On today’s episode of Market Domination, hosts Julie Hyman and Josh Lipton discuss how major trends like sluggish consumer spending and the election are impacting the markets (^DJI, ^IXIC, ^GSPC).
As the S&P 500 (^GSPC) and Nasdaq (^IXIC) snapped a three-day losing streak, RoundHill Investments CEO Dave Mazza appeared on the show to offer his insights on market trends. Mazza explained, “The ‘Magnificent Seven’ mega-cap companies are doing really well, and people who are hoping for a rotation into other cyclical sectors like small caps, industrials and financials haven’t seen that yet. So, as you point out, effectively people should be especially bullish, but it’s not giving people much confidence. Look at money market assets. Money market mutual fund capital is at an all-time high. So it’s a weird environment where people are looking for safety.”
There are big moves in the pharmaceutical industry. Moderna (MRNA) shares are falling after the company said its newly approved RSV vaccine is only about 50% effective after 18 months. Meanwhile, the U.S. House of Representatives Ways and Means Committee has proposed a strategy to get Medicare to cover GLP-1 weight loss drugs such as Novo Nordisk’s (NVO) Wegobee and Eli Lilly’s (LLY) Zepbound. An amendment to the Obesity Treatment and Reduction Act of 2023 is expected to be voted on in Congress on Thursday.
In the latest edition of Good Buy or Goodbye, Chris Versace, Chief Investment Officer at Thematica Research, explains why Costco (COST) is a better investment than McDonald’s (MCD) amid a slowdown in consumer spending. Versace believes Costco (COST) is a buying opportunity because the retail giant is “very well positioned” and about 54% of its merchandise revenue comes from fresh foods and general merchandise. Meanwhile, he is bearish on McDonald’s, explaining that despite the rollout of its value menu, the fast-food giant “is no longer the cheaper option.”
With the 2024 presidential election approaching, Phil Streible, chief market strategist at Blue Line Futures, appeared on the show to highlight how each administration could impact commodity markets. “Energy is one of the top issues we’re watching. Under Trump, we were energy independent. We were also tough on Iran. With Trump in power, energy prices will go down. We’re becoming more dependent on OPEC and South American oil, and it’s very difficult for oil and gas exploration companies to get permits to expand their wells,” he said.
This post was written by Melanie Leal
