Investment Learning

  • July 31, 2024

US pending home sales, AMD chip rally: Catalysts

Today on Catalysts, hosts Seana Smith and Madison Mills delve into the latest economic data, top trending tickers, and the semiconductor industry. US housing data takes center stage as pending home sales surpassed economist expectations, rising 4.8% in June. This news comes as the Federal Reserve prepares to announce its decision on interest rates later this afternoon. The show then turns to trending tickers, spotlighting Delta Air Lines (DAL), Altria Group (MO), Mastercard (MA), and Boeing (BA)— which announced its new CEO in former Collins Aerospace CEO Robert "Kelly" Ortberg, set to begin in his new chief executive role on August 8. The program concludes with a focus on the chip sector, following Advanced Micro Devices' (AMD) second quarter earnings beat that has sparked a rally among semiconductor stocks. Angelo Zino, CFRA Research senior equity analyst, talks why he believes the AI momentum in the chip sector will persist. For more expert insight and the latest market action, click here. This post was written by Angel Smith

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  • July 31, 2024

The real 'winners' of AI trade are energy companies

The semiconductor sector is rallying Wednesday, following Advanced Micro Devices' (AMD) second quarter earnings beat driven by the success of its AI-related sales. TCW senior portfolio manager Eli Horton joins Wealth! to discuss where he believes investors should look to capitalize on the AI trend. Horton emphasizes that "the literal foundation" of AI is the power and electric grid. He notes that companies are investing billions in their AI initiatives because "this is mission-critical to their businesses." This investment, he explains, flows into chips, servers and networking, and data centers — all of which require substantial power consumption. Horton describes this as "an indirect way to invest in this theme." However, he cautions that many investors may not be exposed to the true "winners" of the AI trade. "The winners of these themes are old economy industrial-type businesses," Horton tells Yahoo Finance, highlighting companies within electrical equipment and power generation sectors. For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Angel Smith

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  • July 31, 2024

As CRE cash flows rise, expect 'few years of tough headlines'

The commercial real estate (CRE) space has taken a hit after the COVID-19 pandemic, stemming from the advent of remote and hybrid work setups. Data from MSCI shows that there is $20.5 billion worth of portfolios of foreclosed and seized properties in the second quarter, a 13% increase since the previous quarter. JPMorgan Co-Head of US real estate stock research Anthony Paolone joins Catalysts to give insight into the current landscape for commercial real estate and what it means for the broader market moving forward. "Interest rates certainly play a big role in commercial real estate and certainly how the properties are valued. But what we think is pretty interesting is that this move up in rates over the last couple of years, we've seen the publicly traded real estate stocks, the REITs [real estate investment trusts] mainly already adjust to that rate environment," Paolone tells Yahoo Finance. "And so to the extent we get any movement down in rates, we think it's actually pretty positive for these companies. We think the private market is still going to take some time to fully adjust."  For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Nicholas Jacobino

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  • July 30, 2024

We are still building 'the ballpark' of AI: Strategist

Earnings reports from Big Tech names like Microsoft (MSFT), Meta (META), and Amazon (AMZN) are on deck this week, potentially giving more insight into how the tech sector will play out as the market sees a rotation into smaller-cap names. JPMorgan US head of investment strategy Jake Manoukian joins Morning Brief to give insight into Big Tech earnings and what investors need to know about the tech sector going forward. Manoukian believes that while the initial AI hype might be decreasing for some, the market is still witnessing the early innings of AI development: "What gives us comfort as investors is these companies, these hyperscalers are driving this investment through cash flow. This is very different than the kind of internet boom in the 2000's when companies had to take capital from investors, take capital from the bond market to build out the internet. AI cap-ex from the for biggest hyperscalers is going to be $200 billion this year. Last year they did $270 billion in free cash flow." The analyst believes this balance will allow companies the "wiggle room to actually build the ballpark" of AI. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Nicholas Jacobino

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  • July 30, 2024

Stocks open higher as investors await Big Tech earnings

All three of the major indexes (^DJI,^GSPC, ^IXIC)opened higher on Tuesday, with the Dow Jones Industrial Average jumping more than 100 points. Investors are digesting a slew of earnings reports from Procter & Gamble (PG), Pfizer (PFE), and JetBlue (JBLU). After the close, Microsoft (MSFT), Advanced Micro Devices (AMD), Starbucks (SBUX), and Pinterest (PINS) are set to report.  Morning Brief anchors Seana Smith and Brad Smith along with markets reporter Jared Blikre recap the action at the open. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Stephanie Mikulich.

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  • July 29, 2024

Why Big Tech may continue to face a rotation

A number of Big Tech earnings will be released this week including Microsoft (MSFT) and Amazon (AMZN) giving more insight into the sector as it is facing a bit of a rotation from investors moving into small caps (^RUT). What is helping this rotation and is it just a short term movement? Liz Young Thomas SoFi head of investment strategy joins Market Domination to give insight into Big Tech earnings and what investors need to know during this current economic cycle. In terms of how investors are moving during this notion of a rotation, Young Thomas states: "I think what's going on actually right now with the rotation is that some of those big cap tech names have given some back, because when people look at their portfolios, that is the easiest stuff to sell. You've got a big gain in it. It's a very liquid name, professional investors see those as easy to sell as well. So it's an easy place to take some profits and rotate. And I think the beneficiary of that rotation right now... has been small caps." For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Nicholas Jacobino

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  • July 29, 2024

Homebuilders have 'a lot of tailwinds': Stocks to watch

Homebuilder stocks (XHB) have jumped since investors began pricing in a September rate cut from the Federal Reserve.  Oppenheimer executive director Tyler Batory says that when it comes to homebuilders, investors always need to be aware of what is happening with interest and mortgage rates. He also points to weakness in the existing home sales market along with strong margins and profitability for the builders as "strong tailwinds" for the space.  Batory doesn't think a Federal Reserve rate cut will be enough to ease the somewhat frozen housing market. He also argues that mortgage rate buydowns will hit builders' bottom lines as much as feared. So which stocks does Batory like? Toll Brothers (TOL) an PulteGroup (PHM). Find out why in the video above. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Stephanie Mikulich.

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