The chip sector had another strong month driven again by its largest component: Nvidia.
Crude oil prices (CL=F, BZ=F) take a dip further following the OPEC+ decision to extend production cuts into 2025 while easing voluntary cuts for its member countries. CIBC Private Wealth US Senior Energy Trader Rebecca Babin likens the oil market to an over-expectant party host: "They [the market] wanted those cuts extended into the end of 2024, and we didn't get the gift. And the market's disappointed. So that was the first kind of reaction lower that we saw on Sunday night into Monday." Babin goes on to describe oil futures' reactions to softening manufacturing data from the ISM. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Luke Carberry Mogan.
It's the setup to a perfect storm as the major averages (^DJI, ^IXIC, ^GSPC) are off to a slow start this week and JOLTS data (Job Openings and Labor Turnover Survey) and the ISM's manufacturing Purchasing Managers' Index (PMI) print both disappoint. Are these really signs of an economy the Federal Reserve is ready to cut interest rates for? And what kind of opportunities are there in the market within this sort of environment? John Hancock Investment Management Co-Chief Investment Strategist Emily Roland sits down with Yahoo Finance's Market Domination Overtime team to sort through the data. "There's a feeling out there that cyclicality is not going to get rewarded in an environment where growth is slowing down pretty, pretty notably here," Roland notes, later addressing the opportunities in the bond market (^TYX, ^TNX, ^FVX): "We do think this deceleration in economic growth is the real deal. It might not come... it'll probably come in pretty choppy fashion in terms of the rates backdrop. But ultimately we think that rates will fall into an economic contraction here." For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Luke Carberry Mogan.
The utilities sector has outperformed this year, closing its best May since 2003. KeyBanc Capital Markets Equity Research Analyst Sophie Karp and eToro US Investment and Options Analyst Bret Kenwell join Market Domination to discuss how to navigate the sector. Karp says she is bullish on the utility space, claiming that it is "selling the shovels" the AI "gold rush" requires. She also notes that the sector has defensive characteristics because of its non-cyclical nature and underscores the fact that it is historically inexpensive. She adds that utilities are still attractively valued: "The trend is real," she says, pointing to the strength of power prices. Kenwell explains that while utility companies may need to make large capital investments to meet the AI-fueled demand coming onto the grid, earnings expectations are still strong for the sector's leaders. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This article was written by Gabriel Roy
Companies operating in the materials space provide a lifeline to a variety of industrial businesses. Materials companies typically develop chemicals and manufacture construction materials as well as paper products. High interest rates, brought upon by persistent inflationary pressures, have broadly taken a toll on revenue growth and profit margins of material stocks. In particular, elevated rates have disincentivized spending on new automobiles and made construction companies and their real esta
The executive, who has 21 years of funds experience, will become JPMorgan's global head of ETF product management
Europe needs to change the rules on cryptocurrency to ensure a harmonized approach across the continent, according to Helene Bussieres, deputy head of asset management at the European Commission. Speaking at ETF Stream’s ETF Ecosystem Unwrapped 2024 last week, Bussieres said “harmonization and convergence” were essential to stop national regulators from taking diverging approaches to the asset class. Earlier this month, the European Securities and Markets Authority (ESMA) launched a review of the UCITS-eligible assets directive, potentially opening the door to allowing direct exposure crypto in UCITS.
Chip stocks have captured the attention of investors after becoming the heaviest-weighted sector within the S&P 500 (^GSPC) for the first time in history. BMO Wealth Management US Chief Investment Officer Yung-Yu Ma joins Morning Brief to share his insights on the market outlook. Ma suggests that "the enthusiasm for AI is going to come and go in waves," acknowledging the unpredictable nature of sentiment shifts in the sector. He notes that it's "difficult to predict" exactly when and what developments will influence investor sentiment. While Ma believes that the "productivity gains and benefits from AI" will be enough to sustain continued gains in companies that contribute to the technology, he anticipates "a choppy path forward." Regarding market rotation, Ma expresses concern about the current trend, stating: "It's certainly concerning in the short-term that we're seeing a relatively narrow market, and that narrowness has been increasing recently and really driven by fewer stocks... that's not what you want to see for market health." For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Angel Smith
The three major market averages (^DJI, ^IXIC, ^GSPC) open Monday — the first trading session of June — slightly above their flatlines. Morning Brief Hosts Seana Smith and Brad Smith monitor the market action after the opening bell, while Yahoo Finance Senior Markets Reporter Jared Blikre observes movements across sectors and within the 10-year Treasury yield (^TNX) and the semiconductor space. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Luke Carberry Mogan.