Stock futures are little changed ahead of a holiday-shortened trading week: Live updates
What are the two main investment themes identified by Shannon Saccocia of NB Private for this year?
Shannon Saccocia of NB Private has identified two main investment themes for this year. The first theme is the secular AI (Artificial Intelligence) theme, which focuses on the growth and development of AI technology and its impact on various industries. The second theme revolves around the idea of manufacturing, reshoring, and continued strong economic growth. This theme is centered on the reacceleration of manufacturing and industrial sectors as the global economy recovers from the pandemic.
How does Shannon Saccocia interpret the recent economic data in relation to manufacturing and AI-driven industries?
Shannon Saccocia, CFA, Chief Investment Officer for NB Private Wealth, interprets the recent economic data in relation to manufacturing and AI-driven industries by noting that there are two themes investors are trying to navigate this year1. The first theme is the secular AI trend, while the second is the idea of manufacturing reshoring and continued strong economic growth. She points out that there has been some weaker economic data, which may indicate a slower reacceleration from a manufacturing and industrial perspective compared to the rapid growth seen in AI-related industries. This could mean that investors are taking a breather or reassessing their strategies as they observe the developments in these sectors.
What trends have been observed in the stock market's performance over the last eight weeks, particularly in relation to tech stocks?
Over the last eight weeks, the stock market has seen mixed performances among the major averages. The Nasdaq Composite and S&P 500 have notched their seventh up week in the last eight, largely buoyed by a rally in tech stocks. However, the Dow Jones Industrial Average has experienced its third losing week in four.
Tech stocks, particularly those related to artificial intelligence, have seen a surge in recent weeks due to increased investor interest. This has contributed to the Nasdaq Composite's gains, with the index closing at a record high for five sessions in a row. Despite the overall positive performance of tech stocks, there are concerns about a potential slowdown in manufacturing and industrial sectors, which could impact the market outlook.
In the coming week, investors will be closely watching economic data such as May retail sales, home sales, and housing starts, as well as quarterly earnings reports from companies like Lennar, Kroger, Darden Restaurants, and CarMax. It will be a holiday-shortened week due to the Juneteenth holiday, with markets closed on Wednesday.