Mag 7 earnings, election, Fed cuts: Biggest retail trading themes
Retail traders are dealing with a lot right now as they take in this week's tornado of Big Tech earnings while calculating any 2024 election risks, now just days away. Charles Schwab Managing Director and Head of Trading Services James Kostulias joins Seana Smith in assessing how investors are responding to Magnificent Seven earnings — Tesla (TSLA) and Alphabet (GOOG, GOOGL) have been the first to report results — and some of the risk management strategies employed ahead of the US presidential election. "I do think the valuations are perceived to be high. I think we saw some rotation into fixed income in September, as well. I also think what our survey showed is... a big delta in terms of where our traders are relative to rates," Kostulias says on investor rotations out of the tech sector, fueled by the Federal Reserve's interest rate environment. "Usually you'll see maybe a little bit of sort of back and forth on will it be a quarter, will it be zero, would it be 25, would it be 50? Our most recent survey would tell us that, you know, traders are sort of split from zero to all the way up to 100 basis points over the course of the rest of the year." These are the remaining Magnificent Seven tech names to report their latest earnings results: Meta Platforms (META) and Microsoft (MSFT) — Wednesday, October 30 Amazon (AMZN) and Apple (AAPL) — Thursday, October 31 Nvidia (NVDA) — Wednesday, November 20 To watch more expert insights and analysis on the latest market action, check out more Catalysts here. This post was written by Luke Carberry Mogan.
