Guests Ed Ludlow, Zach Mider, and Mike Brown discuss Tesla's plan for cheaper EVs, private credit in Wall Street, and Travel + Leisure's performance. Mattel CEO shares growth strategies. The podcast explores cyber risks, market insights, and corporate earnings analysis.
Tesla plans to launch cheaper EVs to address growth concerns.
Financials, energy, and materials sectors expected to lead market rotation.
Decline in yields is boosting equities, particularly small caps.
Deep dives
Underlying Financial Pressures Masked by Recent Pullback
While the recent 5% pullback in the S&P and NASDAQ has drawn attention, there have been significant declines at the individual stock level, with an average drawdown of 32% for NASDAQ members. This hidden weakness raises concerns beyond the recent market drops.
Rotation towards Cyclical Sectors Expected
Financials, energy, and materials are poised for leadership as rotation towards cyclical sectors gains momentum. Factors such as improving global growth and stabilizing economic conditions could drive performance in these areas.
Market Dynamics Driven by Yields and Sector Rotation
Market trends have been influenced by shifting yields more than expectations around Fed policy. The decline in yields has been a significant tailwind for equities, especially benefiting small caps.
Outlook for Global Growth Improving
Economic data reflecting signs of less severe declines indicate potential for better performance globally. Europe and China show hints of recovery, suggesting a shift from 'less bad' to 'more positive' conditions.
Big Tech Earnings and Sector Performance Ahead
Analysts eagerly anticipate big tech earnings to gauge underlying market dynamics. Key factors like revenue growth, profit margins, and outlook will drive sector shifts and market sentiment in the coming weeks.
Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Technology Co-Host Ed Ludlow discusses Tesla easing concerns about disappointing earnings results and diminished growth by vowing to launch less-expensive vehicles as soon as late this year. Bloomberg News Projects and Investigations Reporter Zach Mider shares the details of his Businessweek story A Hedge Fund Billionaire's Cash Helped Fund 'Predatory' Lender. Mike Brown, President and CEO of Travel + Leisure Co., talks about the company's earnings and the growing demand for travel. Mattel CEO Ynon Kreiz chats about the toymaker's earnings and growth strategy. And we Drive to the Close with Liz Ann Sonders, Chief Investment Strategist at Charles Schwab. Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan.