The Week Ahead: Ford Is Preparing for War, With Tesla

Join Tematica Research's Chief Macro Strategist, Lenore Hawkins, and Chief Investment Officer, Chris Versace, as they discuss and debate what's driving the market and the economy this week.

Last Week's Market

Gold hit 4-month high
Bitcoin - found support post Elon Musk reversal on his crypto views

YTD returns

Nasdaq Composite 6.6%
S&P 500 11.8%
Dow 12.6% 
NYSE Composite 13.8%
VIX - 26.4%
TLT -12.1%
Gold flat
Bitcoin up 31.5%

Economic recap 


  • Germany Ifo biz sentiment smashed expectations, hitting 2-year high with entire euro area catching a material tailwind through Q2.
  • Europe catching up, China & US are in the process of hitting peak rates of growth and moderating


  • Univ Michigan Consumer Sentiment survey - sub indicator looks at the buying conditions subindices (largehousehold durable goods, autos and housing). In short, this measures when consumers are confident they will spend — this metric has now sunk to the lowest level since the depths of the financial crisis back in October 2008.
  • Seeing downward revisions in Q2 GDP estimates
  • There continue to be tremendous distortions in the data that will continue mostly through September.
  • Nearly 16m American still on at least one benefit program versus an average of 2m pre-pandemic. This will take a while to unwind and is a headwind to growth
  • Preliminary estimate for Q1 saw corporate profits fall -0.8% after a -3.3% decline in Q4.

Earnings of Note

Nvidia (NVDA)
Costco Wholesale (COST)
lululemon Athletica (LULU)
GAP (gPS) - Athleta!

Cleaner Living theme

Ford (F) has gained more than 25% since the start of last week, rising to its highest level since 2015. Thursday RBC upgraded shares to outperform from sector perform over the company’s updated business strategy that makes its EV plans more clear. The company reported that it received 20k preorders for its F-150 lightening truck in the first 12 hours after its reveal.  The company also announced a JV with South Korea’s SK Innovation on a facility capable of making enough batteries to power the equivalent of 600k all-electric vehicles per year. The company expected 40% of its sales to come from EVs by 2030.

Microsoft (MSFT) observed “This week we observed cyberattacks by the threat actor Nobelium targeting government agencies, think tanks, consultants, and non-governmental organizations. This wave of attacks targeted approximately 3,000 email accounts at more than 150 different organizations. While organizations in the United States received the largest share of attacks, targeted victims span at least 24 countries.” Nobelium, originating from Russia, is the same actor behind the attacks on SolarWinds (SWI) customers in 2020.

Next week

Tuesday, June 1

  • Ambarella (AMBA) - 
  • Zoom Video (ZM) - What does it see as employers re-open door and folks begin to work less from home?

Wednesday, May 26

  • Cloudera (CLDR) 
  •  PVH (PVH) - 
  •  Splunk (SPLK) - Cybersecurity!

 Thursday, June 3

  • Broadcom (AVGO) -  5G handsets and connective chips — timing of this report vs. June quarter reporting - will be watching for comments on chip shortages, supply chain issues
  • ChargePoint (CHPT) -  What are its plans to expand its charging station footprint and the EV landscape heats up? Miles per charge and time to recharge an EV battery are still someof the sticking points for EV holdouts.
  • lululemon Athletica (LULU) - Based on Gaps’ April quarter results with Athleta, LULU likely crushed it, but will that continue as folks head back to the office and need up update their business or biz casual wardrobe?

And as the pace of quarterly earnings reports ticks lower, investors will have a pickup in IB investment conferences including

  • Deutsche Bank dbaccess 11th Annual Global Financial Services Conference 2021
  • Jefferies Global Healthcare Conference 2021
  • William Blair 41st Annual Growth Stock Conference 2021
  • Cowen and Company 49th Annual Technology Media and Telecom Conference-TMT 2021

Advisorpedia's Week Ahead ... Powered by Tematica Research.

Related: The Week Ahead: Is the Bitcoin Bubble Bursting?



