Author: Zac Martin, Investment Associate
Week Ending April 26th – ROAI (Return on AI)
- Advanced Q1 2024 GDP came in below analyst expectations, posting an increase of 1.6% (v. 2.2% expected). GDP was led by an increase in healthcare cost and insurance costs, indicating higher inflation.
- Core Personal Consumption Expenditures for March reported an increase 0.1% higher than expectations, bringing the change to 2.8%.
- Earnings Recap: Meta announced increased expenses around investments towards artificial intelligence. Tesla announced fast tracking a new product line. Microsoft & Google continue to see cloud revenues grow 23% & 28%, respectively. Consumer Staples maintain pricing power (Pepsi & Chipotle). Industrials see shrinking demand for transportation (Old Dominion Freight Line) however, UPS management is expecting to see volume growth return this year.
The week ahead:
- FOMC Meeting (5/1) @ 2pm
- Non-Farm Payrolls & Unemployment (5/3)
- Earnings: ON, PARA, NXPI (4/29), AEP, PYPL, APD, LLY, KO, MCD, AMD, AMZN (4/30), YUM, MAR, KHC, QCOM, CHRW (5/1), AAPL (5/2).
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