BNN - Thursday, May 23, 2024 - 03:00 p.m. (ET) - Segment #5

to mergers and acquisitions for its growth strategy in aftermarket in defence segments. Amber. All right, thank you very much. And that is bloomberg's stephanie let's take a look at the U.S. bring in bloomberg's. >> Vince cignarella, nvidia did well as the market in the market not get that memo was supposed to make or break right for him nvidia's quarter. >> I think it's really harkens back to what we were talking yesterday. Afternoon glitches. You know, once we get these nvidia earnings out, the markets go back to basics and the fundamental economics continue to the economy is a little on the warm side and inflation is sticky should speak. Boston justice speaking a little while are still speaking. Most likely to or students saying you know, we're here for higher, inflation is sticky and the market has pushed rate cuts once again from yesterday from november to december. That's based on those s&p pmi numbers this morning, which showed a more resilience and yet higher prices would he actually made a comment that's getting a little bit below the radar. And I think this is going to come a bit more in the future. He said he's expecting debt to get more attention from policymakers and and the the national debt in the u.s.. >> Yes, and I feel like that's something they don't typically like to talk to explicitly about. >> Correct, they don't like into fiscal policy. Very much. All right. Thank you very much. A bloomberg's vince cignarella. It looks like it's going to an ugly finish to the day, but we're going to wrap up. >> The trading day with you. The closing bells next. Text on Screen Text on Screen Text on Screen Text on Screen Text on Screen Text on Screen Text on Screen This is what your ear looks like filled with wax. Here's a cotton swab. Watch. It just pushes the wax in. Now here's Wush, the new, safe and effective way to clean your ears. Just Wush the wax out. That's insane. The triple stream safely clears dirt and wax buildup. It feels incredible. Get 15% off and free shipping at Wush.ca In an ever changing market, invest in the essentials because there was always a need for multi residential, warehousing and logistics, essential retail, and renewable infrastructure assets. Build your client's portfolio with an investment strategy grounded in the needs of Canadians. Access tax efficient, institutional quality hard assets backed by a track record of steady performance and consistent distributions. Contact a Skyline Advisor today. Hi, I'm Taylor Thoen, next time on btv. The White Gold project is made up of a couple of different core zones. The Golden Saddle is the largest in total. It's over 2.1 million ounces on average grade of about two grams per ton. We've also made a couple of very significant new discoveries in the last couple of years. We think those are company maker opportunities and we're really excited to do some more work down there as well. Watch us online or here on bnn Bloomberg. Closed captioning of this bnn Bloomberg Program is brought to you by Scotia iTRADE. Everything you need to direct invest. Scotia iTRADE. It's every investor's dream. >> It is the end and the trading day you are >> Close on bnn bloomberg. I'm amber kanwar. Let's take a look at the action on bay and wall street. >> It was a down day on the markets. We saw the tsx shed about 6 tenths of a percent here. Weakness was pretty broad based everything with staples finish lower. We're now down for a second day in a row as we see commodities rollover and in the u.s., let's take a look at the dow jones industrial average. 6 shutting more than 600 points. This looks to be the worst decline at least and more than a year. The worst decline recently was march 2023 when the dow dropped one point 6, 3%. We'll see how settle out, but certainly was a day abroad. Negatives boeing didn't help boeing shares falling, but nothing else

