Schwab Network

Sam Vadas and Marley Kayden turn to key economic data for their top takeaways on Thursday's session. They point to PPI as the day's most important print due to the trends shown in Wednesday's CPI. However, don't ignore retail sales either, which climbed because of the surge in energy prices. ======== Schwab Network ======== Empowering every investor and trader, every market day. Su...

Michael Monaghan says Anthropic and Iran are the two forces driving the market, with continued AI CapEx and earnings growth supporting stocks while geopolitical escalation remains the biggest risk. He is encouraged by Anthropic’s reported growth and believes its eventual IPO could be a major catalyst for the broader market and AI trade. Monaghan also argues concerns around CoreWeave (CRWV) and AI...

Sam Radwan weighs China’s booming exports and rapid AI innovation against a consumer economy still struggling with weak confidence, real estate problems and youth unemployment. He sees a long-term, L-shaped recovery and says AI-driven efficiencies may actually worsen employment pressures rather than trickle down to consumers. China’s fierce AI competition is producing impressive innovation, but pr...

"People are starting to question" the AI debt financing story, says Max Wasserman, making the case that investors want to see more profitable use cases for the evolving technology. He still believes in the long-term AI narrative and names Alphabet (GOOGL), Microsoft (MSFT), and Broadcom (AVGO) as winners, though he "wouldn't chase" any at the moment. As far as investment op...

Bitcoin dipped below $80,000 for the first time in roughly a month Thursday before rebounding later in the session. Adam Lynch of Charles Schwab turns to what he's watching when it comes to price action in Bitcoin and Ethereum as they remain 25% and 35% lower year-over-year, respectively. That said, Adam believes Bitcoin trends point to the cryptocurrency's momentum staying intact long-ter...

J.B. Hunt (JBHT) reports earnings after Thursday's closing bell as the stock trades more than 20% off its record high. Rachel Dashiell of Charles Schwab points out that shares are currently trading at a historical support level and offers a slight bullish divergence for the stock's momentum. She turns to an example options trade for J.B. Hunt. ======== Schwab Network ======== Empowering ev...

Alphabet (GOOGL) is a uniquely-positioned company in the AI space that has more room to run, says John Belton of Gabelli Funds. Google Cloud is the biggest piece to the growth puzzle, as he points to the Mag 7 giant's vertical integration of the technology as a key indication to long-lasting strength. As for the search business, John discusses how the legacy component to Alphabet has withstood...

Elon Musk is the "Pied Piper" of tech, says Lauren Fix. The Tesla (TSLA) CEO has promised exciting details Thursday night for the company's Roadster vehicle. As she explains, the Mag 7 giant faces steepening competition from both automotive and tech giants alike. CFRA's Garrett Nelson tells investors not to get caught up in the hype and look for a clear release timeline, features...

iCapital's Nick Parcharidis breaks down MPIM, an ETF designed to generate higher monthly income through laddered autocallable strategies. He explains how the fund can complement traditional bonds and dividend stocks while using weekly laddering and a coupon-memory feature to help manage market risk and create more consistent income. Parcharidis also discusses how the underlying momentum index...

ICSC President and CEO Tom McGee says consumers remain resilient heading into the holidays, with retail sales projected to grow 4.3% to 4.9% and holiday-specific spending averaging about $650 per person. But spending is increasingly divided by income, with the top 10% of earners expected to spend five times the average while other consumers remain pressured by inflation and prices. McGee also disc...

LikeFolio's Megan Brantley breaks down improving consumer demand for Walmart (WMT) as inflation pushes shoppers toward value, store brands and cooking at home. She points to lower price complaints, stronger e-commerce trends and growing membership and advertising businesses as support for Walmart’s long-term story. But with the stock trading at a premium valuation, the bar remains high for Wal...

Melissa Otto says TSMC (TSM) earnings were great but believes investors' focus on CapEx and overall AI skepticism has hit the stock. Josh Kaplan shares concerns that cyclicality of the AI chipmaking space may expand as an overhang for the industry. Both guests address these headwinds and how they conflict with rising interest rates, another risk forming in the AI trade. ======== Schwab Network...

The significant rotation in the AI trade, particularly in neoclouds like CoreWeave (CRVW), is something Dan Deming believes opens the door to new trading opportunities. He sees Merck (MRK) leading a stabilizing healthcare sector, Gilead Sciences (GILD) as a stock "poised to continue upward price action," and Exxon Mobil (XOM) as a high-liquid name in a booming energy trade. Dan offers ex...

