Schwab Network

The Fed's interest rate hike will creating lingering pressures for small caps, says Brian Jacobsen, who takes a look into how a bifurcation in the U.S. economy trickles down into lower market cap names. He previews how next week's critical economic data in core PCE, GDP, and other large prints have potential to shift the Fed's course on rates. Any developments on a peace agreement between the U.S. and Iran, or a strategy on reopening the Strait of Hormuz, is something Brian expects to force the Fed to push back another rate hike.

This week's Tech Corner focuses on SanDisk (SNDK), one of the flagship names leading the AI memory trade. George Tsilis discusses the stunning strength in financials and pricing power driven by the AI buildout and supply constraints. However, those same constraints can become a headwind down the road, with George pointing out the double-edged sword of cyclicality as a concern. He then takes investors through key levels and technical trends to keep in mind when analyzing SanDisk's stock chart.

Brett Crowther of Charles Schwab says the S&P 500 (SPX) recently broke out of a bull flag pattern but not enough to break out to new record highs. He highlights key technical indicators he sees as essential for bulls to reach the new milestone. In Palo Alto Networks (PANW), Brett shows how a slowdown in RSI is keeping the stock in a wide but consistent trading pattern. He adds that appetite for Chipotle (CMG) has waned in the last couple weeks.

The consumer backdrop is likely to get worse before it gets better, according to Kristoffer Inton, which he says will add pressure to General Mills (GIS). The company moved lower toward 52-week lows after earnings. Kristoffer says the company is number one or two in many of the brands it sells, it's primarily the macro factors plaguing consumers he sees as headwinds. Andrew Wang considers the earnings report "better, but not good yet." He talks about the green shoots he sees on the company's balance sheet but warns of caution with other key metrics. General Mills' dividend is something Andrew sees as a trap for investors.

Kevin Carter of EMQQ Global says there weren't many substantial takeaways to take away from President Trump and China President Xi Jinping's meeting this week. That said, he still sees opportunity in Chinese stocks as the country expands its own AI infrastructure capabilities. Kevin outlines EMQQ's China AI ETF (AICH) and China AI Tigers LLM ETF (TGRZ) as examples into how the firm is increasing portfolio exposure overseas.

On Holding (ONON) is leading its biggest rivals in consumer demand, including Adidas (ADDYY) and Nike (NKE), according to LikeFolio's data. Andy Swan explains how the company's latest initiatives, including signing Kylian Mbappé, offers long-term growth potential that give On a chance to become the next "cult-like brand." LikeFolio's data shows how a buy opportunity for the stock is opening as the gap between price and demand widens.

Costco (COST) moved higher on Friday following an earnings beat that signaled resiliency amid greater economic uncertainty. However, as Mel Casey notes, membership numbers are what matter the most to analysts to gauge guidance. A slowdown in new memberships initially sent shares to the downside, leading Mel to highlight the importance of a widening K-shaped economy. Jharonne Martis explains how Costco's report gives us a chance to look through a "fascinating window" into the state of U.S. consumer minds.

Sarah Henry discusses the "really interesting gap" between "what consumers say and what they do." As she explains, the disconnect comes from waning sentiment amid still strong spending, even if that spending becomes pickier. Sarah makes the case that the trend isn't a new one as she takes investors through data since 2019. McDonald's (MCD) value pivot is one Sarah focuses on more, explaining how the company serves as a barometer to U.S. consumers even as its stock hits 4-year lows.

The stock market has become "one-dimensional," argues Tim Bohen (@stockstotrade), pointing to the AI trade single-handedly pulling the S&P 500 (SPX) and Nasdaq-100 (NDX) toward record highs. That said, he sees several trading opportunities in the tech sector. Tim believes AMD Inc. (AMD) will benefit from parabolic AI compute demand, sees StablecoinX (USDE) as an aggressive play on Bitcoin's rally, and expects Meta Platforms (META) to benefit strongly with Muse AI. Rick Ducat offers technical analysis in all three stock charts to add color to Tim Bohen's bullish outlook.

Eddie Ghabour of Key Advisors Wealth says his firm has deployed "a lot of cash" since the Fed's interest rate hike last week. He sees bullish opportunities ahead, noting a surge in volume from last Friday's trading session as a signal bulls are taking back the wheel on Wall Street. Eddie expresses why he's "cautiously optimistic" into Micron (MU) earnings next week as bearish sentiment lingers around the AI memory trade. As for general market moves, Eddie says we're "one headline away" from oil plunging back to $60, urging caution in macro risks when managing your portfolio.