Stock market this present day: Shares upward thrust as S&P 500 hits new chronicle | January 24, 2023

In New York City I'm Julie Heyman that's Josh lifton and this is Yahoo finance live here's what we're watching this afternoon investors in wait and see mode ahead of a huge week for earnings in the economy the S&P 500 is testing its record high black rocks Rick reader will be here with the best moves to make with your money ahead of big Tech earnings.

The FED decision and the jobs report plus another deal Bites the Dust Amazon dropping its bid to acquire iRobot as the $1.4 billion deal faced growing regulatory scrutiny in Europe we've got the Fallout later this hour plus Sofi a top trending Ticker on Yahoo financed the company reporting its first profit ever and the stock is on track for its.

Best day since July we'll get analyst reaction Straight Ahead let's catch you up to speed on the market action or maybe lack thereof here as we see uh stocks kind of treading water to some extent here today as they await some of the big news events we've been talking about this week the NASDAQ right now up about three4 of 1% or so.

Leading the gains ahead of a lot of big Tech earnings we're going to talk more about that in a moment the S&P up a half of 1% and the Dow up by 108 points right now we could potentially see another record close it looks like we had a record intraday High being set just now I'm just hearing from Jared blicker just informing me here and the Dow uh record.

Intraday high as well is being said that is its seventh of 2024 so again the S&P 500 setting a new record intraday high again in today's session you know we got here Julie got a little bit I tell you today feels like a little bit like a lull before the storm yeah that's what I think because we've got got a big week ahead of us first and foremost I got.

Earnings I got big Tech on Deck so I mean Apple Amazon alphabet Microsoft and meta they're going to be delivering their quarterly confessionals our own Josh Schaefer by the way I want to point this out has a very good piece today to check out knowing how strategist Julie expect that it really still is Big Tech that's going to power Q4 earnings growth.

In fact as Josh notes if you look at those names I just mentioned plus let's throw in Jensen Wongs Nvidia right they are expected to see earnings grow at combined 54% in Q4 the other 494 companies in the SPX the S&P 500 expect to see a decline of nearly 11% so it still is really all.

About big Tech all but but it's not just all about big Tech because we have a couple other things going on this week we have the fomc's a first meeting of the year we have the jobs report coming on Friday and so looking at some of the strategist reports going into this week they're like ah whoa what do we do Tony DWI friend of the show over at canor.

Genuity says you can't paint things with a broad brush right now you have to really look specifically and he says in his note uh his latest note this week is unlikely to do much to clear up the economic or Market confusion just because there's so much coming at us at the FED meeting on Wednesday everybody's going to be and in.

The press conference everybody's going to be looking for hints as to whether in fact the FED is going to begin to cut rates in March uh John stalas over at Oppenheimer says they're not likely to be pleased necessarily with what they hear he's only looking at two or three Cuts in the back half of the year he doesn't think they're going to get.

Started till considerably later um and then we got the jobs report on Friday and by all accounts it sounds like there's still a lot of optimism over the strength of the jobs report and that's and that's the point is if you're J pal you see this economic data and obviously we' talked about this he has to like what he's seeing in terms of just the.

Shift in inflation and the resilience of the economy so then it is interesting we've got some very smart people to talk to about this in the moment but what is J Powell's kind of what is his strategy in that press conference right in other words he's going to be happy about the data he's seeing but he wants to temper that he doesn't want to cheerlead and.

Then as we were discussing kind of spark another kind of financial markets rally like we saw just last month well we've already I mean we began in financial markets rally right we've got the Dow the S&P at new records today so does he sort of try and back off of that try and temper some of that I guess and even if he does try does the market believe him.

That's a very good question Josh lipon let's ask somebody else some of these questions right Federal Reserve of course is set to meet this week investors are going to be looking out for signs that the fight against inflation is over and that interest rates will be cut sometime this year Rick reer joining us blackw Chief.

Investment officer of global fixed income Rick it's great to see you I want to start I want to start here Rick has the FED succeeded I mean you look at the GDP print we just got you look at the pce reading we just got you look at consumer confidence it's looking pretty good what do you think so I didn't ask question the FED succeeded or the.

Economy succeeded it is uh you know that listen I think I think we're seeing an economy that is much more vibrant much more resilient than people give credit to I mean for a year and a half people have saying the recession's coming I heard somebody say so hard Landings start with soft Landings I don't even understand I mean you look at you look.

At the CL you know there was a lot of wisdom the claims data the retail sales data the GDP data the payroll data econom is in good shape it's a service oriented economy service oriented economy we've talked about new show the last few times they don't really go in recessions and you're seeing some real vibrancy and you know the payroll report.

Like you were sing at the outside you know listen you can never pick one payroll report in terms of what it does I want to be focused on some things like Leisure and Hospitality because that's a big cyclical and what happens with regard to that temporary hiring so are you starting to see an economy that's maybe slow the cyclical components.

Slowing a bit that's going to be worth watching but gosh it it's hard to complain about uh you know Tech oriented US economy a service oriented economy that's uh that that you know can take a lot of shots I think people underestimate how I used to call it the uh I called it the uh you know the the most resilient economy in the world I.

Still I still think that I still think that's right and Rick I don't know if you heard but I was talking to Julie there about kind of Jay Powell's Mission at this press conference this week Rick and you know on the one hand he's got to be happy right with the data he's seeing in terms of the trajectory of inflation the resilience of the economy and the.

Same time Rick though he doesn't want to you know wave the victory sign and and and Spark this financial markets rally like we saw last month how do you think he kind of just walks that tight RPP I think you I think you hit exactly the right point I think listen the markets you think about what happened at the end of the year markets were incredibly.

Overzealous about fed can start cutting now and you know the markets had jumped on a couple of things one there was a lot of money particular a long end of the curve that was coming in year end and then inflation has been coming down significantly and markets jumped on top of that listen I think that they they that he wants to run a walk a very tight.

Rope like you exactly like you said create balance and you know will he take the tightening bias off I think he will but listen I think March is aggressive I thought I didn't know who who said at the beginning of your show March is aggressive because you have time with an economy that's operating this well there's not really a race to move rates.

Down of any significance and by the way when you start going and I think they're going to start going in May and I think they'll do 25 base point Cuts every other meeting but by the way let's say the data do turned down you can do 50s you know you did you were hiking at 75s so I think they've got a bit of time and I think he's going to want to walk that.

That back a bit some of the overzealousness that you've seen certainly in December November and December and then so that you don't get financial conditions getting way ahead of the FED but I think that is going to be that is going to be a key well look Rick things are still kind of zealous aren't they I mean you know that's.

What's so interesting right is that the perception was in December the fed's going to start in March stocks rally well perceptions have come back right um we've seen the odds of a March cut come way down stocks are still up so what would derail the rally that we have been seeing here I think there is I don't think like.

When you talk to people like there very few people that I talk to they say gosh I really like stocks I'm jumping in I think there is an immense amount of cash sitting on the sidelines and what happen happens is so you think about it always the technicals Drive markets more than fundamentals certainly in the near term think about what's happening there is.

Going to be almost a trillion of equity BuyBacks this year there's no IPO calendar all BuyBacks no sellers there's a huge amount of money sitting in cash if all people do is take some of their salary 401K money and just I'll put a little bit of money equities there's not a lot of Sellers and so what happens is the market just continues to take some.

Of the cash and move it in and you don't have anything gets a gets a uh that gets in the way of it so I don't really think there's like a collective let's buy stocks I think it's gosh I got money coming in I've got an asset allocate the big thing I think this year that's different than last year is now a good deal of that money is coming into fixed.

Income and incom producing assets that are saying gosh you know I've been sitting in cash I'm getting five and change in the money market now maybe I'll move into incom producing assets maybe I don't get those huge returns and equities and I can augment it with income and that's a big that's a big Divergence from we saw last year where.

People were like get me out of the way of higher interest rates I'll sit in cash and I'm I'm interested Rick you know when you look at the credit sectors right now which ones kind of make sense to you Rick you know is it investment great and and high yield and also where where don't you see value so so first of all the I don't see.

Spreads so if you take normal spreads you think about versus history they're not that interesting and in fact high yield they're not that interesting the uh at all the uh what I do think is really interesting though is owning assets in yield so if you think about why are companies borrowing at these levels they're only.

Borrowing at you know why's High you borrowing at 8ish why is investment CR can you buy investment grade and high fives to six it's because the risk-free rate is so high these companies term their debt out they're in Better Credit quality than they've ever been where what I really like is just own these assets and yield and you know don't you.

Know don't Focus as much on spread because we're going to get tons of issuance out of the treasury but a lot of these companies today are pretty darn attractive where I really like is Europe because the doll investor you can swap back to Dollars and list an environment where we can get these sort of yields em is just okay do I want to own a lot of.

Em if I can get if I could build a portfolio of six six and a half perent yield we just launched this ETF or didn't just about a year ago that you know we can get six and a half using things like agency mortgages investment grade credit high quality assets and build really nice yield into our portfolio so it's spreads that aren't.

That interesting you know places like have a lot of volatility not that interesting and uh uh you know just build yield and and sit on it let the yield work for you this year um where do you think the tenure yield is going to end 2024 Rick so you know for you know what the tenure to me is like it's like a lost.

Soul that found its home and uh so if you take what you know where we've been Bob you know where where it's this incredible move you think about when we hit 5% of people say we're going the 10 years going a six the 10year moves and historically it's been where nominal GDP is nominal GDP if you said GDP this year is one and a half to two inflation is.

Two two and a half let's say we end about two you know two and a halfish the 10 years at 4% the nominal GDP is 4% 10 years at 4% a little behind four I think I think the 10 you know I think the the key for rates is volatil coming down which is good for equities where does it end the year my sense is with a with a with a fed that's cutting rates I think.

You'll get the 10year three and a half to four but I boy I think you know I think the big story this year is finally after 3 years of not being able to sleep at night because raid volatility wases all over the place mortgages it's hard to buy agency mortgages because because raid vality is so high I think the story this year is the tenure found its place.

And uh and now we can own a lot of income and just hold the income well um that's good news for you I guess and your sleep too Rick thanks so much for being here it's always good catching up with you really appreciate your perspective thank you thanks we're just getting started here on Yahoo finance live coming up Amazon announcing it will.

Not move forward with its acquisition of vacuum maker ey robot we're breaking down the m&a market more broadly on the other side and Boeing is set to report earnings this week but as Federal inquiries into the 737 Max 9 Jets continue could the playmaker be in for some major changes at the top also how do investors navigate the mathematical.

Complexities of trading options well today we're kicking off a weekl long series options 101 we'll debunk the myths decode this secrets and help all investors harness the power of options stay tuned all that and more coming up when Yahoo finance comes back.

now.

Let's check in on some of the top trending tickers as we count down to the closing bell here China's largest property developer ever Grand facing liquidation after courts deemed the company incapable of delivering on restructuring PL shares of us-listed Chinese compan companies being dragged down as well in today's trade so that.

Was a headline on ever Grand here so ordered Julie to liquidate by this Hong Kong Court of course at one time China's biggest property developer by sales and kind of brings up this really broader question we've asked different strategists about which is do you want to put money to work in China now is there opportunity there or at this point.

Do you see sort of a a giant value trap well and this story is particularly interesting for foreign investors in the in China because how the court handles this liquidation is relevant to foreign holders of some of those assets and so foreign investors are going to be watching this very quickly as well but what strikes me as.

We looked at those other China stocks is it's been a pretty uneven reaction you know yes some of those stocks have been down sharply but then like in Alibaba which is an enormous Chinese company it's not down that much PDD pendoo is up is down quite a bit here and we were trying to sort of figure out what was going on there's one over at City who.

Says maybe it is some of the chatter around potential import tariffs on Chinese companies pind Doo owns teu which has been increasing its business in the United States it's a an etailer so maybe that's part of what's going on if there is another Trump presidency we could see that kind of a tariff put put in place that's something he's talked.

About at least yeah I mean we've had recently we've had Market strategist use very strong language about whether you want to put money there right I mean they've used words like uninvestable now we did hear from there is another side that we heard for Dan Niles last week which I thought was really interesting as Dan is well-known well respected Tech.

Investor he took the other side of that trade and basically said listen if you think China's econom is going to zero it's uninvestable right but when he looks at some of these names that we're talking about here like buo or 10 cent um Alibaba he sees revenues climbing but stocks falling so he said that you know the question for him isn't whether it's.

Uninvestable the question for him is basically you you just have to ask yourself an investor do you think you're being paid to take risk to move well and the other question you have to ask is how much volatility do you have the stomach for in the meantime while you're waiting to get paid potentially so that's definitely part of the sure part.

Of the factor as well let's talk about shares of lucid as well those shares spiking higher after Motley Fool issued a buy alert on the eeve maker saying that lucid's valuation could see a substantial Rebound in the shares of significant gain above curtain levels listen we got to couch this stuff doesn't always move on mle calls right.

And the call did say that this is an exceedingly slim bet that the stock could Skyrocket here and go to even 70% of Tesla's value so it was not a full-throated buy recommendation here but this the reaction in the stock has been kind of incredible yeah I mean even with today's pop it's still down about 25% this year about 70% over the past 12.

Months I what interests me about lucid and it's also can thr rivan you can throw in Tesla like I I think everybody still trying to decide what this EV Market broadly looks like this year what does demand actually look like and if you just read Tesla's print and listed Tesla's call I don't think investors took a lot of comfort about what that.

Market actually looks like well the other big thing to consider here is whenever I see a pop like this you know where I go I go to look up short interest and according to Bloomberg data 29% of the float of lucid shares is shorted that is in extraordinarily High number yeah so what happens in that case is you see a little bit of buying and.

Then people who have shorted the stock close out the shorts that then exacerbates the buy and pushes it up even more which is probably at least part of what's going on here today and finally let's get to the last one here another day another deal down the drain shares of iroot they're down big today as Amazon announces it will not move.

Forward with its acquisition of the vacuum makers they see no path for regulatory approval so Amazon du officially drops the AC planned acquisition of iroot the Roomba maker of course we knew regulators and we talked about this the EU weren't happy with this deal and then it sounds like the vacuum maker is quickly taking these.

Steps Co stepping down cutting jobs looks like about um 300 uh 350 jobs about 30% of the workforce for Amazon you know listen they they have the resources to keep building out this kind of footprint in in Smart Home devices but it does speak to kind of broader issues of the regulatory backdrop we've seen here yeah I mean this is another.

One that was going on for a while they first proposed this deal back in August of 2022 and it's taken until now for them to finally say forget about it we're done they are going to be paying a termination fee to iroot of $94 million but to your point iroot on its own has been struggling here um and actually Amazon had cut the purchase price last.

Year for iroot before now taking the step of abandoning the deal entirely so maybe on some level Amazon feels like The Regulators have done it a favor since it was was going to take on what had become sort of a struggling asset but to your point it does speak to the broader regulatory environment here it looked like in the EU maybe they would.

Have accepted some concessions from Amazon but Amazon got to a point where they didn't want to kind of do the back and forth anymore it seems yeah we have just the man to talk more about this do I know if you know that this year in D making is already off to a wild start especially as deals fall apart on top of the Amazon iroot Deal Jet Blue Spirit.

Merger also facing we know regulatory headwinds after a judge blocked it but we've also seen a string of deal activity to start the year some of the largest deal so far synopsis acquiring Anis sonoko announcing its deal to acquire new star and chest speak merging with Southwestern Energy joining us now is Baron's reporter Jacob Sunshine jakc.

Jacob it is good to see you maybe Jacob just kind of we'll start here with kind of setting the scene for us in 2024 you know when it comes to m&a Jacob these you know different moving pieces financing cause the election got geopolitical conflict giving all that Jacob I'm just to get your take you know where are we and how do you see kind of.

The market evolving over 2024 you know from a macro standpoint just from just when you you mentioned the election and all that stuff but from an economic standpoint uh this year whatever whe whether earnings in the US disappoint or surprise to the upside earnings on the S&P 500 are going to grow we're getting an economy that's.

Growing low to mid single digits at this point uh sales are going to grow in line with that margins are going to be fine and bottom line uh growth could be close to the double digits uh somewhere around there as long as the market is confident in that that the economy is holding in there and that the FED is lowering rates you have a cost of borrowing if you're a.

Buyer of a company you have a a cost of borrowing that's moving lower and your return on a purchase with earnings looking pretty good is brightening so you can finance that deal you have a good stream stream of profits coming you compare that to last year you should get growth in m&a this year after it was down last year to about $3 trillion.

Globally all of that may be true but if the fed's come in and block your deal you're out of luck right so Jacob what kind of environment are you know and are we seeing that regulatory environment as a curb on even some of these proposals being made in the first place yeah so I think in the airline space it's going to be a little bit.

Tougher from a regular regulatory standpoint first of all like you guys mentioned with Amazon and iroot the EU is is is known to be a little bit tougher uh from a regulatory uh standpoint the US with airlines in the US you know you had JetBlue um you know trying to make a play for you know another small discount Airline they.

Would have to buy that for $3 billion Jeet JetBlue doesn't even have a billion dollars in cash would have to use a lot of debt it' be a very difficult deal to do and then you had from a regulatory standpoint the argument was well consumers need to have the discount segment of the Market there and and available for them you can't you have to.

Make sure that that market is competitive you can't have too much consolidation in that discount part of the market so it's tough for Airlines when it comes to Pharma it's a little bit easier there have been some regulatory arguments made against amgen's $28 billion purchase of of horizon but that deal is going through.

You're seeing more deals in Farmer going through because you're talking about large drug makers that need to boost their pipelines that can pretty easily uh make acquisition i s and and the argument in Pharma and drugs is is harder to make uh uh from a regulatory standpoint than Airlines where consumers need to have that discount um part of.

