Market Insights

[music] >> Hello, I'm Anthony Okolie filling in for Greg Bonnell, and welcome to MoneyTalk Live, which is brought to you by TD Direct Investing.

Coming up on today's show, we'll discuss the outlook for the semiconductor industry amid the rise of AI with Dom Rizzo, portfolio manager with T. Rowe Price.

We'll also have a look at the big trends in the media industry with Jim Stillwagon from T. Rowe Price.

And TD Asset Management's Michael Craig will give us his view on whether the recent run higher in stocks can continue. Plus, in today's a broker education segment, Bryan Rogers will show us how you can use multiple cell orders on the stock.

But first let's get you an update on the markets. We will start here in Canada with the TSX where our main stock index open lower with material and industrial stocks weighing on the market. The TSX has been moving quite a bit today. It is coming off a modest down day on Thursday and what has been a disappointed week of trade. Currently, the S&P TSX composite index is down modestly, about 6 1/2 points.

Taking a look at some of the big movers, Crescent Point Energy, shares of Crescent Point energy removing hired today, the Calgary-based company just announced a 2 1/2 billion dollar cash and stock deal to buy Hammerhead Energy.

The Calgary-based energy firm said the deal would create Canada's the seventh largest energy producer by volume.

Currently, shares of Crescent Point Energy are up about, we will call at 2.3%.

Some other movers, Onex Corporation also trading higher. The global investor and asset manager reported solid Q3 earnings of $256 million compared to a loss in the same. One year ago.

Shareholders are bidding it up about half a percent.

Turning south of the border, US stocks are seeing a bit of green today helped by a pullback in US treasury yields.

Of course, markets are coming off losses on Thursday with the S&P 500 snapping in A.D. winning streak. It markets were rattled after the Fed chair Powell said the central bank was now confident it had done enough to battle inflation. It is trading at nearly 29 points or .7%.

We will take a look at the tech heavy NASDAQ, it is open modestly higher. That index is currently 136 points or just over 1%. Some of the big movers today, shares of Nvidia are moving higher.

The chipmaker announced plans to sell high-end chips to Chinese companies, while remaining compliant with US rules and aimed at curbing China's access to the technology.

Today, Nvidia shares are up 1.9%.

Some other movers, shares of Biogen are moving lower in early trade. Earlier this week, the biotech company reported disappointing third-quarter results and lowered their profit guidance going forward.

Currently, shares of Biogen are down by 1.3%, nearly 3 points on early trade.

And that's your market update.

Well, markets have moved higher as investors consider whether the US Federal Reserve is finished with its rate hiking cycle. But can the positive momentum continued?

Michael Craig, managing Dir. and head of asset allocation, TD Asset Management joined Greg Bonnell earlier to discuss.

>> Short-term seasonals will probably kick into play and have a nice rally in the year end and if it doesn't resolve the overwhelming challenges pummeling the economy but I think that's going to be more of a 2024 story now.

A lot of data last week showing employment slowing.

I think we've seen the peak and interest rates now.

That's been priced into the market. So there has been some relief.

You have a window from tactical perspective. In the back of your mind, he sought to worry about what's coming through next year and that will likely see slow down to recession in various parts of the world.

>> It's the back of the mind worries that always get me as well. I'll gladly take the past couple of days that we've had an action we've seen. Let's walk through some of those worries.

>> Well, in Europe, to start, you got a situation where they being quite clear that they are finished hiking but inflation is still quite high and there inflation compilations are based off of oil which is quite a bit higher. Europe is in the worst spot right now.

They don't really have row company policies anyway.

That's a tough backdrop for growth.

In the US, lots of money flowing into the Rust Belt.

Reshoring.

Canada somewhere in between where we have during to the commodity side which has been helpful.

We do have an overarching risk with household debt that is also showing, starting to show that consumers are starting to slow down their purchases and that is weighing on growth. US is probably in the best position, you're the worst and Canada somewhere in between.

>> We heard from the Fed last week. I wanted to get your thoughts on that.

They held for a second consecutive meeting. That is understandably some of the enthusiasm that the market has that they might be done at this point. What stood out to you from Jerome Powell? At this point he couldn't call all clear. That would be a bit of a tactical error.

