00:00 Speaker A
Do you think if they come out with higher CAPEX that those higher CAPEX spending plans has been priced into these stocks after what we saw this week. Alphabet slammed by 7%, Tesla slammed by 15%, you name it.
00:11 Speaker B
You know, that’s going to be very interesting to see because, you know, it’s funny and it’s going to be critically important for the stock market. I mean, next week could be one of the most important weeks you’ve seen in a long time, which you don’t always see during the summer months. Uh but, you know, we’ve had we started off in the in the chip sector, you know, a month and a half ago when Broadcom reported great earnings, didn’t have great guidance, and but the earnings were good and the stock got hit. Then we had Micron, great earnings, great guidance, stock rally for one day and then got slammed. Then we same thing with Samsung and even last week with Taiwan semiconductor which had already been hit, reported great earnings, great guidance and the stock got went down. So now this is shifting from the chip stocks to this week it’s happening to Google, the sell the news reaction. So if we see more of that next week from these names, uh that’s going to create uh some more headwinds as we move into the uh the the the last summer of I’m sorry, the last month of the summer.
01:13 Speaker A
Stephanie, it’s been an interesting week. In addition to earnings, we’ve we’ve started the week with with higher oil prices, we’re going to end the week with higher oil prices. We started the week with uh tariff news out of left field, we’re going to end the week with tariff news out of left field. At what point does the market start to care about these macro developments?
01:29 Stephanie
I think that they are starting to care about them. I think um interest rates are certainly noticed. Um and I think that’s, you know, the that’s a direct correlation between oil prices and and interest rates because inflation expectations go up. Um and I was reading a bunch of things recently about how like insurance costs have gone up just like owning the home ownership besides the prices um have gone up because the cost of things have gone up. So I I do think the market cares about it. I just think that there’s the market itself is so dominated by certain sectors that it matters a little less for. I think where you are seeing it in certain names is um where you end up having like a name that has, you know, really strong earnings potential but it’s further out in the future. I think that’s where, you know, the longer duration names where you can’t actually um expect, you know, earnings to come through for their potential um even, you know, further out, the thesis is further out. I think that’s where you’re seeing like interest rates impact. Um and of course you’re seeing energy stocks really strong this week.
