Host Kenny Polcari joins Man Group Chief Market Strategist Kristina Hooper and Legato Financial CIO Ryan Kelly to debate the risks of massive AI CapEx spending and how a hawkish Federal Reserve could impact markets ahead of the midterms.

AI CapEx fears: Is big tech overspending?

Trader Talk 

Hello and welcome back to Trader Talk at Yahoo Finance. I am Kenny Polcar. And today, we're talking to Christina Hubu, who's the Chief Market Strategist at The Man Group, and Ryan Kelly, who's the CIO at Legato Financial in Louisville, Kentucky. Thank you very much for joining me today. Look, there's a lot going on, so let's just get to it because we're in the middle of earnings season. This is a big week, certainly a big tech week, but we're going to get about 150 names that are going to report this week. So give me your sense on where we're what we've heard today.

So far, which has been stellar. And where you think we're going? So I think we're going to continue to hear some really good news this week. Earnings growth has just been phenomenal. Now, having said that, I think when we get to the consumer discretionary names, that's where we're going to see a good amount of weakness and we'll also get forward guidance that may surprise. Right. So it'll pull down the growth rate. Right now, I think they said they're growing at about 15 or 16%. But I think once you start to get those weaker numbers, that number will come down.

Still be good overall, but it won't necessarily be this picture I think that they're looking at right now or the way it feels right now. What do you think? Yeah, I think we're going to have some very good reports from earning numbers. I think the CapEx spending on the tech side has been worrisome for some investors. I think Google coming out with more CapEx than they have cash flow is something that just worried a lot of people.

AI CapEx fears: Is big tech overspending?

Read the full transcript

The candid version is on a podcast,
not the earnings call.

AI CapEx fears: Is big tech overspending?

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.