S&P 500 (^GSPC)
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The risks of rate cuts, TikTok fights ban bill: Asking for a Trend
On today's episode of Asking for a Trend, Host Josh Lipton breaks down some of the top stories and trends from the trading day. Investors are all but certain the Federal Reserve will cut interest rates at its September meeting on Wednesday. But the question of by how much — 25 or 50 basis points — has been hotly debated. Wall Street Journal Chief Economics Commentator and Deputy Economics Editor Greg Ip lays out the case for a half-point cut, explaining, "It all starts out by looking at where rates are now," Ip says, noting that the current target rate of 5.25%-5.50% is the highest in 20 years. Rates were initially pushed that high because of sticky, elevated inflation. But in recent months, inflation has cooled considerably. The major indexes (^DJI, ^IXIC, ^GSPC) closed Monday mixed after disappointing iPhone 16 pre-order numbers caused Apple (AAPL) to slip and pull the Nasdaq down along with it. Yahoo Finance senior reporter Jared Blikre analyzes the day’s top market movements, including the surge in cyclical sectors such as utilities (XLU), the weight of the Federal Reserve's interest rate decision later this week, and September's seasonality trends. TikTok spent Monday in court in the first day of its trial arguing against the US bill that could see the popular social media app banned in the United States if parent company ByteDance doesn't sell the platform to a non-Chinese entity. Axios Business Editor Dan Primack explains that the judge in the case was "fairly skeptical of TikTok's arguments," adding, "But what's important to note is the President of the United States does not have to ban it if there's not a divestiture, it gives the president the option to ban it. You've already got Donald Trump saying he would not ban TikTok." Intel (INTC) and Amazon (AMZN) Web Services announced a co-investment in custom chip designs in a multibillion, multi-year strategic collaboration. Creative Strategies CEO and principal analyst Ben Baron explains that Intel has won a large customer in AWS, saying, "there's positive momentum there in terms of getting foundry wins." He believes that Intel is ultimately setting the stage to split into two companies: Intel and an Intel foundry. He believes that having an Intel Foundry subsidiary is "essentially as close as you can get to putting the right kind of walls and guardrails around Intel Foundry so that other customers can come in and feel comfortable knowing that they'll have capacity wafer allocation." This post was written by Melanie Riehl
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Nasdaq dips on Apple performance as market looks to the Fed
US stocks ended Monday's trading session mixed after the Nasdaq Composite (^IXIC) snapped its win streak, falling by over 0.5%. The Dow Jones Industrial Average (^DJI) saw gains of 0.55%, or 228 points, in the trading day. Market Domination Overtime's Alexandra Canal recaps the day's market action after Apple (AAPL) shares dipped on underwhelming iPhone 16 pre-orders. Yahoo Finance markets and date editor Jared Blikre breaks down the sector winners of the day before turning his attention to semiconductor stocks and Nasdaq 100 (^NDX) components. For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Luke Carberry Mogan.
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Both Harris & Trump have 'unattractive' economic policies: Portfolio manager
Advisors Capital Management partner and portfolio manager JoAnne Feeney joins Morning Brief to discuss the political outlook for small caps (^RUT) and some of her top tech plays as the market (^DJI,^GSPC, ^IXIC) gains broaden out beyond the "Magnificent Seven." Feeney does not expect small caps to be at risk of more fiscal policy changes this year. However, as the election remains tight between Vice President Kamala Harris and former President Donald Trump, she argues that both sides have "pretty unattractive policies." She explains, "It's unlikely that both sides of the aisle would support an increase in the corporate tax rate, no matter who gets elected. So I think that's a low-risk situation. Tariff policy is more concerning, particularly for small businesses, because a lot of the time they're sourcing their inputs from abroad and often from cheap suppliers abroad." She points to Broadcom (AVGO) as a "core holding" at Advisors Capital Management and a good opportunity for investors, arguing that it has "risen through the ranks through all the acquisitions that their leadership has made over the last several years. But it's still not as well known as, say, a Nvidia (NVDA) or some of the other bigger guys like Microsoft (MSFT) and Amazon (AMZN)." She also highlights its mix of assets, from software to hardware. "We think it's going to be good for the long term. Other companies like Nvidia may be a little bit more volatile, but also a lot of growth ahead of it. So we like that one as well," Feeney adds. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Melanie Riehl
