Schwab Network

“Generally, retail participation in a product like [the NDX]…tends to fall in March, or early April,” says Kevin Davitt of Nasdaq. However, this trend has reversed this year, which he believes has been led by Charles Schwab clients. He compares performance at the index level for the major indices over the standard May options cycle. Rotation into tech and consumer discretionary are a factor in the...

Kevin Green believes markets will continue to be driven by yields until bulls charge forward with significant volume. Trading action in the SPX didn't match what investors saw on Monday, signaling that there's not enough conviction to hold the upside trend. Kevin talks about the levels bulls need to break to retake the wheel. ======== Schwab Network ======== Empowering every investor and t...

Brett Feldman from AT&T (T) discusses their decision to buy Lumen’s mass markets fiber business for $5.75 billion. “This is a first-of-its kind transaction,” he says, “we have the skillset to do this” because of their dominant position in the fiber market. He says the deal will be “terrific” for AT&T’s business and shareholders. The deal will add 7 new states to its fiber network and AT&am...

Zachary Hill reacts to Moody’s downgrading the U.S.’s credit rating, saying that it told everyone something they already knew years ago. He thinks the tax bill can make things “worse” from here and says the market is challenging right now for investors “of all stripes.” On economic data, he says hard data is “totally meaningless in this environment” because of tariff policy uncertainties. ========...

"It's been a crazy time" to be invested, says Joe Schmitz. While the volatile swings seen over recent weeks scared many investors, Joe urges everyone to keep their portfolios active. He says rallies can come just as quickly as sell-offs, and investors don't want to miss out on those upswings. Joe believes the key is to stay diversified in stocks, bonds and commodities. He warns a...

Steve Koenig says investors will have to "pick your software stocks carefully." He believes Snowflake (SNOW) is well-positioned after its earnings but sees its current runway for growth running out. A.I. is the main threat Steve sees to the stock. However, he makes the argument that companies like Atlassian (TEAM) and GitLab (GTLB) will benefit from A.I. tailwinds. ======== Schwab Networ...

Jeffrey Kleintop breaks down recent international market action, including the Eurozone PMI, which missed expectations. Part of the miss is blamed on tariffs. He also notes a great 1Q earnings season for the Eurozone and an increase in consumer demand. He points to bond market signals to monitor: “if yields continue to climb, it could be an impediment to rising stock prices.” He highlights some ar...

Lawrence Yun expects a “rush” of buyers in the housing market as soon as interest rates come down, but mortgage rates recently hit 7%. Alex Barron notes that though home sales are below average, they’re not that far below average: he would rate this market a “B+”. They contrast Existing Home Sales with their expectations for the New Home Sales report, with the latter seeing pre-Covid levels of dem...

Nvidia (NVDA) will draw all eyes in the market when it reports earnings next Wednesday. The chipmaker faces added pressure due to H20 chip export restrictions to China, which CEO Jensen Huang criticized for creating more harm than good. Diane King Hall talks about the headwinds Nvidia faces and how it shifts investor expectations. As she explains, analysts still vastly favor the stock. ======== Sc...

Likefolio’s Landon Swan previews Deckers Outdoor (DECK) earnings and shares his consumer sentiment data. He thinks consumers are moving away from “established brands” like Nike (NKE), and sees significant strength and loyalty in its Hoka and UGG brands. He particularly likes how both brands are expanding into different categories, such as hiking for Hoka. However, his concerns are around competiti...

Zach Warring previews Deckers Outdoor (DECK), which he “really likes,” ahead of earnings. He thinks it’s one of the leading retailers in the shoe space and says it doesn’t have much exposure to China. He has a target of $168 on shares. Alex Coffey shows an example options trade on DECK. ======== Schwab Network ======== Empowering every investor and trader, every market day. Options involve risks a...

Gregory Daco and Peter Tchir break down the employment market after the latest Jobless Claims report. “There is caution” from employers, Gregory argues: companies combing through carefully for candidates and trying to avoid raising inflation pressures by upping wages. Peter thinks weakness will show “in the next couple months.” While he’s “a little bit nervous,” he doesn’t foresee a recession yet....

Jason Brown says he's cautious for the market's short-term trading action but bullish on long-term prospects. On his Big 3, he talks about Alphabet's (GOOGL) new A.I. prospects as a signal of strength, Mid-American Apartment Communities (MAA) as a tariff insulator, and his bearish take on MGM Resorts (MGM). Rick Ducat turns to the technicals support Jason's research. ======== Schwa...