>> They want to keep the option open to hike again but I think for much of his commentary and certainly the way the markets turned afterwards is the market is taking this to me the hiking cycle is over.

Historically, when you look at when the Fed does stop hiking, it's quite a bullish environment for bond yields and last week was no exception.

Now the question is not about whether there are more hikes coming through, it's all about when did they start cutting. This is where the market has been all over the place this year.

No one really has a good feel for this.

The way we look at it is, it's likely nothing, when they do start cutting, it will be small, it will be strong.

I think it will be a period of wait and see for some time, followed by an era where I wouldn't be surprised to see 2 to 3 basis points of cuts. It's hard to say whether that's in June of this year or June 2025.

That's the next kind of area for the Moga to focus on, when that's going to happen.

>> I'm fascinated by this idea that they can be very aggressive to the downside. That wouldn't have any reverberations for the market? Would that something be an acknowledgement that we got inflation back down, no need to be restrictive so you can take a knife to the race?

>> They have been quite clear that they are terrified of cutting and having inflation rates accelerate.

They will want to see inflation come down.

Looking at inputs and inflation, I would expect to see inflation and rollover pretty hard and six months. All of the cyclical, goods based inflation, that's all come off.

Job markets are starting to soften, so wage pressures will start to abate. Then, it's a question of rents.

These are slow-moving series that once they get moving, it's like a freight train.

Once they get moving in a direction of lower, they will continue on the path for some time. I think it's just a matter of time.

They just don't want to preempted and see that re-acceleration in wage gains and hiring pressures.

This is all fluid. I think over the next six months will be clear that growth is the challenge, not inflation.

>> How does this set us up on the equity side? It's one thing to say we are at the end of the rate hiking cycle. This has been hard on the equity and bond markets. But then, if the next act as a soft economy, how do we see stocks perform?

>> Is a question of how much easy get on the fixed income side. I think that you look at the top line of the US market, it looks okay this year. When you look under the hood, it's really just been a handful of stocks that have, you showed Nvidia earlier, that have added to this and most stocks have generally not done much this year.

About 280 stocks in the US have underperformed the market and 250 are actually down on the year.

Valuations are actually not too bad. Outside of systematic 08 scenario, which we don't think is going to happen, there will be a little indigestion in the first half and that the two up for a better second half. I think what we are seeing here a year from now, markets are higher but there's going to be a path, it's going to be a tradable path on the downside on the upside and I think that's what investors seem to be thinking about going into 2024.

>> I wanted to ask you about the bond side. A couple weeks ago, watching that US 10 year yield flirting with five, gets above it, pulls back. I think the last time you were on the show you said, not making production, but I wouldn't be surprised to see a 10 year you'll get past five in this environment, but it will be choppy.

Could that shall come back again or have we seen the worst there?

>> It's kind of a fool's area to try to tell you that is going to be smooth sailing from here. All it takes is one random data print in the market is selling off again.

My sense is that with fixed income, it's not like buying an equity where you're hoping for some calluses to get higher. You are buying fixed income right now, you are earning now pretty attractive yields and you're trailing that over a long period of time. For any type of conservative investor, when you are looking at in Canada the banks are yielding five, 6%, overall yields on bond fields at 5 1/2 six, pretty attractive environment for income investors. So you can kind of stomach a bit of price volatility, it's not going to affect your income flow.

It's a pretty interesting environment for investors in that part of the market and I would save all things right now that look attractive, that would be one area that stands out because we have had this repricing. And a lot of the yield now you're getting in fixed income, people think it's inflation but it's a premium above inflation. The market is only expecting two, 2 1/4 inflation for the next 10 years so when you see a treasury rating of four or five depending on Canada or the US, a lot of that is yield after inflation expectations.

That's been negative for about 15 years, it's been between -2 and zero and aggregating north of 2%.

So quite an interesting period of time for fixed income investors.

>> That was Michael Craig, managing Dir. and head of asset allocation with TD Asset Management.

Now here's an update on the top stories in the business world today and a look at how the markets are trading.

Algonquin Power & Utilities reported a narrow laws while revenue fell more than expected, as unfavourable weather and higher interest rates wait on the company for the period.