The market and Jacob another issue I want to get your take on it it can just take so long Jacob to get these deals done now I mean really think about like Microsoft Activision or or broadc ccom VMware I'm just wondering J where you think that is a kind of hurdle you know do you think a lot of cosos think you know what I see an asset I think it.

Makes sense financially I think it made sense strategically but wow I know it's going to take forever to cross the finish line here do you think that is a challenge to the market in 2024 I I wouldn't say I don't think it's a challenge I think I think again it's very sector specific um like obviously the Microsoft Activision situation um.

You know has been a pretty drawn out situation um if you're a company that that thinks that you can uh that your earnings and your and the business is performing well um today for the next year um then you can hold your cash and say we'll see if we can make this this large acquisition um you know maybe maybe there are some.

Companies that say you know what let's make sure we get those dividends those BuyBacks um flowing um probably something like Microsoft is going to want to make it strategic Acquisitions but I will say by the way in Pharma I I think there's more to happen in Pharma we've already gotten tens of billion dollars of deals in Pharma in the last.

Year or so um but I I just added up a net debt uh for for three big Pharma companies that's not even all of them it's like 80 billion and IID da earnings next for uh for this year is going to be almost $70 billion that's really feasible there's so much cash out there today in Pharma for more deals to happen um in terms of deals taking a long time.

I think if a company really wants to get it done they'll get it done yeah maybe Amazon and iroot didn't necessarily want to get it done as much we'll see Jacob thank you so much appreciate it thank you coming up we're kicking off with weekl long series options 101 will help investors navigate the mathematical complexities of trading options and make.

The best moves for their portfolios stay tuned we've got more Yahoo finance after this.

up m yeah now a new generation of retail Traders.

Is flocking to options trading as an alternative to plain vanilla Stock Investing but the options of Rena can be complex to maneuver and there are also pitfalls to avoid so we're starting off with the basics in Yahoo finances options week 101 and this is sponsored by tasty trade and now joining us to break this all down is Interactive.

Broker Chief strategi Steve sneg Steve thank you for joining us here today and let's start with a very simple definition here this is a stock option definition Financial contract that grants the buyer the right but not the obligation to buy or sell a stock at a predetermined price within a specified period of time uh just tell some of the.

Uh important aspects of this for us well it's important to remember Jared that it is that it is a right and that's where the word option comes from as opposed to let's say a Futures Contract or actually buying the stock where you're obligated to own that underlying security as a result the price tends to be lower but the very important parts are you're you.

Have to get that Target price correct because of the because there's a predetermined price and you have to get the time frame correct so there's a lot of EXT it's a little bit it's much less of an outlay but you really have to get everything just right for it to work out for you all right with that we have calls and we have puts.

Calls are the right to buy a stock put is a right to sell but that's if you're long if you're selling the stock it's a little bit different matter and for the newer investors we're probably going to be thinking about buying calls or puts there right yeah most people start off by buy by buying options outright um there are a lot of people who do end up.

Writing options particularly covered calls I know you'll get to that later get tomorrow actually no I'm not gonna I'm not going to I'm not going to front run the next the next guest but so what happens is but it's typical to think in terms of buying them uh to begin with and you know again it's a fairly limited outlay compared to the price of the.

Stock usually um to either speculate about buy you know whether it's going to go up over that period of time or whether it's going to go down depending on the contract find risk a concept we're going to come back to so the structure of a call option here first of all one option equals 100 shares and then we have a couple different things.

Maybe you can go through and outline the importance of each one of these things yeah so when you see the price of an option you have to multiply that by 100 so if you see it trading at $150 your outlay is actually going to be $150 because it conveys the right to buy a 100 shares one contract buys 100 shares the expiration date is predefined so you.

You're buying the um March 190 calls on Apple so you have weekly and monthly expirations there even and even dailies for for for et for certain ETFs and index options but we'll stick here to the weeklys and the monthlies for for Common Stocks but you but you do specify your date when you when you buy it and you specify your strike so the.

Expiration date and the strike and when you and when you go to look at you know the quote that gives you the pre that gives you the premium and that's what you're paying if you're buying it exactly so so you so you pay that premium um it's especially if it's an outof the- money option meaning that if it's a call the price is above the.

Strike the strike price is above the current price or put the strike is below that is pure premium there is no intrinsic value to that option it's just really what you're paying for the right to speculate on the stock price over that period of time at that so important to say that premium can just disappear 100% that's something that you're just.

Outlaying from the beginning there premium premium this premium there's a few guarantees and options Land one of them will be that there is no premium left on expiration date it's either going to be in the money or it's going to be out of the money and this chart shows you that so yeah we have a first of all this is.

For an apple 190 call and this is a typical profit and loss chart so get used to this we're going to be showing a lot of these and in this example this is the 190 strike and it's $3.50 per share but maybe you can kind of break down the structure of this so if you're paying 350 so this this little Red Line means that if it closes below 190 you lose all.

350 you have to get it up and above 190 350 for you to even break even on the other hand though the advantage the appeal of options is you could see how fast that Cur that line accelerates right so if you get above that 19350 hurdle the the strike Price Plus the premium paid that can that can accelerate very quickly and and that's.

What that's the appeal that that keeps people trading in options and another thing is I look here the red line it never goes any lower no matter how much the uh strike or how much Apple price share price decreases you're only going to lose that fixed amount that's true it's very defined risk the important thing though to keep in mind is most.

Options expire worthless yes so it is important to realize that you're kind of giving that up in a lot of giving that up and and on average it is speculation and I think unfortunately some people treat it almost as gambling and gamblers don't win most of the time so it's so you do want to use your defined risk but you need to use it intelligently yeah.

Good point there the house tends to win and that involves writing but we're going to cover that later in the week for now just let go through let's go through some of the benefits here because we have leverage hedging we talked about defined risk so maybe you could talk about leverage and he hedging a little bit well sure well the leverage.

Part was was in that graph before because you know we mentioned that needed to get past 19350 if you got to 197 well that option is worth $7 and then you've doubled your money so there's your leverage so you know it's it's Hit or Miss to a certain extent and when you hit you can hit big and that I think again tends to be a little too.

Appealing sometimes to people yeah we saw that in 2021 exactly hedging on the other hand um you know tends to be if you know if you're long a stock and you you know and you want to protect yourself on the downside you may want to purchase a put um there are other ways to generate income which again you'll get to with writing with writing calls.

That's hedging um and so there's so the whole point of options was really not as a tool for speculation but as a tool for risk management to transfer risk and to allow hedging uh between different parties who wanted to some some wanted to assume risk some wanted to lay off risk very good we got less than a minute so we got to go over a couple of the the.

RIS here leverage can work for you can work against you also options are complex and then time Decay we didn't talk much about that maybe you could just address time Decay with a little bit of time time Decay is we're experiencing it now time Decay is is one of the most unrelenting features of option trading what as I mentioned the.

Guarantee I can only guarantee you that there will be no premium on expiration and that does dissipate as the time goes by the longer you have for the trade to work out the higher the premium of the option as you get closer and closer that premium declines the the risk by the way with trading very short-term options is that premium really decays very quickly.

It's not linear it's it it's an exponential function sorry for getting too matthy but but it but it's a but you know you fall off a cliff as you get close to expiration we really thank you for appearing on day one of options 101 week here Steve snik thank you Josh Julie back to you all right Jared thank you so much appreciate that meanwhile.

Searches for Taylor Swift on Twitter have been blocked following the social media site being flooded with AI generated explicit images of the singer over the weekend the Deep fake sparked outrage with fans and lawmakers and have since been traced back to being generated on Microsoft's text image generator here with more is Dan Howley.

Dan that's right this uh uh kind of generated image uh kind of Splash across uh the the internet most prominently showing up on X but on other platforms uh as well is really uh kind of stirring the pot as far as how uh Regulators want to respond to this kind of content online obviously uh these kind of deep fig images are generated using AI 404.

Media reported that they came from uh one of Microsoft's products but Microsoft says they haven't been able to recreate this uh on their own but nevertheless have improved their guard rails uh for their platforms and I tried to go on Microsoft designer typed in Taylor Swift and it wouldn't even let me do that um but you can still see these.

Images on X they have blocked uh searches for Taylor Swift but as well as Taylor AI but if you search for something like Swift AI it's still going to come up that's because uh Swift is a coding language uh they're also uh going to continue to circulate regardless of what uh X does at this point because as we all know once it's on the Internet.

It's basically impossible to get rid of so now Regulators have to come up with a a plan uh if they can as to how to uh kind of put some kind of law into place around this the EU uh is working on laws about that but the US is notoriously slow when it comes to putting out any kind of AI law through Congress and it's it's important to point out that this.

Kind of content obviously uh is done without uh the the victim's consent at all uh but it's not the first time something like this has happened we've seen generative AI used uh for nefarious purposes before whether that's uh the Deep fake voicemail uh for uh President Biden during the New Hampshire uh vote uh and we had also seen a uh AI.

