What You Missed: Quotes from the Schwab Network, Week of April 27
It was a banner week for earnings and the U.S. markets, even as the price of oil ticked higher.
The S&P 500 reached new records despite the impact of higher oil prices, and the tech-heavy Nasdaq moved higher. Among the one hundred largest S&P 500 companies, big winners for the week included Intel (INTC), Qualcomm (QCOM), Alphabet (GOOGL), General Dynamics (GD) and Altria Group (MO). S&P 100 losers for the week included Meta Platforms (META), Booking Holdings (BKNG), Amgen (AMGN), Intuitive Surgical (ISRG) and Nvidia (NVDA).
Reviewing commentary on global geopolitics, the future of the Fed and U.S. economic growth, and corporate earnings, here are some interviews and quotes that should guide investors and traders looking to the week ahead.
Jamie Dimon, JPMorgan Chase CEO, offered a stark warning that got buried in last week’s headlines. Speaking at an investment conference run by Norway’s sovereign wealth fund, the world’s largest, Dimon warned, according to news reports, that it is possible that inflation ticks up and that will catch people off guard. He said a credit-led recession could be “worse than people think,” with some risk in private credit. See Tuesday's Final Takeaways: Jamie Dimon's Bond Crisis Warning & META Unwinding Manus | Schwab Network
Paul Meeks, Head of Technology Research and Managing Director at Freedom Capital Markets, speaking to Sam Vadas about Apple (AAPL):
“Apple doesn’t really have aggressive AI spending plans in their model … over time, they are really going to have to solve the riddle. Is AI just going to be a feature on their phones? Because Apple, to accelerate its revenue, earnings and cash flow growth, needs to have AI in some shape or form be a very big, very significant, independent revenue driver. That will be the case over the next couple years.”
AI Patience Running Out Ahead of AAPL Earnings? | Morning Trade Live| Schwab Network
John Belton, Portfolio Manager at Gabelli Funds, speaking to Vadas about Microsoft (MSFT):
For several quarters, the KPI investors cared about most was Azure growth, cloud growth, but “people want to see Copilot seats and M365 [revenue] growth. Microsoft has been caught up in this AI disruption trade as a potential loser … the multiple is derated on the fear that software, the SaaS side of the business, is ultimately going to lose share to some of these newer offerings from native AI companies … this is still a company growing revenues healthy double digits, with EPS growth approaching 20%, and it is trading at basically a market multiple.”
See MSFT More than 20% Below Record High: Can AI Growth Offer Rebound? | Schwab Network
Nancy Tengler, CEO and CIO of Laffer Tengler, speaking to Nicole Petallides on optimism for big tech despite market pessimism.
In early April, earnings estimates were going up and multiples were contracting … “There was plenty of pessimism and a lot of cash on the sidelines. I think we are still in that environment. One of the things I am loving about this market is the skepticism. We were down for 42 days and recovered losses in 11. You will get volatility and it will be to the downside … Our investing theme for the last three years has been old-economy companies pivoting to the new technologies and the providers of picks and shovels. The hyperscalers, the chip names. We think you want to be long these trades. Add in robotics and space.”
See Tengler: 'Need to Stay Long' in Big Tech & Highlighting Earnings Expectations | Schwab Network
David Doyle of Macquarie Group, speaking with Vadas and Kayden, warns that the Fed’s easing bias is fading as sticky inflation and internal dissent raise the odds of another rate hike. He breaks down the dissenting votes and debate at last week’s Fed meeting, what could be “the first step toward removing its easing bias.” He also addresses Fed Chairman Jerome Powell’s decision to stay on as governor after his term expires, and his influence over the committee.
See Rate Cut Hopes Dim as Sticky Inflation Forces a Rethink | Market On Close| Schwab Network
Rob Thummel at Tortoise Capital told Jenny Horne that Chevron (CVX) earnings were “emblematic” of the sector, with uncertainty about future oil volumes and prices, and the opening of the Strait of Hormuz.
See Inside Out: CVX, XOM & Energy Stocks | Morning Trade Live| Schwab Network and more on energy earnings in RDDT Rallies, EL Shines, CVX/XOM Earnings Breakdown | Schwab Network
Gold Royalty (GROY) Chairman and CEO David Garofalo on why gold is attractive in a debt-ridden world. See David Garofalo: Why Gold Remains the Ultimate Hedge in a Debt‑Heavy World | Schwab Network
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