There are doubts in the AI buildout as CoreWeave's (CRWV) debt financing is questioned, though Rolf Bulk of Futurum says the neocloud's backlog supports the spending even if future deals face some constraint. He adds that CoreWeave and other neoclouds "will not collapse by any means" due to the GPUs they have offering sources of tangible income. While Rolf sees an overall slowdow...

Anthony Saccaro says the economy is still growing, so he doesn’t see stagflation yet, but hot CPI and PPI readings could mean more inflation pain for consumers. He argues the Fed may need to raise rates by as much as half a percentage point to get ahead of inflation, even as the labor market cools. Saccaro likes industrials tied to AI infrastructure and defense spending, along with healthcare and...

Despite a beat on earnings and guidance, investors did not reward TSMC (TSM) as CapEx questions linger over the AI chip manufacturer. It doesn't help that AI financing concerns around companies like CoreWeave (CRWV) added to broader tech weakness. Derek Yan of KraneShares discusses the AI supply and demand imbalance, and how the latter will continue to bolster TSMC earnings. Tom White offers a...

CoreWeave (CRWV) high-yield bonds have fallen in distress territory as the stock sells off on concerns of the company's plans to expand AI opportunities through debt financing. Alex Coffey takes investors through the key headlines creating a cautious tone around the neocloud company's prospects. Joe Tigay walks through an example options trade for CoreWeave. ======== Schwab Network =======...

The pullback in the semiconductor space is approaching a 15% decline over the span of just a few trading sessions, says Joe Mazzola of Charles Schwab. He weighs the biggest question behind the selloff: will earnings from AI-centric companies justify the expensive buildout? Pockets of strength, particularly in software in companies like Microsoft (MSFT), gives Joe confidence investors aren't fu...

Kristina Hooper says inflation is outpacing wage growth, putting more pressure on consumers and complicating the Fed’s fight against rising prices as the economy shows signs of weakening. She expects the Fed to skip an October rate hike but raise rates in December, while warning that a slowdown in AI CapEx could weigh on economic growth. With uncertainty elevated, Hooper recommends diversification...

TSMC (TSM) posted a 69% increase in year-over-year net profit as strong AI demand continues to back strong earnings quarter after quarter. However, as Kevin Green points out, CapEx spending remains a key concern for the company and the broader AI trade. He discusses how the earnings, paired with AI debt financing concerns in companies like CoreWeave (CRWV), add to doubts in the AI trade's outl...

Doug Butler explains why Rockland Trust remains overweight on Microsoft (MSFT) and Alphabet (GOOGL) while keeping limited semiconductor exposure, including Texas Instruments (TXN) and Nvidia (NVDA), as higher rates threaten AI and data-center financing. He says hotter inflation could increase the chances of two Fed rate hikes this year, but notes that four-year bull markets have historically tende...

There's more value ahead for Walmart (WMT) shares, according to Deutsche Bank. Diane King Hall explains why the firm upgraded the stock, which rallied after getting that bullish note. Microsoft (MSFT) received numerous price target hikes as analysts see a strong profit path ahead for Azure cloud and Office 365. Diane turns to the financial space by discussing PNC Financial (PNC) earnings. ====...

Christopher Davis breaks down hotter CPI and PPI data, arguing that energy prices are driving much of the inflation pressure and could give the Fed reason to wait before raising rates in October. He sees risks in the crowded AI trade but says investors can find opportunities among AI users and beneficiaries, highlighting ASML (ASML), Apple (AAPL), Alphabet (GOOGL), Meta Platforms (META), Merck (MR...

Yields spiking to nearly 15% on CoreWeave (CRWV) bonds is the biggest headline Kevin Hincks attributes to the AI-led selloff on Wall Street. He says the story is so significant because AI has become an instrumental part of the U.S. economy, and any sudden slowdown will impact all corners of it. However, Kevin urges investors to all pay attention to the sharp decline in Treasury yields as the 10-ye...

Datum CEO Zac Smith says the U.S. AI infrastructure story remains robust even as many stocks surrounding the industry plunge. He explains how the evolving tech moving from chatbots to enterprise use cases emphasizes the importance of the buildout. As Zac explains, the AI buildout faces a new bottleneck he believes many others aren't discussing networking. ======== Schwab Network ======== Empow...