Generated explosion outside of the Pentagon that uh uh hurt markets for uh a time being in 2023 uh so this kind of problem is going to continue to grow uh until regular come up with a way of dealing with it well Dan to your point we have seen this in recent years I'm curious if this Taylor Swift situation is different in.

Any way is it just because she's Taylor Swift and she's so popular is it because there is technologically something different going on in this particular case all the above yeah I mean it's it's all the above obviously Taylor s's popularity especially at this moment has a lot to do with it I mean you know this this kind of happened you know obviously.

Not the same situation but uh her kind of standing led to those hearings about ticket prices uh and ticket scalping and things along those lines but this has unfortunately been around for some time people have been photoshopping heads of celebrities onto other people for forever right it's just the fact that.

It's so easy to do now with this technology means that the spread of it is going to be far faster uh and the volume of it will be far more so I think that's where we're why why we're seeing this kind of reaction it's you know a it's Taylor Swift and people are going to have a response because of that and B just because of the Simplicity of the.

Technology that allows people to do this and then quickly spread it across social media so I think those are the real reasons why it's it's generating uh so much buzz and why X had to take action do we know speaking of taking action Dan my my understanding was these images and correct me if I'm wrong they were created using a Microsoft tool did.

Microsoft respond to this yeah they said that they weren't able to reproduce this on their own uh and that they're uh regardless putting their better guard rails into place to ensure this doesn't happen and this has been something that you know companies have been talking about the these kind of guard rails to prevent the misuse of this technology uh.

For some time you know the kind of technologist side of things will say look it's a technology uh it can be used for good and bad uh it depends on the person that's using it which is you know a fair thing to say uh but you know when you're a victim of something like this you probably have rightfully so a much different uh kind of take on it so it's.

Going to be interesting to see how these two kind of uh opposing directions kind of come together if they can uh and if Congress can actually do something so far we haven't seen anything uh from them uh of significance uh the Biden Administration has uh released its AI executive order looking at ways to kind of Safeguard against certain types of AI.

Misuse whether that's discriminatory uh uses things along those lines but you know when it when it comes to this issue of deep fakes and how they're used uh and if they can be controlled that that's kind of still out there and you know while you know Microsoft says they haven't been able to recreate this it's important to point out that you know.

There's other AI models out there that people could use could train and uh could put out Tu fakes with regardless of of you know whether a large company is doing this or not so it's it's something that's going to be here with us now going forward it's not you know there's really no putting the genie back in the bottle here it's just going to be.

A permanent problem uh from here on out all right we'll keep watching Dan thank you so much for your time appreciate that meanwhile shares of Sofi they are soaring after a record quarter we're diving into the finex earnings next.

.

Shows of Sofi are surging almost 20% after reporting the company's first ever profit in the fourth quarter Revenue also beating Wall Street expectations soaring by more than a third During the period joining us now to discuss the quarter Dominic Gabriel Oppenheimer executive director and Senior analyst of equity research thanks for being here so.

What's going on here at Sofi it looks like it has sort of changed its business mix kind of leaning more on Financial Services Less on Strictly loans is that what's kind of unlocked this profitability for them well thank you so much for having me I you know I think people are surprised that they have the earnings.

Power and the diversity of Revenue that they really do and we've been saying this for quite some time that you know it's the diversity of that the revenue streams that they've built out that are creating this you know ability to kind of supercharge some of these some of these segments I mean the financial institution the financial.

Technology uh segment you know obviously both of those are just expected to over 50% growth in 2024 clearly there's a lot going right at Sofi right now even when they decide themselves to pull back on some of the loan uh originations and Dominic how how confident are you here that you know.

We're going to keep seeing this um ramping profitability in the cors and ahead and and if so how come sure sure so we've had in our model for quite some some time and it's a great question and it's a critical one because we've had in our model for quite some time that they were going to continue to have you know adjusted EIT.

Of margins improving over time the fact that this quarter had a 30% margin is really kind of the long-term goal that they've already achieved in this quarter U and I the guidance is obviously for continued 30% roughly margins here and you know it's really important that companies that came out in Span and and the like hold to their focus and their.

Targets that they've laid out uh at the beginning or have even updated but really deliver on some of these targets and Sofi is one of them that I believe continues to deliver on their their expectations so Dominic I noticed you have if I'm not mistaken a market perform on the stock what are you waiting to see from Sofi that would tell.

You okay it's time to get in here yeah I think you know we have consistently talked about an amazing buying opportunity when Sofi approaches $7 we've talked about becoming less bullish when it hits about 10 we've played that range multiple times it's it's allowed us to do that um you know the the thing that matters is is this.

Profitability uh Improvement uh enough to kind of break this trading range and we think the fundamentals are obviously imp improving it's is the overall climate enough where they can break through and you know I have to admit this report is based on GDP contraction in 2024 which means it's probably at the low end of where they'll deliver and it.

Leaves and you know it probably would leave room for upside and Dominic I'm also interested um to get your take on you know how you judge valuation for this name and you know nice I mean Big Pop today obviously it's now up about 40% Dominic over the past 12 months how does valuation Look to You for.

Sofi yeah it's another really important point for sof far in particular because we use some of the parts analysis and I think it's pretty critical for this stock and I actually hate some of the parts because it doesn't usually work but for Sofi it feels like it's the right call because they do have this pretty pretty significant technology.

Business otherwise the rest of it is really a special finance company but especially when you're growing uh this technology business uh you know 25% 20% it can really determine uh even though it's not a lot of Revenue it can really swing that multiple around and we've said this for a long time since we started covering the stock and so I I.

Really think as some of the parts analysis is the right way to go versus just tangible Book value that would miss all the earnings that uh this technology business provides uh and so that's why we think it's important to use as some of the parts and it comes to that range of roughly seven to10 dollars and Dominic I want to get you out of here on.

This um you know obviously you know the company backwards and forwards you know the SE Suite really well Anthony notto so want to get you you know your take on on notto you know he's a you know former Goldman Banker executive at X um he was named uh CEO of this company almost exactly six years ago Dominic what what grades do you give.

Notto look I I have talked to him quite a few times we've hosted him for different events I think he's a really clear deliverer and all that I care about honestly is his execution and he continues to do that and I think he's they have a lot of scrutiny sometimes because of the way they do some of the accounting and whatnot because people.

Aren't used to fair value accounting but I think that he should get high marks on his ability to execute the the dream of this company and you're seeing it in some of these numbers time and time again and in different Market uh environments right I mean that's what he's doing he's creating a a overall well-rounded you financial institution.

And I think you should get high marks for that Dominic it was great having you on on the show today thanks so much for your time and your Insight we appreciate it thank you so much for having me moving on Walmart offering new perks for us store managers the move coming after the retailer announced it's raising the starting base pay and.

Redesigning its bonus plan here with the details as yaho finances Brook Pama Brook good afternoon well untypical way to share this announcement us CEO John ferner actually taking to LinkedIn to share this announcement this morning the latest effort to attract and retain Us store managers is a $20,000 Walmart stock grant for us store.

Managers that's starting in April now it is based on the store format for example managers with smaller store formats are eligible for Less so for Super Center Walmarts that will be 20,000 but for a typical Walmart that stock Grant will be $10,000 and as you noted earlier this is the latest incentive for us store managers earlier this month they moved.

The US store manager salary from $117,000 per year to $128,000 per year and they also redesigned that store bonus store manager bonus program now Us store managers are aable for a bonus of up to 200% of their base salary if that manager hits all the targets and so if you take this all a consideration and.

You say that this is the most successful Walmart Us store manager well then the salary is upwards of $400,000 a year now with these three senses in mind really us CEO John ferer saying that the job of a Us store manager for Walmart is far different than what it used to be as e-commerce continues to Boom more uh consumers.

Locked their sores for grocery and really earlier this year or rather late last year they did also announce that nine billion dooll plan to modernize in stores and so ultimately they're saying here it's a different Walmart store than what it used to be and they want to offer their uh store managers more a far different story than what we're hearing.

From the rest of the retail industry Macy's recently uh announcing layoffs as well as Wayfair true but at the same time when it's something as big as Walmart you know it tells you something not just about Walmart but maybe about the bigger job market and the demand for workers right now Brooke thank you so much I appreciate it well counting down.

To the closing bell let's get Quick Check of the markets the Dow and the S&P heading for record closes both of them touching intraday records the NASDAQ 100 has been on that track as well the NASDAQ Composite is leading gains today up by 1% as we await some of the uh big earnings reports later in the week and there's some also some news on the.

Treasury side of the equation here today so we're watching Bond markets closely and how they sort of feed through to what's going on to stocks the treasury just out and has reduced its estim estimate for how much it's going to borrow this quarter that was a surprise to some economists because of the widening fiscal deficit so the treasury.

Department is now saying for January through March it is going to borrow $760 billion the prior forecast from treasury was $816 billion so seeing a bit of a movement downward in yields here as we get that news the tenure yield now at 4.09% coming up next we got the closing bell we'll tell you about some more.

