Schwab Network

Matthew Maley discusses the earnings path ahead for American Express (AXP) after posting an earnings beat. As he explains, consumers continue to spend despite inflation fears, though signs of a widening K-shaped economy remain a concern. Matthew calls the American Express cutting 5% of its workforce a "double-edged sword" that signals cost-cutting measures clashing with AI fears in the labor market. Tom White offers an example options trade for American Express.

Moderna (MRNA) shares plunged after a partial leak showed results for the company's cancer vaccine trial. As Alison Kosik points out, the results were positive but weren't enough for investors. She walks through what Wall Street has access to from the leaks and the astronomical expectations priced into the stock and how it has corrected since. Tim Biggam offers an example options trade for Moderna.

Alexandra Semenova of @CharlesSchwab says relief in the bond market came with sacrifice in the AI trade. The biggest question facing the sector is how companies seeking funding to build out their AI endeavors will actually acquire the capital to do so. That said, Alexandra sees a run higher in equities long-term once midterm elections and the Fed's incoming interest rate decision pass. Treasury yields are still a safe haven for investors, says Collin Martin, even after the pullback across yields. He argues that lingering risks to equities set a compelling case for a deeper rally in yields.

Masa Takeda focus on Japanese markets and how corporate governance reforms shape equities and monetary policy in the country. The Bank of Japan remains a key focus for Japanese and other international investors in gauging earnings growth. Masa discusses the "dilemma" the central bank faces on interest rates and the Japanese yen, which he argues faces long-standing macro pressures.

PMI isn't shaping inflation trends, though consumer sentiment did see an uptick from a month ago. Kevin Green takes investors the latest economic data and what it means for a souring AI trade. Companies bucking the downtrend: SpaceX (SPCX) and cell tower stocks as the Elon Musk-led company seeks to acquire 80,000 cell towards for Starlink and other tech developments. KG turns to levels to watch in the S&P 500 (SPX) and crude oil as the latter rises to $102 in the early hours of Friday's trading day.

The S&P 500 (SPX) will reach 8,100 by the end of the year, says Scott Wren, who remains bullish on the index despite caution on the state of the energy trade. He expects crude oil prices to come down on an eventual downturn in U.S.-Iran tensions. The fight against inflation is where Scott shows more uncertainty, making the case the Fed should hike interest rates in October even as markets price in a hold for next week's meeting. He sees the tech, financials, and industrial sectors holding strength into 2027.

Moderna (MRNA) lost $24 billion in market cap Thursday after data for its cancer vaccine trial leaked. Diane King Hall says investor expectations were above what leaked results showed. Mixed earnings and lower guidance in Deckers (DECK) caused the stock to step down near 52-week lows. Diane discusses the concerns JPMorgan has with Norwegian Cruise Line by looking at its downgrade.

Diversification remains the paramount focus for Anthony Caruso when managing customer portfolios, and urges all investors do the same. He discusses ways investors can take advantage of higher-than-usual Treasury yields even as they retreat from their highest recent levels. Anthony has his eyes on next week's Fed meeting on interest rates and explains how the AI buildout is having more influence on the inflation outlook.

The VanEck Semiconductor ETF (SMH) is near 3-month lows as sentiment around the AI trade continues to plunge. As Tom White points out, the ETF has still vastly outperformed the S&P 500 (SPX) year-over-year. It's also moving toward a critical support level offering opportunity for a bounce. Tom then takes investors through an example options trade for SMH.

Revenue surging more than 50% isn't enough for Western Digital (WDC) investors, who sold off the stock after earnings Thursday. Matthew Bryson of Wedbush says AI debt concerns continue to outweigh earnings "for now," though he sees that trend reversing once ROI starts to support the spending. When it comes to neoclouds, Matthew believes it's not the costs of capital that will be the main headwind, but how companies acquire the cash.