Lenore Hawkins, Chris Versace

Chris Versace  00:03

This is the week ahead, brought to you by Advisorpedia powered by Tematica Research. . .

I'm Chris Versace to America's Chief Investment Officer and joining me as usual is Lenore Hawkins dometic as chief macro strategist what is going on Lenore? As we tape this is actually the Friday before Memorial Day weekend, any big plans?

Lenore Hawkins  00:30

Sleep, sleep, I are asleep and my wild are what very excited I get like it's like a big, big weekend. But as we're heading into that weekend, it's kind of interesting to see what's going on in the markets. We're seeing the market starting to line up that he's keeping his kidney i think is this could be interim it's early days, but we're starting to see some peaks forming the value versus growth that could have peaked already about March 8, the Russell 2000 peaked mid March, Bitcoin peaked back in mid April, NASDAQ towards the end of April, the nysc composite the Dow and the s&p all peaked around May 7 lumber peaked may 7, corn and wheat may 7 wheats now down 15% from what was an eight year high and corn is now down to the lowest level it's been at in about a month, copper peaked may 11, down about 11% from them the CRB index all the commodities that was May 11. So it's kind of interesting to be seeing a lot of this, you want to keep an eye for these things? Are we at a market turn something to be paying attention to?

Chris Versace  01:40

What What do you attribute the peaks in these earlier in the year two, I mean, when I say early in the year, just a couple days to several weeks ago, depending on what you're talking about. Why? Why the sell off?

Lenore Hawkins  01:53

Well, we had going into this earnings season, there was so much enthusiasm, so much was already priced in. And what we saw through this in this earnings season was even when companies delivered better than expected better than consensus. If they did a triple quote, right they they improved the highs and they did better on top lines, if there are bottom line, sometimes stuck, still got hit and hit sometimes pretty hard. That's telling me that there's an awful lot of optimism already built in, you've got to the US being free and clear of the pandemic that was already built in pretty strongly. Now you've got Europe, which had been really struggling had been lagging that's starting to come around. We're seeing a lot of progress with the vaccinations everywhere except for those emerging economies. And that's we all know that's going to take years. So the question now is, where's the really great news gonna come from the Biden administration stimulus? Well, that's actually going to look like that's not going to be quite as exciting as we thought and a really big one was already priced in so where is this next knock it out of the ballpark really accelerate this economy piece of news gonna come from when expectations are the next year, plus is gonna see economic growth that is super outsize. What's the next thing going to be? So that's I'm not surprised to be seen some topic going on here.

Chris Versace  03:22

So as Michael Lewis would say, what's the new new thing that drives stocks higher?

Lenore Hawkins  03:26

Exactly, we've got so much authority been priced in what we are seeing. So if we just do like a quick little recap of where we are economically, like I said, Germany, doing pretty good. Europe's been doing better, pretty good. Germany's iPhone business expectations, Max just utterly smashed expectations and hit a huge two year high. And the entire European area is starting to catch tailwind through q2, Europe's finally catching up. But at the same time, we're seeing China and us look like they're kind of in the process of heat hitting peak rates of growth and are starting to moderate. Now, when we look at the commodities when we look at where all this, you know, all inflation is coming, inflation is coming. China consumes about half the world's resources and has been on enormous inventory filled with imports of materials up about 50% in the past year versus down 15%. year over year, this time last year, Chinese inbound shipments of basic resources just fell 7.4% month over month, that was the first decline of the year and a seat steepest since May of 2020. So across the board, we're seeing things kind of again, topping that accelerating growth rates now kind of shifting to decelerating growth rates of growth. It's not subtracting, but it's just it's increasing much slower. People think of China their central bank has been tightening policies have been a lot of concerns that China got itself cut out over its key tips. They've been tightening policy and Chinese household sector is actually de leveraging which is much of what we've been seeing in the US and keep in mind when you see de leveraging that is actually coming tra indicative to inflation, when you're de leveraging, you're not accelerating any kind of a money supply, when you're decelerating you're contracting things. The central bank's balance sheet and China is about 35% of GDP. And that's now a two decade low. What compare that to the US?