Trending tickers stay tuned.

now there's the closing BT on Wall Street so let's do a check of the markets here because looks like we got a record close for uh the Dow and the S&P here because the gains that we are seeing today um.

Guessing the NASDAQ 100 is there as well um so we saw the Dow climbing by 223 points you know it's funny Josh because earlier in the day we were saying that this felt like sort of a calm before the storm it's a pretty good little Rally For The Calm before the storm with the Dow here up 610 of 1% the S&P gaining 3/4 of 1% and the NASDAQ up more than.

One 1.1% here um and again seeing these gains here pushing things to new record so you know it looks like investors are are feeling pretty good perhaps about the tech earnings about the FED about the jobs support uh that that we're going to get this week a lot on Deck a lot on Deck here's some other want to get some trending tickers should we do.

That as well Bank of sure why not Bank of America lifting its price Target on Chipotle the move coming amm higher than than expected sales volumes generated by the restaurant company so this one Julie was interested this was sort of a broader you know BFA restaurant earnings preview and kind of analyst in Broad Strokes kind of laying out what they.

Expect to see telling their clients their checks indicate restaurant demand generally improving through Q4 inflation they note for most Commodities in line or lower than last quarter um you as input prices fall they point out promotional intensity increases but they don't think that necessar is going to mean margin pressure so kind of pretty.

Constructive and as for Chipotle specifically they they lifted a number of targets Chipotle it looks like they go to 2700 yeah Sarah Senator over there uh leading this uh coverage and this preview of what we're going to hear from the restaurants fan I'm fan of her work here and she's looking at higher than expected sales volumes that we saw for.

Chipotle in the past year um and also looking at average unit volumes to go higher as well so a lot of optimism here looking at about 8 billion doll in iida from Chipotle so that's how they get at that price target for the company yeah all right let's also talk about 3M here now this stock is not moving that much but a lot of folks closely watching the.

News coming out here a $6 billion doll settlement over allegations of its earplugs causing hearing loss the company is saying the claimant participation is on Pace to exceed the 98% threshold required by the agreement in other words it looks like they're getting to the point here where then they can put this behind them which is.

Something that's been a bit of an overhang for the company yeah I mean this was this was a big source of uncertainty if you had money yet you put to work in 3M um it sounds like you know mentioned the kind of the what they're hitting there in terms of participation right the stock so far this usually we're already down about 10% right and.

We had this headline today but remember earlier this month Q4 earnings be but guidance Miss so it's been kind of rough sting there yeah long name and we're talking about a lot of people by the way who are involved in this settlement more than 250,000 eligible claimants here um who have now signed on to support this so.

We'll see if I mean it doesn't look like it's causing much relief in the stock today but again something that the maybe um shareholders don't have to worry as much about going forward yep and fin let's get a look at Chinese automaker byd releasing preliminary results falling short of analyst estimates and that's what this looks like the headline.

Julie we got some PR Ary numbers here um preliminary 2023 net income between 29 and 31 billion Yan or about $4 billion and the street was close to 31.5 billion it looks like um so interesting kind of reaction there was that very good piece I don't know if you saw in the journal talking about how byd actually overtook Volkswagen as China's bestselling car.

Brand in 20 in 2023 and of course we know Elon Musk has been talking a lot about kind of the BDS of the world and China rivals in general yeah it's also interesting cuz even though that number came up short of estimates it's still a 75% gain year-over-year in sales that the company is projecting so it's all relative I guess versus the the whole.

Expectations game um but as we know there's kind of a PA being cast on electric vehicle demand particularly in the US but I guess globally there are some questions as well in addition to that story about byd overtaking Volkswagen there was also a story about General Motors and how a lot of the dealers have pushed back against getting.

Only El that they they say customers want more hybrid vehicles as well GM is going to place to be yeah it's going to report it stting tomorrow morning we're going to talk more about that a little bit later as well all right we move on it was a record day on Wall Street kicking off what will be a huge week for the market the market Magnificent Seven.

Earnings the jobs report intentions in the Middle East all are expected to move markets and influence the federal reserve's next rate decision also this week on Wednesday the market is pricing in a pause with some saying a soft Landing may have already been achieved our next guest says that line of thinking is too hasty let's bring in.

Victoria bis banry on Capital Management Chief investment strategist Victor it's good to see you maybe just to start here we've been talking about different kind of uh kind of different headline making events Victoria this week I want to start on earnings though and we're waiting for big Tech uh there I'm interested Victoria so far during this.

Earnings season interested to get your take what have you heard and what do you make so far what company's been reporting yes um first off thanks so much for having me Josh in terms of earnings and reportings I'm very bullish on what we're seeing in terms of the tech companies that are coming out right now um I'm very like in particularly.

Like we've been following a lot of the larger sector headlines in terms of um technology stocks that are releasing but um I think one of the main like focuses that I'd be interested in or interested in talking about today is um not just like how markets are doing overall but also um personally just kind of how we're how we believe that like the FED.

Is going going to be impacted by some of the market movements that we're seeing if at all so what do you think how how is we were talking about this a little bit earlier in the show Victoria that our question and really Josh's question was sort of are we gonna see J poell come out and try to Tamp down some of the equity Market enthusiasm when we.

Hear from him this week so I think that that's definitely some of the sentiment that we'll be seeing from the fed and from J pal this week a lot of Market sentiment particularly has been around rate cuts and the necessity for that to kind of tamper down some of the CPI or some of the kind.

Of consumer based like enthusiasm that we're seeing but I think one of the other key aspects that we need to keep in mind about why exactly I think for example rate Cuts may not necessarily be in the future of the FED is that for the most part based off of the macroeconomic data that we're seeing things seem to be a little bit under control yes we we do.

Have some very high CPI numbers at play but so long as we continue to see inflation coming under control on top of that full employment I don't think we're going to necessarily see that um rate cuts that investors are really looking forward to and Victoria you know we're talking earnings we're talking fed I also want to get your take on.

Geopolitical risk you know right now the market seems to be taking all that very much in stride I was just wondering you know your take on it do you think the Market's being too complacent in about it Victoria I think it's not necessarily A complacency good question um I think that a lot of the factors that come into.

Play when it we're talking about geopolitical factors a lot of things that come into play is particularly around like um I'm seeing war or if we're looking at for example what's happening in the United States um with like Federal with interest rates and things of that nature um what's happening in Israel and what's happening.

In Ukraine definitely is impactful to a lot of um Machinery or War based stocks that we're seeing so whether that's um Ron or things of that nature those are definitely companies that I think are that are kind of becoming winners when it comes to kind of the geopolitical tensions that we're seeing and if we're thinking about for example more of those.

Financial macroeconomic pressures I think a strong dollar a strong US economy is always beneficial to overall markets and it's clearly starting to reflect a bit in what we're seeing in terms of stock stock market rallies but you know I think that that's we're in for a shock once the FED makes their announce once the FED starts to chime in.

Or tamper down some of that later on in the year and then also if we're thinking about like International markets what's going on in China right now particularly with like the um liquidation with um I'm blanking out on the name right now but the basically the largest yes largest yeah exactly largest housing manufacturer in the entire.

Country you know I think that a lot of that tension has been priced in when we come when it comes to real estate markets because a lot of their particularly smaller competitors essentially anticipated this or this has been a rally that's been going on for two years but now we're but that can still kind of come back to bite a lot of.

The real estate market and real estate manufacturing Market not just in China but also may have a spillover effect here in the US as well and Victoria I know you're also looking at small caps which is something we've been hearing from a handful of investors as of late um what makes you confident about that group right now because they they have.

Been sort of volatile and a little bit more volatile than the broader market so my overall I would say enthusiasm around small cap stocks is that they tend to outperform when markets are kind of coming up from what we would call A downturn or a down swing between 2022 and 2023 we were seeing a.

Lot of Market tensions related to control of inflation from the fed and so we had a lot of growth in like high-tech stocks that were and particularly like the magnificent eight that are that were soaring over the past couple of years and benefiting off of this very high interest rate envir or high interest rate environment that is something that.

Particularly does not fare well for small cap stocks or value based stocks but now when we start to come back down or like again that growth momentum movement is starting to Tamper down a bit more this is the time when value based stocks start to really benefit because again once we're really starting to kind of like get out of that swing of.

Of the bearish market that we were bearish Market that we were seeing and now I would say it's more of a bull market with what's happening in the US economy this is the time when we see small caps small value kind of fair a lot better versus the tradition versus um traditional growth stocks Victoria it's gonna be a big busy week thanks so.

Much for helping us think through it appreciate it thanks so much for having me coming up Boeing set to report earnings this week could we see a shakeup at the top from for the plane maker and discuss on the other.

side.

the gain's accelerating into the close here and it was a good record day for the Dow and the S&P 500 Jared blicker here with a look back at today's action Jared that's right Josh and throw the NASDAQ 100 in there as well not the small caps but I think investors will.