really out working today, either. All 30 of the dow 30 finishing lower. Let's take a look under the hood. So on the tsx, the culprits were in the commodity sector. Let's take a look at gold, which is falling now for a 3rd session in a row, pulling back here down about 2 and a half percent. Oil was also a blemish falling to its lowest level since february. There you can see below $77 per barrel. We now been falling for sessions in a row in the U.S. live nation was a pain point. The doj going pursuing a it's ticketmaster business from live events. Business company says it's going to grow spawned at around 8:00pm eastern time today. Boeing, there's no escaping. It was a key dragged on the indices today, down 7 and a half percent. Taking 90 points out of the dow q mind. The dow shed sick more than 600 is not just a boeing story, but the under pressure is there continue to have issues certifying their jets in china. So that means they're going to have delay when it comes to the timing of their sales. They warned that they're going to continue to burn cash. Some right spots. Let's take a look at shares of ralph lauren. This interesting because initially the reaction was a and it was generally a mix quarter. The forecast for sales disappointing, but sales and profit in the quarter they just reported were better than expected. Typically, you don't get a positive reaction of the forecast was negative. So it's interesting that ralph lauren out rally nonetheless, it was really the nvidia show you know, forget about it being make or break for the markets to market sold off regardless. But nvidia closing at a fresh all-time high crossing above $1000 per share. For now in a couple of weeks, it's going to be pursuing attempts for one stock split. And it's interesting to just a shade that we saw on some of these other nvidia halo stocks. Let's to go was up way more, then it closed at the day. Supermicro was up. Now it's down and asml was up as much as 4%. A lot of give back one of the reasons that nvidia has such a robust quarter was because of a big customer in tesla. They've been buying ai chips from nvidia to enable they're fully self driving vehicles. It's that tesla is under pressure on a day where that has happened. We did get a data point about ev registrations being weaker and that seems to be weighing on shares of tesla today. But really, it was certainly a day where id nvidia trade unblemished, but that didn't really lend itself to a broad market rally. And we're just taking too vince cignarella about why that these rate cuts continue to get pushed out further and further into the future probably warning the shop in 2024 based on how the market is pricing things. Now let's bring in quincy krosby. He's a chief global strategist lpl financial in joins us with her insight. Quincy. How do you think about that tension? I mean, ai clearly is doing what everybody expects it to do, which is growing like gangbusters. The rest of the market struggling to figure out when are we going at rate cuts? >> Absolutely and you know, we have some day, I think I heard from your previous guest that suggested that and the u.s., the manufacturing and the service sector expanding. Prices rose, which is not what you want to say. That indicates the possibility of more inflation. And that's not what the fed wants to see. Granted, this was a first line. It was a flash report. We have to wait for the final report, but that wasn't what the market wanted to say. They don't want to see prices continuing to climb higher and that I watching the market, pulled the market back down. And addition, the federal reserve board members are offering no comfort. They're not explaining away the numbers. They are taking the numbers in front of them and trying to tell the market that. >> You know, maybe this is going to take a lot longer than we thought. >> Well, yes, absolutely. And yet, you know, chairman powell has been actually fairly resolutely somebody. That's a dog when he came out and said I was speaking just a few days ago you know, he didn't expect that they were going to increase rate hikes, but that the next move and policy would be a rate cut. Its almost as if the shed wants to cut rates. That finding it because, you know, the market

has september, that's right before the election and hard to believe that that that ford is going to say, yeah, let's go right into account just before the election. It says dubious, even though they claim that are independent, they certainly are, but they don't want to be completely engaged in election by cutting at the end of september. One other thing that we're watching is I did the backdrop against this and are the dow transports, which have move lower. They sold off again today. What kind of signal are you getting from those moves? Well, you know, you look at the chart and is the complete office working leasing with anything having to do semiconductors the complete opposite and has been coming down for some time now granted the railroad stocks are actually okay, we'll get, you know, say to stellar, they're okay. And also from the airlines, we've heard that they are seen business spending. They're saying to U.S. consumers continuing to travel, many going overseas and then that was positive. But the truckers are under pressure and we could argue we could com up with an explanation that sounds rational, but but nonetheless, you don't want to see this because you have think that that they are moving things that the truckers them moving materials to goods that have been ordered. And when they are down so dramatically, you have to ask yourself what what's happened to them. And by the way, they have always been known as bellwether for economic conditions in the U.S. telling us what they see what king ahead. And they have been a very good for it all conditions. Looking ahead, remember the s&p 500 dow dow transports. They're made up of stocks that look ahead. Not what the back to telling us where we're headed. You don't want to see that transports looking that it may case the feeling that this market is just, you focused on growth and optimism without the transport is hard to sing. How they can rationalize that kind of weakness will, especially because so much of the rally that we've seen is not really just about financials, industrials, materials, they've all in the to the has upside, maybe not in greater percentages, but a lot of those sectors at or near. >> Record highs in their own right. I'm detecting quincy, maybe a little bit of caution, then on on, you know, that broadening out that we've seen in the rally. >> Well, yes, absolutely. Because of the same time, a strong market and are pending would have semiconductors would have technology, but they also have consumer discretionary consumer discretionary has been weakening and giving up some of that movement to the consumer staples. That's not what want to if you're looking for the market to send signals, what they're looking at, you know, 3 months down the road, so to speak well, cheer point about that, you know, discretion or you're absolutely right has rolled over staples doing better, always defensive areas starting to perk up your hand. I hear a lot of people kind negotiate that away. Utility's saying it's just a re-rating. They were under so much pressure. >> Or now it's an ai. Traders summed it up meals. But at the end of the day, these fairly defensive sectors are starting to outperform. >> Exactly, and you have respect because it is, it's a signal you can't walk away from it and just say it's a one-off. It represents everything that we think about the U.S. consumer, which as you know, is engine for growth in the u.s.. 70 1% of gdp in this country is consumer spending. So the issue is how far is this going to go? What else we going to say that suggests that the U.S. consumer is really pulling back. What would have to happen is if our labour market begins generate in a material way, that would be, you know, the final. I would have to say a dagger in this notion that economic growth is going to be very strong so far. It landscape is is national unemployment claims, which we watched very carefully came in lower than expectations. And we expect to a still solid labour market, which helps underpin consumer spending. But I will say this at the lower and lower wage earners in this country are under tremendous they are delinquent and many of credit cards they have in loans for they, they are the ones that are suffering with higher inflation. And you know, shed that doesn't look as if it's going to be cutting rates any time soon. Quincy, thank you

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