Schwab Network

Melissa Otto says TSMC (TSM) earnings were great but believes investors' focus on CapEx and overall AI skepticism has hit the stock. Josh Kaplan shares concerns that cyclicality of the AI chipmaking space may expand as an overhang for the industry. Both guests address these headwinds and how they conflict with rising interest rates, another risk forming in the AI trade. ======== Schwab Network...

The significant rotation in the AI trade, particularly in neoclouds like CoreWeave (CRVW), is something Dan Deming believes opens the door to new trading opportunities. He sees Merck (MRK) leading a stabilizing healthcare sector, Gilead Sciences (GILD) as a stock "poised to continue upward price action," and Exxon Mobil (XOM) as a high-liquid name in a booming energy trade. Dan offers ex...

There are doubts in the AI buildout as CoreWeave's (CRWV) debt financing is questioned, though Rolf Bulk of Futurum says the neocloud's backlog supports the spending even if future deals face some constraint. He adds that CoreWeave and other neoclouds "will not collapse by any means" due to the GPUs they have offering sources of tangible income. While Rolf sees an overall slowdow...

Anthony Saccaro says the economy is still growing, so he doesn’t see stagflation yet, but hot CPI and PPI readings could mean more inflation pain for consumers. He argues the Fed may need to raise rates by as much as half a percentage point to get ahead of inflation, even as the labor market cools. Saccaro likes industrials tied to AI infrastructure and defense spending, along with healthcare and...

Despite a beat on earnings and guidance, investors did not reward TSMC (TSM) as CapEx questions linger over the AI chip manufacturer. It doesn't help that AI financing concerns around companies like CoreWeave (CRWV) added to broader tech weakness. Derek Yan of KraneShares discusses the AI supply and demand imbalance, and how the latter will continue to bolster TSMC earnings. Tom White offers a...

CoreWeave (CRWV) high-yield bonds have fallen in distress territory as the stock sells off on concerns of the company's plans to expand AI opportunities through debt financing. Alex Coffey takes investors through the key headlines creating a cautious tone around the neocloud company's prospects. Joe Tigay walks through an example options trade for CoreWeave. ======== Schwab Network =======...

The pullback in the semiconductor space is approaching a 15% decline over the span of just a few trading sessions, says Joe Mazzola of Charles Schwab. He weighs the biggest question behind the selloff: will earnings from AI-centric companies justify the expensive buildout? Pockets of strength, particularly in software in companies like Microsoft (MSFT), gives Joe confidence investors aren't fu...

Kristina Hooper says inflation is outpacing wage growth, putting more pressure on consumers and complicating the Fed’s fight against rising prices as the economy shows signs of weakening. She expects the Fed to skip an October rate hike but raise rates in December, while warning that a slowdown in AI CapEx could weigh on economic growth. With uncertainty elevated, Hooper recommends diversification...

TSMC (TSM) posted a 69% increase in year-over-year net profit as strong AI demand continues to back strong earnings quarter after quarter. However, as Kevin Green points out, CapEx spending remains a key concern for the company and the broader AI trade. He discusses how the earnings, paired with AI debt financing concerns in companies like CoreWeave (CRWV), add to doubts in the AI trade's outl...

Doug Butler explains why Rockland Trust remains overweight on Microsoft (MSFT) and Alphabet (GOOGL) while keeping limited semiconductor exposure, including Texas Instruments (TXN) and Nvidia (NVDA), as higher rates threaten AI and data-center financing. He says hotter inflation could increase the chances of two Fed rate hikes this year, but notes that four-year bull markets have historically tende...

There's more value ahead for Walmart (WMT) shares, according to Deutsche Bank. Diane King Hall explains why the firm upgraded the stock, which rallied after getting that bullish note. Microsoft (MSFT) received numerous price target hikes as analysts see a strong profit path ahead for Azure cloud and Office 365. Diane turns to the financial space by discussing PNC Financial (PNC) earnings. ====...

Christopher Davis breaks down hotter CPI and PPI data, arguing that energy prices are driving much of the inflation pressure and could give the Fed reason to wait before raising rates in October. He sees risks in the crowded AI trade but says investors can find opportunities among AI users and beneficiaries, highlighting ASML (ASML), Apple (AAPL), Alphabet (GOOGL), Meta Platforms (META), Merck (MR...