Chris Versace  05:20

Right, right. But so so that's there. But what about in the US because, you know, we had stimulus payments, we were kind of reopening aggressively. vaccinations were out and I but I can tell you, just from my own personal experience, you know, doing some work around my house that, you know, prices are elevated contractors, were saying that, compared to 2018 2019, a piece of plywood at Home Depot is four to five times more expensive. You know, whether it's landscapers or contract other contractors, you're saying that people are not coming back whole crews are not returning because they just don't have to, because the incremental stimulus benefits, this has to be hitting your ability to supply what people want.

Lenore Hawkins  06:07

Yes, what we've seen. So we have seen that one of the biggest problems that businesses have is an inability to get the right worker. And it's really easy, right? It's really easy to say that it's because one of my favorites is, when we see people doing something we don't think makes sense. And we don't like it. It's usually because they're lazy, evil, or stupid, or some combination of what we're seeing is in the labor pool, it's easy to say that people just are getting the stimulus checks, and they don't want to come to work. But if you dig a little bit deeper, there's also problems with childcare, schools are lacking, right? So people are looking at it saying, Can I afford the childcare versus going back towards so that's a little complicated. While the vaccine rollout has been profound, about 50% of the US population is fully vaccinated about 60% have had at least one shot, that still leaves a good chunk that have not fully been vaccinated, and they're nervous, you know, they're there, people are still a little bit afraid of engaging and getting sick or bringing that home to two loved ones who believe ...

Chris Versace  07:11

... the easy converts have been had.

Lenore Hawkins  07:13

Exactly, exactly.

Chris Versace  07:14

Now. Now it's those who are skeptical, there are the even before this, there were people who were you know, afraid of vaccines. And I do agree that it's going to be a slower March higher here. But

Lenore Hawkins  07:26

Well, if we look at look at the quantitatively, the Citibank economic surprise index, you want that thing to be at a bottom moving up, because that says when things are coming in stronger, so it's at a 12, month low. What that means is that we're being surprised to the downside, rather than the upside. Remember, this is not, when we're looking at the market, when we're looking at the economy, it's not about the actual levels, it's about the levels relative to expectations. And expectations have been so high, they've been so hot, and now things are coming in having a good we're not saying they're coming back. It's just they're not coming in with that, you know, human beings tend to be linear. So if I, if I've been surprised to the upside, again, and again, that I expect that I'm going to continue to be surprised to the upside, and it's probably going to continue to get even better, but that's not what's happening. It's actually

Chris Versace  08:21

I was gonna say I think that circles back to your comment earlier about about stocks and expectations as to what's going to drive it higher. You know, yeah, we got to wrap up, and we'll get into this. But we had a rash of earnings that were better than expected, particularly on like retail apparel, facing names, crushed it, year over year and in in some respects, relative to 2019. And I think the question is, as companies are raising their expectations for the full year, are they possibly being a little bit ahead of themselves and thinking to your point, the good times are going to continue to roll to the extent that they are.

Lenore Hawkins  08:56

And we're already seeing some things that you would kind of expect starting to rollover are starting to roll over, for example, during the pandemic, everyone was stuck at home looking around and going, No, I need to upgrade. But how many new couches Can you buy? How many new decks? Can you have bills, right? That's not something that's going to continue indefinitely. And in fact, the University of Michigan's Consumer Sentiment Survey, one of the sub indices within that looks at buying conditions for large household durable goods, autos and housing. So basically this measure when consumers are confident that they're going to spend on those kind of big ticket items, and it's that metrics now at the lowest level since the depths of the financial crisis back in 2008. And again, that doesn't mean that people are thinking the world is falling apart. What that means is, they bought the couch, built the deck, they upgraded the kitchen, and now they're thinking, Okay, I we're getting back to work. I'm getting out of the house, and I've already done the stuff that I want to do. And we're starting to see downward revisions and Qt. GDP estimates. Now again, they're still good. We're not saying that this is, you know, the wheels are falling off. It's just we're not seeing this continual acceleration upward, which is what the market was looking for. And when we look at ...

