Wells Fargo's Christopher Harvey bullish on S&P 500 target. T. Rowe Price's Blerina Uruci discusses US GDP and jobless claims. Michael Hirson talks politics around Secretary Blinken's China visit.
Bullish 5,535 year-end S&P 500 target based on aggressive forward multiples and focus on profitable firms.
Assessment of US economy expansion despite weaker GDP and jobless claims, with emphasis on market dynamics.
Deep dives
Market Projection and Economic Trends
The podcast episode delves into market projections and economic trends, emphasizing the shifting dynamics impacting stock market movements. The discussion centers on a projection of stock market growth based on aggressive forward multiples and a focus on profitable companies, particularly mega cap tech. The conversation highlights the market's aggressive discounting of future expectations and its implications on reaching forecasted levels.
Impact of Earnings and Consumer Behavior
The podcast examines the impact of corporate earnings and consumer behavior on market performance. It underscores the importance of assessing company profitability and consumer spending patterns. The conversation explores shifts in consumer preferences towards services over goods and the performance disparities between industries like travel services and tech companies. Additionally, it touches on the influence of AI spending on market dynamics and the ongoing winners-and-losers trend.
Federal Reserve Policy and Market Confidence
The podcast addresses Federal Reserve policy and its connection to market confidence. It discusses the potential implications of Fed rate cuts and the impact on market outlook. The conversation outlines a multi-year easing cycle and its alignment with the continued dominance of the AI sector in driving market trends. Additionally, it reflects on the interplay between economic data, market movements, and the Fed's policy decisions.
-Christopher Harvey, Wells Fargo Securities Head of Equity Strategy -Blerina Uruci, T. Rowe Price Chief US Economist -Michael Hirson, 22V Research China Research Head
Wells Fargo's Christopher Harvey details the reasons behind the bank's bullish 5,535 year-end S&P 500 price target. T. Rowe Price's Blerina Uruci reacts to weaker-than-expected 1Q US GDP data and fewer-than-estimated jobless claims, saying 'the economy continues to expand at a solid pace.' Michael Hirson of 22V Research discusses the politics surrounding Secretary Blinken's visit to China.