CNBC's "Fast Money" Rate Rise Impact On Markets… And The Retail Resurgence 5/29/24
May 29, 2024
Former retail exec discusses the impact of rising rates on consumer behavior. Stocks feeling the pain of climbing rates, but retailers like Dicks Sporting Goods, Chewy, and Abercrombie & Fitch soaring. Former exec believes shoppers can handle rising rates. Conversation on market trends, AI endeavors, and tech investments amidst interest rate hikes.
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Salesforce's AI Disappointment
- Salesforce dropped significantly after hours due to weak guidance, despite a small revenue miss and a healthy EPS beat.
- Investors seem disappointed by the lack of concrete details on AI sales, despite CEO Mark Benioff's emphasis on the company's AI CRM positioning.
Rising Rates and Market Bifurcation
- While Nvidia's surge has captured investor attention, rising rates are impacting other sectors negatively.
- The two-year yield is nearing 5%, and the 10-year is above 4.6%, hurting utilities, transports, and banks.
Dimon's Rate Warning
- Jamie Dimon advises investors to prepare for a potential 5-6% 10-year yield, a level not seen recently.
- This high-rate environment could negatively impact companies with high debt burdens, especially if AI spending slows down.