Background

Q3 earnings focus is on price pressures: JPMorgan strategist

Article arrow_drop_down


After the S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) close at record highs, JPMorgan asset management global market strategist Jordan Jackson sits down with Market Domination Overtime Hosts Julie Hyman and Josh Lipton to discuss his view that tech stocks are likely to take a backseat this earnings season.

The strategist expects CEOs and CFOs will “continue to have this sort of benign outlook.” He tells Yahoo Finance, “It’s not great, but it’s not bad either. And so I think in this environment, they can still flex a little bit of pricing power. You can still see the earnings recovery kind of come through for other sectors outside of technology, which I think is really important for the durability of this market rally, right. So I think you know co confidence is going to again be sort of benign. And I think the consensus is that soft landing has been engineered right. So that’s that’s a pretty solid backdrop for risk assets.”

Going into earnings season, Jackson says, “I really want to be focusing on price pressures, how they’re focusing in on margins. In an environment in which nominal GDP growth should take a step down over the course of 2025, every revenue model is probably going to reflect some of that adjustment. So the focus is really going to be on margins. How are they managing input costs? How are they managing wage pressures? Both seem to be sort of easing a little bit, although there could be a bit of a question mark on the input cost side. We do think that the dollar should gradually slide over the course of 2025 as well. That should be a boost to international earnings. Oil may, hopefully, stay pretty rangebound or at lower levels [which] bodes well for industrials [and transportation. So you kind of can paint yourself a broader picture where this roughly 15% EPs target for 2025 can be achieved.”

“Obviously mega-cap tech continues to sort of drive valuations a little bit higher at the index level, but you could find pockets of value in other sectors of the economy. When you look at healthcare [and] utilities in and of itself, they’re a little bit expensive. But relative to the broader S&P, they still look pretty attractive. When you look at industrials [and] materials. These are some of the sectors that we like that have really lagged the performance of the broader market. And we think can play a little bit of catch-up.”

Watch the video above for more on Jackson’s market expectations as macro-level uncertainties like the Federal Reserve’s next move and the upcoming presidential election play out.

To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.

This post was written by Naomi Buchanan.



Source: finance.yahoo.com

About the author

trending_flat
Jury shown video of Nima Momeni’s stabbing motions

In a win for the prosecution, jurors today were shown a video in which alleged killer Nima Momeni made distinct stabbing motions, which prosecutors say match those that killed Cash App founder Bob Lee. The video was shown over objections from Momeni’s defense team. The jury was also shown images of the exact locations of Lee’s stab wounds, during testimony from Assistant Medical Examiner Ellen Moffatt. The video was recorded by San Francisco police Sgt. David Goff, who was tracking Momeni’s movements in the days after the stabbing in April 2023. When he captured Momeni on video, the defendant was talking to Brian Hedley, a private investigator who worked for Momeni’s former defense attorney, Paula Canny.  In the video, Hedley and Momeni are standing in the parking lot at Canny’s office and the video shows Momeni making three arm movements — two to […]

trending_flat
Musk now says it’s ‘pointless’ to build a $25,000 Tesla for human drivers

By Chris Kirkham (Reuters) - When Reuters reported in April that Tesla (TSLA) had scrapped plans for a long-promised, next-generation $25,000 electric vehicle, the automaker’s stock plunged. Chief Executive Elon Musk rushed to respond on X, his social-media network. “Reuters is lying,” he posted, without elaborating. Tesla’s stock recovered some of its losses. Six months later, Musk appears to have backed into an admission that Tesla dropped its plans for a human-driven $25,000 car. He said in an Oct. 23 earnings call that building the affordable EV would be "pointless” unless the car was fully autonomous. His latest remarks came in response to an investor asking: “When can we expect Tesla to give us the $25,000 non-robotaxi regular car model?” Musk responded: “We’re not making a non-robo…,” before he was interrupted by another Tesla executive. Musk later added: “Basically, I […]

trending_flat
A mural defaced, restored and its evolution

This weekend, a sharp resident noticed on Saturday morning that Marta Ayala Minero’s mural on the northeast corner of 24th and Valencia streets had been vandalized. When I contacted Ayala on Saturday, she said she would be out the next day to restore it. And indeed she did just that. Restored by the artist Marta Ayala Minero on Sunday, November 2.2024. Courtesy of the artist. Marta Ayala Minero’s mural on 24th and Valencia Street. Restored on Sunday. Photo by a community contributor. When I mentioned that the mural had been somewhat different earlier, she gave me a lesson on its evolution. First painted in 1992, thanks to a grant from the Mayor’s Office of  Housing and Community Development,  Roots and Frequencies Basic to Our Education “had a lady speaking the phrase for “nonviolence” in a few languages.”The mural was based on a dream […]

trending_flat
Tucker Carlson Bizarrely Blames Abortion For Increase In Hurricanes

