals out there and my biggest tip for.

Those searching for flights use Google flights so google.com/ flights and click the explore Tab and what the explore tab will do is instead of just putting in your home City and then one city in Europe or Asia wherever you want to go you can actually search from your home airport to an entire continent and hunt out and sniff those cheapest Fair cuz.

Especially within Europe it's really cheap to pop around once you get onto the continent you know it's interesting we were talking with an analyst from Morning Star earlier today about some of the airline results and for consumers out there listen up because as we talk about you know 40 is the new 20 with our age and everything like that there could.

Be a new kind of barometer that we need to look at when it comes to pricing and and here's what that analyst had to say and then I'll get your reaction on the other side I've been joking with friends and family that like 400 is the new 250 for an air fair you know interesting okay well brief as it was at the end of the.

Day is 400 the new 250 out here no because it hasn't I think you know stats like that are very anecdotal um when you look at the large data sets you're not seeing Mega increases now where I do see that is in luxury hotels you know ,000 used to get you the top tier four seasons in Italy now that's 2,000 and up at fancy hotels and it's even creeping.

Up into the $33,000 a night which I think is just absolutely crazy can be cheaper to rent a yacht than stay in luxury hotels these days um but uh you know I also will be remiss you can still use your frequent flyer miles and I think the biggest mistake people make there is you go online you check your airline and you assume that there's.

Nothing when you check One Singular time which is just one tiny data point there are now tools like point. me is now integrated into AMX and built where it'll actually search all available Transfer Partners so they'll search hundreds and hundreds of options more than you ever could as a human uh there's another tool seats. Aro where.

You can scan you say you want to hunt for Air France premium economy seats you can scan a year in advance and that's how you snag the best points deals you can still get 100,000 mile roundtrips to Europe you just need to know how to find them when is it right to activate your points I mean you you've got people that are changing the way that they deploy.

Their spending and leaning perhaps Less on cash and making sure that they're using the credit card appropriately uh for travel but also racking up points that they can then uh like we heard on the United call as well be able to pull in some cases with their friends and family when is it the right time for people to put those points in play yeah.

And I just want to give a kudos to United for allowing that uh mileage pooling with no fees or penalties most Airlines will charge you 1% 1 cent per point which negates the value of the points you're not kudos to you um but in terms of using your points look last minute the airline if an airline has an open seat you would be shocked at how.

Many last minute seats they open up at the lowest amount of frequent flyer mes so if you're a last minute traveler and airfares at the same time are way expensive because they're trying to take advantage of those people corporate Travelers who have to go last minute but at the same point they don't want the ticket going empty so they'll open it up.

At the saver level so I highly encourage even if you've booked this summer and you used a lot of miles keep checking cuz most frequent fly programs will let you cancel for maybe $50 or free and rebook at the much lower rate so if you're going to say 50,000 100,000 miles by rebooking even a day before it can very well be worth it hey Brian just.

Lastly while we have you here and uh I think a lot of people want to know the verdict on this one we used to hear all the time that the best day to book was Tuesdays is that still the case it's that's all false and there's so many myths in airfare and no going Incognito Mode's not going to trick the airlines cuz they they're not going to be able to.

See you that's false too there's no one day that's the best now traveling on Tuesdays and Wednesdays in general is cheaper because most people want to travel on weekends and business Travelers are very Monday Thursday Friday so there are certain days that historically it's cheaper but I cannot stress enough the way you're going to.

Get the cheapest fairs teach yourself how to use Google flights and teach yourself how to use these apps that'll help you get the most value out of your points a little bit of time into knowing the ins and outs is what's going to save you tons over the long term Brian Kelly the Points Guy founder I guess we could just call you the Points Guy The Points.

Guy the original the the like they say the Ohio State the Points Guy Brian thanks so much for taking the time we appreciate it thanks for having me certainly turning now to three new stories you do not want to miss Tesla is planning to ask shareholders to reinstate CEO Elon musk's 56 billion pay gain again after uh a Delaware Court.

Struck down his pay package but taking a step back the average pay for the CEO of an S&P 500 company $16.7 million in 2022 that's over 3,000 times more money in musk's pocket than another extremely high paid individual and according to indeed the average mid-level Tesla worker gets a bit over $100,000 year pretty good for the joeo but does it.

Inspire them to vote Yes on the $56 billion for musk we'll see well another big story today Eli Lily announcing its weight loss drug helped reduce episodes of irregular breathing in patients with sleep apnea in its latest trials this is great for the company's bottom line could also be good news for overweight patients who spend every month on these.