The Canadian energy company posted a loss of nearly $175 million in the third quarter, compared with a loss of $195 million for the same period last year.

The US financial services division of Chinese bank ICBC was hit by a cyber attack that reportedly disrupted the trading of treasuries. ICBC, the world's largest lender by assets, said its financial services arm experienced a ransomware attack that resulted in disruption to certain systems. ICBC did not reveal who was behind the attack but said it has been conducting a thorough investigation and is working with law enforcement.

Finally, Huawei has launched a new electric vehicle that is designed to take on Elon Musk's Tesla.

The Chinese tech giant began taking preorders of the Luxeed S7, its first sedan, on Thursday. The new ED retails at a starting price of about $35,000 US, which is much cheaper than the most basic model S. It also boasts a driving range of 400 km on a 15 minute charge.

That surpasses the 347 km range for Tesla's model as after a similar charge..

And here's a look at how the markets are trading.

We will start here in Canada with the TSX. It has been moving quite a bit. Currently, the index is up just about five points, a little under 1/10 of a percent.

Take a look south of the border with the S&P 500, it snapped its eight-day winning streak yesterday. The S&P 500 is seeing some bids, some buying in early trade.

It's up about 35 points, to the tune of .8%.

One of the big investing trends this year has been the rise of AI technology and the boost it's given to the semiconductor space.

Earlier, Greg Bonnell had a chance to speak with Dom Rizzo, portfolio manager with T. Rowe Price about what may be next for the semi space.

>> This really is an incredible innovation. Like you said, it's actually not that new of a technology.

Everyone's heard about AI for a long time. If you look back at the original papers on AI, it goes back decades, actually. So why is AI captured the global focus today? That's what I always get asked internally.

There are really to key new technologies are driving this explosion. The first one is GPU's, graphics processing units, from the likes of Nvidia primarily but also new companies are coming up with the GPU's as well like AMD. The second, I'm sure you've heard this term before, large language models, specifically the transformer architecture of those large language models. That's the T in ChatGPT. You put those two technologies together and you have an explosion of productivity. Maybe an example to help everyone understand why these two technologies are so powerful.

If you gave a traditional CPU, a central processing unit, from the likes of Intel, the task of reading a tale of two cities by Charles Dickens, and he said, Mr.

CPU, please read the book and tell me how many times Charles Dickens says the words in the book. It would start on page 1 and it would read.

>> Word three, it was the period >> Exactly. It was the best of times, it was the worst of times. I always forget the second line but, it was the. It was that.

The GPU on the other hand would rip the book into 100 and 100 different pages and pull out all of the these simultaneously. There you can see the productivity enhancement.

If you put that with a large language model, particularly the transformer architecture, that will give the GPU context.

So it will say if Charles Dickens says the words on the first page, it is most likely proceeded… We took those technologies and ripped up the entire Internet and that's how we capture the global zeitgeist for something like ChatGPT.

>> We know the graphic processing units definitely give us a leap forward, the public is getting their hands on it with the is large linkage model. What the companies need to be successful?

>> There are four things you need to be successful in AI. The first, we alluded to it before, but compute resources. AI is incredibly silicon intensive. To give you a stat on that, AMD has said that they expect the AI chip market to grow from $30 billion in 2023 to $150 billion in 2027.

This is probably most important in terms of who is going to win in the market place, you need data and Uni distribution. So why do you need those two things? If you're going to revoke that book, you need a lot of different books to go study. So that's the data.

And then the distribution. You need to be able to get it out to your customers very, very quickly. As we know, the world is moving faster than ever so if you have a captured customer base, you are able to take those insights from your computer resources, from the talent, from the data and push it into your distribution and monetize that product relatively quickly.

>> You mentioned Nvidia, they have GPU's and are seen as leaders in the space. Anyone looks at a one year chart of their stock price action, they have been a beneficiary.

Longer-term, who is going to be a player in the space?

>> If you go back. History and you look at different computing resource build outs, what happens? The first is you see that infrastructure level build out. That's the likes of the GPU's from Nvidia.

We think AMD has the potential to be a really nice second source provider in that marketplace.

