Squawk on the Street SOTS 2nd Hour: Big Tech on Deck, RFK Jr. Confirmation Hearing, and Fed Expectations 1/29/25
Jan 29, 2025
Join the discussion on stock market fluctuations as major players like Tesla, Meta, and Microsoft prepare to report earnings. Get insights from a Goldman analyst on why bonds are looking bullish and why an Apple downgrade could be pivotal. Explore the political atmosphere with Robert F. Kennedy Jr.'s confirmation hearing making waves, while tensions rise over Trump's funding freeze. Wrap it all up with expectations around the Fed's interest rate decision and how it will impact the market.
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Policy Uncertainty and Tariff Impact
- Johnny Fine, Goldman Sachs' Head of Corporate Credit, predicts no rate change due to policy uncertainty.
- He believes focusing on tariffs as an inflation risk is overblown, citing a potential one-time impact and dollar strengthening.
Bond Market Outlook
- Fine is bullish on bonds, believing yields will decrease.
- He thinks the market overreacted to worst-case scenarios regarding fiscal policy and term premiums.
Tesla's Growth and AI Business Models
- Tesla's growth opportunities remain strong, particularly with the new Model Y and upcoming models.
- Analyst George Gianaricas emphasizes the importance of Full Self-Driving take rates as a proxy for AI business model success.