41 minutes ago
CNBC Pro: This stock is a ‘major beneficiary’ of Nvidia’s AI opportunity, Morgan Stanley says
Global artificial intelligence revenues will reach $180 billion this year and are expected to grow to nearly $2 trillion by 2030, which will be a key driver of semiconductor revenues, Morgan Stanley said.
Investors are already starting to buy into the AI buzz. Nvidia stock surged last week after it announced better-than-expected earnings.
Morgan Stanley names one stock as a “primary beneficiary of NVDA’s AI opportunity.”
CNBC Pro subscribers can read more here.
— Tan Weizhen
5 hours ago
Friday’s jobs report ‘highlights’ challenges for Fed, economists say
Friday’s data on nonfarm payrolls, unemployment and hourly wages will highlight the challenges facing the Fed ahead of its June policy meeting, according to Vanguard chief economist Joe Davis. .
Economists polled by Dow Jones expect nonfarm payrolls to rise by 190,000 in May, a smaller monthly increase than April’s 253,000 increase. . The unemployment rate is expected to rise to 3.5%, slightly above April’s 3.4%.
Hourly wages are expected to increase by 0.3% from the previous month and 4.4% from the same month last year. April wages rose 0.48% from the previous month, or 4.45% on an annualized basis.
“Tomorrow’s labor market report will highlight the challenges the Fed continues to face in its efforts to bring inflation closer to target,” Davis said. “While we remain of the view that rates should be hiked in June to stick to our resolve before pausing for some time to assess the macro impact, the more important aspect of our view is that the Fed It remains unchanged until at least the end of the year.” “
“Tomorrow’s report suggesting continued tightness in the labor market would further support these views,” he added.
— Alex Haring
5 hours ago
Earnings scorecard for the first quarter
With 99% of the S&P 500 companies reporting earnings, the first quarter earnings season is coming to an end. According to FactSet, 78% of S&P 500 companies reported unexpectedly positive earnings per share in the quarter, up from the average of 77% over the past five years.
But earnings growth is disappointing compared to long-term averages. Overall, earnings forecasts for the S&P 500 are 6.5% higher, below the average of 8.4% over the past five years, according to FactSet.
— Yun Lee