The Wednesday edition of Morning Brief is getting investors set for a busy day of trading. The ADP employment report for May showed private employers...
says that despite the weaker-than-expected report,"things are looking good for the soft landing scenario that the Fed has been aiming for."This is Yahoo Finance's flagship show the Morning Brief Stock Futures.You're looking at gains across the major indices with the S and P up two 10 of a percent of 5, 10 of a percent that comes after private payrolls growth showed signs of slowing in the month of May.
Uh A few interesting nuggets within this report and one of them is where job changers, those who are looking to perhaps make a hop, get a higher pay grade and perhaps be able to outpace inflation there.Essentially in the median change in annual pay there.So that one of the interesting nuggets that uh we were able to pull out from this report and that is what so many of the guests have come on.
Ad P has not been very useful in forecasting the monthly payroll prints, which is what will really move the market overall. And then on the other end you get a pulse on the consumer and where they might actually be spending into and companies on the manufacturing side saying, ok, we're actually going to perhaps not be as aggressive in our own production as we have needed to in the past because of where consumers are prioritizing their purchases.
This is, is this softness in the data, the sign of something nefarious or is it just the softening that we were all kind of hoping for, to cool off the economy just enough for the fed to get its goldilocks wishes to come true.So things are looking good for the soft landing scenario that the FED has been aiming for.
But there's a real question as to whether those rate cuts will start in time to make it a soft landing rather than something of a, you know, more serious downturn. And so that has built up a commercial business and could be the reason why Google is looking at her or brought her on board. So she was really shoved into this role mid pandemic at a time where Lily was really top of mind for treatments.And then, uh, at the same time, that's when the GOP one boom really started.
Uh, but it's still something that's available and they say they'll have it to billions of people by the end of the year, that's gonna take a lot of resources.And that's certainly something really important to watch when it comes to the Capex piece in particular. Uh This is uh also part of an A I uh server that's, that's, you know, instead of having to deal with hyper scalar companies can purchase a kind of GP TE server for their own use on Prem on Prem just means on premises because everything in tech needs a fancy phrase uh on premises just means that your data stays local.
TS MC is just leaps and bounds ahead, but they'll be building out more and more and this is all part of that huge chip, a push that the US is doing turns out every other country is doing it as well though. And it starts to paint this picture of a kind of non ending ability of demand to continue to go up and up and up and when there's not necessarily going to be continued supply.
Anyway, on the call, he talked about three segments that are essentially gonna be driving demand, model builders, sovereign clouds and enterprise customers don't be surprised if you hear him talk about more of that with regard to H pe Sa I demand strategy here. And so all of these things considered, it's really this multi year journey to help the company fully achieve potential.
I'm still gonna forever have questions about the pronunciation of that, but they're also already saying that that's bringing some of the incremental growth as they continue to navigate the pace of consumer recovery as you were mentioning a moment ago here.Moving on to another share that we're watching here shares for a crowd strike jumping after raising their full year earnings and revenue guidance and seeing subscription revenue climb 34% from a year ago.
And beyond here, looking forward uh that annual recurring revenue currently sitting right now at about $3.65 billion as of the end of this quarter. NYC Pride 2024 at NASDAQ and at the Nyse Centuri who the great folks from Centuri ticker symbol CTR I do they have an alibi.All right, let's take a look at the market activity here out of the gate.
I want to check out the US bond market because it looks like the 10 year T note yield and the US dollar index themselves are at critical levels.And I'll get this up here in a second.So arguably if we close here today, we will have already broken that. So I think ultimately, what's happening here is you can see that tech continues to drive earnings growth.
I think that we're really flirting brad with this notion of it's a kind of a game of chicken and eventually bad news will become bad news.So what they don't want to see is two things they don't want to see the economy flirt with that recession.And the other thing they don't want to see is inflation continue to remain sticky.They being investors when P Ce came in kind of more stable and some of the inflation measures began to kind of show signs of decelerating again.
So from my perspective, we wrote back in kind of November of of 2022 that we like semiconductors for a lot of those reasons, they were coming off an incredibly difficult year, their first negative year in a decade yet 75% of them brad are profitable. I think ultimately, you're going to see some broadening of of growth, you see crowd strike today, you see Hewlett Packard enterprises.Therefore, you want some equal weight, you mentioned Apple and WW DC.And it's really gonna be a critical kind of nexus or, or question mark of when consumers can expect some of this game changing technology and generative A I to make it to their fingertips.
Well, using that bill gates quote as a measuring stick, I I still have three years left on the clock for the number of Blockchain mentions we had back in 2017, Michael Aroni, who is the State Street Global Advisors, Chief Investment strategist Michael.You're watching morning Breath to surprise election results this week from opposite ends of the world.Claudia Scheinbaum becoming the first female president there winning in a landslide election on Monday.
Now, emerging markets struggling as the S MC I Emerging market index is on track for its steepest fall in seven weeks off of all of this news.Thank you so much for being here with us, Patrick.So this is only an issue that's going to continue to be on top of investors minds.And you're absolutely right in pointing those two major elections in the uh in the space.
Um and um and the the the third, the third one being that, well, Modi has been personally committed to fiscal edition, which is key in India. But at the same time, I think we do have a much bigger force at work, which is the globalization of services that's taken place with more and more, you know, jobs, service jobs being tele migrated and taking place in the sphere.
So for, for the US, uh again, I uh well, the bullet it will come from its own election as we, as we all know. I think we do, we do think, you know, globally, all, all all central banks are facing pretty much the pretty much the same kind of the same kind of business cycle. And um and maintaining that restrictiveness sufficiently long to make sure that indeed we do have uh inflation going back to going back to target.
And according to data from options, A I A potential move to the upside or downside of about 10% post earnings here, the trade down that we've seen from some consumers when it comes to the business of stretchy fabrics and that leisure apparel and footwear. So something we're gonna have to continue to watch with the Lululemon story that stock continuing to struggle, move to the downside this morning, but turning now to the Lone Star State Txse, an index that you might have not heard about because it's not existed yet, but that Txse group has raised 100 and $20 million with participation for more than two dozen investors.
So will this be successful because of that backing or are they still going to struggle to get companies to move over to their exchange? The Philadelphia Stock Exchange, the Boston Stock Exchange, these have all been strategic moves in order to make sure that it even in the order routing, there is more flow that they can perhaps offload to different exchanges as well.
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