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Jason Ware believes the latest earnings season sets a bullish case for the tech trade, even if volatility keeps a hold on stocks short-term. When it comes to Nvidia (NVDA), he outlines why he still sees a bull case for the mega cap and explains how its business offers a lift for other Mag 7 names. That said, Jason tells investors to be aware of risks that persist in the stock market, from a potential AI bubble to lingering tensions in the energy trade.
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Diawa upgraded HPE (HPE) to outperform from neutral. Morgan Stanley reiterated Nvidia (NVDA) as the firm's top pick. OnSemi (ON) and Synaptics (SYNA) amended details to their coming merger. Diane King Hall turns to the top tech movers kicking off Friday's trading session.
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Bob Shea, CIO of Dynasty Financial Partners, says the latest jobs report offers a much-needed reprieve in the bond market. He sees the economy splitting between an AI-driven index rally and rate-sensitive sectors like housing, autos, and retail under pressure, while AI remains transformational and in very early innings. He expects positive seasonal tailwinds into midterms and potential policy initiatives targeting housing and the consumer.
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The September jobs report wasn't as weak as investors may believe, says Kevin Hincks. 29,000 nonfarm payrolls additions came in well-below median expectations of 85,000, though as Kevin points out, investors are shrugging off the print. It also cut into expectations for the Fed to hike interest rates in October. On the international front, Kevin discusses crude oil's price decline as the EU weighs strategic reserve releases. In equities, Nike (NKE) plunged to 13-year lows ahead of the opening bell while Tesla (TSLA) moved higher on its third-quarter vehicle deliveries.
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HPE (HPE) has more room to the upside, according to an upgrade from Daiwa, even though the stock already climbed more than 160% over the last 12 months. Rick Ducat shows the bullish and bearish trends he believes are the most important to watch in HPE's forward moves. He turns to an example options trade for HPE.
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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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Joe Brusuelas of RSM US discusses the weaker-than-expected September jobs report. The month saw an additional 29,000 nonfarm payrolls against median consensus of 85,000. Joe says the print confirms a "no hire, no fire" jobs market aggravated by U.S. immigration restrictions. He adds that the report will make an interest rate hike in October very unlikely. That said, Joe believes two rate hikes are still on the table for the end of 2026 and the start of 2027.
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James Boyd of Charles Schwab says Airbnb (ABNB) is more tightly correlated to crude oil moves than investors realize. He outlines the short-term price action of the stock and compares it to crude to highlight why. James also notes a bull case for Airbnb if the stock can stay above $160.
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Friday's trading session is starting with some reprieve thanks to a tick lower in crude oil and Treasury yields. Tom White sets expectations for investors ahead of the opening bell. On the AI trade, he explains why Morgan Stanley is reiterating its top pick in Nvidia (NVDA), with Tom discussing why hyperscaler CapEx is important to keep in mind moving forward. Also on his radar: adjustments to the OnSemi (ON) and Synaptics (SYNA) merger, along with Nike (NKE) earnings and its stock plunge.
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A lot of what is happening in equities right now has a lot of similarities to 1994, says Gina Martin Adams, pointing out a booming economy and a Fed raising interest rates as the central points. The steady rise in Treasury yields adds to signs of strain for equities, as Gina points to sectors at the greatest risk of volatile moves.
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Accenture (ACN) closed as the S&P 500 (SPX) leader on Thursday's session following earnings, while Nike (NKE) investors looked for a clear jump in a turnaround story in its earnings. Paramount Skydance (PSKY) sold off as it looks to close its merger with Warner Bros. Discovery (WBD) in the coming days. Marley Kayden carries investors through the top stories of the trading day.
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