Drugs the question being is it worth the high price for wovi or Zep bound that of course for you to decide we'll see exactly where this continues to move the equity as well here and Boeing is in the Hot Seat as well here today two Senate committees are scrutinizing the plane manufacturer safety culture the first hearing getting underway now and a panel.

Of Aviation experts are testifying in the front of the Senate's Commerce Committee and then coming in just a few minutes the latest Boeing whistleblower will testify before the subcommittee on investigations well coming up managing your finances can be overwhelming that's why you need a financial plan and a community like we've created and.

Sometimes you need to update that plan we'll tell you why on the other side of this short break.

now.

managing your finances can be overwhelming that's why you need a financial plan so here's what we do know writing down your wealth goals keeps you on track to achieving financial success but there comes a time when the plan you once followed so closely needs some.

Freshening up so what do you do here to weigh in we've got Martin Sheamus Janny Montgomery Scott vice president and head of wealth planning I mean it's like the famous Mike Tyson quote right like everybody has a plan until they get punched in the face life comes at you fast and so at the end of the day how do people when they do have that hit or.

That like dose of reality how do they make sure that they're adequately adjusting the plan along the way too yeah so here's the thing about financial plans is financial planning fundament changes the investment game it changes it from being about the Investments the products what you're being sold and turns it into something about you and.

The important part about that is since it's about you when something unexpected comes along in the markets that's separate right it's about the financial plan is about you so making the financial plan keeping it up to dat keeping it current means that you're already always ready for sort of whatever comes along in the market.

Whatever Punch or sideswipe you might get as you're moving through your investment life cycle and it comes back to just having a plan to begin with I mean just walk through the importance of just setting the foundation for financial plan as well and really financial planning should begin when you start investing I think a lot of.

Investors go out and they just start buying Investments they just start opening up IRAs and trying to figure it out one piece at a time and really you should be thinking about hey let's set a financial plan when you actually start you know I I often recommend particularly for children of clients or clients as soon as they get out of.

College start making an income start having finances income expenses that's the perfect time to start financial planning it's really never too early finances are emotional there's a lot of behavior that's involved within how can you kind of mitigate or or or mute some of the more behavioral decisions that might emerge along the way yeah and.

That's that's really I would almost say as easy as keeping current with your financial plan so you make the financial plan and you check back on it frequently um Janny we often recommend every year you should be reviewing your plan making changes based on what's changed in your life making adjustments perhaps on what's changed in the markets but really.

It's again it's about you the individual investor when you think about that plan you know no less frequently than every two years should you be going back into that plan really updating it checking to make sure that it's still current and reflects what is important to you um and again that's sort of what helps you separate the emotions from the market.

Because the markets can be very scary without that I mean it's and it comes back to running yourself like a business as well at the end of the day I mean there's the the basic formula of Revenue minus expenses equals profit but then there's the larger question of okay what do I do with that that profit because not all profit is just profit it's some.

Of it goes to savings some of it goes into other Investments what's a good rule of thumb that people can perhaps at least if they're loading up their Excel spreadsheet and listening to this right now yeah begin to divvy up what that profit bucket looks like yeah and I love the analogy of it's like a business and one of the things that we often hear.

With a business is pay yourself first um and it's really the same thing with a financial plan you should pay yourself first so first go through and check your savings make sure that you're maxing out your retirement contributions if you're eligible for a 401k make sure you're maximizing the matches that you get from your employer if you're not able to.

Fully maximize that plan itself um you should be doing that as well um you should be saving into your taxable accounts and then once you've all sort of saved for yourself and paid yourself first then what you're left with is all of your discretionary money right how do you go out and have fun how do you do the rest of the things that you want to.

Do but once you've taken care of that savings first and you've kind of paid yourself first it really takes a lot of the stress out of uh investing and saving for the future we only got a couple seconds left here if we're talking about going out let's and let's end on a fun note if we're talking about going out having fun what does a good.

Good a smart spend if you're going out having fun and and perhaps purchasing something a product or good what does a smart spend look like versus something that hey you probably shouldn't put your money towards that yeah you know again a really good rule of thumb is that if you don't have the cash on hand to pay for it it doesn't mean you shouldn't use.