They actually do set on their conference call just the other week that they expect their new MI 300 GPU to reach over $2 billion in revenue next year.

That's historic. This is a really big market and there is room for other players. But then you have to look at the rest of the digital semiconductor ecosystem.

Where are those GP was made? They are made at TSMC. How are they made? They are made on machines from a XML, DC UD machines.

Each one cost €250 million. There the most amazing things you will ever see. They are the size of three double-decker buses.

It's really incredible.

How are those chips designed? They are going to design on software by companies like Synopsys and Cadence.

That whole digital semiconductor and production system is going to benefit as we see that AI chip market grow from $30 billion-$150 billion.

Just to put that number in context, the whole semiconductor market in the whole world is only $500 billion.

The other place you are going to see it win and it's kind of a trope to say this but it is those Magnificent Seven companies. Who has the resources? Was the talent?

>> You as the data, right?

>> Who has the data and who has the distribution? It's those Magnificent Seven companies.

When I think about navigating this environment responsibly which is what I am trying to do on the strategy, is trying to find these areas of winners in order to see who's going to win. And there are four things we look forward to identify those winners in this strategy. The first is that they sell linchpin technologies.

So these are technologies that are mission critical to the success of their customers were make the users lives dramatically better. The second, they need to be innovating in a secular growth market.

The third, this is probably the most important tactically, they should have improving fundamentals, that usually comes in the form of revenue acceleration, operating margins that are expanding or free cash flow will conversion that it can improving. And finally, this is very important that, you need reasonable valuation. If you have those four things, you can identify the winners in those different targets of the ecosystem.

>> I was going to ask you what things you are watching for in terms of roadblock for the development of AI. Is it basically any company that doesn't have those four things?

>> There are a couple of different roadblocks that could happen. Regulation being one of them. I think AI need smart regulation. When you have an incredible technology like this, it's actually responsible to make sure that there is smart regulation place. One thing you have to make sure of is that regulation doesn't stifle innovation though to and that it doesn't ingrain the incumbents. The incumbents have a natural advantage here. That's actually pretty rare in technology innovation. Sometimes you have things like sustaining innovations and sometimes you have disruptive innovations. AI is very much a sustaining innovation.

Look at the difference between say the PC to mobile transition. That was a disruptive innovation.

You had different winners for the mobile ecosystem then you did for the PC ecosystem.

What are the PCs? Windows, Microsoft and Intel.

Who is it mobile? Apple, TSMC. Disruptive innovation, new business model. Sustaining innovation is when those same leaders continue, the big companies of the best position for this. So you have to make sure that the regulation doesn't actually engrave them even further than their natural advantages do. You have to watch regulation. But I think this is an incredible technology and it's really going to be an incredible productivity enhancer for the global economy.

That's what's so exciting about it. It's not that these large liquid models are just used for chat.

It's that they are used for image generation or cybersecurity or code writing. There are so many different areas that you can apply this to create even this job, it one day, he may be talking out to AI me.

>> You are the AI in this scenario.

>> I have a great associate and we were working on the project together and he said, you know, Dom, I'm a little bit worried about my job. I said, Austin, you have an incredible opportunity here.

Think about all the time that you waste updating the models internally or writing the notes internally. It's all in the same format. We are going to unleash your time and I will work on incredibly new value add tasks then say just inputting numbers into a spreadsheet or reading that extra email that wasn't actually that useful.

>> That was Dom Rizzo, portfolio manager with T. Rowe Price.

Now let's get a look at today's educational segment.

There are different types of order types available to investors on WebBroker and joining us today to walk us through a couple of them is Bryan Rogers, Senior client education instructor with TD Direct Investing. Bryan, welcome to the show.

>> Well, thanks, Anthony. Yesterday, I had the chance to talk about stop orders and a common question that does, but when you want to sell a stock is, you wonder if you can be on both sides of the market. I want to sell my stock higher than the current market is. With a limit order, we know we can do that. But also put a stop order in. I want to do them both at the same time.

