“Even though the revenue was strong compared to the last few quarters, then unfortunately that stock is not doing well today because it’s all about expectations.” – 03:31
Remy Blaire engages in a compelling discussion with Gabriela Berrospi, the CEO and Founder of Latino Wall Street. The segment opens with a recap of the recent volatility in the equity markets, following new records for the Dow. Remy notes that the major averages—the Dow, Nasdaq, and S&P 500—are attempting to hold onto session gains amidst the ongoing third quarter earnings season.
Gabriela provides her insights into the current market dynamics, attributing much of the volatility to uncertainty surrounding tariffs and trade relations with China. She explains the back-and-forth nature of government negotiations, which has created a climate of unpredictability. Gabriela highlights the recent government shutdown, acknowledging that while it has had some temporary positive effects on the markets, the lack of clarity regarding its duration raises concerns.
The conversation shifts to the earnings reports from major companies, including Coca-Cola, 3M, and Tesla. Gabriela emphasizes that despite Tesla’s impressive 12% revenue growth, the stock has not performed well due to unmet analyst expectations. She elaborates on the importance of these expectations, noting that the market’s reaction often hinges on whether companies meet or exceed projections.
As the episode progresses, Remy and Gabriela discuss the upcoming Federal Reserve meeting and the anticipated 25-point rate cut. Gabriela stresses the need for controlling inflation and the market’s keen interest in economic data, particularly the Consumer Price Index (CPI) figures set to be released soon. She warns that while rate cuts may be welcomed by investors and consumers alike, they can lead to inflationary consequences, as evidenced by the recent rally in gold prices.