Schwab Network

Tsvetta Kaleynska highlights Friday's consumer sentiment report and explains the weaknesses driving lower numbers on and below the headline print. Out of the 13 million people her firm's data targets, five million expressed concerns over spending, which highlights a search for value happening under the economy's surface. ======== Schwab Network ======== Empowering every investor and trader, every...

It's the Tech Corner's first repeat appearance: Broadcom (AVGO). George Tsilis dives into the company's latest earnings report and its exposure to the A.I. adoption themes that have driven the overall markets to new all-time highs. ======== Schwab Network ======== Empowering every investor and trader, every market day. Subscribe to the Market Minute newsletter - https://schwabnetwork.c...

Markets muscled another winning week ahead of next week's FOMC interest rate decision. A lot of the trading action was led by Oracle's (ORCL) stunning guidance that projected more than 800% cloud infrastructure revenue growth into fiscal 2030. Apple (AAPL) appeared to underwhelm some investors and sparked downgrades from analysts following its annual product event. Warner Bros. Discovery (...

David Trainer considers Klarna's IPO a high-risk bet for investors, citing an unproven "buy now, pay later" business model, intense competition, and a valuation that's "way out of whack." Trainer believes Klarna's stock price implies unrealistic growth and profitability, similar to that of more established peers like PayPal, which he considers "priced for perfe...

Aptiv (APTV) hit a new 52-week high after the Swiss automotive company got an upgrade from Barclays. George Tsilis talks about the potential catalysts inspiring bullish optimism, which includes partnerships with Alphabet's (GOOGL) Waymo and Intel (INTC). ======== Schwab Network ======== Empowering every investor and trader, every market day. Subscribe to the Market Minute newsletter - https://...

Charles Schwab's Cooper Howard is expecting a "weird" FOMC meeting next week. Debates of a 25bps or a 50bps interest rate cut aside, he notes that we "won't even know who's going to be in the room" when the Fed ultimately votes on the tentative rate cut. With expected dot plot revisions, Cooper also urges investors to watch how the Fed is projecting interest rate cu...

Phillip Streible expects oil to break below $60 into the mid-$50s, but notes that China is building up oil reserves on its path to total electrification. On crypto, he says traders are looking for any momentum plays to the upside; for Bitcoin, he thinks $116K-$118K is where it should consolidate. He thinks gold can sustain its rally, naming three price drivers he sees, but says it will eventually...

The SPX tapped 6,600 but pulled back soon after hitting the level. Kevin Green says the red candles aren't too much of a concern, pointing to a bullish signal in the SPX futures. He later turns to stocks in Tesla (TSLA) and its "aggressive" call-buying action in options. Kevin adds that Microsoft (MSFT) can experience a "stealth rally" in the coming sessions. ======== Schwa...

The Fed has “migrated from its focus on inflation” towards the job market, Stuart Katz says. He thinks inflation is under control even with tariffs putting upwards pressure on prices. “There’s almost a flywheel effect” of demand correcting for inflationary pressures, he argues. Stuart discusses volatility and historical market patterns to soothe investor anxieties. His overall base case for rate c...

Dave Sekera discusses valuations for tech companies and argues the whole market is trading a few percentage points above fair value. “If you’re really looking for value today,” look to small caps, he says, saying the sector is trading about 15% below fair value. He sees no recession “for the foreseeable future” but does say the economy is slowing. Right now, he’s finding opportunities in real esta...

Joseph Shaposhnik says the fundamentals for a higher market run remain in place. That rally will continue to be led by A.I., according to Joseph, particularly by companies he believes show longevity if A.I. supply catches up to demand. He sees Microsoft (MSFT) as the strongest name in the Mag 7 and Broadcom (AVGO) having "multiple years of growth ahead." Joseph adds that markets will exp...

Paisley Nardini assumes the Fed will cut rates next week because it doesn’t want to shock markets. She argues that if we can get through September without major “cracks” showing, 4Q is historically strong. However, she sees risks from a “hot inflation print” in October or November throwing off markets. Paisley looks at forms of diversification, including gold and international equities. ======== S...

With the Fed's next meeting just around the corner, Jeffrey Cleveland and Yelena Shulyatyeva share their thoughts on what to expect. Jeffrey believes the case is strong for a 50-basis-point cut, citing slower job growth, weak labor market indicators, and moderating inflation. However, Yelena thinks a 25-basis-point cut is more likely, citing in-line economic data and concerns about surprising...

