Schwab Network

Bitcoin and Ethereum have both climbed roughly 10% over the last five trading sessions, something @CharlesSchwab's Adam Lynch calls "impressive" following the Fed's interest rate hike and failed Clarity Act vote. However, a strong boost in leverage leads Adam to issue some caution for crypto traders. He then addresses the fallout in D.C. since the Senate failed to each enough vot...

Mizuho's Nick Setyan believes Darden Restaurants (DRI) did a good job at justifying weakness the company's earnings showed. Now, it needs to outline a clear path for guidance. Nick points out that casual dining trends remain strong, but QSR categories are weakening. Michelle Korsmo of the National Restaurant Association sees greater confidence long-term due to a steady climb in restaurant...

Jake Hanley says a U.S. diesel export ban is a "really bad idea." He points to diesel transportation as the crux to his argument, saying "we are not built for this" and will accelerate inflation instead of capping it. Neither the U.S.-Iran war nor Russia-Ukraine are showing signs of cooling down, something Jake sees as a significant headwind to the energy trade.

Jason Brown (@brownreport) turns to stocks that are the faces of the restaurant, financial, and consumer staples industries. He expresses concerns in McDonald's (MCD) core fundamentals following the company's investor day and subsequent selloff, expects CapitalOne (COF) to see pressure from consumers pulling back on borrowing, and Procter & Gamble (PG) as an investing fortress amid all...

Underneath the surface of the S&P 500 (SPX) and Nasdaq-100 (NDX) strength, there's a lot of weakness, says @OptionsPlay's Tony Zhang. He explains why the lasting rally across Treasury yields adds to warning signals in equities. That said, Tony points to trading opportunities in stocks and ETFs tied to the yield volatility. He offers example options trades for the Invesco U.S. Dollar In...

Costco (COST) is a great "temperature check" for the U.S. consumer, says Melissa Otto, emphasizing the company's earnings as the next barometer after Thursday's trading session. She explains how macro movers, including the climb in crude oil prices, serve as a headwind for Costco's forward momentum. Tom White offers an example options trade for the retail giant's stock.

Investors weren't hungry for McDonald's (MCD) growth strategy announced during the company's investor day. The stock fell to 4-year lows off the announcement. Marley Kayden takes investors through the fast-food giant's plans to draw in a larger dine-in crowd and push deeper into the beverage space. Analysts aren't entirely convinced the strategy will offer long-term value for t...

S&P 500 (SPX) bulls face a critical level to hold, argues @CharlesSchwab's Rachel Dashiell. She takes investors through the index's 4-month price action to highlight how weaker market breadth is putting a recent breakout at risk. Rachel then looks into a slice of the S&P through the energy sector, pointing out an "extreme correlation" with the rally in 10-year Treasury yi...

Kevin Green highlights key levels investors need to watch in the S&P 500 (SPX) futures as Treasury yields tap multi-decade highs. He talks about how the latter is creating a drag on a recent breakout from a bullish flag pattern. On the international headlines, KG talks about the significance (or lack thereof to equities) to the U.S. and China extending their trade truce into January as Preside...

Tony Blagrove discusses the AI buildout and how its shaping the earnings dynamics for the stock market's biggest companies, including Nvidia (NVDA). He also addresses cyclical financing concerns around the Mag 7 giant, arguing the company "will get hurt" should any significant weakness in the AI trade materialize. Tony adds that bonds "are extremely attractive" at today&#39...

EPS and sales both made a slight miss in earnings for Darden Restaurants (DRI), though as Diane King Hall points out, the company still sees strength in Olive Garden and Longhorn Steakhouse. MGM Resorts (MGM) sold off sharply after Diller's withdrew its takeover bid, while Everpure (P) hit a new all-time high after it issued positive guidance.

David Waddell addresses the Fed and heightening interest rate hike probabilities as crude oil prices stay elevated and Treasury yields continue to rise to historic levels. That said, he believes earnings won't take as big of a hit as other analysts fear. David also makes a bullish case in software companies.

"Be careful at these levels" across Treasury yields, says Kevin Hincks, with the 10-year crossing 5% once again and the 30-year crossing 5.25%. The latter is at its highest level since 2004. Kevin explains how Fed speakers giving their updates on the state of the U.S. economy and supply shocks from crude oil will raise questions for long-term growth. He says the labor market "remain...