Yields spiking to nearly 15% on CoreWeave (CRWV) bonds is the biggest headline Kevin Hincks attributes to the AI-led selloff on Wall Street. He says the story is so significant because AI has become an instrumental part of the U.S. economy, and any sudden slowdown will impact all corners of it. However, Kevin urges investors to all pay attention to the sharp decline in Treasury yields as the 10-ye...

Datum CEO Zac Smith says the U.S. AI infrastructure story remains robust even as many stocks surrounding the industry plunge. He explains how the evolving tech moving from chatbots to enterprise use cases emphasizes the importance of the buildout. As Zac explains, the AI buildout faces a new bottleneck he believes many others aren't discussing networking. ======== Schwab Network ======== Empow...

Carlos Diez of MarketGrader talks about how his company rates stocks and ETFs during times of volatility. He then highlights the Barron's 400 ETF (BFOR) and explains how it serves as a strong investment opportunity, and a good gauge for company health. Carlos then explains why Meta Platforms (META) is a company MarketGrader sees as promising following its Muse AI announcement. ======== Schwab...

The AI debt financing narrative is becoming more important for markets than ever as fog around CoreWeave (CRWV), Oracle (ORCL), and other neoclouds' profitability paths form. Tom White explains how the headlines have far-reaching effects across Wall Street beyond the AI race and discusses how the rise of Treasury yields play a role. Meanwhile, TSMC (TSM) offered a bright spot for tech after be...

Deutsche Bank upgraded Walmart (WMT) to buy from hold, offering a lift for shares following a recent downtrend. Ben Watson of Charles Schwab explains that weak resistance in the short-term opened the ceiling for a move higher, though the one-year chart shows stronger technical challenges ahead. ======== Schwab Network ======== Empowering every investor and trader, every market day. Subscribe to th...

Jenny Kovacs returns to Crypto Corner and sits down with Adam Lynch of Charles Schwab to talk about the latest moves in Bitcoin and Ethereum. Though Bitcoin and Ethereum have pulled back from their recent rallies, Adam says that ETF inflows show a "much more constructive" picture compared to this time last year. Keep an eye for incoming headlines are well, as Adam addresses a key questio...

CoreWeave (CRWV) shares sunk as investors start to question the neocloud company's debt. Dell Technologies (DELL) had its worst trading day in a year after getting a downgrade. Bank of America (BAC) plunged on disappointing earnings and a $1.2 billion fine from the U.S. Treasury. Sam Vadas takes investors through Wall Street's top stories of Wednesday. ======== Schwab Network ======== Empo...

The U.S. housing market continues to be squeezed by growing pressures, seen in the latest MBA mortgage applications data. Overseas, China sees strength through a surge in exports. Sam Vadas takes investors through her top takeaways for Wednesday and what to watch for in Thursday's session, including earnings from TSMC (TSM). ======== Schwab Network ======== Empowering every investor and trader...

Isaac Wakszol says hotter inflation and rising yields remain risks for markets, particularly for banks, leveraged companies and real estate. But he remains bullish on AI demand, arguing the selloff in names like Micron (MU) reflects growing competition rather than weakening demand, while ASML (ASML) and TSMC (TSM) point to continued strength across the chip industry. Looking toward 2027, Wakszol s...

Ben Emons says hotter inflation, including renewed shelter pressures, could force the Federal Reserve to become more restrictive, with his model putting the odds of an October rate hike around 70%. He also breaks down turmoil in French bonds, where political and fiscal uncertainty is driving investors away from French debt and pressuring European banks. While contagion remains relatively contained...

Paul Baiocchi says stubborn inflation strengthens the case for commodities, with higher gasoline and energy costs continuing to work through the economy. He favors a diversified commodity approach and midstream energy infrastructure, pointing to inflation-protected pipeline revenues and growing U.S. LNG exports. Longer term, he sees AI data centers, robotics, reshoring, EVs and autonomous vehicles...

Charles Schwab's Rachel Dashiell examines warning signs beneath the market as the S&P 500 (SPX) tests key support, with weakness in tech and momentum pointing to a possible move toward 7,600. She breaks down JPMorgan Chase (JPM), where a potential head-and-shoulders pattern puts the $322 support level in focus. Caterpillar (CAT) is also breaking key technical levels, with $661 emerging as...

Bill Birmingham of REX Financial explains why chipmaking equipment could be the next leg of the AI trade, with equipment orders potentially benefiting 12 to 18 months after rising semiconductor demand. He discusses how his firm's CHIP ETF offers global exposure to wafer equipment, advanced packaging and metrology. Birmingham also sees durable demand from massive AI spending, semiconductor supp...