DHUnplugged #701: Sentiment Pulse DHUnplugged Podcast

Earnings season - better and stats

- BIGGEST BUYBACK EVER

- We are gauging investor sentiment

--- Remember - Confidence  and Sentiment (Cheer-leading helps)

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Warm Up
- Earnings season - better and stats
- BIGGEST BUYBACK EVER
- We are gauging investor sentiment --
--- Remember - Confidence  and Sentiment (Cheer-leading helps)
- Announcing the WINNER  CTP for Apple
- Fake Work?

Market Update
- If down - buy.... Names that were hammered due to earnings catching bids again
- Follow up - Utilities
- Fed Speaks - Can't stop the Dove
- Employment - Excitement about the Unemployment Rate

Earnings Season Update:
- Overall, 80% of the companies in the S&P 500 have reported actual results for Q1 2024 to date.
- Of these companies, 77% have reported actual EPS above estimates, which is equal to the 5-year average of 77% but above the 10-year average of 74%.
- In aggregate, companies are reporting earnings that are 7.5% above estimates, which is also below the 5-year average of 8.5% but above the 10-year average of 6.7%
- Eight of the eleven sectors are reporting year-over-year earnings growth, led by the Communication Services, Utilities, Consumer Discretionary, and Information Technology sectors.
- Three sectors are reporting a year-over-year decline in earnings: Energy, Health Care, and Materials.
- Revenue - up again - estimated to be 4.1% when all said and done.
-  -    If 4.1% is the actual revenue growth rate for the quarter, it will mark the 14th consecutive quarter of revenue growth for the index.

Fake Work
- An investor at famed Silicon Valley firm Andreessen Horowitz is the latest VC to get involved in the debate around "fake work" in the tech industry.
- Ulevitch went on to point the finger at Google specifically, calling it "an amazing example."
- "I don't think it's crazy to believe that half the white-collar staff at Google probably does no real work," he said. "The company has spent billions and billions of dollars per year on projects that go nowhere for over a decade, and all that money could have been returned to shareholders who have retirement accounts."
- Marc Andreessen has criticized a managerial "laptop class" and tweeted in 2022, "The good big companies are overstaffed by 2x. The bad big companies are overstaffed by 4x or more."

Buy 'em
- Companies that took a hit after earnings (NFLX, AMD) getting bid again
- NFLX gapped lower from ~$608 to $551 and now $592
- AMD dropped from $160 to $140 and now $156
- SPY , IWM and QQQ- Now above the 50day Moving average again

Follow Up - Utilities
- Just wanted to provide this idea again - Data Warehouses and other AI Power hungry places
--- Symbol list of some utilities to look at further - SO, NEE, EXC, CMS
- Natural gas producers are planning for a significant spike in demand over the next decade, as artificial intelligence drives a surge in electricity consumption that renewables may struggle to meet alone.
- After a decade of flat power growth in the U.S., electricity demand is forecast to grow as much as 20% by 2030, according to a Wells Fargo analysis published in April. Power companies are moving to quickly secure energy as the rise of AI coincides with the expansion of domestic semiconductor and battery manufacturing as well as the electrification of the nation's vehicle fleet.
- AI data centers alone are expected to add about 323 terawatt hours of electricity demand in the U.S. by 2030
Utilities ETF



Apple - Earnings
- Nothing great in the earnings.
--- A few pockets of sunshine....
--- Raises dividend and $110 BILLION buyback - largest buyback EVER ...