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The mid-term elections likely going against President Trump and the GOP is the biggest reason Richard Safran sees behind the U.S. defense stock slump seen in Northrop Grumman (NOC) and RTX Corp. (RTX) among others. In Europe, he believes the continent has underinvested in defense and attributes the rally in companies like Rheinmetall (RNMBY) as a catch-up trade — until those shares also slid in recent months. Tom White offers an example options trade for Northrop Grumman.
======== Schwab Network ========
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Options involve risks and are not suitable for all investors. Before trading, read the Options Disclosure Document. http://bit.ly/2v9tH6D
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Marley Kayden talks about Comcast's (CMCSA) plan to spin the media business. She says leadership roles will change as it plans to separate into two independent publicly traded companies. Prosper Trading Academy's Charles Moon walks us through an options example trade for Comcast.
======== Schwab Network ========
Empowering every investor and trader, every market day.
Options involve risks and are not suitable for all investors. Before trading, read the Options Disclosure Document. http://bit.ly/2v9tH6D
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Charles Schwab's Collin Martin says he's not expecting any changes to the Fed's balance sheet anytime soon as Kevin Warsh and the other FOMC members tackle sticky inflation. As for Warsh's upcoming speech, Collin urges investors to pay attention not to "what he says, but how he says it" regarding the Fed's forward expectations. Also keep an eye out for the June jobs report that Wall Street will get Thursday.
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Barry Knapp argues the Fed’s interest rate strategy is misguided and hurting small businesses while the market begins to self-correct. He points to steady AI spending among firms like Meta Platforms (META), Amazon (AMZN), Microsoft (MSFT), and Oracle (ORCL) as a key signal that markets are reevaluating the tech trade. Barry expects two-year treasury yields to fall as rate hike expectations fade.
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Joe Tigay breaks down the short trading week, with the jobs report in focus for inflation and rate expectations. He warns of an “all or nothing” mindset in AI investing and emphasizes the need for a clear strategy, while advocating for active volatility protection as valuations rise.
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Diane King Hall discusses this morning's top moving stocks at the opening bell, pointing to Phillip Securities downgrading Salesforce (CRM) and Adobe (ADBE). Arete also downgraded CrowdStrike (CRWD) to neutral from buy with a $730 price target. However, the firm upgraded Roblox (RBLX) to a buy.
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Chris Galipeau previews a busy week with key data and the start of the upcoming earnings season. He sees AI spending and global market broadening as tailwinds, favors small caps and emerging markets, and flags mixed signals from rate data.
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Most investors woke up with a sigh of relief at the sight of up arrows in futures as the U.S.-Iran tensions appear to cool. Kevin Hincks talks about how it shapes the dynamics of crude oil prices and the Fed, as new Chair Kevin Warsh readies to speak later this week. That said, he tells investors to brace for a "bumpy ride" in the negotiation process.
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The AI revolution is intact, says Keith Buchanan, though he expresses concerns on valuations centered on forward expectations. He sees markets pricing in more winners than losers in the AI race when that may not be the case. Keith advises investors to diversify their portfolios in anticipation of a "rough ride" for the back half of 2026.
======== Schwab Network ========
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Jay Woods says he's watching key Big Tech charts carefully, including Alphabet (GOOGL), Nvidia (NVDA), and Microsoft (MSFT), the last of which he expresses concern for. He explains how AI spending has shaped investor views on the Mag 7 as all trade well below their record highs. In software, Jay points to "red flags" in Adobe (ADBE) as an AI disruptive company and its uncertain leadership path. He expects Micron (MU) to consolidate around its current levels and sees a greater chance for the S&P 500 (SPX) to drop to 7,000 before rallying to 8,000.
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