Chris Versace  10:16

Is it fair to say that perhaps there's a little hopium leaking out of the balloon?

Lenore Hawkins  10:21

Yeah, when you can't forget, we've been through something really traumatic. And that near 30% personal savings rate doesn't look like it's changing anytime soon. Again, that is not supportive of inflation. Right? Because people are taking that money and they're nervous. They're, they're understandably concerned for the future.

Chris Versace  10:42

Okay. Okay. What else?

Lenore Hawkins  10:46

Richmond fed manufacturing for May reported that the ability to find workers with the necessary skills has actually reached the worst level on record, which is really interesting, because we've talked about how there's the shift into increased automation. That means it's a slightly different skill set, right? Today's manufacturing plant is not your manufacturing plant from the 80s. That whole bringing the jobs back, getting the manufacturing out from overseas, there is bringing it home doesn't look the way it looked decades ago, that manufacturing plant looks very different. It needs a new skill set, they're having a tough time finding that. So I think that's really going to be one of the pushes with the Biden administration is the retooling of the American workforce.

Chris Versace  11:29

But that takes time.

Lenore Hawkins  11:30

That doesn't happen. It takes time. Yep. One of the interesting things I think, too, is the preliminary is what we just got yesterday, for the first quarter corporate profits actually fell to negative point 8%, after a negative 3.3% decline in q4. So what that means is, corporate profits have been falling. Now, if we look at corporate profits, which because you want to kind of normalize it relative to GDP. So what share of GDP are our corporate profits, if you look at them, after tax, you do a little bit of a adjustment for inventory and for capital consumption, as the percent of GDP, it's fallen corporate profits have fallen from the peak of 10.6%. In q1 of 2012, that's the highest there ever was to today. 8.8%. And her perspective, the average of this metric going back as far as the the records go back to 1947, has been about 6.8%. So we're right in between the average and the peak, the median is about 6.3%. And the low occurred way back in 1947, at 4.1%. So where this is interesting is that people who complain that corporate profits have been getting a greater share of GDP, and labor's been getting a smaller share. And what we're seeing right now is that share for corporate profits has been coming down and not it's actually something to think about when you're looking at the stock market, because that's the percent of GDP going to corporate profits is actually rolling is coming down, it's not accelerating.

Chris Versace  13:03

It's gonna be interesting to watch. Because I know when a bunch of companies reported like Costco, for example, they actually break out their pandemic related spending each quarter, which you would think is either we're going to anniversary that and perhaps it'll start to decline. So that might be a positive, you know, to help lift those corporate profits. But on the other hand, other companies, you know, McDonald's, for example, Home Depot are boosting minimum wages up to 15 bucks an hour.

Lenore Hawkins  13:30

Yeah. And it's really interesting to see that that's coming at a time when we still have about 16 million Americans are on at least one benefit program. And to put that in context, or is it 60 million today, it was round an average of about 2 million pre pandemic. So that process of getting people back to work. Finding the right person into the right job is going to take some time.

Chris Versace  13:54

Well, but I think as that happens, hopefully, fingers crossed, that the supply chains that we keep continue to hear about the issues there tend to get better and better incrementally month over month over month, but we'll see. We'll see. So, next week is a shortened week, it's the start of the month, which means we have all that start of the month economic data to look forward to usually a little frenetic and when it's compressed into four days, it's even more so. So with what key points are you looking for next week.

Lenore Hawkins  14:26

So the big one that we're gonna be looking because we've seen housing, you know, housing is kind of a it's an interesting thing. It's, we keep talking about it being hot, but it's, it's really the prices that keep going up dramatically, but they keep going up dramatically on insanely low inventories, meaning people just aren't willing to sell their homes and home builders are looking to try and capitalize on that. But obviously, the process of building the home getting it to where you can sell the home is not a short one. It always Marvels to me. You know, people are like, Oh, yeah, selling home selling homes. That means you have to buy a home.

Chris Versace  15:07

And if there's nothing exactly where you're gonna go, right, exactly. Can't go to the street. Yeah.

