Investment Learning

  • August 28, 2024

Why September historically spells trouble for stocks

Stocks have calmed after a rocky start to August. Tech stocks (XLK) have bounced back, and markets (^DJI, ^IXIC,^GSPC) seem stable for now. But September, historically the weakest month for stocks, is approaching. According to Bank of America (BAC) data, the S&P 500 only rose 44% of the time during September since 1928. Furthermore, in presidential election years, both September and October have historically yielded underwhelming average returns of -0.46% and -0.34%, respectively. On today's Market Minute, Yahoo Finance executive editor Brian Sozzi discusses these historical market trends, considering what they might mean for current market conditions.

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  • August 27, 2024

HSBC downgrades consumer discretionary sector

As consumers show continued signs of weakness and tighter budgets, HSBC has downgraded the consumer discretionary sector (XLY) as a whole. HSBC Global Private Banking and Wealth global chief investment officer Willem Sels joins Catalysts to explain the reasoning behind this decision. Sels observes that financially healthy consumers are "choosing to spend more on... services and more on... leisure" experiences rather than discretionary items. However, he emphasizes the importance of distinguishing between companies within the retail space: "you want companies that have the pricing power because of their positioning." For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Angel Smith

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  • August 27, 2024

Analyst says this company can see near-term AI returns

The tech sector is in focus as leading AI company Nvidia (NVDA) prepares to report earnings on Wednesday. With expectations around AI growing throughout the tech sector, investors are eager to see when companies will begin to see returns on their investments. RBC Capital Markets managing director of software equity research Rishi Jaluri joins Catalysts to discuss his outlook on the tech sector and AI expectations. Jaluria believes seeing near-term returns on AI investments will be "really tricky." However, he argues it's better for these companies to overinvest rather than underinvest, stating, "This is truly a generational technological shift," and emphasizing that investors must have patience. Despite the general caution, Jaluria identifies only one company he believes will significantly monetize generative AI over the next twelve months: Microsoft (MSFT). He outlines three key factors necessary for Microsoft to see AI growth. First, the company needs to show investors acceleration or what AI could look like within the Azure business without capacity constraints. Second, other software companies need to develop AI modules, as Microsoft stands to benefit from this ecosystem growth. Finally, Jaluria emphasizes the importance of "actual usage and adoption of AI in Microsoft's portfolio outside of the Azure line." For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Angel Smith

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  • August 27, 2024

Salesforce's AI efforts have been 'disappointing': Analyst

Salesforce (CRM) is preparing to announce its fiscal 2025 results on Wednesday. Expect investors to pay close attention to how the company is faring with its AI initiatives. RBC Capital Markets managing director of software equity research Rishi Jaluria joins Catalysts to discuss his reservations about the tech giant. Jaluria believes Salesforce "should be a major beneficiary of generative AI" given its business model, operations, and capacity. However, he notes that the company's AI efforts have been "disappointing" thus far. "I think they need to show us real innovation around AI," Jaluria told Yahoo Finance. "That they are actually investing aggressively to be AI-first. To treat AI not just as a feature that you're adding on but really fundamentally changing the way that salespeople work." For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Angel Smith

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  • August 27, 2024

Tech sector pressures could be 'good news,' strategist says

The tech sector (XLK) is under pressure as investors await Nvidia's (NVDA) highly anticipated second quarter results. Concerns are mounting over whether the semiconductor giant can meet Wall Street's lofty expectations. Principal Asset Management chief global strategist Seema Shah joins Morning Brief to discuss the market outlook and what future interest rate cuts could mean for the tech sector. Shah notes that the second quarter earnings season has shown that the strong earnings performance, once concentrated within Big Tech, has "started to broaden out to other sectors." She interprets this as a reflection of healthy economic growth and "a healthy improvement in the market," adding that "this is good news." "What we generally want to see, though, for a healthy equity market, is that you're seeing performance that is spread out across a number of sectors rather than just being driven... by the Magnificent Seven or a couple more tech companies," Shah explains. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Angel Smith Follow along with Yahoo Finance's latest coverage of Nvidia ahead of its earnings this week: Nvidia earnings are almost here. What investors will look forWhy Nvidia's stock rally is not driving broader market gainsNvidia earnings highlight a busy end of August: What to know this weekIf you don't own Nvidia stock, you are missing a revolution, tech investor saysNvidia earnings: One top tech analyst's key metric to watchNvidia gets ready to take over the stock market (again)Nvidia earnings: Rationality is out the window, analyst saysNvidia vs. Alphabet: Strategist picks which to buy & avoidNvidia investing 'aggressively' in R&D: Analyst explains whyNvidia earnings: Options market predicting $300 billion swing in stockNvidia still the best AI chip play right now: AnalystNvidia earnings: What the options market is anticipating4 AI terms Nvidia investors should knowNvidia earnings 'absolutely key to the AI infrastructure trade'

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  • August 27, 2024

US home prices rise to all-time highs in June: Case-Shiller

US home prices rose to all-time highs in June even as the pace of price increases began to moderate. Yahoo Finance Senior Housing Reporter Dani Romero joins Wealth! to break down the latest data from the S&P Case-Shiller National Home Price Index and how buyers are navigating the market at these price levels. For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Melanie Riehl

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