On today’s episode of Market Domination Overtime, Yahoo Finance’s Julie Hyman and Josh Lipton reflect on the market close and the trading day’s biggest stories. Despite starting the week slow, all three major indexes closed in the green. The Job Openings and Labor Turnover Survey (JOLTS) and the ISM’s manufacturing Purchasing Managers’ Index (PMI) fell below expectations as Wall Street watches the Federal Reserve’s next move. John Hancock Investment Management Co-Chief Investment Strategist Emily Roland predicts a choppy economic growth with rates likely falling into an economic contraction.
Tech earnings were reported after the bell, with Hewlett Packard Enterprise (HPE) and CrowdStrike Holdings (CRWD) beating second quarter earnings expectations, driven largely by the AI boom. However, a study by MIT Professor of Economics Daron Acemoglu suggests that AI may only increase economic productivity by 0.71% over the next decade, as AI models still cannot do most human tasks.
Looking ahead to Wednesday, June 5, key events include the release of May’s Purchasing Managers’ Index and retail earnings reports from companies like Lululemon, Dollar Tree, and Campbell’s Soup.
In market news, Hewlett Packard Enterprise reported strong second quarter results, with revenue rising 3% to $7.2 billion, beating estimates. CrowdStrike also reported a solid first quarter, with revenue of $921 million, above expectations. Both companies raised their full-year earnings and revenue guidance.
Lastly, MIT Professor Daron Acemoglu discussed his study on AI’s impact on economic growth, suggesting that AI may only boost productivity by less than 1% over the next decade. Acemoglu emphasizes the need for caution in utilizing AI technology to avoid exacerbating inequalities and negative societal impacts.
Overall, the market remains cautious amidst mixed economic data and tech sector earnings, with a focus on the potential implications of AI on the economy and workforce. Stay tuned for more updates on Market Domination Overtime and the latest trends in the market.
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https://finance.yahoo.com/video/ai-productivity-hpe-crowdstrike-earnings-221610148.html
