Investment Learning

  • October 25, 2024

Big Tech stocks are the 'new defensives': Nancy Tengler

As the third quarter earnings season gains momentum, market participants are closely watching the "Magnificent Seven" companies to see if they can maintain their market-leading performance that has historically driven broader market rallies. Laffer Tengler Investments CEO & chief investment officer Nancy Tengler joins Catalysts to share her perspective on Big Tech's role in the current market. "When you look at the reliable earnings growers, these companies check all the boxes. And if you're worried about a slowing economy, I'd much rather own these companies than traditional defensives. I think big technology are the new defensives," Tengler emphasized. While bullish on the technology sector overall, Tengler expresses selective preference within the 'Magnificent 7' stocks. She specifically highlights Tesla (TSLA), Nvidia (NVDA), and Apple (AAPL) as standout companies. However, Tengler took a more cautious stance on Meta (META) despite its strong market performance. She states she's "not going to chase it." To watch more expert insights and analysis on the latest market action, check out more Catalysts here. This post was written by Angel Smith

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  • October 25, 2024

Exactly how much energy will hyperscalers need to run data centers?

Grid operators are seeing increased energy demand as the AI race heats up among hyperscalers. The Morning Brief's Madison Mills breaks down a chart from Apollo Global Management chief economist Torsten Sløk showing how much energy some of the "Magnificent Seven" members — like Alphabet (GOOG, GOOGL), Microsoft (MSFT), Amazon (AMZN), Meta Platforms (META) — need to run their data centers. Note: Apollo Global Management is Yahoo Finance's parent company To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Melanie Riehl

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  • October 24, 2024

Homebuyers still price sensitive as mortgage rates climb: Economist

Mortgage rates rose for their fourth straight week, the 30-year fixed rate mortgage now sitting at 6.54%. Existing home sales also fell to a 14-year low, the National Association of Realtors reporting a figure of 3.84 million for the month of September. Market Domination welcomes Realtor.com chief economist Danielle Hale to talk about this week's wave of housing and mortgage data. "A lot of consumers were expecting mortgage rates to trend down for longer than they have. The economic strength that we've seen in... the most recent job market reading has caused a bit of a rebound in interest rates, including mortgage rates," Hale explains to Julie Hyman and Josh Lipton. "And so consumers have been a bit caught off guard. And we haven't seen the improvement yet. I think people were waiting for more and we just haven't seen that yet." Hale anticipates mortgage rates to sit just above 6% this time next year. Currently, she is seeing "extraordinarily resilient" home prices as new homebuyers pull out of their housing market searches. "And so that the fact that supply only just meets demand has kept prices relatively elevated. So I don't think we're going to see a lot of pricing relief unless we add a lot more construction," Hale tells Yahoo Finance. Hale expands the conversation to explain how homebuyers can improve their odds of a lower mortgage rate, as well as nationwide trends in rent prices. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Luke Carberry Mogan.

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  • October 24, 2024

Why you should skip big banks and buy regionals: Strategist

Today on Yahoo Finance's Good Buy or Goodbye, Host Julie Hyman welcomes Interactive Brokers chief strategist Steve Sosnick to discuss the financial sector, where he explains his preference for regional banks over major financial institutions. Sosnick recommends investors buy the S&P Regional Banking ETF (KRE). He emphasizes that the steeper yield curve particularly benefits smaller banks, explaining "the steeper the yield curve, the bigger the differential between what they're borrowing versus what they're lending," which directly improves their bottom line. The ETF also offers more attractive valuations compared to the the Financial Select Sector SPDR Fund (XLF), with Sosnick noting "it's time to shift toward the one that's showing good momentum." Furthermore, he points to improving sentiment around commercial real estate lending, observing there are "fewer and fewer horror stories" in the sector. Regarding the Financial Select Sector SPDR Fund (XLF), Sosnick expresses several concerns. He notes its elevated valuation after being "on a tear," and advises investors to "look a little more broadly than just the leaders." The fund's concentration is another worry, with just four stocks making up about a third of the holdings, and it's "not top heavy with banks." Additionally, he points out the fund's exposure to consumer spending, suggesting potential underperformance if consumer activity slows. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Angel Smith

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  • October 24, 2024

Tesla Energy could become company's biggest driver. Here's why.

Tesla (TSLA) is in focus as shares surge by over 21% on Thursday after reporting mixed third quarter results this week. While the company’s main revenue driver is its electric vehicle (EV) business, Tesla CEO Elon Musk has said he expects the company's energy business to surpass its auto sector. William Blair Group head of the energy and sustainability research sector Jed Dorsheimer joins Julie Hyman and Josh Lipton on Market Domination to examine clean energy developer Tesla Energy and its role in the space. “The energy problem is much bigger than I think most people understand,” Dorsheimer tells Yahoo Finance, explaining that Tesla Energy’s Megapack, a large-scale stationary battery, not only helps store energy but can also help stabilize the power grid to prevent outages. “The grid stability globally is actually getting more and more fragile. And so there's going to be more deployments, particularly as we wind down thermal in terms of coal." “This is an opportunity for Megapack,” Dorsheimer says, adding, “We see an opportunity for this business to really scale and to add a level of profitability that most... clients don't have in their models. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Naomi Buchanan.

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  • October 24, 2024

Mortgage rates rise for fourth week: How to secure a lower rate

According to the latest Freddie Mac data, mortgage rates climbed to 6.54% for the week ending Oct. 24, marking the fourth consecutive week of increases. Yahoo Finance Reporter Claire Boston analyzes this ongoing trend, exploring the key factors driving mortgage rates higher and strategies for homebuyers to secure lower rates. To watch more expert insights and analysis on the latest market action, check out more Wealth here. This post was written by Angel Smith

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