Schwab Network

On a day where Nvidia (NVDA) hit new all-time highs, Broadcom (AVGO) lined up a $60 billion AI chip financing deal. Meanwhile, a name has been decided on the company name that will form once Paramount Skydance (PSKY) and Warner Bros. Discovery (WBD) merge. Sam Vadas and Marley Kayden talk about their top takeaways to close out the trading week. ======== Schwab Network ======== Empowering every inv...

Chris Wang of Runnymede Capital Management says weak jobs data and sticky inflation driven by the Middle East conflict have flipped odds toward no Fed rate hike in October. He likes Starbucks (SBUX) under Brian Niccol's turnaround with four straight quarters of comp growth, Visa (V) for its AI agent payment rails and $4 trillion in payment volume, and FreshPet (FRPT) for its sticky fresh pet f...

Andreas Raptopoulos, founder and CEO at Matternet, explains how a new FAA regulatory framework is unlocking the low altitude economy and enabling drone delivery to scale from a few thousand daily deliveries to millions by 2030. The company's new M3 drone carries 11 pounds for 10 miles, while its M2 remains the only FAA type-certified drone delivery system in the world. Matternet, now public un...

Keith Buchanan says the ten year Treasury yield is the most important price in all of risk assets and its volatility signals stress beneath the market surface. He warns that creeping yields put pressure on corporate earnings and valuations while bifurcating the consumer, with lower wage earners leaning on expensive credit. He favors shorter duration Treasuries, diversification across cap and style...

Charles Schwab's Rachel Dashiell sees the S&P 500 (SPX) carving out a potential inverse head and shoulders bullish reversal, with resistance at 5,780 and a possible measured move above 8,000 in the coming weeks. She also breaks down KLA Corp (KLAC) holding support after its 70% yearly run and Strategy (MSTR) tracking Bitcoin's repair with a correlation above 90. She notes Solana outper...

Drew Petit of Roundhill Investments sees the S&P 500 (SPX) hitting 10,000 by the decade's close. His firm even created the S&P 500 Target 10,000 2030 ETF (XX) as a way to help investors who believe in that target apply that bullish outlook to their own portfolios. That outlook doesn't come without risk, with Drew noting macro risks and headwinds in other indices like the Russell 20...

Larry Holzenthaler and Brian Jacobsen break down the latest jobs report, with Jacobsen calling the labor market strong but flagging wage growth of just 3% against 3.5% inflation as a real income squeeze on consumers. Holzenthaler sees the data giving the Fed more flexibility and likes high yield and senior loans as a defensive equity proxy with current income and less downside. Jacobsen also warns...

Colin Symons believes SpaceX (SPCX) is the leader in the space stock race similar to how Nvidia (NVDA) was the leader in the AI race. He explains why the company is poised for astronomical growth, from Starlink's fundamental role in revenue generation to the substantial moat Starship will offer. When it comes to valuation, Colin believes future AI growth justifies the current P/E ratio and com...

Stephen Olenick explains how name, image, and likeness deals have turned athletes into businesses with new money making opportunities through endorsements, podcasting, and social media. He says the key is whether an athlete has a truthful follower base that brands can convert into paying customers, with growth opportunities ranging from micro-influencers to global stars. He also sees women's b...

Microsoft (MSFT) demand has accelerated since last quarter, says Megan Brantley of LikeFolio, especially when it comes to Azure cloud. She highlights the disconnect her data shows between the demand trends and moves in the Mag 7 stock. Megan explains what it all means for investors as the AI trade continues to accelerate. ======== Schwab Network ======== Empowering every investor and trader, every...

Mamadou-Abou Sarr, co-founder and president of V-Square Quantitative Management, says equities remain resilient with the S&P 500 up (SPX) about 2.8% for the quarter, driven by AI. He warns the 10-year yield above 5.3% could eventually overwhelm earnings growth, making a stronger case for active management and true diversification. He stresses that owning multiple asset classes isn't real d...

Ed Butowsky says "you would want to be a fool to want to buy" Nike (NKE) after earnings. He makes the case the stock still has more room to the downside every after it plunged to 13-year lows. Jan Kniffen says the biggest problem remains product, with Nike lacking exciting new launches and facing intensifying competition from On Holding (ONON), Hoka, Adidas, and New Balance. He also sees...