If you thought Tucker Carlson couldn’t get any weirder after claiming he was “physically mauled” by a demon that left claw marks on his body, guess again.Now the former Fox News host turned Donald Trumptoadie is blaming abortions for the increase in hurricanes.Carlson made the dubious claim Monday on Steve Bannon’s “War Room” podcast during a discussion about spirituality that stemmed from his recent claim he’d been attacked by a demon.Somehow the conversation morphed into Carlson decreeing that anyone who thinks reproductive rights are a good thing is “evil” and practicing child sacrifice.Carlson then claimed that people who don’t agree with his thinking are “worshiping abortion, the killing of kids, not as something that, like, needs to happen unfortunately, but as something that is good, that’s pro-abortion.”He then proclaimed that abortion likely causes hurricanes.“I’m sure I’ll be attacked for saying […]

trending_flat
On Día de los Muertos the Mission ‘remembers with beauty’

Sign up below to get Mission Local’s free newsletter, a daily digest of news you won’t find elsewhere. Surrounded by altars, marigolds, and candlelight, Marco Ruiz stood out from the crowd. In lieu of an elaborate memorial, Ruiz simply hugged a large framed photo of his brother Martin, who had died two days after his 19th birthday.Ruiz was stoic, taking in the scene. When asked about his brother, however, he smiled. “He thought he was the best dancer,” Marco grinned. In reality, “he was so bad — but he didn’t care.” After Martin was killed in a car accident years ago, 1,000 people attended the funeral, Marco added. Now, only the oldest kids remember him. On Día de los Muertos on Saturday, the Mission, like the Ruizes, was focused on celebrating the past.  Want the latest on the Mission and San Francisco? […]

trending_flat
Scientists Found a ‘Yellow Brick Road’ at The Bottom of The Pacific Ocean

An expedition to a deep-sea ridge, just north of the Hawaiian Islands, revealed a surprise discovery back in 2022: an ancient dried-out lake bed paved with what looks like a yellow brick road.The eerie scene was chanced upon by the exploration vessel Nautilus, while surveying the Liliʻuokalani ridge within Papahānaumokuākea Marine National Monument (PMNM).PMNM is one of the largest marine conservation areas in the world, larger than all the national parks in the United States combined, and we've only explored about 3 percent of its seafloor.Researchers at the Ocean Exploration Trust are pushing the frontiers of this wilderness, which lies more than 3,000 meters below the waves, and the best part is, anyone can watch the exploration.A highlight reel of the expedition's footage published on YouTube in April 2022 captured the moment researchers operating the deep-sea vehicle stumbled upon the […]

Related

trending_flat
Musk now says it’s ‘pointless’ to build a $25,000 Tesla for human drivers

By Chris Kirkham (Reuters) - When Reuters reported in April that Tesla (TSLA) had scrapped plans for a long-promised, next-generation $25,000 electric vehicle, the automaker’s stock plunged. Chief Executive Elon Musk rushed to respond on X, his social-media network. “Reuters is lying,” he posted, without elaborating. Tesla’s stock recovered some of its losses. Six months later, Musk appears to have backed into an admission that Tesla dropped its plans for a human-driven $25,000 car. He said in an Oct. 23 earnings call that building the affordable EV would be "pointless” unless the car was fully autonomous. His latest remarks came in response to an investor asking: “When can we expect Tesla to give us the $25,000 non-robotaxi regular car model?” Musk responded: “We’re not making a non-robo…,” before he was interrupted by another Tesla executive. Musk later added: “Basically, I […]

trending_flat
Tucker Carlson Bizarrely Blames Abortion For Increase In Hurricanes

