Schwab Network

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...

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...