00:00The S&P 500 closed slightly higher on Monday, May 11th, with AI optimism fueling upward momentum
00:06even as the earnings-driven fervor of the recent rally is in the home stretch of reporting season
00:12and as crude prices rose, stoking inflation worries as U.S.-Iran peace negotiations stalled.
00:19Semiconductors handily outshone other sectors as artificial intelligence-related momentum
00:24continue and abated with chipmakers outperforming the broader market.
00:30I think what we're seeing today in markets is the consensus that an energy shock
00:38and generally speaking geopolitical risk doesn't impact MAG7 or large-cap corporate earnings
00:45in any material way, right?
00:47We're seeing blowout numbers on these earnings releases from most of the S&P 500
00:53and we think that earnings are only going to accelerate over the next few quarters.
00:58First quarter reporting period is nearing the finish line
01:01with 440 of the companies in the S&P 500 having reported.
01:06Of those, 83% have top earnings expectations according to LSEGIBS.
01:18As of Friday, May 8, analysts estimated first quarter S&P 500 earnings growth
01:24on aggregate of 28.6% year-on-year.
01:29That's nearly double the 14.4% first quarter growth estimates as of April 1.
01:35But as earnings season nears the finish line, focus returns to macroeconomics
01:40and geopolitical developments.
01:42Later this week, President Trump is due to meet his Chinese counterpart Xi Jinping in Beijing
01:47for talks covering a broad range of issues including the Iran war, trade, nuclear weapons,
01:53Taiwan, artificial intelligence and possible extension of a critical rare earth minerals deal.
01:59The S&P 500 gained 13.91 points or 0.19% to end at 7,412.84 points
02:08while the Nasdaq Composite gained 27.05 points or 0.10% to 26,274.13.
02:18The Dow Jones Industrial Average rose 95.31 points or 0.19% to 49,704.47.
02:27The Dow Jones
02:28You
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