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Jim Paulsen breaks down the widening gap between high-growth tech names and struggling traditional industries, warning it mirrors the dot-com era. He flags froth in small caps and unprofitable tech stocks, adding that dwindling corporate cash could drive a pullback. Paulsen also argues Fed tightening interest rates will hurt the “old era” economy while failing to address supply-driven inflation.
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The tech trade ran "a little too far, too fast," says Adam Coons. Her makes the case that the pullback is "healthy" and points to Oracle (ORCL) as the next bellwether for AI strength. Adam warns that volatility will linger with the AI trade still in its early innings. In stocks Adam likes outside tech, he points to Eli Lilly (LLY) and its robust healthcare portfolio as a company he sees showing long-term strength.
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Diane King Hall talks about this morning's top moving stock at the opening bell pointing to Chewy (CHWY), initially higher after earnings but now facing pressure. She also highlights UBS upgrading Cava (CAVA), and RBC's downgrade on Nike (NKE).
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Morrison Seger Venture Capital Partners CEO Rogers Healy outlines how his firm is navigating inflation and market volatility by backing celebrity-driven consumer brands, including Ben Stiller’s soda company, Stillers. He explains why high interest rates and rising construction costs are weighing on real estate, making it a less attractive investment compared to beverages and apparel.
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Inflation hit the highest level in three years according to CPI, though the numbers still fell in-line with Wall Street estimates. Kevin Hincks points out that the report was "dominated" by energy and believes investors have largely priced CPI expectations with the U.S.-Iran War serving as a lasting overhang. On crude oil, Kevin tells investors to brace for disruptions in energy should the conflict continue much longer.
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Even though CPI headline numbers hit in-line, the report is still a three-year high as the U.S.-Iran War continues to keep crude oil prices elevated. Kevin Hincks and Alex Coffey break down the report and explain how they see it impacting price action on Wall Street.
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Shares of Oracle (ORCL) are up over 15% year-over-year but still down 40% from last year's all-time high. Rick Ducat does point out what he calls a "fast resurgence" in momentum as the company readies to report earnings after Wednesday's close. Rick Ducat later highlights an example options trade for Oracle.
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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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Paul Andre Huet, chairman and CEO of America's Gold and Silver (USAS), says silver is more important to global economies than many investors realize. Why? He points to the AI infrastructure buildout as the leading example, believing that silver's perception as "poor man's gold" is actually one of the most important components to tech. Paul talks about the "buy opportunity" he sees in silver and gold and ways investors can benefit off the trade.
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Skyler Weinand believes American consumers are "lush with cash" with spending trends still intact. That said, he says inflation will be the "hammer on the backs" of mainstream. Skyler adds that the clock is ticking for the Trump administration to end the war with Iran as oil inventories deplete and midterms loom. He says triple-digit crude oil is likely back on the table.
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TD Cowen added Dutch Bros (BROS) as its top "smid-cap pick" for the year. Shares still fell ahead of Wednesday's trading session. Rachel Dashiell talks about how bulls can regain control of price momentum as analysts brew up higher expectations for the stock.
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