For those that are a little bit newer to order entry might think, if I try to enter one, can I enter the other? Traditionally, the answer is no and we give you an error message if you tried to enter a sell order about the market and then you went again on that same 100 shares to try to enter a stop order, it's going to give you an error message saying, there are no chairs here for us to put additional orders against. However, there is a day that TD Direct Investing has available.

It's something that's been in the industry for a while.

It's a one cancels other where you can do that, you can enter the order above the market and you can put your stop order just in case if you want to protect yourself from the downside. I want to show everyone how to do that because it's a very important thing to know and it's very convenient as well when you're looking to sell your shares. If you go into WebBroker right here, you can see under the research tab, I'm going to click on the sell button. I have Apple up as an example. You click on the sell, is going to pull up the order ticket.

I want to go to strategies instead of just doing a regular sell order.

And when you click on strategies. This is called a one cancels other. So what happens is you already own the stock. You can click on this, one cancels other. You might have to type in the symbol again. He gives you the option to use other stocks if you wanted to.

However, what you're going to want to do is when you get that simple up there, you are going to click on sell, put in your number of shares and then set this up or you can do a limit order if you want to sell Apple it's a 190, and then I scroll down and you're going to notice there's another order here where it says or and if I click on this it opens up a second order and I can put in a cell stop order, I can do 100 shares, I like to stop market, set my trigger price and then go up here and see, you have to put your symbol in first.

Sorry, I brought about that. You want to make sure you put in the symbol again to make sure you are using the same symbol because you can do other ones if you wanted to do as well. Traditionally, this particular build of a trade is going to be with the same stock. You are going to end in an ordered now lower than the current price. Say you want to get out of this at 180. I have a stop order on file and a limit order on file and whatever one gets filled first, the other one cancel.

That's how this gets allowed in the system, Anthony. So really, a convenient way to enter both sides of the market.

>> Yeah, that's very convenient. Now, is it possible to set this up as a default order?

>> Yes, I should say yes and no. In WebBroker right now, we don't have the capability. You would have to do it manually like I have just shown where if you owned your stock already you go and do what I just showed on that strategy tab. However, in Advanced Dashboard, we talked about that a bit lately and hopefully is going to be up and running here. It's just refreshing. But if I can, we will do is see if we can refresh this quickly. In Advanced Dashboard, you can go to the order entry board and set it up as a default where it comes up every time in the Advanced Dashboard platform. I think it may be frozen but let me see if I can get it up and running here.

You can then when you open up the tray click on ask and it will open up in order ticket. We were going to look for is a term is called profit taker.

It looks like this is, sometimes it gets stuck. I apologize, I may not be able to show that today. But what I will say Anthony is people will do this in another section. We can talk about it again. But there is another thing called profit taker. Anybody using Advanced Dashboard, you can click on that and there is a product taker button and underneath there is a cell ticket and it will automatically show you that you can put in a limit order and a stop order and you can set it up as a default where every time you place a trade or place a buy order, it will come up with an option to put those parameters in, both above and below the market. Making it more convenient.

>> Bryan, thanks for walking us through that.

Great information as always. Thank you.

>> Alright, thanks, and they.

>> Our thanks to Bryan Rogers, senior client education instructor with TD Direct Investing.

And make sure to check out the learning centre in WebBroker for more educational videos, live, interactive master classes and upcoming webinars.

It's been a challenging year for the media industry and declining ad dollars and increasing competition between streamers. Earlier, Greg Bonnell was joined by Jim Stillwagon, portfolio manager with T. Rowe Price discusses Outlook for the space.

>> Well, the core profit centres of legacy media, which are TV affiliate fees, advertising, have been underdressed now for several years. Pay-TV households peaked at 100 million in the US back in 2012, we are now closer to 70 million and declining with no floor in sight. Netflix has thrived in an environment where media consumption has shifted from legacy pay-TV bundles to streaming services. But if you look back over the past couple of years, this pandemic to reopening cycle, there are two counterintuitive takeaways. First, COVID lockdowns were actually negative or Netflix, in retrospect.

Netflix benefited from a subscriber bump during COVID lockdowns but it came off a wave of competition from the rest of legacy media.

Theatres were close, theme parks were shut down. Every studio almost in unison decided that they were all in on streaming. Disney, Warner, Universal, Paramount.

