XLP Jan 2025 77.000 call
| Previous Close | 7.55 |
| Open | 7.55 |
| Bid | 5.25 |
| Ask | 8.15 |
| Strike | 77.00 |
| Expire Date | 2025-01-17 |
| Day's Range | 7.55 - 7.55 |
| Contract Range | N/A |
| Volume | |
| Open Interest | 746 |
- Yahoo Finance Video
Consumer staples: Why one analyst rates the sector as Underweight
Consumer staples (XLP) have been on a bit of a run, outperforming the S&P 500 (^GSPC) since the beginning of August. CFRA Research senior equity research analyst Arun Sundaram notes that more defensive sectors tend to do well in September, so there is some seasonality at play. Sundaram, however, still has the sector as an Underweight, arguing that cyclical sectors are "best poised for long-term growth" given the Federal Reserve rate cuts on the horizon. With some pockets of consumers slowing their spending, Sundaram thinks there will be winners and losers in the space, telling Yahoo Finance he likes big box retailers such as Walmart (WMT), Costco (COST), Target (TGT), and BJ's (BJ). Watch the video above to hear what it is about those stocks Sundaram likes. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Stephanie Mikulich.
- Yahoo Finance Video
Patience 'could be a virtue' in current market: Strategist
After last week's tech-heavy sell-off, many investors took the opportunity to buy the dip. Slatestone Wealth chief market strategist Kenny Polcari joins Catalysts to discuss the current state of the equity market (^DJI, ^IXIC, ^GSPC) and how investors can best position their portfolios heading into 2025. "I think you have to take a broader look at where we think the market's going over the next six or seven weeks, just because we're in that seasonally weak time in the market, August through October. I think that the August lows of 5,116 [for the S&P 500] are likely going to be tested again, which means that as a long-term investor, you just need to be a little bit cautious," Polcari tells Yahoo Finance. He points to Nvidia (NVDA) as a buying opportunity since shares are down about 25% since its June high. He does not expect the stock to rally back up to its high, but rather, he sees it as "on sale" for long-term investors. "Now, if you're worried about further downside for the broader market and you think it's going to get dragged with it, well then just sit back a little bit and wait. I think, you know, for most of the clients, that's the conversation I'm having, just about being patient, because patience, in this case, could be a virtue," he adds. Polcari argues, "We're at the very infancy stages of AI. I think Nvidia sits at the nexus of this tech revolution that's happening." He expects more volatility in the stock as the AI race continues. However, in the long term, he views Nvidia as "a core name and a core portfolio." As the consumer discretionary sector (XLY) leads the market's charge for a rebound in Tuesday's trading session, Polcari is more bullish on consumer staples (XLP): "I think we're already seeing consumers run into problems. We're seeing people live on credit cards, and discretionary is just that — it's discretionary spending. Those are wants versus needs. So I would be cautious on that sector at the moment, and I'd be more focused on the staples sector. While it's boring... I think it plays nicely in an environment where you think it's going to be a little bit of a pressure on the broader market and on the consumer." For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Melanie Riehl
- Yahoo Finance Video
US economy is in 'middling' phase as Fed fights inflation
US market averages (^DJI, ^IXIC, ^GSPC) closed Monday's session higher after last week's sell-off. NorthEnd Private Wealth CIO Alex McGrath joins Market Domination Overtime to discuss the state of the market ahead of the Federal Reserve's first interest rate cut. "We're coming off the back end of a pretty long inflation battle here with rates being at historic peaks. And, you know, you look at the underlying macro data that we're staring at every day, and it's not exceptional, but it's not bad either. It's just kind of in this middling phase. And certainly a much better start to this week than we had last week," McGrath explains. He argues that the Fed's cuts will not immediately come to the rescue as its cuts will likely "take time to work through." He adds, "I don't think you have to look much further than a lot of the numbers we've seen from the consumer discretionary companies, where they're slashing forecast because the demand just isn't there like it has been. And that's not entirely surprising." While inflation is down, he argues, "the problem is there's 20 to 30% built up in there that's still increasing on a month-over-month basis. And it's just the consumer's got to get tapped out at some point. And I'm not saying that's like a death and destruction phase coming, but you are starting to see inklings of that." However, easing rates should help counter that issue. Moving forward, McGrath believes the equities market "could be a bit rocky," so investors should take more of a defensive approach and take a position in sectors like industrials (XLI), utilities (XLU), healthcare (XLV), real estate (XLRE), and consumer staples (XLP). He also recommends semiconductors, calling them "the new industrial." On the fixed-income side, he argues that "it's probably time to start taking some duration there" as the Fed kicks off its rate easing cycle. 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 Melanie Riehl