Lenore Hawkins  15:11

Yeah. So I'll be looking at the April construction spending that comes out in June, I'll also be looking at the isn manufacturing index that comes out on the first as well, on Tuesday, that we'll be seeing, are we seeing this continued kind of slowing in the pace of growth? Wednesday, we're looking at the mortgage applications index, that I'm not expecting to see anything that's big fireworks, we'll also look at the feds Beige Book. That's where you really get the qualitative analysis. That's where you get commentary from the different fed regions on what people are saying, that's always kind of an interesting read. The big thing that comes on the third, we get the ADP employment change report, which is really kind of the appetizer for the Friday, May employment report from the Bureau of Labor Statistics, that obviously they're looking to see what's going on. We're hearing companies saying it's tough to find people, like you said, There actually was 16 million people on some sort of vet benefit, which is really, really, really, really I never miss eight times the level we saw pre pandemic. But then companies are having to pay more to attract talent, which is frankly, that is not what we were hearing. It's really interesting. That's not what we were hearing pre pandemic, when unemployment rates were at those record lows, when you're not hearing companies talking about how they were really increasing wages. And now we're hearing this this pressure, we'll also be looking for April, factory orders on Friday, because again, that's part of what's going on with supply chain will be looking to see if that's kind of smoothing out a little bit. Thursday also brings productivity and your labor costs. What's interesting there is to see, productivity has been a real big boon to the economy, this pandemic really accelerated productivity, which is great for GDP. And it's also kind of counters inflation. A good thing.

Chris Versace  17:12

Yeah, I think the other thing and all that data, one of the other things that I'll be watching for is his comments, particularly in the isn manufacturing and non manufacturing indices, about pricing, just to see what's going on there, if there's any kind of commentary on on shortages and supply chain issues, but also the order component, because that that order number is going to give us our first glimpse at what June looks like. And I think that's right.

Lenore Hawkins  17:39

Well, what we'll start to see people kind of tighten up those two q are current quarter GDP forecast, perhaps So okay, for perspective, we still expect that there's going to be so much noise in the data, that we're still going to be pricing, pricing pressures on input costs of supply chains, still, it's going to take a bit more, we expect to see that probably through September.

Chris Versace  18:02

Right. Totally agree with that. Now, let's switch over to earnings, you know, in this past week, just not not a sea of earnings, but the ones that we got were just you know, rather impressive. You know, from Nvidia, Costco, Lulu lemon, even gap.

Lenore Hawkins  18:19

And I think you're joining me again, with a my athleta.

Chris Versace  18:22

Well, yeah, that that's the mindbender to me, right, which is, not only were they big year over year, which you would expect, but it was up some ridiculous double digit percentage, like over 2019. Yeah, like 54 56%, something like that. And I sit there and I scratch my head. And I go to your point earlier, you know ...

Lenore Hawkins  18:42

How many pairs of yoga pants do I really need? Right, exactly. I mean, I know I realized that, like yoga pants are the new work pant. But when you're looking at our fill ...

Chris Versace  18:52

Well, but not only that, right? We there's a pretty good sense that in one way or another, right? The way we work is about to go through another change, let's just say over the next three to six to nine months, right? People are going to have to you know, you can't wear yoga pants to the office, depending on where you work. So you're probably going to have to freshen up your your business casual outfit, your your work wardrobe, that sort of thing. I wouldn't be surprised if we start to see a shift in spending away from say, you know, Lulu lemon athleta and some of those to maybe more of a nordstroms maybe more. I don't shop there, but I think like an Ann Taylor or something like that. Yeah.

Lenore Hawkins  19:33

It is. I'm just I'm just saying I challenge it is a challenge to not take the data points that we're going to be seeing over the next couple of months and and that we have something and extrapolate that I agree. Well, okay, I think this is the new normal, this is what's gonna happen and then we're still working through

Chris Versace  19:56

I think what makes that very hard is there really like three forces that are coming together to drive this robust performance, right. So it's stimulus checks. And there's, you know, some of the data says X percent was spent X percent was not, but some of it is being spent. There's the reopening. Right, which is we've talked about before the impact of pent up demand and what that does, and then the third is just I need something new. Yeah, I'm so bored. So So I, you know, the Debbie Downer in me, right? Is is sitting at some of these companies like ratcheting up their their forecasts and I just again, I don't mean to harp on this, but I just wonder, is it a little too much too soon? That's my case, sir.