Take it from the Dow up 610 of a percent to the NASDAQ Composite up 1.12% let's take a look at some of the record closing highs and I had a lot of alerts today and they started really firing off at about 340 345 so it was indeed a race to the Finish into the close and you can see a lot of Mag 7 Action here at least four of them we see.

Alphabet in there meta Nvidia m Microsoft Nvidia up over 2% and let's just take a look at the year to date and get that stat for you uh we've seen an excess of 20% there you go 26% year-to date MasterCards in there along with Visa you like you like Pharmaceuticals Eli Lily MC amen well if you look take a look at the software sector service now.

Caterpillar in terms of the Industrials by the way xli industrial large cap space that closed at its first record high since December late December so first one of the Year there for xli the industrial sector and here's the leaderboard in sectors today consumer discretionary that's xly that's number one up almost 1 and a half% followed by.

Tech not quite up to 1% then communication services and astute viewers might note that these are the mega cap sector so kind of Echoes from last year we've been hearing uh those are the leaders over the last year now energy did take a little bit of a hit to the downside financials also Al lagging a bit but for the most part a very.

Active and uh engaging day at least for some of the leaders uh went over the mega caps Apple notably not in the green just yet in fact it's been kind of playing with uh around the unchanged for year-to date and you take a look at that stock and let's just get a quick look at the year-to date indeed uh coming off the lows there but taking a little bit.

Of a a slide over the last two days Tesla up 4% that stock in the ringer this year but it has clawed back a bunch of gains you can see it's still down about 23% today's 4% uh worth about that much in terms of charts and let's just look at some of the leaders here and uh you can see Arc components Arc is the number one spot there it's up almost 5%.

So disruption playing out well today followed by IPOs and Bitcoin cannabis if you're noticing a theme here a lot of fringy sectors attracting some money so maybe the laggards are seeing a little bit of pler I would know that the Chinese sector kweb Down 2 and a half% so not gains around the world but uh pretty much in the US yeah pretty green.

There on that screen behind you Jared thank you well one uh stock that is not green this year is Boeing the stock of course getting clobber to start the year as the company faces The Fallout of a door panel blowing off a jet jet midair and the company's gearing up for earnings on Wednesday but our next guest says the.

Issues at Boeing go back 20 years for more on the culture and Leadership at Boeing we're bringing in Bill George former medron Co and author of True North emerging leader Edition good to see you Bill so as you look at this situation at Boeing you recently wrote about sort of the leaders that led up to Dave coun the current.

CEO where did the problem start sort of briefly if you can sort of summarize and how does he fix it you know we've had five CEOs that have played the short-term game for the last 25 years starting back with Phil condet who instead of gaining Sherry bought McDonald Douglas which led him into a lot of trouble and more importantly.

Moved the headquarters away from Seattle and then you had a succession of CEOs and you know if you just look at the stock over the last five years it's down 44% cost investors about hundred billion dollar so uh these CEOs have have gotten away from what Boeing's all about uh in the last uh five years they have bought back.

121% uh they have dividends and stock BuyBacks 121% of their earnings course they've lost money for the last three years so here's a company it's in trouble but America can't afford to have it be in trouble this is an American icon that must be restored and so I think they've got to get back to longer term Focus now I've got five ideas on.

How to do that number one they've got to restore their whole quality system if I were Dave G and I would shut down the entire Factory for a a week and have everyone focused on quality they've got to change not just quick fix or let's fix this door plug no they got to fix their whole system second they got to redo the whole supply chain to keep.

Farming out things to unreliable suppliers like spirit arrow and you know they can't even keep the bolts on a plane and it's ridiculous third they need to design a new single aisle aircraft the 737 their Workhorse aircraft is been it was designed 60 years ago think how much technology has changed in 60 years and they don't.

Update they just keep changing bits and pieces and they create more problems as they go and I thought frankly if I were there I would move the headquarters back Seattle and Dave goun should move back there himself and finally they need to really take a look at their balance sheet they've uh they've bought back so much stock they have negative.

Shareholders Equity they've got 54 billion dollar in short and longterm debt and uh they're in trouble and they need to restore the balance sheet to a healthy balance sheet and generate some cash flow which they haven't done for a long time and so bill so you've sort of laid out the strategy here what what you think uh Dave Calhoun and his team there.

Need to do any any evidence Bill to you that that coun and the Sea suite at Boeing are GNA take on any of these measures you're suggesting not so far well he's said he's going to fix quality but see they're fixing it a piece at a time they're not fixing the quality system but no he said uh he's been in office now this his fifth year and he.

Said we're not going to have a new aircraft this decade well why not they had the for mer head of commercial Aviation El malali had a a new single AIS aircraft that they cancelled after he left and went to Ford and turned around Ford they've not gone ahead with that they need to do that and that's going to take uh you know seven or eight.

Years but they just need to get with that right now they're in the verge of losing longtime customers like United Airlines United Airlines CEOs in too this week talking to aot about can you get more production out of them American southwest very loyal they all threatening now to say if you don't get your act together we're out of here in.

Fact one of them said this is a straw that breaks camels back so they've got to restore themselves as America's leading Aviation supplier um bill is Dave Calhoun the right guy well so far he seemed like he was but he has not demonstrated it he is uh he's not he he had once ran G's jet engine business but he has got to really.

Take step up to the long-term issues he's acting like a short-term CEO and that's not going to get it they're not going to cut it yes he's got to do the short-term things but he's got to have a long-term strategy in place and he hasn't done that yet so I'm waiting to see will he come forward with that on Wednesday I'm not optimistic but that's.

Going to be a key time for him to face down investors it's not just about door plugs there's a lot more to it than that yeah most definitely bill as you mentioned he is a GE Alum and a number of those other leaders you mentioned were also Veterans of GE is this yet another sort of hit to ge's one-time reputation as a factory for Quality.

Executives no doubt Harry ston cyer the former CEO that got him in a lot of this trouble uh came out and publicly said to 20 years ago he said we're not going to act like an engineering firm anymore we're going to act like we're going to run this like a business what an insult to people that generated tens of billion dollars in profits but he said that and.

That changed the whole culture to a shortterm finance-based culture instead of a quality Aviation design culture and that was the key and then they passed over Alan malali called him back ston Cipher back malali should have had the job frankly that would have changed everything so I think M Calhoun needs to surround himself with someone maybe get.

In a COO if he's GNA or maybe just be chairman and bring in a CEO who really is a top Aviation expert and Bill I'll get you out of here on this you know if you're a viewer watching this right now maybe you have you know Capital committed to Boeing um how were do you think you should be Bill about about Boeing's business and the reputational.

Hit it's taken and and potential impact orders here in the quarters and years ahead I think i' would be very worried if you'd invested five years ago if you had $1,000 invest in Boeing it'd be worth uh you know three times as much as if you'd put it into the just into the S&P 500 so uh yeah I think one should be very concerned about the long-term.

Issues not just the shortterm see you can get short term fix this but they don't solve fundamental problems of a culture that's moved away from design and quality and uh and safety and they've got to get back to that that's number one and you know if they don't do that they aren't going to have a future the America needs them though so we.

Can't just sit back and say oh well Boeing's going to go the route of GE that can't happen we have to ensure we have a great company in Boeing and I think that's essential uh and so I'm not giving up on them at all uh but I do feel like they've got to get back to fundamentals of how you run a business Bill George we always really appreciate.

Your Insight here at Yahoo finance thanks so much for joining us thank you for having me it's great to be back with you take care coming up we've got a Vibe check of the economy with author educator and Creator Kyla scanland that's next.

a.

now well 2023 was the year of the vibe session every day Americans weren't feeling good about the economy even though the data wasn't necessarily that bad but they may that may be changing in the New Year University of Michigan.

Consumer sentiment jumping in January inflation cooling again put simply The Vibes are off to a solid start in 2024 here to break it all down further is the author educator and the one who coined the term Vibe session Kyla scanland H now you're talking about Vib spansion Kyla uh you got another fun word uh to talk about what's going on so people are.

Feeling better yeah I mean if you can look at the consumer sentiment metrics and see that people definitely are feeling better than they used to and there's a lot of reasons why that could be happening a lot of people are pointing to a change in media headlines media headlines are becoming more positive.

Inflation is going away so people might be feeling the impact of that um but yeah people are feeling a lot better which is quite good for how we think about the economy and Kyler when you look at the data are all people feeling better or Tru or is it subset of consumers are feeling better yeah I mean across the board the consumer sentiment.

Metrics are pretty strong you can also look at things like job satisfaction metrics and get an idea of how people are feeling about their jobs they're feeling pretty good about their jobs as well of course there pockets of people who are not feeling as as good and um that's always something to keep in mind but across the board we have seen a.

Pretty strong increase in sentiment um from most groups so I guess Kyla then the question is what that implies about the future path of the economy if the economy was able to expand last year much better than estimated even though people weren't feeling great now that they're feeling better does that mean the economic growth this year might be.