Nicole Bachaud of ZipRecruiter, breaks down a weak September jobs report that added just 29,000 jobs with the prior two months revised lower and unemployment at 4.2%. She says the unemployment rise reflects more people reentering the labor force rather than job losses, though long-term unemployment is now 27% of the total and wage growth at 3% lags inflation. She also sees data center hiring surgi...

Treasury yields are commanding the stock market, says TheoTrade's Don Kaufman, pointing out that an uptick in bonds late morning added pressure to stocks. That said, he sees trading opportunities across various sectors. Don explains why he's offering a bearish example options trade for Target (TGT), along with bullish trades in the State Street Utilities Select Sector SPDR ETF (XLU) and Ap...

Chris Ward says higher rates don't necessarily kill bull markets but they do create winners and losers as the cost of capital shifts after 15 years of cheap money. He likes the technology sector through the XLK ETF, where earnings are growing 70% year-over-year, and says the Mag 7 is essentially holding up the entire S&P 500 (SPX). He also favors international AI plays like TSMC (TSM), SK...

In the race between hyperscalers to capitalize on the AI trade, R. "Ray" Wang says Alphabet (GOOGL) "is killing it" through Gemini and cloud expansions das booth boost in AI-related revenue. He explains what makes it different from Microsoft (MSFT), Meta Platforms (META), and Amazon (AMZN). As for Oracle (ORCL), Ray discusses whether the cloud company can justify its ballooning...

Nike (NKE) shares plummeted to historic lows following yet another earnings report showing weakness in the company's turnaround plan. Marley Kayden discusses key metrics in the legacy athletic company's report to help investors gauge the stock's forward momentum. Dan Deming offers an example options trade for Nike. ======== Schwab Network ======== Empowering every investor and trader,...

There's some strength under the surface of the weaker-than-expected September jobs report, though as Collin Martin of Charles Schwab states, pointing to stability for the labor market. However, Treasury yields are keeping equity investors on edge. Alexanandra Semenova addresses concerns of market breadth with the S&P 500 (SPX) Equal Weight hitting its seventh straight week of losses, a rar...

Ken Kim of KPMG says the latest jobs report shows payroll growth stalling and paychecks losing ground, giving the Fed room to hold off on a rate hike this month. He still expects a December hike as inflation remains too hot, with PMI price measures rising and elevated energy costs feeding pipeline inflation. He also notes that immigration losses are tightening labor supply and pushing up wages in...

Jason Ware believes the latest earnings season sets a bullish case for the tech trade, even if volatility keeps a hold on stocks short-term. When it comes to Nvidia (NVDA), he outlines why he still sees a bull case for the mega cap and explains how its business offers a lift for other Mag 7 names. That said, Jason tells investors to be aware of risks that persist in the stock market, from a potent...

Diawa upgraded HPE (HPE) to outperform from neutral. Morgan Stanley reiterated Nvidia (NVDA) as the firm's top pick. OnSemi (ON) and Synaptics (SYNA) amended details to their coming merger. Diane King Hall turns to the top tech movers kicking off Friday's trading session. ======== Schwab Network ======== Empowering every investor and trader, every market day. Subscribe to the Market Minute...

Bob Shea, CIO of Dynasty Financial Partners, says the latest jobs report offers a much-needed reprieve in the bond market. He sees the economy splitting between an AI-driven index rally and rate-sensitive sectors like housing, autos, and retail under pressure, while AI remains transformational and in very early innings. He expects positive seasonal tailwinds into midterms and potential policy init...

The September jobs report wasn't as weak as investors may believe, says Kevin Hincks. 29,000 nonfarm payrolls additions came in well-below median expectations of 85,000, though as Kevin points out, investors are shrugging off the print. It also cut into expectations for the Fed to hike interest rates in October. On the international front, Kevin discusses crude oil's price decline as the E...

HPE (HPE) has more room to the upside, according to an upgrade from Daiwa, even though the stock already climbed more than 160% over the last 12 months. Rick Ducat shows the bullish and bearish trends he believes are the most important to watch in HPE's forward moves. He turns to an example options trade for HPE. ======== Schwab Network ======== Empowering every investor and trader, every mark...

Joe Brusuelas of RSM US discusses the weaker-than-expected September jobs report. The month saw an additional 29,000 nonfarm payrolls against median consensus of 85,000. Joe says the print confirms a "no hire, no fire" jobs market aggravated by U.S. immigration restrictions. He adds that the report will make an interest rate hike in October very unlikely. That said, Joe believes two rate...