Costco (COST) shares have fallen behind performance from wholesale store peers like Target (TGT) and Walmart (WMT). Rick Ducat turns to his technical analysis in the stock as the company readies to report earnings after Thursday's close. He turns to an example options trade for the retail giant.

Jeffrey Cole, director at the Center for the Digital Future, doesn't see some Mag 7 companies leading the future of tech. "Most companies really aren't ready to understand disruption," says Jeffrey, explaining how historic disruptors like Alphabet (GOOGL) are now being disrupted by new tech like OpenAI's ChatGPT. He points to Big Tech giants like Apple (AAPL), Microsoft (MSFT...

The interest rate hike from the Fed is a big deal for small caps, says Erin Gibbs. She explains how mega cap firms stomach the pains of rising rates while the small cap peers pay the real price. However, Erin still sees opportunity in select names like GitLab (GTLB), Match Group (MTCH), and Dropbox (DBX) even if volatility grips these stocks for now. She turns to the Mag 7 by discussing Meta Platf...

BNP Paribas upgraded Nebius (NBIS) to buy from neutral and set a price target of $399, which is close to a Street high. Brett Crowther of Charles Schwab highlights the short-term consolidation and the run higher he sees for shares. The question lies in long-term price action as there's a key line in the sand for resistance.

Markets pricing in a ceasefire or general cooldown in U.S.-Iran tensions are "too optimistic," according to Rachel Ziemba. She points out that Iran has no need to expedite the timeline for peace as the Trump administration faces pressure to do so with midterm elections lingering. As for the summit between President Trump and China President Xi Jinping, Rachel says she doesn't have hi...

There was more volume on Wednesday trading session than the Fed's interest rate decision last week, according to Kevin Green. It's a point of concern for bulls as stocks ended down on the day. KG notes that 10-year Treasury yields hitting 2004 highs, paired with volatility from the Japanese yen, pile onto the concerns. It all comes as the summit between President Trump and China President...

Cybersecurity stocks like CrowdStrike (CRWD) and Palo Alto Networks (PANW) closed as the top performers in the S&P 500 (SPX). Meta Platforms (META) continued to inch toward all-time highs as Muse AI reaches 500,000 users. McDonald's (MCD) investor day didn't raise optimism among shareholders as the stock plunged to four-year lows. Sam Vadas takes investors through the top stories movin...

China is leading global headlines in the AI trade today, according to Sam Vadas. She takes investors through her top takeaways through China's investigations into DeepSeek and Moonshot AI. Sam adds that Broadcom (AVGO) faces scrutiny in the country as well. ======== Schwab Network ======== Empowering every investor and trader, every market day. Subscribe to the Market Minute newsletter - https...

Dave Gilbert sees small businesses under pressure from inflation and rising costs, turning to AI for marketing, budgeting, and expense management. He notes adoption is higher in professional services and health sciences while real estate trades lag behind, and says smaller firms spend a fraction of what giants like Uber Technologies (UBER) invest. Gilbert also points to solopreneurs building compa...

AMD Inc. (AMD) became the fourth U.S. chipmaker to reach $1 trillion in market cap. Stephen Sopko believes the strong rally in shares to reach that milestone shows a recognition that AMD is much more than a traditional chipmaker. Meta Platforms (META), a major customer for AMD, developing its Muse AI agent is what Stephen considers a strong case for the need for CPUs long-term. He then turns to Nv...

The Nasdaq-100 (NDX) hitting an all-time high, paired with the release of Muse AI from Meta Platforms (META), shows that the AI trade is back, according to Ben McMillan. For Muse in particular, he believes the AI agent is a strong product because it allows Meta to hit its audience directly. The launch faces sentiment headwinds as opinions on AI data centers hit an all-time low. Ben doesn't see...

Charles Schwab's Kevin Horner sees the S&P 500 (SPX) pulling back from resistance with key support at 7,685 to 7,700, the 50 day moving average at 7,630, and last week's FOMC low near 7,500. He highlights Zebra Technologies (ZBRA) breaking out of a bull flag with a target near 415 while the broader tech sector struggles. Horner also flags ConocoPhillips (COP) pulling back to its 50 day...