Schwab Network

"If you strip out food and energy, we have one of the lowest inflation trends in recent years," says Dale Smothers, making the case that an interest rate hold is not off the table prior to the Fed's decision. Dale weighs inflation pains against the Fed's push to maintain independence as what he calls a "trapeze act" for Fed Chair Kevin Warsh. On the AI trade, he pushes...

Suryansh Sharma of Morningstar Wealth explains why he believes Lennar (LEN) shares are just off 3-year lows into the company earnings after Wednesday's close. He cites concerns across the housing market keeping the stock caged in bear market territory. Suryanash adds that he doesn't expect reprieve for the market until at least 2028. Tom White offers an example options trade for Lennar ahe...

Both Intel (INTC) and SK Hynix (SKHY) are reportedly in talks to form a new partnership that will make AI chips in the U.S. SK Hynix says it has not made arrangements with any specific companies at this time. Marley Kayden argues the deal will be a big win for Intel as it seeks to win over more customers for its foundry business. Prosper Trading Academy's Mike Shorr offers an example options t...

It's not what the Fed is going to do in Wednesday's interest rate decision that will move markets, but the FOMC's forward projections that will, says Cooper Howard of Charles Schwab. He says the chance of a hold is still on the table, something he sees raising long-term yields "substantially." Nathan Peterson addresses bond volatility on Fed Chair Kevin Warsh's willingnes...

John Kosar's Asbury 6 model has been negative since August 31, something that he believes flashes warnings signs for a bumpy market road ahead. He explains why difficulty for the market to discount uncertainty is adding to investor hesitancy. John also points to the rollover in the Nasdaq-100 (NDX) and PHLX Semiconductor Index (SOX) as key indicators of overall weakness. ======== Schwab Network ==...

An interest rate hold from the Fed is not totally off the table, argues Scott Martin, though he sees the stock market continuing a bull run regardless of the decision. He believes investors will react positively if the Fed shows signs of stepping back and letting stocks and the economy "run on their own." Looking ahead, Scott likes the energy and consumer staples sectors even if earnings...

A 25 bps interest rate is baked into markets, says Jeff Mortimer, the question will be how Wall Street prices a tentative rate hiking cycle pending on how hawkish Fed Chair Kevin Warsh is on Wednesday's decision. He thinks one or two hikes is something stocks can handle, but anything more than that will lead to a stumble in equities and the greater U.S. economy. However, Jeff makes the case th...

"At the end of the day, rates tend to do quite well when inflation comes under control," says CFO of Realty Income Jonathan Pong. He discusses what the Fed's likely interest rate hike means for the greater U.S. economy and Treasury yields, including what moves in the bond market signify for forward momentum in equities. Jonathan also explains how his company is becoming involved in d...

Bitcoin, Ethereum and crypto-tied stocks sold off after the U.S. Senate failed to get enough votes for a key step in passing the Clarity Act. Tech's mixed picture set an unsteady foundation for the Fed's interest rate decision Wednesday. Marley Kayden takes investors through the top stories for Tuesday's trading session. ======== Schwab Network ======== Empowering every investor and tr...

Brian Moody highlights Nissan as a top contender in the automotive industry, crediting its growing U.S. presence and new hybrid technology for a significant turnaround. He also sees strong opportunities in Stellantis (STLA) and General Motors (GM), points to Hyundai and Kia's domestic manufacturing and hybrid sales, and notes Rivian and Volvo's contributions to the evolving electric vehicl...

SoftBank has collected an $11.87 billion, two-year loan to help finance its OpenAI investments, while crypto-tied assets sold off after the U.S. Senate failed to pass the Clarity Act. Sam Vadas and Marley Kayden carry investors through their top takeaways before the Fed's interest rate decision Wednesday. ======== Schwab Network ======== Empowering every investor and trader, every market day....

Ben Connard of Carnegie Investment Council offers three stock picks, starting with TSMC (TSM) for its strategic AI infrastructure position and efforts to diversify manufacturing outside Taiwan. He then highlights Ulta Beauty (ULTA) for the resilience of beauty spending despite conservative guidance, and Donaldson Company (DCI), an industrial mid-cap with a strong recurring filtration revenue model...

Dave Sekera with Morningstar Wealth says he "can't see" the Fed doing anything other than an interest rate hike for Wednesday's meeting. As for equities, he believes the S&P 500 (SPX) outside of the Mag 7 is fairly valued, though it comes with the market pricing in growth differentials between 2027 and 2028. Dave tells investors to stick with AI leaders like Nvidia (NVDA), Br...

