H1 2024 outlook: AI and big computing shares to do well, apparel to struggle

They also discuss that despite structural improvements in the retail sector, apparel will continue to face headwinds.

(AI Video Summary)

Discussing recent CPI and PPI indicators

This video interview is about recent happenings in the stock market, explained in a way that's easy to understand. The interviewee, Chris Versace, who is the CIO of Tematica, talks about two important indicators called the Consumer Price Index (CPI) and Producer Price Index (PPI). Basically, these numbers show how much things cost for consumers and producers. The recent figures show that prices are not increasing as much as expected, which means it's less likely that interest rates will go up. Versace agrees with this and thinks that the rates might even go down in the future.

Retail sales market performance

They also discuss how retail sales are doing, and it seems like things are going well. Target and TJX, for example, had better sales than anticipated. Versace thinks that this might be because people are earning more money, gas prices are going down, and people have some extra cash to spend. However, he is a bit worried about the apparel market, so it's worth keeping an eye on the housing market for any positive news.

Big tech market performance

When it comes to earnings, they mention some big companies like NVIDIA, Apple, and Amazon. While these companies are doing well, Versace advises to look beyond them and consider other markets like smartphones and PCs, which are starting to pick up. He talks about how Qualcomm and Taiwan Semiconductor are working together and how the smartphone market is growing.

The guilty pleasure model

Lastly, they talk about a model that Tematica uses to predict which consumer goods will do well. It's called the guilty pleasure model and basically looks at products that people buy no matter what's happening in the economy. Companies like Hershey's and Starbucks are examples of brands that could see good results during the holiday season.

Overall, the interview gives an overview of what's going on in the stock market, from inflation to retail sales to different industries. It's a useful watch for someone who is not very experienced in trading.