Evans: Feverish pace of the markets can continue thanks to Nvidia

Big day after NVIDIA earnings again, we're seeing the futures pop, especially the NASDAQ. What's your Wexworth the day How do you see today shaping up? My Wexworth of the day is pace so Frank in. This weekend in Indiana is arguably the greatest weekend in sports for the year. I expect on Sunday we'll see a record setting pace at the Indianapolis 500 and you have the Indiana Pacers in the Eastern Conference finals with games straddling the the, the Indianapolis 500. So what does that have to do with the market? We have heard several, we've heard from clients multiple times this week whether the feverish pace of this market can continue. You and I think after Nvidia's knockout report last night, the answer is yes. So the answer is yes. So you're, you're sold on the whole AI story. I mean, it'd be hard not to be after that report. My question to you though, when you look at this company, NVIDIA trading right now at 41 times forward earnings a year ago was at 61 times. When you're talking to clients, do you have any that are concerned about that kind of valuation? I mean, it's obviously a discount from what it was a year ago. But any concern about quote, UN quote frothiness in the market, We had a guest earlier that was a big concern when it comes to not only NVIDIA, but the broader market concerns about that even after this report in your mind? No, I, I think we are very early on in the AI story. If you look at NVIDIA, they had a 262 jump in sales, unbelievable record setting earnings beat on both the top and bottom line, 10 for one stock split. So while frankly we know that shouldn't matter, it does matter to the retail investor. I, as you mentioned in your read earlier, several price targets moving higher. I think it will continue to move higher. And let's not forget there is just a tsunami of cash that is moving into this sector, in this ecosystem and all ships rise. All right, the tsunamis, ships rising in the tsunami that never happens in real life. But I understand the metaphor. I want to also get your take on the Fed and its impact on the market. We know what NVIDIA and the AI trades impact on the market is. So we're looking at some kind of bearish comments yesterday from Goldman Sachs CEO David Solomon. I want to play them for you. I want to get your take. Do I think the race can go up a little bit? Yes, I do, and if they do, is the world prepared for it? And not really. I look at the range of outcomes and again, the worst outcome for all of us is what I call stagflation. Higher rates of recession, you know, that means corporate profits will go down and we'll get through all of that. I mean, the world will survive that. But I just think the odds a little bit higher than other people think. By the way, bearish comments from David Solomon, though that sound bite was from Jamie Dimon. Obviously, I want to get your take on what he had to say, specifically his comments about the hard landing possibly be more difficult than we previously thought. Well, we know Jamie Dimon's been bearish and had we listened to him and how much the market's run up since October, you could have missed out on a lot of a lot of upside. So I think what we heard last week from and and what we've heard recently from the Fed is that they're not in any hurry to cut rates and the market continues to digest a higher for longer environment. From an investment standpoint, you need to position portfolios with that in mind. But we have a strong consumer. The higher end consumer is spending. We have inflation moderating. So I, I think, let me jump in. I do want to talk to you about consumer spending because one of your picks for us today is American Express having a great year. But at the same time, we're seeing a lot of people having their credit cards maxed out. I know you say they're focusing on younger consumers, but right now, according to the latest data, 15% of Gen. Z credit card holders are maxed out. I would imagine the rest are also under some pressure. Why American Express now as we have these questions about the consumer? Yeah. So American Express showed 8% year over year spending growth. The the there's really a tale of two on the consumer. So you heard from McDonald's three M Coca-Cola last week really showing that there is a crack in the consumer and the lower end consumer is moving to a more value oriented option. However, American Express is showing growth. JP Morgan is seeing a re acceleration in growth. So I think they're locking in that young consumer early.