They all pulled license content back from Netflix, launched their own streaming services on economical price points and then marketed their services very aggressively that subscriber acquisition costs inflated across the industry.

And then meanwhile, the COVID demand spike actually obscured some problems that were building with the Netflix his own business.

By their own admission, they should have reigned in password sharing sooner, certainly before they end up with 100 million unpaid viewers globally. So Netflix was not a pandemic beneficiary but then to that second point, why would they be thriving in a higher rate environment?

It somewhat ironic given that Netflix was burning cash and tapping high-yield markets for much of the past decade, but they were able to scale to the only profitable pure play streamer globally with 250 million subscribers now worldwide.

By comparison, legacy media is still trying to figure out how to profitably scale streaming. Disney plus, Paramount+, Max, collectively the services lost $25 billion over the past three years. That is not sustainable. Certainly not in a rising rate environment with pay-TV cash flows declining. So Netflix's peer Group has effectively retrenched. We've gone from the streaming wars to something closer to a streaming détente. Look at Warner, for example, they just decided to license some of their high profile IP back to Netflix.

We think Netflix is well positioned to capitalize on this competitive rationalization phase of streaming media.

>> What about the consumer Internet space? The whole reason why I can stream all these movies on my TV is the fact that I am a consumer of the Internet, and then artificial intelligence layered into that, what is happening there?

>> Well, I would say there have been a handful of major shifts in computing architectures over the past four decades.

Mainframes, PCs, mobile, cloud. It's early, but AI has the potential to be that type a paradigm shift, and is shaping up to be incredibly computationally intensive.

To our first order priority has been to focus on the picks and shovels plays when we don't necessarily know which consumer app will be the enduring winner of the AI age. We don't even know if Google's Gemini model will outperform GPT for when it gets released in early 24. But we do know that every contender at this point will be utilizing a lot of high-end CPUs and networking equipment.

So that dynamic has benefited companies like Nvidia, like AMD. But we have to start asking the question, who is buying all of these high-end chips?

And how are they going to earn an adequate return? At some point, we need a graceful handoff from AI hype cycle enthusiasm to tangible AI monetization events.

And thankfully, when we look at that large Consumer Internet space, we are seeing a handoff take place in real time.

So two examples. First, AI is driving engagement higher across social media.

Think about services that specialize in short form video like TikTok, Instagram real. They all rely on a high-powered recommendation algorithms.

Additional social media feeds, they source from a narrow subset of content. It's really your friends and families posts, right?

Think about that step change in content recommendation complexity as you go to high velocity short form video where you need to select from billions of pieces of content across the creator economy globally. And we know the truth form video is much more engaging than traditional social feeds in isolation.

The average daily user on TikTok is now spending over 90 minutes per day in the app. Instagram is seeing the total engagement rise by 40% since 2020 when they launched their TikTok loan, Instagram reels.

And all of this equals more consumption, it equals more monetize a bull engagement for social media.

The second example would be how AI is reshaping the ad text app behind consumer Internet. The old targeting approach of individual ID tracking based on your browser… >> Where they follow you across the Internet.

>> That's right. That is on its way up.

In part due to shifting data privacy norms. And what we are seeing instead is the most successful platforms leveraging AI to deliver privacy safe campaigns at scale. Google has performed… They are all pushing AI deeper into their respective ad tech stacks.

The endgame here is to abstract away complexity for small admin sized advertisers who want to engage in performance marketing. Ideally, you will have advertiser show up to the large platform, they will have basic creative elements, they will have return thresholds they want to hit and then they hand the keys over to Google and Meta and to execute the campaign for us.

Think about what generative AI could mean for the ease of ad creation.

You to be in a situation where first-time marketers are launching full-fledged video campaigns from scratch. If you lower the bar for experimentation, you will bring more demand to that auction. That is one of the major lessons of the past decade for Meta. They have gone from a million active advertisers to 11 million+ today.

Smaller social media platforms, Snapchat, Pinterest, they have less than a million advertisers. A large broadcast network might have a couple of hundred major advertisers.

So we think AI could be that next major unlock for ad auction density as Google and Meta make it easier for advertisers to market their products and services online.