Better than expected well if you look at the recent GDP print a lot of the growth from you know how we measured the economy that way was from government spending from manufacturing spending and so the question is can the economy keep on growing if manufacturing spending isn't increasing at the same clip but if consumers keep on spending money which.

They have been doing based on retail sales we should still see this economic strength continue so I do think everything is pointing in the right direction which is is good to hear yeah so if things are are moving in a better direction kylo are you surprised President Biden isn't getting more credit for that and do you expect that.

To change do you think we're going to start seeing his approval ratings move higher here I don't know I think election year is always really tough I think politics are really tough you know you look at the surveys and um nobody's super happy about either candidate and I think that makes it difficult across the board I do think that there is credit.

Due for Biden and Jerome Powell on how the economy has progressed over the past few years like if you had told somebody in early 2023 that the economy would be where it's at currently I don't think anybody would have believed you so there's credit due um I'm just you know I'm not sure if it'll be delivered to those who deserve it um and when you're.

Looking at inflation as an input to sentiment here um what are you watching and how important a factor do you think that is I mean inflation is incredibly important if you ask people their number one economic concern a lot of times it is you know things are very expensive at the grocery store and so I think inflation and inflation going down is.

Key however when we talk about inflation going down a lot of people think that that means that prices are going to go down but that's deflation right and so inflation is improving we do see a big recovery it's getting a lot closer to the fed's Target of 2% but I do think that you know prices are going to remain elevated they're not going to go back.

Down and I think that's going to create a level of frustration for people but there of course is going to be happiness that prices are not increasing at the rate that they once were and K I want to get you out out of here on this you know you say the word of the year trust Kyla I was wondering if you could help kind of walk us through that what what's.

Interesting to me is we we do live now in a kind of a a low trust Society Kyla you know not much trust in government the economy media right how do you think you improve on that yeah I mean I don't know if I can do that concept Justice in just a few minutes but the whole idea is that the language that we use to describe the economy doesn't necessarily.

Reflect the economy itself like GDP maybe isn't the best metric to be using but it's the metric that we use and so that kind of gets into to language not accurately describing the economy which impacts storytelling and impacts narrative and then if the stories that we're telling don't necessarily match to people's reality that leads to an.

Erosion of trust and we live as you said in a very low trust Society already and so I think that building trust back up however we end up doing that is going to be extremely important for the economy moving forward um you're right I wish we had did have more time to talk about that but we gotta go kylo so we'll do it next time kylo scanland thanks so much.

Appreciate it than you of course General Motors among the company's reporting earnings ahead of the open on Tuesday here with more on what to expect is p Superman and the shares up a little bit today but what are people looking for yeah you know shm kind of brought down their their forecast or 2023 adjusted ebit profit because of that strike that.

Affected the first month of production there so you know we saw them come down from 11.7 to 12.7 billion from 12 to 14 billion see if they sort of hit that upper or lower bound of that range and see what they say for next year let's see what the new Target's going to be you know speaking of that you know the Q4 Revenue uh going be slightly down.

Compared to last year um you know we had production was not affected so tremendously because they built up a lot of inventory to sort of make up for that so we'll see how what they're going to say about that uh EPS one16 a share adjusted so we'll see if that kind of hits that that Mark there um one thing that I'm watching those Cruise so we had.

A lot of hiccups there with the cruise um Auto automation their AV uh unit there had a whole sale clean out of of their management right new sort of TAC there how they going to what are they what are they aiming for next for their autonomous sort of Ambitions and you know they revealed a couple days ago a doj an SEC investigation into what.

Happened not just with the actual accident but also aftermath of that how did Executives asked so that's that's kind of a big deal and probably gotta ask you just back from a trip to Daytona right um and and GM's Cadillac right was what was among the brands racing right yeah I mean so this is the crown jewel of American sports car racing is Daytona.

Rolex 24 um endurance race and basically Porsche and Cadillac GMS Cadillac were were battling out for 24 hours and it came down to the last time Porsche uh sort of just won by by a few seconds actually after 24 hours so that's sort of a big deal for them getting the overall win in that category it's a big prestigious thing to have Porsche this.

Is the second year of a new class of hybrid racing and Porsche they had an okay year but not not the best and this is more along the lines of where they expect to be and I spoke to the head of Motorsport Thomas lowenbach about how important this is for them not just to win on the track but also on the road because a lot of that stuff translates.

To the road cars I would say it was definitely the next step in sports car racing um I mean maybe as a general comment for us it's extremely important that what we do at the track what we do on a on a circuit here you know that it has relevance to what we do with our road cars and therefore the hybrid stem was important.

Electrification in itself you know take it step by step um and I think it's fair to say we were the ones to commit quite early to the new series um and from what happened after that I think it gave it a push I mean I think it's fair to say that I mean we got a a huge brand name it's a it's a well-known name in Motorsport and Porsche entering that.

Series for sure attracted also other brands so Thomas is actually an engineer too at har and he actually designed one of the hybrid supercars that they did few years back on the 919 918 SP but also you mentioned Brands uh you have BMW Cadillac as I mentioned Porsche and Acura in the US and the sister uh series same cars type of cars in Europe.

With Ferrari Toyota Lamborghini stellantis is pujo and also renault's Alpine brand is all all racing and they all race together at Lama in France too so a lot going on there I love the background noise that you can hear behind the interview the of the cars but Porsche also just rolled out an all electric new model right the McAn the.

McAn EV yeah EXC yeah and that's the stuff they're talking about the Battery tech powertrain Tech that will feed into those cars and they've been doing the the Panamera SC hybrid plugin hybrid for over 10 for almost 10 years right so they've been doing that for a while now and it sort of translates from back and forth between race and car to car and.

Race that sort of thing yeah PR gets the best assignments thanks for that work thank you pr appreciate it coming up we're going around the horn checking in on some of today's top trending stories including the largest cruise ship in the world setting sale stay tuned more Yahoo finance after.

this.

Yeah welcome back to ya finances group chat I'm Josh schaer here with Alexander canal and PR super ranian and today we are kicking things off with shares of flutter entertainment ticker symbol flut the FanDuel sports book parent completing a dual listing today on the.

New York Stock Exchange and they're betting that the US market is going to be worth $40 billion in sports gambling saying that Americans love to bet big guys so flutter of course owns several properties as we're showing across the world in gambling but they their parent company of FanDuel which is the largest sports book in the US and I talked to.

CEO Peter Jackson actually earlier today down at the stock exchange and asked him how he thinks we get to a $40 billion total addressable Market by 20130 here's what he had to say we simply looked at the number of states that we anticipate uh licensing look at the penetration rates we expect to get to compar in comparison with.

Australia and other markets and we look at the of the average bet size that you know Americans are doing and that's where we get to the 40 billion I I suspect it'll turn out to be conservative cuz everything in America turns out bigger than you expect so everything in America turns out bigger than you expect like Texas yeah right.

The world right but for the world we're like the world version of Texas but I thought it was interesting I've talked to Peter several times now and he points out that quite simply we do bet more here we bet more money per bet and that was one thing that stuck out to me coming from an international perspective as we've sort of watched Sports gambling.

Catch on here is people people like to put it put a little bit of money on the table yeah I mean I was a little surprised to read about so you mentioned Texas it's illegal in Texas I know I know because I was there were you trying to get your butts in yeah maybe maybe but I will say that I'm I I note that it flutters sort of more profitable than.

DraftKings is and that DraftKings is the big gorilla in in the room right and then but then also this this the lanscape is going to be so competitive with esbn BET right um Fanatics sport Sports coming online and and even Caesar sports book so it's a big address Market but AR there a lot of players I mean that's that's a big one thing we're.

Highlighting here right now on screen proc is how topheavy though currently the market is you're looking there all the way on the left of your screen is online Sportsbook and you can see FanDuel with 43% of market share DraftKings with 32% of market share so you're sort of talking about two two behemoth at the top and then a little.

Bit of everyone else yeah and I think the explosion of sports betting too is the fact that we're seeing different types of bets right parlay bets I'm not a hardcore gambler but I do like a good parlay everyone wantes to pick a tou down score Super Bowl's coming up you know you can bet on whether or not the national anthem is going to be above or.

Below 2 minutes what color the Gatorade is going to be that just invites the Casual bety I guess you could say and I feel like that just makes the market a little bigger in the sports books pros metion profitability and why flutter thinks that theyve made FanDuel so profitable is the parlays it's when they get you to bet on more than one outcome.

The house is winning more often than they do on other bets when you make a parlay so parlay is betting on someone to throw a touchdown and the team to win right combining those two outcomes Sports books do really well on that and I think just generally from talking to people it seems like that's what's popular right now right everyone wants.

To tell you about their parlay proos wants to tell me about his parlay and he's got par he's got five legs in there and there's all these different outcomes it's just more popular than say we I I think the Chiefs are going to win the Super Bowl people want to combine all these they go three legs right three is the max three is the leg Max IO I.