Two mega media mergers could themselves become one even larger media mammoth. The Wall Street Journal reported that Paramount Skydance (PSKY) seeks to buy all of Warner Bros. Discovery (WBD) that would include its media outlets and studios. If talks materialize, Marley Kayden notes that the massive merger faces regulatory hurdles. ======== Schwab Network ======== Empowering every investor and trad...

LikeFolio's Megan Brantley says her firm's data shows strong consumer interest for Coinbase (COIN) as cryptocurrencies and crypto-based exchanges gain traction. However, the divergence in Bitcoin prices and Coinbase's stock price has some scratching their heads. Megan still sees Coinbase benefitting due to accelerating institutional interest in cryptocurrencies. ======== Schwab Network...

Brad Shimmin describes Adobe (ADBE) as “a company in transition,” moving from being a software license vendor to an AI seller. He notes their consumer and enterprise segment growths in the latest earnings report Frances Stacy highlights its entrenchment in the corporate world as a strength. “This could be a buying opportunity for those who have missed the AI run in other companies,” she argues. ==...

Lucas Downey compares the post-tariff rally to the post-Covid rally and highlights the factors he says can support the markets climbing even higher. He focuses in on money flows, pointing out major interest in AI-related companies. For example, he notes “non-stop inflows” into Seagate Technology (STX), and flows into healthcare companies like Humana (HUM). He believes it is a “stock picker’s marke...

StocksToTrade's Tim Bohen breaks the format of the Big 3 and gives us four stocks he believes investors need to watch. He says Opendoor (OPEN) still holds potential on a pullback despite its parabolic rally Thursday. Tim adds that Rocket Companies (RKT) can be a notable interest rate beneficiary while citing Terawulf (WULF) and Iren Ltd. (IREN) as under-the-radar A.I. plays. Rick Ducat offers...

Arista Networks (ANET) boosted its guidance at its latest investor conference. Marley Kayden takes investors through the numbers that show a bullish outlook for the A.I. networking company. The stock still tumbled after it hit an all-time high Thursday but analysts raised price targets on Arista following the conference. Dan Deming offers an example options trade for the stock. ======== Schwab Net...

Jan Rogers Kniffen considers Walmart (WMT) nearly indestructible. He says the retail giant handled tariffs "extraordinarily well" and continues to draw customers through its doors despite economic uncertainty. Jan adds that Walmart bringing more higher-end consumers in stores supports his bull case. He doesn't see ecommerce giants like Amazon (AMZN) disrupting Walmart's momentum....

Paramount Skydance is reportedly bidding to buy Warner Bros. Discovery in its entirety. The reports sent the latter's stock skyrocketing but Sam Vadas tells investors to expect antitrust scrutiny against the merger. She notes Adobe (ADBE) as a post-earnings loser despite posting an earnings beat and added focus on using A.I. Sam later talks about RH's (RH) earnings that signaled concern fo...

6,600 is the new resistance level Kevin Green is watching in the SPX, which faced pressure with only 20% of stocks opening higher on Friday. Kevin talks more about the key levels he is watching for Friday's session and next week with options expiration just around the corner. He adds that health care has potential to pop as an "abused" sector in the rally that could see more value fr...

Patrick Ryan covers the broad picture as markets hit new all-time highs this week. He thinks the market is zeroed in on the labor market, which he is “concerned” about, but argues the rest of the economy is doing ok. He’s seeing signs of life in small caps, and is underweight mega caps, anticipating a market broadening that will benefit small players. He also likes financials along the same lines....

OpenAI can become a for-profit company. The ChatGPT parent company reached an agreement with Microsoft (MSFT) that will spark discussions as to whether OpenAI will move to markets. Jenny Horne talks about the long and complicated road OpenAI had to get to this point and the headwinds it still faces ahead if it becomes a for-profit company. She also talks about Supermicro (SMCI) beginning shipments...

Kevin Hincks offers his take on the week wrap-up ahead of Friday's opening bell. He says the potential for 50bps remains a possibility given the weakness seen on the jobs front paired with a significantly lower-than-expected PPI print. Kevin also touches on volatility through the VIX and its seasonally-low levels. While it remains low, he says that can change at a moment's notice. ========...