Many Wall Street insiders remain worried about the nosebleed levels some of the biggest tech companies have reached – Apple, Microsoft, and Nvidia are each now valued at over $3 trillion. Some analysts have targets as high as $10 trillion for Nvidia, with each estimate seemingly trying to outdo the other. Bears continue to warn that the hype is getting ahead of the results and believe earnings from the dominant tech companies will struggle to sustain the dazzling profits they’ve notched in recent quarters.
Many bears also think Wall Street is ignoring signs of a weakening US economy. Bears yesterday were pointing to signs of soft demand in the May Producer Price Index (PPI) as well as an unexpected jump in weekly unemployment claims.
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Economic data today includes Consumer Sentiment and Import/Export Prices. Looking to next week, remember that stock, bond, and commodities markets are closed on Wednesday, June 19, for the “Juneteenth” holiday. The mid-week break could make for an unusual trading week, though it’s tough to predict – this is only the third year markets have closed for “Juneteenth”. Traders typically like to take time off around holidays so there could be some low volume volatility added to the mix.
The data calendar next week includes Retail Sales, Industrial Production, and Business Inventories on Tuesday; Housing Starts & Permits on Thursday; and Existing Home Sales on Friday.
On the earnings front, things will be very slow with just Lennar on Monday; Accenture, Darden Restaurants, and Kroger on Thursday; and CarMax and FactSet on Friday. For what it’s worth, the next big “AI” earnings result will be Micron Technology on June 26, which will also wrap up the big US company results for Q1 2024. The Q2 2024 earnings season kicks off in about a month on July 12.
Many Wall Street Insiders Remain Worried About Tech Companies
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