Schwab Network

Microsoft (MSFT) "continues to be integral" to AI infrastructure, says Ron Westfall. He believes the Mag 7 company is poised to capture high-margin revenue through its Azure cloud so long as it maintains industry leadership. One risk Ron sees for Microsoft: executing its massive backlog. Evan Feagans isn't entirely convinced of the bull case due to competing hyperscalers like Alphabet (GOOGL), Amazon (AMZN), and Meta Platforms (META) gaining traction. He where Microsoft stands in the greater software sector.

Beth Mazza and Victoria, co-founders of Female Mavericks and authors of "Entrepreneur Like a Mother," talk about the difficulties women-led businesses overcome in a male-dominated space. They talk about how they balance family life while building wealth for themselves and their families, along with offering advice from their book. Beth also offers more insight into the lending imbalance she sees backing female-led companies.

With the S&P 500 (SPX) a "stone's throw" away from all-time highs, Charles Moon (@ProsperTradingAcademy) points out trading opportunities covering several sectors. He sees a strong base forming in Cerebras (CBRS) that he expects to lead to a bullish breakout, a "fast in-and-out" entry opportunity in Valero Energy (VLO), and Tesla (TSLA) holding a bullish "level of persistence." Charles offers example options trades for his picks while Rick Ducat highlights key levels to watch in the stock charts.

"The breadth isn't great, but it's been not great for a while," says Jim Iuorio. While AI-tied stocks have recently led markets higher, Jim believes market breadth should improve alongside the tech sector due to initial goals that AI should improve profitability for all corners of Wall Street. He thinks investors should start taking profits at current levels. Jim turns to the Fed's interest rate hike as one that will start a hiking cycle and the warnings signs further hikes indicate to the greater U.S. economy.

Rising mortgage rates will continue to plague KB Home (KBH) and other homebuilders, says Brad Hunter, who adds that the Fed's interest rate hike won't help bearish sentiment across the sector. He also doesn't see rates coming down meaningfully "any time soon." So what does that mean for prospective home buyers? Brad discusses strategies for home buyers and builders alike to consider with rates expected to remain elevated. Tom White offers an example options trade for KB Home ahead of the company's earnings.

The Paramount Skydance (PSKY) and Warner Bros. Discovery (WBD) merger will seemingly go through after the former company settled its antitrust lawsuit issued by a dozen states. Marley Kayden notes that the settlement comes with some caveats Paramount Skydance must meet for the merger to sustain long-term. Tim Biggam offers an example options trade for Paramount Skydance.

Mike Townsend of @CharlesSchwab offers his insight into the UN General Assembly and the importance it holds for investors and the upcoming midterm elections. One hot topic for the elections: AI data center regulation and the environmental impacts on communities. Sticking with international headlines, Michelle Gibley has her sights set on the summit between President Trump and China President Xi Jinping. She weighs why there's a disconnect forming in China's tech earnings and its economy.

Alphabet (GOOGL) is taking the reins early into Tuesday's trading session as the Mag 7 continues to lead S&P 500 (SPX) momentum. Kevin Green highlights key levels he's watching in the index as the options market shows an uptick in call activity. In the commodity space, KG notes that diesel futures are nearing a key support level as MACD turns bearish. Also keep an eye on the agriculture and housing spaces as the UN General Assembly meets in New York City.

Philip Blancato says a 25-bps interest rate hike does nothing to help fend off the rising inflation tide driven by energy prices. He believes the hike was made to push back rate cuts made under former Fed Chair Jerome Powell's tenure. Additionally, Philip says the rate hike will hurt the "wrong people" who are already feeling the pinch of inflation.

Mansi Khetani, CFO of ChargePoint (CHPT), says the EV-based company "outperformed on all fronts" when discussing earnings. "People are buying EVs," she says, explaining that lower initial costs for these vehicles are winning over consumers as gas-based cars, and gasoline prices as a whole, climb. Mansi then explains how the rise of autonomous vehicles from companies like Tesla (TSLA) and Alphabet (GOOGL) shapes the future of ChargePoint.