Dave Mazza joins us now.
He is the CEO of Round Hill Investments.
Dave, it's good to see you here today.
So markets here at all-time highs, tech not doing the heavy lifting.
It's healthcare, it's financials.
What do you see on this tape today?
Yeah, it's interesting.
We saw, we saw a bit of a reversal from, of course, the trend that we've been seeing pretty hard now for essentially since the past 9 weeks.
Where uh tech stocks are the laggards, but we did see a bit of a recovery here, particularly, you know, you mentioned UNH and, and Goldman Sachs, uh, 22 stocks that sort of have been looking for some leadership here.
So, I think at the end of the day, it's still an idea that we're not necessarily setting up for a rotation.
It looked like this morning, a bit more of a degrossing people kind of selling off winners and maybe covering the shorts that we've seen, um, but net net, uh, dip buyers stepped in again to powering the Dow to all-time highs.
And you look at the most weighted names in the Dow Goldman, Caterpillar, Microsoft, UNH, Amgen, Visa, Amex, Apple, and JPM all in positive territory helps explain those new records.
Uh, Dave, we are 2 weeks out, 2 weeks from yesterday, from the next FOMC meeting.
What are your expectations for that Wednesday, June 17th, and the final four Fed meetings after that?
Yes, of course we got the jobs report, as you mentioned earlier, coming tomorrow, which is going to be another data point.
But of course this has really been an inflation story, right?
And you know, the Federal Reserve, even with the new chairman, is a bit of a rock and a hard place.
We know there's significant dissent both for cuts and then hikes that are coming.
So I think this first meeting is probably likely going to be a bit a bit of a non-event, and you know, the majority of rate cuts have come off the table.
The market is now forecasting a bit of a hike actually for.
I actually don't expect to see much.
I don't think there'll be much fireworks outside of the press conference itself.
That's really where I think people are going to try to ascertain where the direction of travel may end up.
In the absence of that, the market hasn't really been pricing too much off of the fact that these cuts have come off the table, really been focused on sort of the resiliency in the consumer, particularly the resiliency we've seen in corporate earnings and then the guidance that we saw, especially for AI related companies.
Uh, I want to get your take on AI as a supply chain story right now.
What are you tracking on that, Dave, you think other people would benefit from also paying more attention to?
Yeah, to me, actually, that's kind of the biggest trend that we've seen with the AI trade as it's matured, right?
It's no longer just being priced on companies saying they're doing AI or really just looking at the hyper scalers.
The market's now going much more down chain to identify where are these bottlenecks in the buildout and where actually is this $1 trillion of capex going to go.
It's not.
Necessarily just going to the hyperskillers themselves, they're the ones spending the money, and so it's going to interesting areas, right?
We know one of the hottest trades in the market today, a bit of a sell-off, the memory chip makers, and there's a reason for that, right?
That's a chronically undersupplied market right now.
Demand is through the roof because of AI data center buildouts, but it's also other interesting. areas related to that, right?
So you have photonics, optics, neo clouds, all of these sort of are in some ways nation themes, um, but also where the real spending is going.
So for investors kind of looking at where this next leg can go, even though many of those stocks have run up, it's still where where we see the most kind of some of the most earnings excitement coming.
Earned it's excitement to say the least.
Dave, good to see you.
Thanks a lot for being here.