Lenore Hawkins  20:43

But one company that I think is not too much too soon. One company that is enjoying a tailwind. That is not a short term kind of tailwind is seeing what is going on with Ford. Ford really is good. No, go ahead. Good. Ford is really showing part of what we what we look at is our cleaner living scene. That is cleaner for the planet cleaner for our body clean for your home, Ford stairs are up over 25% since the start of last week, they've up to the highest level since 2015. And on Thursday, RBC upgraded shares to outperform from sector perform, because of the company's updated business strategy that really makes its electric vehicle plants a lot more clear. The company reported that it received 20,000 pre orders for its f150 lightning truck in just the first tip is crazy. Well, after the reveal 12 hours, the company also announced a joint venture with South Korea's SK innovation on a facility that's going to be capable of making enough batteries to power the equivalent of 600,000 vehicles per year. The company has said that it expects get this 40% of its sales to come from electric vehicles by 2030. That's I mean, that's what they mean in in cars speak. That's like eight years, right? Because we're already at the 2018 to 2022 models. Oh, they're they're getting ready to lock the model year from now.

Chris Versace  22:13

Yeah, but they've already locked like their models all the way through like 2024 2020.

Lenore Hawkins  22:18

That's amazing. In eight years, they're gonna have 40% for electric vehicles.

Chris Versace  22:22

So here a lot of Tesla. Well, that's exactly right.

Lenore Hawkins  22:26

You know, Tesla, Tesla has not the only kid in the game anymore.

Chris Versace  22:31

No, no, you're what this is what people have been waiting for. Right? Yeah, you know, Tesla has had a pole position advantage first to market that sort of thing. And these companies for GM, Chrysler, whatever it's called Eb and stevia would whatever that thing is. They like most big companies. They take time to reposition their business. But when it when it starts to get when it starts to whip, and it starts to gain momentum, look out. And there's a lot there's a line in this movie Ford versus Ferrari, which was great movie Christian Bale did. Excellent job. And I think this is exactly what's happening here. Ford is preparing to go to war. Yes, yes.

Lenore Hawkins  23:13

And and for those of you that this may, this dating is a little bit. But what do you get? Well, I remember

Chris Versace  23:20

I remember he feel free to date yourself. I'll need to include me on that.

Lenore Hawkins  23:30

Okay. I remember. I remember back in 2000 when three combo spinning POM off. And valuation was such an I remember talking to the golden tech speakers about it that the valuation of palm was so massive compared to the three calm that it actually implied that three palm had a negative market cap. Yes, yes. And sure enough, when it spun off, and I was like, people are crazy, how could three calm it's great company how the three time I'm making a market cap. But that was because Paul had 70% share of the people didn't even know what the hell this is these days. But the Palm Pilot yet the Palm Pilot had and now palm report we don't even see prominent Mark doesn't exist.

Chris Versace  24:15

It's tucked inside of HP as an OSS company.

Lenore Hawkins  24:18

It was it was the dominant personal data assistant 70% market share is that something we're gonna see with Tesla or Tesla was this massive player, the dominant was such an incredible market share. And then everyone else came in and the playing field within a matter of years was completely different.

Chris Versace  24:37

Totally, totally agree with you. I think that's a great analogy. The only thing I'll add to that I was reading somewhere. Some Wall Street analysts was saying that no, no, no, no, no. Tesla is not a car company. It's an energy company. And I was thinking about that. And I think that's a bit of a stretch.

Lenore Hawkins  24:58

We'll see.

Chris Versace  24:59

Yeah, we We will. Other other big news. Before we talk about who reports next week, late this week, Microsoft once again touting the horn for our cybersecurity and data privacy index. They said, quote, this week, we observed cyber attacks by the threat actor, no billiam targeting government agencies, think tanks, consultants and non governmental organization. This wave of attacks targeted approximately 3000 email accounts at more than 150 different organizations. And while most of us might think, oh boy, there they go, again, hitting the US true, but it also hit 24 other countries, and for those who don't know, this organization, 2 billion was the same one that attacked solar winds in 2020.