Credit cards and it doesn't mean you can't use debt uh but if you don't have the cash on hand to pay for it you really might want to think twice about whether it's something you can afford right now or whether it's something you should save for in the future very Sound Advice Martin Sheamus who is the Janny Montgomery Scott vice president and head.

Of wealth planning thanks so much for taking in the time here making the trip up from the great state of Pennsylvania I'm a little biased folks I'm sorry I'm from there anyway much more on wealth after the break you're watching Yahoo finance.

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got some economic data for you folks new home construction falling in March which means less inventory for houses and higher prices for what's available and if you can't afford a home it might not be entirely your fault people aren't moving because it's so expensive to move.

Out of their current homes thanks to high interest rates so to break down the math here and make the math math we've got Yahoo finance reporter Danny that that's what they say right well the math ain't mathing right now Brad so it's really not financially smart right now to sell your home and there's new research out from Intercontinental.

Exchange a data service that really drives this point home on average buyers who are looking to move into a pricier home pay about $400 more for this home but now buyers who are looking for these pricee homes or moving into these pricee homes are going to have to pay about $1,300 more now that's really not attractive and not really convincing.

Home owners to really say hey I want to move right now um and and that really is affecting the inventory the homes that are for sale and for buyers who did take out a mortgage in 2020 and 2021 either by buying or refinancing their mortgage well you know you're going to have to be paying a lot more about 132% higher uh your mortgage payment.

Will go up and that's relatively around $1,700 more for an upgrade on a home uh so now what about the equity that you earned on your home yes if you roll that over and you purchase a price of your home yes your uh monthly mortgage payment could go down but on a percentage basis it still doesn't pencil out Brad one of the key factors from.

This research is they're really pointing to the fact is lower mortgage rates will really drive a lot more inventory could push those prices down and obviously more people will be flooded into to the housing market but again mortgage rates right now if we look at them they're hovering around 7.5% and redin reported that 75% of homeowners have a mortgage.

Rate below 5% uh but the Outlook really on mortgage rates doesn't look good as we've seen these inflation numbers higher than expected in home prices is still another factor in all of this equation inventory is down 40% from pre-pandemic levels yeah really remarkable and and a larger question of what levers the FED does have to pull.

That can really eradicate some of the issues and the stickier part of the inflation picture right now shelter and energy shelter of course being the one in focus for this conversation Danny thanks so much for taking the time also everyone I want to quickly take a look at Bank of America it's up so far today but recovering from yesterday when.

Shares fell 3% the bank reported setting aside more money to cover souring loans from consumers is struggling to pay on time and according to a new survey by the national foundation for credit counseling 31% of Americans do not pay their bills on time while 32% feel like they're just getting by financially so to help dive into some of these numbers.

Is Bruce McClary who's the national foundation for credit counseling senior vice president of communications Bruce thanks so much for taking the time here with us today first and foremost you know you take a look into the survey results and the findings here what was most striking to you and and does it seem like consumers people who feel.

Behind the eightball are charting a pathway to to more financial Clarity perhaps well yeah thanks thanks Brad it's I appreciate being on the program being able to dive into these uh uh these details about our survey because I think there's some things that are really uh troubling about what we found in the survey I think one of the things.

That struck me most significantly is how many people are carrying High interest rate credit card debt from month to month month and how difficult it is for them to pay off that debt and pay down that debt uh as they as they have to deal with it and also on the flip side of that how few Americans are are putting anything aside into retirement.

Savings we found that about a third of Americans not only aren't contributing actively to retirement savings but have no retirement savings to speak of and so when you couple that that debt burden with the lack of of savings it's no wonder uh that about a third of Americans feel they're just stuck financially and they're not getting.

Ahead and some of the good news that they hear about the economy isn't isn't filtering down to them uh so that's deeply troubling to see that so many people are burdened with debt and I would add one more thing that of the people who are carrying the high interest rate debt from month to month the the most well represented group in.

That uh in that response area are people who are 45 to 54 years old and that's the last group you want to have trouble clearing out High interest rate debt especially when they're on the runway retirement yeah certainly you know it was interesting within the survey as well identifying two in five 40% of Americans who carry an average of $5,000.

In credit card debt on a monthly basis uh and one in four of them saying that that's an increase over the last year what notably are you witnessing on the credit card side and the amount of people that are tapping to credit where cash just isn't cutting it yeah and and I think there's an increased level of comfort in using.