Dale Smothers “called” the 5,800 level in the SPX as people are “reassessing their risk.” He reacts to the “big, beautiful bill” the House just passed that dramatically increases the debt limit and ups the national deficit. He’s looking for upside in Nvidia (NVDA) and Apple (AAPL), saying “this is the time to buy” as the shares dip, but also likes CoreWeave (CRWV) as an A.I. developer. ======== Sc...

The Daily Trader features two example options trades in two tech names on the move. First, Kevin Hincks discusses Alphabet (GOOGL) after recent investor day headlines have the stock on the run higher. He provides an example options strategy using a call diagonal. Then, Kevin illustrates an example put calendar trade for Workday (WDAY) ahead of the company's 1Q earnings report. ======== Schwab...

Jenny Horne and Nate Peterson discuss this week's rise higher in Bitcoin (/BTC) prices. Nate discusses the correlation to bond market moves taking place globally, and examines the technical moves in both Bitcoin and Ethereum (/ETH). Later, Nate and Jenny dive into a proposal from Block (XYZ) CEO Jack Dorsey to change Bitcoin's base units to "satoshi" and what the "GENIUS Act...

Tariffs, interest rates and consumer sentiment all weigh on the retail sector, seen in earnings from big box stores like Walmart (WMT) and Target (TGT). Urban Outfitters (URBN), however, showed strength. Joe Tigay takes a look another retailer investors may have missed: Ross Stores (ROST). He offers a macro perspective on Ross and gives an example options trade for the retailer stock. ======== Sch...

Liz Ann Sonders describes the fallout of losing “price-insensitive buyers” of U.S. bonds on the market as the proposed U.S. tax bill would increase the national deficit and raise the debt ceiling by $4T. She says the investor class has been “deeply concerned” about the national debt for a long time, and thinks the average consumer is beginning to be concerned as well. “The real implications” of de...

Advance Auto Parts (AAP) surged to a 3-month high off a 40% post-earnings rally. Diane King Hall notes that it's not just strong earnings driving optimism, but also people seeking to keep their vehicles for longer. Meanwhile, Sunrun (RUN) sold off 40% alongside other solar energy stocks after the House narrowly passed its tax bill. Zoom Communications (ZM) opened lower despite posting an earni...

The volume difference in the SPX reached a 2-standard deviation difference in Wednesday's trading action, a notable bearish signal for Kevin Green. He points to 5,790 as the key level bulls need to hold to maintain positive market momentum. Kevin adds that volatility in yields needs to subside for equities to find solid footing. He highlights an inverse head-and-shoulders pattern forming in th...

Futures trended lower off the latest jobless claims print but opened notably off the lows. Kevin Hincks reports from the Cboe Global Markets to explain the risk-on sentiment seeping back into Wall Street following Wednesday's sell-off. One piece of the macro picture that may be leading to up action is the House passing a long-awaited tax bill. Kevin also turns to Bitcoin's continuing all-t...

Jenny Horne takes a look at positive reports from vastly different companies. The first of which is Urban Outfitters (URBN), which opened at an all-time high after a strong showing in earnings. Jenny notes that price increases aren't off the table, though she points out Urban Outfitters' balance sheet as a big signal of strength. In Snowflake (SNOW), the company rallied over 10% in the pre...

Workday (WDAY) earnings are set to be released after Thursday's close. Rick Ducat looks at the cloud technology company's chart from a technical standpoint as shares have run up about 9% this month. Rick demonstrates an example trade with a put vertical strategy using the June 20 strike date. ======== Schwab Network ======== Empowering every investor and trader, every market day. Options i...

Michael Reinking dives into the moves in yields, and the ripple effect in global bond markets. With this week's Moody's credit downgrade of the U.S. and the "big, beautiful bill" progressing in Congress, he says investors are probably "keeping their risk budgets tighter" approaching the summer months. Later, Michael assesses the state of the IPO market and points to pos...

Jay Woods joins Diane King Hall at the NYSE to discuss this week's volatility as investors eye developments in the bond market as rising yields weigh on equities. He says there's "a lot of wood to chop" before the market can run again. Jay says he's not too concerned about the trading volume seen in recent swings, saying it's partially attributed to seasonality. He has hi...