Scott Ladner of Horizon Investments explains what the market expects from the Fed's upcoming rate hike decision. He also discusses the potential for an AI slowdown, where investors should position themselves—including a surprising take on European equities—and delves into the possibility of AI being regulated as a public utility in the U.S. ======== Schwab Network ======== Empowering every inv...

Ken Roban of Reservoir Road Financial Group at Stewart Partners discusses the shift from TINA (There Is No Alternative) to TARA (There Are Reasonable Alternatives), highlighting opportunities in short-term bonds and targeted maturity ETFs in the corporate bond market. He also examines the Franklin Income Focused ETF (INCM), an actively managed fund that balances equities and fixed income to adapt...

The Clarity Act did not clear a key procedural vote in the Senate, a headline that sent Bitcoin falling near the end of Tuesday's trading session. Ray Salmond doesn't see it as a big headwind for crypto. He points to growing institutional investments and improving sentiment for cryptocurrencies as signals of strength. Ray explains why he still believes more regulation is needed for the cry...

Stephanie Walter and Morningstar Wealth's Luke Yang discuss how debates of slowing down AI impact the software space. Luke believes AI adoption on an enterprise level remains in the early stages, offering time for companies to improve AI usage and safety. He offers a bull case for Intuit (INTU). As for headwinds, Stephanie points to AI model connectivity and efficiency as something to watch. W...

"The cat is out of the bag" when it comes to AI development, says Hatem Dhiab, who believes there will not be a slowdown despite comments from Anthropic and OpenAI top brass calling for it. One corner of the AI market he sees with a lot more upside: memory chips due to its role as a bottleneck in the trade. Hatem takes investors through his thoughts on companies like Micron (MU), Samsung...

As the Senate readies to vote on the Clarity Act, Evernorth CEO Asheesh Birla discusses what the "monumental" day means for crypto's forward momentum. Once the bill passes, he sees institutional investments in Bitcoin and other cryptocurrencies accelerating rapidly. If it doesn't, Asheesh worries the U.S. will fall behind as other countries building policies on crypto adoption. H...

South Korean tech still has lots of bullish catalysts ahead, according to Molly Pieroni. She points to Samsung as a company sitting at the epicenter of AI memory's explosive surge in demand, while having a strong foundry business and low valuation compared to U.S. peers. Molly turns to a much different company in Berkshire Hathaway (BRK/B) as another low-valuation company with significant shar...

The competitive landscape for Amazon (AMZN) is getting tougher in the AI field, says Andy Swan of LikeFolio. His firm data shows a strong uptick in Microsoft (MSFT) Azure while Amazon AWS and Alphabet (GOOGL) Google Cloud lag. However, as Andy explains, "a flat line for consumer demand does not mean a flat line for revenue." He discusses how Amazon can pick up the slack through existing...

Kyle Reidhead makes the case that SpaceX (SPCX) is more about AI than it is about rockets and space travel. He adds that the company's 10-gigawatt goal is reasonable. Laura Rippy dives more into Kyle's points by explaining the "critical" intersection she sees SpaceX serving in AI's role in the final frontier. She points to other startups in the space industry she believes inv...

Alex Fink, U.S. CEO and president of Swarmer (SWMR), discusses the company's new $224 million acquisition of Ratel Robotics. He says it will help the autonomous drone developer in ground vehicle operations. Alex adds that this tech will save lives by removing humans from combat as the war between Russia and Ukraine lingers on. ======== Schwab Network ======== Empowering every investor and trad...

The Fed balancing several inflation woes and a full job market sets up an interesting dynamic for the Fed's interest rate decision Wednesday, says Jessica Inskip. She explains how the market trajectory plays into Tuesday's Big 3. Jessica names Circle (CRCL) as a beneficiary from tentative passage of the Clarity Act, Bank of New York Mellon (BNY) as a growth story in tokenization, and Apple...

Edison Byzyka suggests current yields are appropriate given recent economic growth and earnings, but warns a 5% yield could trigger an equity correction while presenting a significant buying opportunity in bonds, particularly 20-year Treasuries. He anticipates sustained inflation from elevated energy prices and infrastructure build-out, and dismisses recent AI market noise, requiring more fundamen...