Available credit to Gap fill where there is no money in the budget uh we found that one in three Americans are comfortable maxing out their credit despite uh any potential economic downturn and then about one in five feel that if they're going to be in debt the amount they owe doesn't even matter so I think there's I think people are are.

Just deciding well if I don't have the money I need to buy these things that are important I'm going to use whatever available credit I have and then I'm going to deal with the consequences later but I think there's a there's a another layer to this story that's very important too because I think people are struggling to get the things that are.

The Necessities in life because inflation is still a very significant issue and your money just doesn't go as far as it used to and people who go grocery shopping uh only can only buy about two-thirds of the items they could have bought with the same amount of money three years ago uh so they have to make some very difficult choices and.

Rather than giving up those items some people are just using credit to pay for the Necessities on a daily basis okay so what's the fix here Bruce I mean where where can people people who are watching right now uh put some type of plan that's into action there where it stops the the the cash bleed if you will in the near term and perhaps gets them back.

On the pathway towards reestablishing better credit than current yeah I think the first thing you need to do is take a good close look at your circumstances and if you really are just Treading Water you're not making any progress paying down your debt you're having to lean on your available credit more than you you should re stop.

Try to find ways to stop this spending look for areas in your budget where you can find room to make cuts to put extra money towards your credit card debt to pay down faster look for more affordable ways to manage your debt if you have a high credit score you can qualify for lower interest rates balance transfers but if you're in a tough position you're.

Already sliding past due reach out and get help nonprofit credit counseling agencies are out there to help you make decisions and move forward and tackle some of those challenges that you're having but you don't shouldn't feel that you have to go through this alone and you shouldn't let things slide so far behind that you're getting called from.

Debt collectors and and having somebody pull your car out of the driveway with a tow truck if you do get a call from a debt collector what is the first thing that you should be discussing with them Bruce well you should be honest about your circumstances I used to be a debt collector by the way uh you should be honest about your circumstances and you.

Should be realistic about what you're offering the debt collection agency I mean don't don't make a commitment just to get out off the phone and to have them stop talking to you uh just be realistic about it uh and try to work out an arrangement where you can make installment payments portion it out to get back on track depending on how far.

Past do you are there may be options you're not aware of to you know amicably resolve the situation and get things back on track uh but but don't make promises you can't keep when you're talking to a debt collector that's very consequential and it could hurt you later on right some valuable insights and I didn't know that about you Bruce.

So appreciate you uh disclosing and sharing that with us Bruce McClary National foundation for credit counseling senior vice president of communication Bruce thanks so much for taking the time thanks Brad certainly coming up interest rates are at alltime high as well yeah what ETFs should you have in your portfolio to hedge against.

Tight monetary policy we'll dive into that next all-time highs relative to previous standards anyways we got much more on that plus our very own PR super Manan and Rick Newman got to ride around in AA we get to that on the other side of the break.

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ped chare Jerome pal dialing back expectations of rate Cuts this year saying there's been a lack of further progress on returning to the central bank's 2% inflation goal 80% of Traders think the central bank will hold rates steady in June and not even half of Traders see a rate cut in July so how.

Can you hedge against some of that uncertainty for more on this we've got Christy aulan who is the black rock head of I shares investment strategy Americas part of our ETF report brought to you by Invesco QQQ chrisy great to see you thanks so much for taking the time here so a lot of Traders trying to really get ahead of what the FED may do and not.

Trying to fight the FED but trying to anticipate them what is the best way that and the context that people need to keep in mind as they are trying to put forth with an anticipatory measure around the FED yeah and thanks for having me Brad it's great to be on um you know I I think that you you know you highlighted.

The macro picture or at least part of it perfectly right um I think where we are right now is that we very much expect inflation and interest rates to be higher than expected but I think the other side of that coin is that we also see growth a lot stronger and higher than expected so it's not unambiguously good or bad um I think it's just a.

Little bit more complicated so in particular you know ways that investors can think about positioning for these higher interest rates are really taking advantage of them and this higher for even longer situation that we think we're going to see um we see some opportunities within fixed income so B NC is our Black Rock income ETF I think.

That is an awesome way that investors can really think about portfolio positioning for these higher rates it's within an active strategy um and you can think of these as sort of the plus components of fixed income so this isn't just the the basic things that you get it's it's a little bit more exotic a little bit harder to access on your own.

Um but what you're really doing is entrusting um a proven portfolio manager here to actually go out and source and and identify some of those sources of income that are really unique to this opportunity where the FED keeps interest rates for a bit higher for a bit longer so that you're describing a restrictive territory perhaps here for for rates.

