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"In the end, it always comes down to fuel" when it comes to airline earnings, says David Nelson. He explains how Strait of Hormuz volatility hits companies like Delta Air Lines (DAL) after the company posted an earnings beat. David notes Delta's premium customers offering insulation for strength, though he expects competitors to catch onto the trend. He outlines how the headwinds and tailwinds play into his big picture for Delta and other airlines.
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The case for the Fed to ease interest rates "is not there," says Gina Martin Adams, arguing inflation has too much uncertainty to warrant a cut. She also outlines a situation in the bond market she believes fixed income investors are not prepared for. Gina adds that small caps and "riskier" equities will face certain pressure from a tentative interest rate hiking cycle.
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While markets focus on Micron (MU), SanDisk (SNDK), and SK Hynix's debut on the Nasdaq, Ben Watson of Charles Schwab turns to a stock that hasn't been in the headlines as much: Seagate (STX). He talks about the upgrade it got from Wells Fargo and highlights key trends in the stock chart to watch.
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While tech stocks have seen some pressure throughout the week, Tom White says that money has moved elsewhere on Wall Street. He argues the rotation offers more strength for markets going forward. One company debuting in the U.S. today: SK Hynix, which will trade on the Nasdaq under the symbol SKHY. Tom explains how the ADR shakes up the AI memory trade. He then turns to the skies and discusses Delta Air Lines (DAL) and its earnings.
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Micron (MU) has made a 12-digit pledge to U.S. tech over the next decade. SK Hynix sets the stage for its U.S. IPO. Trading in Meta Platforms (META) turned volatile on the session with its latest the plans. Marley Kayden talks about the biggest headlines moving markets Thursday.
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Paramount Skydance's (PKSY) plans to merge with Warner Bros. Discovery (WBD) face regulation roadblocks, causing shares in the former to fall. On the macro front, a decrease in existing home sales and jobless claims offer more economic insight. Marley Kayden and Sam Vadas highlight their top takeaways for Thursday's trading session.
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CFRA’s Garrett Nelson examines PepsiCo’s (PEP) rare earnings miss and the margin pressures weighing on results, while noting the company reaffirmed its full-year guidance. He discusses how aggressive post-pandemic price increases hurt demand, why consumer staples appear undervalued, and how PepsiCo’s push into healthier snack and beverage brands could support future growth.
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A tech rotation out of South Korea is the main reason Henry Greene sees pushing Chinese interest stocks higher. Those rallies are seen in names like Alibaba (BABA), JD.com (JD), and Baidu (BIDU). The question now lies in margins and whether these companies can hold stock strength by backing it up on their balance sheets. Henry talks about his expectations for these companies he believes are in their "early days."
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Philip Blancato, CEO of Ladenburg Thalmann Asset Management, argues the U.S. economy remains resilient, supported by strong corporate earnings and continued AI-driven investment. He highlights opportunities in small caps, municipal bonds, commodities, and industrial companies benefiting from the broader spillover effects of AI spending, while making the case for a long-term materials super cycle.
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Jon Adams, CIO at Calamos Wealth Management, discusses the disconnect between consumer sentiment and rising equity markets, noting that higher-income households continue to spend while lower-income consumers face inflationary pressures. He highlights rising debt and mortgage delinquencies as areas to watch, outlines risks that could threaten the rally, and emphasizes diversification across public and private markets, including private credit and private equity.
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