• July 29, 2024

Why Big Tech may continue to face a rotation

A number of Big Tech earnings will be released this week including Microsoft (MSFT) and Amazon (AMZN) giving more insight into the sector as it is facing a bit of a rotation from investors moving into small caps (^RUT). What is helping this rotation and is it just a short term movement? Liz Young Thomas SoFi head of investment strategy joins Market Domination to give insight into Big Tech earnings and what investors need to know during this current economic cycle. In terms of how investors are moving during this notion of a rotation, Young Thomas states: "I think what's going on actually right now with the rotation is that some of those big cap tech names have given some back, because when people look at their portfolios, that is the easiest stuff to sell. You've got a big gain in it. It's a very liquid name, professional investors see those as easy to sell as well. So it's an easy place to take some profits and rotate. And I think the beneficiary of that rotation right now... has been small caps." For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Nicholas Jacobino

  • July 29, 2024

Homebuilders have 'a lot of tailwinds': Stocks to watch

Homebuilder stocks (XHB) have jumped since investors began pricing in a September rate cut from the Federal Reserve.  Oppenheimer executive director Tyler Batory says that when it comes to homebuilders, investors always need to be aware of what is happening with interest and mortgage rates. He also points to weakness in the existing home sales market along with strong margins and profitability for the builders as "strong tailwinds" for the space.  Batory doesn't think a Federal Reserve rate cut will be enough to ease the somewhat frozen housing market. He also argues that mortgage rate buydowns will hit builders' bottom lines as much as feared. So which stocks does Batory like? Toll Brothers (TOL) an PulteGroup (PHM). Find out why in the video above. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Stephanie Mikulich.