With that in mind how do we kind of continue to evaluate the economy reading after reading when we hear about consumer resilience on one and spending continuing to move forward uh and then additionally on the other side you've got on the other end of the feds duel mandate they're going to be looking at employment and employment readings.

Continue to come in pretty hot right now yeah I I I mean I I definitely think it's a mixed picture right so again this is not unambiguously good or bad because to your point you know even though inflation and interest rates are higher what we've seen from the job market is Incredible strength um so we're not actually seeing you know the the.

Precursors of a recession like a lot a lot of people thought that we would coming into this year I think that's a great thing for the economy and the the strength of the economy has really surprised to the upside I think that that can continue to mean that stocks can continue to pull higher from here too so I think that's a very.

Important consideration it's almost the flip side if you will of higher inflation and higher interest rates the Silver Lining is that that's coming from a really strong economy um so I think that there are ways that investors can invest in that outside of just fix income and taking advantage of those higher yields but really within the.

Equity market and within the you know the stock portfolios of of investors that we're speaking to we see the most opportunity in the highest quality parts of the market um so the the more uncertainty there tends to be in the macro environment the more investors gravitate and should gravitate towards quality and and luckily we have kind of.

The perfect ticker for that too is qual and I think that's a really important thing that people should be considering and it's a place that people should consider allocating to right now given the the kind of mix of of you know the mixed picture that we have from the macro environment chrisy while we have you we got to talk about the major event.

That is international elections this year as well with over half of people in the world population expecting to participate in some type of voting process or political election one way or another that spells some potential uncertainty as well for people's portfolios how are you evaluating that yeah it's it's a hugely important point.

Right that's impacting people's day-to-day lives it's also impacting the market um a big part of How It's impacting the market is really just uncertainty and we know markets hate uncertainty so you know I I I talked about it already but I think that's just another path that leads back to preferring higher quality companies.

Within your portfolio so again within us stock markets I think that what that leads to is thinking about something like qual outside of the us though I think there's a lot of Focus right now on identifying not only the regions but even the specific countries um that are are doing well in the global economy and that maybe are benefiting.

Some from some Tailwinds that even the US isn't um so one of the conversations that we've been having a lot and and one of our highest areas for conviction outside of the US is actually Japan um and I you know I know we've spoken about this a little bit too but just um there's a lot of of macroeconomic and and Tailwinds around Japan right now.

That lead it to be a pretty interesting opportunity and I think that especially for us investors who are maybe looking for ways to diversify away from just Tech or the Magnificent 7 something like ewj in their portfolio the msci Japan fund that we have um can be a really great way to do so so stay invested but just get a lot more granular based upon.

The you know kind of the amount of diverging policies and elections um and macro that we're seeing change over the course of the the the year and and around the world too Christy I I kind of expected you to say something about India as well I mean Apple going into India a little bit further here they've got a retail location now looking at.

Really ramping up or at least scaling up some of their operations they Tesla as well scouting for some uh showroom locations I mean is there a is is there a thread that you're kind of pulling together on how some of these multinationals are looking at that region absolutely um and you know if if we're talking about Japan in the.

Developed Market space it's the exact same conversation in Emerging Markets where investors do want to get a lot more specific spefic and India is benefiting it sort of sits at the Nexus of of multiple what we call Mega forces um so I think one is improving demographics so India has a young labor force which should lead to Greater GDP.

Growth in the future and the other side of that and and something that you touched on here too is is something that you know I think we've heard a lot about in terms of rhetoric just of friend Shoring or of reshoring and really just companies optimizing Supply chains for things other than just price and I think India benefits from that a lot so.

Companies that may be moving um you know parts of their supply chain there parts of their development there um you know I think that being at the center of those two Mega forces puts a lot of Tailwinds behind India um we've been having a lot of conversations about IND um the India ETF is a great way to access that sort of complex market for Outsiders um and.

So I think that that's something you know that it's not just a tactical trade it's not something that we would say is just something to hold for this year we think that that actually has to run over the next decade plus as a lot of those Trends continue to kind of unfold Christie always a pleasure to speak with you and get some of your insights.

Christy aulan who is the black rock head of I shares investment strategy thank you so much thanks for having me certainly well everyone looking to make the transition to an EV but need enough seats for the whole family big question for a lot of households out there Kia all electric three row ev9 helped push EV sales up in March and 151% my gosh my.