Thought it was also interesting Josh you asked him whether or not this Super Bowl was the top Behemoth when we think about the sports betting space but he actually told you that it's the days where you have more games and more bets on the market that could see more traffic yeah he said the Super Bowl's still big but he said a day like yesterday so we're.

One day removed from the AFC Championship and the NFC Championship which was two big games basically you get as I was talking about with the parl you get more outcomes for people to bet on right at some point you need to be able to quote unquote sell more if you're the sports book and having more outcomes like this is normally.

Advantageous for them that's why Sports books love March Madness the amount of times you can bet throughout a day the first Thursday of March Madness when you're watching all those games it's great for the overall volume in the industry well with the chief ners I'm going to bat on how many times we'll see Taylor Swift on the screen.

Sure definely be a prop but Josh while you've been looking at what people are betting on I've been taking a look at what people are watching and according to a new neelon report it appears like streaming audiences are heading back to the archives as shows like suits is anatomy really start to see a Resurgence amid the content licensing boom and this.

Is pretty staggering suits acquiring the most views of all time even surpassing the office almost 60 billion total minutes watched in 2023 that puts it just ahead of the 57.1 billion minutes of viewership that the office acquired in 2020 and it just shows that you can really have TV series that were on years ago I mean suits debuted in 2011 now.

Getting this new life on platforms like Netflix and Netflix CEO uh Ted Sandos he had said multiple times that they want to continue licensing from competitors he splashed cold water on the the idea of wanting to license their own original content we'll see if that changes down the line because you could potentially be leaving a lot of money on the table.

And I think that's something that at a certain point media companies across the board are going to have to weigh should we be licensing our content should we be keeping it in order to have more engagement it's going to be battle to me the biggest takeaway from this is a yes how do you recreate suits but how do you not.

Go fishing and say the wrong place for some of these shows too right like I think suits has the right characteristics of something that works it was it's kind of Timeless it's fun it's light it doesn't really I I I don't know it's not a lot of the other shows that people are streaming right now I think like we stream a lot of good.

Dramas right and really intense kind of shows and suits for me I was one of the people that streamed did on Netflix and it was like just fun like it was just like a fun show and it's like how do you find shows like that I know Sex in the City I think is coming to to Netflix that might fit that Bill maybe I I think you know we talk about 21 million years.

Of streaming just this year alone that's and then the report Netflix has almost all of that right over the last 10 years they have so much data that they know what shows really can really hit from a casual viewer Library content right you mentioned you mentioned uh suits years ago as friends right and then that what's what's next and like what's next.

Sex in the City maybe that's like what you said a nice light-hearted casual watching put on the background maybe I mean they if anyone knows what's going to work I think they know right and they know they're subscriber too so a key thing is they'll say oh you were interested in this series let me introduce you to another one that you.

Could watch and in this bingeable environment I think that's really attractive to users as well it will be really attractive to us as well anyway uh sorry sorry let's go to this camera now 20 deck 2,000 crew members seven pools six water slides around 10,000 guests those are the specs of the world's biggest crew ship icon of the.

Sea set to sale this weekend look this thing costs $2 billion to make it looks like a floating Hotel um there are some concerns here about the environmental impact of this thing I mean it's a lot of energy that that it requires to to actually motivate itself uh it's going to use LNG is a fuel but then that's cleaner than diesel but then it's also a.

Lot of methane etc etc so you know a lot of good with this thing a lot of weird with this thing I don't know I'm not a big Cruise guy I don't what you guys think but so so that's kind of my takeaway here is I think it's awesome for people that like cruises which obviously is who this is aimed for but as someone that has never really been.

That into cruises I think situations like the pandemic have made people wonder if they ever want to go back on cruises and sort of that confined area for a long period of time with the same people and that sort of thing I don't think this like solves that cuz it's it doesn't have that much that's exclusively different than like what I.

Would expect the best cruise in the world to have I guess like I don't I don't know I didn't see any of those stats and think like oh I I finally want to go on a cruise it just doesn't quite do that for me that being said though we have seen the cruise line industry really see a Resurgence since the pandemic well like it's just a problem I.

Agree I was looking at Royal Caribbean stock over the past year up about 100% I mean that is pretty substantial especially given the fact that the pandemic did cause a lot of panic for that industry you were hearing people trapped on these ships yeah Ian SC I hear one of those stories in a mou yes but I'm not actually opposed to all.

Cruises in general like I would group have small big group that be really like an alas well like Alaskan cruise and smaller ship more intimate uh more of an adventure not so much like a floating palace of like so this is too commercialized for you almost cuz it's so big yeah it's likees sense I'd rather just have a more of like a more confined.

Sort of Adventure to a certain place as supposed like we're going to go to you know Cancun and this massive 7,000 person floating Arena and then I'm going to get sick on it right I I don't want it's just like the travel Rebound in general Planes Trains the automobiles cruise ships I mean people want to get out there and they want to experience.

Fun things so why not capitalize on this moment and cruising won't be stopped right I mean it seems like it's not going anywhere all right we got to go te check out some of those cruise liners guys we're going to find a good one for us we'll find one that fits all three of us we'll do the group chat from there be perfect on the ship we we'll bet on the.

Cruise ship and we'll stream some Netflix but coming up next we're going to bring you what to watch tomorrow we break down the key stories to know to start your Tuesday.

a now.

let's take a look at some of the trending tickers After Hours the company that companies that reported their earnings after the close of trading start with Cleveland Cliffs the company reported its fourth quarter results a steel company reporting Revenue fairly.

In line with estimates losses narrowing compared to the year prior company also forecast first quarter adjusted eida meaningfully exceeded that of the fourth quarter the company says that steel unit cost reductions will be seen of about $30 per net ton and they said steel unit costs will will further decrease in 201 24 but the shares are taking a hit.

Remember there was effectively a bidding war for us steel one of the four uh steel majors in the US and nipon steel a Japanese company ended up winning that but Cleveland had been trying to acquire it so imagine there will be some questions about that strategy m&a going forward on the call same goes for another Steel company that reported that.

Is new core those shares moving Higher by almost 2% sales and uh earnings there beating estimates $3.16 was what the company reported $2.88 is what the company uh is what analysts were expecting rather and the company said earnings in the first quarter will be up sequentially steel mills in particular will be better in.

The first quarter because of average uh selling prices rising and then let's look at something you make with steel appliances whirpool uh numbers out 2024 Outlook disappointing Wall Street sales and earnings guidance trailing estimates and the company is expecting now to further reset its cost structure with an additional 300 million to $400 million.

Uh of a reduction in cost basically people aren't upgrading appliances at the same rate here Revenue it says will be about $ 169 billion this year analysts on that basis had been looking for 17.7 billion um and we're going to be watching this closely world poool does tend to be a little bit of a leading.

Indicator in terms of consumer willingness to spend on Big Ticket items obviously closely tied to the housing market as well and lastly F5 beating estimates on the top and bottom line for the first it's fiscal first quarter second quarter forecast as well uh coming in better than analysts had anticipated those shares ripping Higher.

By some 7% here um and uh yeah we're going to be talking to the CEO tomorrow so that'll be a good conversation that's right France SW will be on the show talking about the report time now for to watch Tuesday January 30th on the earnings front big day of earnings Microsoft alphabet fiser Starbucks and General Motors all reporting tomorrow.

Microsoft alphabet kicking off a big week for Tech earnings and what will be a crucial week for the markets moving over to the job market the mudley jolts report from the Bureau of Labor Statistics for December coming out in the morning Economist forecast job openings to go down slightly will give us more insight on the market ahead of.

Friday's monthly jobs report and taking a look at the economy new consumer confidence data for January from the conference board it's releasing tomorrow we're expecting confidence to rise again this month as did the Michigan Consumers s them an index number last week and finally tune in for another episode of Yahoo planet is goodbye or goodbye.

That's tomorrow at 3:30 p.m. Eastern where we help navigate the best moves for your portfolio all right tomorrow we got a lot of earnings Julie it's hard to pick one alphabet does really interest me remember this stock returned about 60% in 2023 uh team at Jeff out with a note to their clients this morning say listen.

Their text generally pretty good that's ad budget flush consumer spend resilient improving Enterprise sentiment AI of course will also be very much in Focus yeah definitely um on that economic data front I'm going to be zeroing in a little bit more closely on jolts right the expectation there is for openings of 8.75 million in December a little bit of.

A decreased 8.79 million in November obviously these numbers under a lot of scrutiny because we've seen some strength in the job market um and so we'll be looking for that we'll be looking at the quits rate as well to see if there's any sign of weakness David Kelly JP Morgan asset Management's Chief Global strategist looking at the joltz.

Report he said we could see a further minor decline in job openings but this would still leave a million more vacancies than the prepandemic peak that there is this backlog of job openings so it's interesting to see that persist economic data big earnings be busy yeah all right that'll do it for today's Yi Finance live be.

Sure to come back tomorrow at 3 p p.m. Eastern for all of your coverage leading up to and after the closing bell.

f he

Sharing is caring!