Schwab Network

Bernstein downgraded Palo Alto Networks (PANW), Okta Inc. (OKTA), and SentinelOne (S) even as the cybersecurity industry sees a new bullish wave over AI safety concerns. Marley Kayden explains why the analyst is pushing back the bullish narrative a bit even though it also raised price targets for some companies. Joe Tigay discusses the outlook he sees ahead for these stocks and the overall market...

Michael Green dissects the K-shaped economic recovery, where high interest rates exacerbate wealth inequality. He argues the Fed's focus on aggregate data overlooks the struggles of lower-income households, leading to rising delinquencies and credit reliance. Green also exposes how tariff refunds meant to stimulate the economy became a stealth stimulus for corporate bottom lines, widening the...

Kevin Green offers more insight into the Fed's "hawkish hike" on interest rates and Wall Street pricing in up to two additional hikes before the end of 2026. The headlines sent an "initial shock" to the S&P 500 (SPX) before an eventual reversal, though as KG explains, the 20-day and 50-day SMAs converging lead to a dicey trading scenario. He turns to the latest economic...

"Warsh really had to do what he was expected to do," says Rebecca Walser on the Fed's decision to hike interest rates by 25 bps. She says the FOMC's goal to reach 2% inflation "will never happen" due to AI hyperscaler CapEx ballooning, making the argument the committee needs a new benchmark. Rebecca explains how she sees the AI "capital wars" playing out in th...

Shares in Lyft Inc. (LYFT) hit the brakes after Guggenheim downgraded the stock to neutral from buy and lowered its price target. George Tsilis explains why the analyst is easing its foot off the gas for Lyft. He then turns to a pair of price target hikes in Alphabet (GOOGL) and Salesforce (CRM), as analysts tied to those stocks see AI momentum benefitting both stocks. ======== Schwab Network ====...

Danielle DiMartino Booth discusses the market reaction to the Fed raising interest rates for the first time since July 2023. She gauges questions around whether the average U.S. consumer will stomach the rate hike, or the start of a hiking cycle, as inflation pinches American wallets. Daneille adds to her analysis by discussing the growing importance of economic data like core PCE, CPI, and PPI fo...

What Kevin Hincks has called a coiled market is finally springing up, saying the Fed's interest rate hike and crude oil sliding below $100 adds more clarity for investors. While Wall Street likes the certainty, Main Street will continue to face pressures due to lingering pressures the hike will have on the housing market. Kevin also discusses President Trump's expected meeting with Gulf le...

J.B. Hunt (JBHT) warned investors that it can see a cut in profits due to energy and other macro pressures mounting against the transport giant. Citizens still upgraded the stock to outperform. Rick Ducat turns to key support and resistance levels in the stock bull needs to watch. He then turns to an example options trade for J.B. Hunt. ======== Schwab Network ======== Empowering every investor an...

Arnim Holzer talks about the bond market's negative reaction to the Fed's interest rate hike Wednesday followed by Thursday's reversal to the upside in equities. He believes investors are coming to terms that the FOMC can't do a "one and done" rate hike, adding that the U.S. economy will stay strong even if a hiking cycle shapes up. Arnim also explains the disconnect betw...

The Fed's 25 bps interest rate hike was expected, though the unanimous decision was not, says Michael Reinking. He highlights the "confusing story" he sees in what the FOMC projects to be a "timelier" return to 2% inflation. On the AI trade, Michael sees momentum very much intact, pointing to headlines from neoclouds like CoreWeave (CRWV) and Nebius (NBIS) signaling demand...

Investors woke up and bought into the post-Fed weakness following its decision to hike interest rates by 25 bps. Kevin Green discusses how he sees "ambiguity" in statements made by Fed Chair Kevin Warsh. Also on KG's radar: crude oil, which moved below $100 as China becomes more involved in dissolving tensions disrupting oil infrastructure. While a risk-on tone is kicking off Thursda...

Guggenheim downgraded Lyft Inc. (LYFT) to neutral from buy, though as Ben Watson of Charles Schwab points out, the stock didn't react much to the headline. He weighs the stock's short-term moves against longer-term trends to explain why Lyft has a bumpy road ahead to reclaim bullish momentum. ======== Schwab Network ======== Empowering every investor and trader, every market day. Subscribe...

Minutes after the Fed released its unanimous decision to hike interest rates by 25 bps in September, John Lonski points to "unfazed" consumers amid higher energy prices as the fulcrum tilting the FOMC toward its decision. He explains how the Fed can balance a still-strong consumer even as prices on goods across the U.S. climb. John touches on wording from the Fed on a "timelier&quot...

Mortgage rates are "extremely important" to driving Lennar (LEN) and its business, says Nick Raich, who points to a 7% rate as a strong headwind for it and the housing market. As the affordability gap for homeowners widens, Nick makes the case that a bottom is forming for sentiment and the stock price. That doesn't mean Lennar is exposed to "anemic" earnings growth. =======...

William Lee says the Fed can still surprise even as Wall Street braces for a greater than 90% interest rate hike Wednesday, especially if Kevin Warsh shows signs this hike is just "for face." Jeff Klingelhofer believes the Fed needs to put its foot down in maintaining independence by establishing chances of a rate hiking cycle to balance rising inflation with the U.S. economy. William di...

Does Muse change the Meta Platforms (META) AI thesis? Seema Shah says, not quite. While it's doing better than Threads and Meta AI did as this point of its life cycle, Seema argues it's behind OpenAI's ChatGPT, Alphabet's (GOOGL) Google Gemini, and other developing chat bots. Seema still believes Meta's latest AI innovation is a step in the right direction as it seeks to increase efficiency with e...

Don Kaufman (@Theotrade) says the disconnect between Wall Street and Main Street is interesting, making the case for a convergence once the Fed announces its interest rate decision. He believes the State Street Industrial Select Sector SPDR ETF (XLI) is "wildly oversold" into the decision, sees a bearish opportunity in the iShares Bitcoin Trust ETF (IBIT) after a vote on the Clarity Act...

"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...