Fed Chair Powell Holds Firm On 'Wait-And-See' Approach To Rate Cuts https://t.co/ohqmJIYmVd ...

We also have some breaking news right now from the Federal Reserve. Let's get to that with Steve Leeman. Hey Brian, thank you.Uh Chicago Fed President Austin Goulby uh in an interview with the Milwaukee Business Journal saying that if the tariff air clears, we should proceed, we as in the Federal Reserve should proceed with cuts. Uh and and he's talking rather dovishly about the concern about tariff inflation. He's still concerned about it.still concerned about stagflation but says we haven't seen it yet. S ...

on closing bell overtime with Daly the San Francisco Fed president. We look forward to that. Let's stick with the fed though and the broader market as stocks maintain their climb.Although off the opening highs trying to lock in some gains for the week. Sam Stovall joins us. Cfra research chief investment strategist.Happy Friday Sam good to see you. >> Hey Carl good to talk to you again. >> You got a strong view on on which mandate the fed needs to emphasize.>> Well, a strong view I would tend to say is what ...

that that the inflation from tariffs is self-correcting because the demand destruction is so fierce. Speaking of the fed voting member, Waller today made some headlines during this interview with our Steve Liesman this morning. And Steve joins us with the latest in the highlights.Hey, Steve. >> Hey. Good morning.Yeah. Fed Governor Chris Waller, in an exclusive CNBC interview, threw a wrench in this market consensus that we have at the fed. Hey, it's going to take the summer off.But Waller said the central b ...

Industry Trends & Growth Drivers - Electric, gas, and water utilities are experiencing significant capital expenditure (CapEx) growth, projected to increase over 50% from $150 billion annually to nearly $250 billion by 2026 [2] - Data centers are fueling load growth for utilities, contributing to a national average growth of 2-3%, with some areas experiencing high single-digit or slightly higher growth [8] Impact of Weather & Regulation - Heat waves are generally beneficial for utilities, allowing them to demonstrate the value of infrastructure upgrades and grid reliability [2][3] - The impact of heat waves on profits varies by state due to decoupling mechanisms, where some utilities like Exelon (EXC) in Illinois do not directly benefit financially from increased demand during hot weather [3] - Utilities may experience slightly higher operation and maintenance (O&M) expenses during extreme weather due to increased maintenance needs [5][6] Investment & Valuation - The utilities sector is currently trading at an 18% discount compared to the S&P 500, despite having comparable earnings growth of around 7% and offering a better dividend yield [10] - Potential rate cuts could further enhance the attractiveness of the utilities sector [11] - Despite having growth drivers, the utilities sector is still viewed as a defensive sector, similar to a bond proxy [13][14]

Treasuries right now, though well-behaved with the ten year at 4.41% on Wednesday, the fed, as you know, left rates unchanged as widely expected to continue to pencil in two rate cuts by the end of the year, while also hinting at concerns about stagflation. For more, let's bring in Roger Ferguson, former fed vice chair, as well as a CNBC contributor. And when we're when we're on hold and we have you on, Roger, we've always got a lot to talk about, but sometimes it seems like we're talking about the same thi ...

Federal Reserve & Market Impact - The market is a forecasting machine, anticipating future economic conditions and reacting immediately to new data that changes the perception of the future [3][4][5] - Federal Reserve policy, particularly interest rate decisions, significantly impacts the stock market, with the market reacting rapidly to perceived changes [2][14] - When the Federal Reserve is perceived as supportive (rate cuts on the table), the stock market tends to perform well, and vice versa [12][13] - The stock market's performance is heavily influenced by anticipation of the Federal Reserve's actions, not necessarily the present economic conditions [4][9][11] Investment Strategy & Risk - Macro forces, such as Federal Reserve policy and trade policy, can override individual company fundamentals [2] - High-growth stocks are particularly vulnerable to Federal Reserve rate hikes [8] - Market declines can occur rapidly when investors anticipate economic slowdowns, leading to sudden bear markets [6][16]

[Music] The May consumer price index data showed a modest increase in inflation with CPI rising 0.1% month overmonth below the expected 0.2% with year-over-year headline inflation measured 2.4%. This reading has shifted some of the sentiment regarding interest rates after last week's stronger than expected labor data. The CME Fed Watch tool has increased the probability of a September rate cut from 6040 to 7030 after the release of the CPI data.The May CPI data suggests a cooling but stable inflation enviro ...

Market Outlook & Economic Factors - The speaker turned bullish in late April/early May due to clarity on global tariffs, anticipating a shift towards "fair trade" rather than a "nuclear" approach [2][3] - A potential deal with China is on the horizon, along with progress with Europe, suggesting a favorable outcome on tariffs [4] - The reconciliation bill, expected to pass in early July, will extend current tax regimes and add stimulus through tax breaks on tips, overtime, and social security [4] - Anticipated rate cuts in the latter half of the year could create a "trifecta" for the economy [5] Company Strategy & Performance - The firm is currently at the top 25% of its exposure limits, indicating a high level of confidence in the market [6] Technological Trends - The AI super cycle is driving an acceleration in both topline and earnings [6] - Oracle reported "blockbuster numbers," and 80% of the S&P companies that have reported have beaten expectations [6] - The "Mag 7" companies all beat expectations and accelerated [6]

I want to bring in our contributor for the hour. We've got Bob Lane back with us. He is explosive options technical analyst.A great voice to have when we are looking for clarity in the market because sometimes when the sentiment gets over its skis, you can bring us back to earth with the technicals. I want to start on the inflation data. We saw the market have a significant move to the upside.We're coming in just a bit off of that. How would you describe the market reaction. Uh quite a bit of a surprise, Ma ...