>> I think about the establishment of Google all those years ago to get people suddenly found they preferred their search engine to everyone else. They found the sort of formula and people said, I'm googling it. That just meant to search. What does all this AI mean for the search business?

>> I think AI will evolve search to a more personal assistant. Certainly more creative than a text box and more and blue links. But the biggest discussion right now is whether AI entrenches or destabilizes Google search.

I think they were surprised by ChatGPT. Now there is Microsoft talking about how AI might jeopardize the Google search franchise and suddenly we were fielding questions about the durability of Google's search.

Would Google see chair to an open AI being partnership?

Would Google be able to offset the cost of LLM powered queries?

Those doubts are being directed at the same company that hired so many of the major advances in AI over the past decade. Whenever you say ChatGPT, that T stands for transformer. That was the normal network architecture that Google invented back in 2017.

But from the trough of AI pessimism around Google in early 2023, Google search has been remarkably stable.

It still controls about 93% of searches globally.

Bank is still stuck at 3%. Consumer search behaviour hasn't changed meaningfully.

So investors were rewarded for seeing the course with Google.

But now is not the time for complacency.

I think we have to be focused on chatbots proliferation risk. What does it mean if you have an AI infused search box on almost every digital service? Whether it's consumer or enterprise?

Think about what Microsoft is doing, and bedding copilots across the office suite. What could AI mean in terms of monetization insert?

You have to remember, Google spent the past two decades optimizing every single pixel on that search results page.

If that UI shifts to more of a chatbots conversational interface, that could be disruptive for Google search advertising revenue. So we aim to have a balanced perspective, thinking about Google search. Clearly, there are risks to monitor with AI but there is further re-rating potential if Google can keep shifting the narrative from presumed AI laggard to convincing AI winner in 2024 and beyond.

>> That was Jim Stillwagon, portfolio manager with T.

Rowe Price.

Now, let's get you an update on the markets.

Okay, we are having a look at TD's Advanced Dashboard, platform designed for active traders available through TD Direct Investing. Right now, we are looking at the heat map function which gives you a view of the market movers on the TSX 60 by both price and volume.

We will start here in the energy space. We are seeing some green on the screen as crude prices were firmer earlier in the premarket period.

Cenovus is moving up, Suncor as well is seeing some bids today. CNQ, Canadian Natural Resources is also attracting some bids. We are seeing some weakness though in basic materials.

Barrick Gold is down 1%. Of course, gold was down again today after hitting his lowest price since October 18 Thursday and gold is now nearly 2% and it is taking some of the names down with it. Kinross Gold is down nearly 3%, also First Quantum minerals, we can see there, is also weaker. There is a lot of uncertainty surrounding its giant copper mine in Panama. If we take a look at some of the utilities, we are also seeing some weakness in Algonquin power and utilities which had a disappointing quarterly results which are weighing on shares.

If you look at noncyclical consumer goods on the bottom right, Saputo is down to the tune of more than 6%.

Markets are reacting to the quarterly results from the company. The company issued a cautious outlook for third-quarter sales. Let's take a look at the S&P 100 and what's moving there.

We will start with the technology sector. We are seeing quite a bit of green on the screen there.

Semiconductors are seeing some buying strength. AMD is up to the tune of nearly 5%.

We continue to see a lot of AI-the tax base and that could benefit from that growth story there. Nvidia as well is up, we are seeing some strength in Apple shares and Meta shares. Moving to consumer chemicals, shares of Tesla are up modestly just over 1%. Tesla's coming off a pretty weak months, over the past month has been down but we are seeing some bids there. Just below that, the shares of Disney are down to the tune of just over 3%. Disney came out with some solid earnings earlier this week and they beat expectations but we are seeing the stock pulling back a little bit today.

And you can find more information on TD Advanced Dashboard by visiting TD.com/Advanced Dashboard.

On a programming no, there will be no show on Monday as we will be marking remembrance day. We will be back on Tuesday when Scott Colbourne, managing Dir. and head of active fixed income with TD Asset Management will be our guest, taking your questions about fixed income. A reminder that you can get a head start. Just email moneytalklive@td.com.

That's all for our show today. Take care.

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