Marvel's latest movie raises questions about the future of the franchise. Butterball CEO discusses how inflation could impact Thanksgiving food costs. President at Ava Labs predicts a 50% increase in Bitcoin market cap. Senior Investment Strategy Director explores investor worries and consumer sentiment.
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Quick takeaways
Investors are looking for companies with natural growth and less reliance on debt market funding.
The strength in tech stocks suggests valuations are not stretched and there is long-term room for growth in the tech sector.
Deep dives
Tech stocks rally as investors seek companies with natural growth
The recent strength in the NASDAQ indicates that investors are looking for companies that are not reliant on debt market funding for future growth. There is a worry about higher interest rates for longer, and investors are seeking companies with more natural growth embedded within them. The rally in tech stocks suggests that investors are looking for companies that can sustain their growth without heavy reliance on borrowing.
Consumer sentiments and doubts about resilience
There are concerns about consumer sentiments and their resilience, especially as they face higher borrowing costs, inflation, and the repayment of student loans. Retail sales data will be closely watched next week to assess the consumer's reaction to these challenges. While the labor market remains strong, there are uncertainties about the impact of rising costs on consumer spending.
Market rally driven by economic outlook and interest rates
The recent market rally can be attributed to the positive economic outlook and expectations of interest rates remaining higher for longer. Although Fed Chair Powell's comments may have not completely dampened concerns, investors are interpreting them as a signal that rates may remain on hold well into the middle of next year. The longer-term view is that monetary policy works with long and variable lags, and the economic adjustments to higher borrowing costs are still underway.
The strength in tech stocks, like Microsoft, suggests that valuations are not as stretched as they may have been historically. The rally is underpinned by strong earnings and actual growth in sales and revenue, driven by the push for cloud services, artificial intelligence, and software as a service. There is still long-term room for growth in the tech sector, as technology continues to drive innovation and enhance productivity across all sectors of the economy.
Bloomberg Businessweek Editor Joel Weber and Businessweek Assistant Managing Editor Jim Ellis discuss whether Disney's The Marvels release will raise questions about the future of the Marvel franchise. Butterball CEO Jay Jandrain shares his insight on how inflation could impact Thanksgiving food costs. John Wu, President at Ava Labs, talks about seeing Bitcoin market cap increasing 50% in 2024. And we Drive to the Close with Rob Haworth, Senior Investment Strategy Director at U.S. Bank Asset Management Group. Hosts: Tim Stenovec and Jennifer Ryan. Producer: Paul Brennan.