Eyes almost popped out of my head for a hot second there from the prior year at least Kia launched the vehicle late last year we should note and Yahoo finance his very own PR supermania and Rick Newman got to try it out I mean I love hear about hearing about you guys' ride alongs that you do here what did you find out from this model BR is a bad.

Driver always that's I mean I'm never comfortable I'm never comfortable when he's in the driver's seat I'm sorry you had something to say well well I mean well first of all Rick because it was a three row a large SUV Rick started off to shoot in the back seat thinking that that' be the place for him to be when we started the shoot so we couldn't even.

See I can't relax when PR is at the wheel but uh but anyway back to the kind of the space of this thing Rick the reason why we kind of test it is because this is the first three row um sort of mainstream EV SUV that's in America really offer right now it's not $120,000 this car starts at around mid-50s for the basine trim of course ours was.

Souped up Rick with the relaxation package uh that cost extra $2,000 what I was in the back seat K range so expensive but not that crazy when a Tahoe cost that kind of money too I mean we like EVS I think right um I mean they are fun to drive we like the concept I'm not ready to buy one personally because I only have one car and I don't want to.

Have to deal with uh range you know issues when I'm driving to what was the range on this one do you remember about 300 yeah i' say that EPA is a little bit less but we we had 300 when we picked up the car with full charge so that's what Kia was saying the vehicle was saying I have 300 miles of charge just don't watch out for cold weather and things.

Like that but you know see that's what I don't want to have to think about um but I you know I'm I I think there's a a problem in terms of making a purchase decision for a car like this because I think it's hard to know what's the right price for an EV I mean we we talk about this all the time we're driving these things I mean we're driving this at.

$75,000 this one does not qualify for the $7,500 tax rebate correct well it's not made in America so North America so you'd have to lease it to get to get the tax break um and we there's all this news you know there's now this glut of EVS supposedly automakers have made too many of them so there are discounts Tesla has been.

Discounting others have been discounting behind Tesla so my my problem is what is the right price to pay for an EV and I you maybe you think 50 Grand 55 for something this big that can haul the whole family as a bargain I'm not so sure I guess it depends upon the amount of use though that you're going to get out of it as well and that could come.

Back to the range considerations I mean it is a family hauler and if you're going to be taking the kids fit seven yeah easily you're taking it around to the soccer practices grocery Grocery you know shopping you're not potentially I mean you could take on a road trip if you can plan out your sort of you know your sort of charger sort of path but I.

Gu the big picture is you know I thought when this many people thought when this car came out that it'd be selling a cot cakes Americans want a three row car an EV great but it turns out even this car is being discounted on the Lots surprisingly Kia like you said had had pretty strong sales for EVS compared to last year but they still making too many.

And there's not enough buyers just quite yet so uh are you know so is that I I think that is because we've sort of hit we've sort of ceilinged out in terms of the people who are willing to be the early adopters um so something in favor of this a huge hauler like this that's electric is it's actually ideal for running around because if you have this.

Car in a gas version you're I mean you're going to get 10 mes per gallon right 12 12 if you're lucky or maybe 15 in a Highlander or something I mean this is this is ideal for hauling around where you would otherwise be getting terrible mileage because that's what EVs are great at um you bring it home and you charge it overnight you never have.

To hit a gas station and just real quick I think thing looks pretty good yeah it does and the inside was like luxury level I thought was like I was in a Range Rover you know that's how nice it so this is a Kia so all right we'll see we got to go but grades on a scale of 10 do you guys give us grades typically we need to come with the system but you I.

Mean I would give this a rick I would give this a seven and I'm not going higher because it doesn't qualify for the for the tax rebate and cost questions and does build seven in America if they brought this over that manufacturing maybe then it's a better value but I think Seven's a strong Choice Seven Pro and riads done.

Deal thanks so much guys appreciate it well gas prices as we were talking about a little bit there smidge gas prices are up 20 cents from a month ago at $3.66 per gallon according to AAA with us crude still still sitting around $84 per barrel how high could gas prices go in the next few weeks yaho Finance senior reporter ANZ Fay is here with.

More hey anes hey Brad well in the Northeast around the New England area you can expect to see prices going higher that is because that summer blend that we've been talking about which makes gasoline prices more expensive in some states have already switched to that summer blend that will be happening that.

Transition is going to be happening in States like uh New York like New Jersey in the New England area so you can expect prices to go up to almost $4 per gallon once that whole conversion takes place on a national average some analysts are calling for prices to go up to around $3.75 per gallon or even a little higher.

Than that and then Reed a big back so that more expensive summer blend is making gas prices more expensive of course oil prices which have wrapped this year that has driven gasoline prices higher you had gasoline going up uh about from $75 $78 to $85 in about a month's time that accounts for about 177% uh excuse me 17 cents of that.

Gasoline uh hike that we've seen in the last uh month or so as far as California's concern we saw gasoline prices there go a lot higher uh in the last in recent week weeks and part of that has to do with Refinery um maintenance that have been planned that's that weren't planned as well so that really shot up prices in the.

California area look analysts are saying that if gasoline prices Brad get too high if they do go much above 375 uh for the national average then the administration could decide also to release some more spr this is an election year remember so if gasoline prices really get too high if o prices get too high then we could see a release.

Of that but then other analysts are saying look you are going to see OPEC coming in more with more spare capacity they don't want to lose market share when it comes to oil uh so you could see some levers being pulled this year all right excellent synopsis and what it means for folks out there watching especially as they're keeping close tabs.

On the prices at the pomp andz appreciate it thank you coming up Adidas could be bouncing back we're going to dive into how next.

he now.

This next story might knock your shoes off Adidas raising its profit Target for the year as the company gets a boost from strong demand for its Samba sneakers and the remaining sales of its Yeezy brand now will this be enough to get Adidas or Adidas back on the map amid growing Innovation struggles for the Footwear Brands more largely here.

And considerations there joining me now in studio for this discussion we've got Yahoo finan is Brooke DePalma Brooke let's just start on the updated outlook here what did it do you say yeah absolutely So based upon this better than expected performance in q1 the company's now increasing its full year guidance for 2024 they now expect.

Revenue to increase at a mid to high single digit rate and they also as you noted before expect operating profit to come in higher as well around $45 million that's as compared to what they previously thought was going to be up uh or rather come in at 532 million now this does come one month after the company posted its first loss.

In 30 years and so wal Street really liking this updated guidance as the company really sets out to reverse these declining sales and those two factors that are boosting the outlook for the retailer include that selling off the remaining Yeezy inventory something they've been looking to do for what the past 2 years.

And in addition to that this retro sneaker Trend consumers really leaning in to this idea of the samba the campus and the gazalas you could see on the screen here they really like this idea of these retro sneakers coming back consumers buying them up the SBA was last hot when I was in third grade Brook so we're so is New Again apparently for.

Some of the um you know the Lesser Millennials out there or I I guess you know into what what was hot when we came up anyway but that's whatever also on the easy front you mentioned that uh they're not expecting to see further profit contribution during the remainder of the year they noted that I also got to wonder how well Anthony Edwards and.

Some of the basketball lineup is doing for them it's been a massive year for him as well in the NBA side yeah in addition that you have to take into consideration that the Olympics are happening this year we're going to see Nike Puma and Adidas all coming in really hot really looking to Market and sell based upon you know what they're.

Going to front during this summer in Paris and in addition to that we're just seeing this trend of consumers wanting to be comfy I just did a piece for Yahoo finance last week on this really people leaning into those New Balances people even leaning into Uggs which is doing well for decer Brands and Crocs and this idea of comfort performance but also.

Some people thinking that this looks so trendy and that it's just you know on point I myself am in the market for Comfort I took a look at some uh some clogs from berken stocks uh so we'll see if they're comfortable but I heard they're good for you anyway Brook thanks so much appreciate it all right everyone Switching gears for a hot second here as.

We end the show some breaking news Alaska Airlines saying its ground stop has been lifted according to reports this comes after it was halted by the US Federal Aviation Administration today the FAA saying quote all Alaska Mainline and subcarrier flights ground stopped and the FAA also saying that Alaska Airlines asked the regulator to pause.

Its Mainline departures Nationwide take a look at shares of alas Airlines today ticker symbol ALK it's up right now by about 3% here of course a lot of movement anytime you get a decision that comes down from the FAA we'll see what further comes more and moves ticker symbol ALK as we're seeing it up right now let's do a final check of the.

Markets as of this point in time the Dow the S&P 500 and the NASDAQ you've got them in negative territory fractionally as it may be declines across the board for the three major US averages that's it for now here on wealth on Yahoo finance I'm Brad Smith thanks so much for watching.

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