If you thought Tucker Carlson couldn’t get any weirder after claiming he was “physically mauled” by a demon that left claw marks on his body, guess again.Now the former Fox News host turned Donald Trumptoadie is blaming abortions for the increase in hurricanes.Carlson made the dubious claim Monday on Steve Bannon’s “War Room” podcast during a discussion about spirituality that stemmed from his recent claim he’d been attacked by a demon.Somehow the conversation morphed into Carlson decreeing that anyone who thinks reproductive rights are a good thing is “evil” and practicing child sacrifice.Carlson then claimed that people who don’t agree with his thinking are “worshiping abortion, the killing of kids, not as something that, like, needs to happen unfortunately, but as something that is good, that’s pro-abortion.”He then proclaimed that abortion likely causes hurricanes.“I’m sure I’ll be attacked for saying […]

trending_flat
Scientists Found a ‘Yellow Brick Road’ at The Bottom of The Pacific Ocean

An expedition to a deep-sea ridge, just north of the Hawaiian Islands, revealed a surprise discovery back in 2022: an ancient dried-out lake bed paved with what looks like a yellow brick road.The eerie scene was chanced upon by the exploration vessel Nautilus, while surveying the Liliʻuokalani ridge within Papahānaumokuākea Marine National Monument (PMNM).PMNM is one of the largest marine conservation areas in the world, larger than all the national parks in the United States combined, and we've only explored about 3 percent of its seafloor.Researchers at the Ocean Exploration Trust are pushing the frontiers of this wilderness, which lies more than 3,000 meters below the waves, and the best part is, anyone can watch the exploration.A highlight reel of the expedition's footage published on YouTube in April 2022 captured the moment researchers operating the deep-sea vehicle stumbled upon the […]

trending_flat
1 Monster Stock That Turned $10,000 Into Almost $5.6 Million in 20 Years

In the past two decades, the S&P 500 (SNPINDEX: ^GSPC) has generated a total return of 661%. That annualized gain of about 10.7% means that a $10,000 cash outlay would be worth $76,110 right now. This is a result that any investor would be pleased with. But there's one monster stock that turned a $10,000 initial investment 20 years ago into nearly $5.6 million today. Here's what investors need to know about this dominant industry-leading enterprise. Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free » Without a doubt, Netflix (NASDAQ: NFLX) is one of the best-performing stocks in the past two decades. It's crazy to think that in 20 years, a single stock could turn early investors into multimillionaires. Investors would certainly struggle to find many businesses that have outperformed this […]

trending_flat
Iran student strips in protest over strict hijab dress code

A female student at a university in Tehran stripped to her underwear in an act of protest after being harassed by campus security officers over her hijab.Videos circulating widely on social media show the unidentified student sitting outside the campus in her underwear while the security guards surrounded her.Another video shows her walking around the campus in her bra and pants while stunned fellow students film her on their mobile phones.Her act of resistance began after a confrontation inside Azad University’s science and research centre on Saturday, when security forces physically attacked the student because she was not wearing a headscarf.In response to having her clothes torn, she chose to remove her remaining garments as a protest, according to Iranian student social media news channel, the Amir Kabir newsletter and witnesses who spoke to The Telegraph.Multiple witnesses confirmed her subsequent […]

trending_flat
The US is pumping more oil than ever, and it’s complicating things for other crude-exporting countries

Anton Petrus/Getty Images US crude production hit a new all-time monthly high in August. This complicates things for OPEC+, which was planning to start increasing output in December. Oil is down 20% from April highs, causing some exporters to be cautious about how much they're pumping. The US is pumping a record amount of oil. But that may not be welcome news to other crude-producing nations. Domestic output reached 13.4 million barrels a day in August, eclipsing all previous monthly records. According to US Energy Information Administration data, firms in Texas and New Mexico led the surge. That level of production puts the US at odds with the plans of other oil-producing nations. OPEC+, an alliance led by Saudi Arabia and Russia, has said it plans to begin in December a sequence of monthly output increases. But given the decline […]

Be the first to leave a comment

Leave a comment

Your email address will not be published. Required fields are marked *

About Karl The Fog

Welcome to Karl The Fog, your digital gateway to the enigmatic world of San Francisco’s legendary mist. We are the storytellers, the observers, and the chroniclers of the ever-elusive, charismatic character known as Karl.

KARL THE FOG, and KARL THE FOG COFFEE logos, images, fonts, names, and other trademarks are trademarks of KARL THE FOG, LLC and may not be used without permission.

Login to enjoy full advantages

Please login or subscribe to continue.

Go Premium!

Enjoy the full advantage of the premium access.

Stop following

Unfollow Cancel

Cancel subscription

Are you sure you want to cancel your subscription? You will lose your Premium access and stored playlists.

Go back Confirm cancellation