Lenore Hawkins  25:48

So I think I mean, this is this is the new warfare, the new it's no longer war really is pointless, for the most part. I mean, I know there's there's still some skirmishes, but the big war is no longer in the physical world. It's over data.

Chris Versace  26:03

Yeah, absolutely. And this is the way it's gonna be. You know, I like our cybersecurity and data privacy index quite a bit. It's a little different, because the emphasis that includes data privacy, but like we you and I have talked about this quite a bit. cybersecurity is like the new form of insurance, right? You don't know when you're going to need it. But you'll be grateful that you have it when you do. The other nice thing about cybersecurity from an investor perspective is attacks continue to get increasingly complex and complicated. There is a just a virtuous cycle of upgrades in terms of the needs of a company cybersecurity demands and protections. I think I think I got that outright. I kind of stumped that. I think I think people get what I'm saying. The other interesting thing, just on the chip shortage front, particularly for autos, the US Senate is expected to pass the US innovation and Competition Act of 2021. That would sink about 100 billion into us research and development efforts. But 52 billion with the beat to advance domestic semiconductor manufacturing.

Lenore Hawkins  27:11

When you hear that more than half of it is going to 70s. So the US innovation and Competition Act, more than half of it goes. 

Chris Versace  27:21

But you know what I say chips are the fabric of our lives.

Lenore Hawkins  27:24

I that but that doesn't. Doesn't that tell you? You're right.

Chris Versace  27:27

That does and in terms of rising semi cat manufacturing, you want to certainly want to look at Applied Materials, lamb research and some others in there. Now, quickly, let's skip to next week. You know, again, for a week, not going to be a lot. Tuesday, the highlights will be ambarella in zoom video with zoom, the question is going to be what does it see over the coming months as employers reopen their doors and folks begin to work incrementally less from home? Wednesday, we've got Cloudera pvh and Splunk Splunk cybersecurity company again, what do they say on the heels of what Microsoft talked about this week. And then Thursday, we've got Broadcom 5g and connected chips. The timing of this report is going to be key because it comes right before a lot of companies close their books for the June quarter. So we're gonna be one of the listening for comments on chip shortages, supply chain issues, or perhaps is demand even more robust or the acceleration to 5g going more quickly than we might think. Also, Thursday, we have chargepoint. You know, we were just talking about Ford and their Eevee plans. What is charging points plans to expand its charging station footprint. As the Evie landscape heats up, we asked this because miles per charge, time to recharge and Evie batteries are still some of the sticking points, you're going somewhere, particularly on a long trip, you're going to have to recharge Where is charge charge point in on that. And then finally, Lou lemon reports next week. You know, we were chatting earlier about the blowout results with athleta. You know, Lulu lemon, I betting that they're going to get crushed for their April quarter. But the question is going to be as we were talking about as people are heading back to the office, updating their wardrobe for non work from home, what do they see in their forecast. And then the only other thing I point out is we're gonna be at an interesting inflection point next week, we see again, a real continued drop in the velocity of corporate earnings reports. But we're gonna see a huge increase in the number of investment conferences and this is where companies are going to report and you're gonna want to break out your notebook and compare what did they say on their earnings call? What do they say?

Lenore Hawkins  29:40

Now what? They're not reporting their quarterly results, they're going to be talking about what's going on in their business outside of that. And so that's going to be a different kind of insight.

Chris Versace  29:49

Totally agree. It's the time to break out your decoder ring and watch and compare their language what was said what is being said, looking for the Delta there, so and we All right. Anything else to watch out for next week? I think we've added Does, does that mean what I think it means?

Lenore Hawkins  30:09

I think that is the week ahead


people, company, peaked, pandemic, big, week, corporate profits, starting, report, stimulus, home, gdp, index, expect, business, year, data, continue, cybersecurity, expectations