Morning Call Sheet: AI spending and resilient growth lift markets

Summary

The panel discusses how AI spending and resilient growth continue to support markets despite higher yields and energy prices. Stephanie Link is bullish on Target as a turnaround story, while Ryan Detrick highlights a potential labor market recovery. Warren Pies notes a transition in the yield-crude oil relationship that could challenge markets.

• AI capex and resilient economic growth are supporting equity markets.
• Stephanie Link owns Target, citing its turnaround story within retail.
• Ryan Detrick expects a labor market comeback in the second half of the year.
• Warren Pies observes a shift from a cut cycle to a hold in yields and crude oil.
• Consumer spending remains robust, with credit card data showing 6.5% growth.
• Retail stocks have been weak, but Target is seen as a differentiated pick.
• The panel dismisses comparisons to the 1999 dot-com bubble, calling AI early innings.
• Yields and energy prices remain elevated, influencing sentiment.