A sticky inflation report and a poor 30-year U.S. bond auction on Thursday caused the S&P 500’s SPX latest rally to falter. Stock-index futures on Friday are softer again, suggesting such interest rate concerns linger.
“While the macro/bond backdrop is confusing for investors and the geopolitical situation caused by the terrorist attack on Israel has created a heartbreaking and nervous situation for the markets, we believe the tech universe is resilient and is poised for a strong earnings season ahead set to prove the doubters wrong,” says Ives in a new note to clients.
In particular, he believes the impact of the AI cycle on the consumer internet sector “will be massive” and will begin with the cloud service divisions, such as Amazon’s AWS and Alphabet’s GCP. Wedbush’s favorite tech names overall are Apple AAPL, +0.51%, Microsoft MSFT, -0.38%, Palo Alto PANW, +0.54%, Palantir PLTR, +0.11%, Zscaler ZS, -1.39%, CrowdStrike CRWD, -0.35%, and MongoDB MDB, -0.24%. The table below shows a selection of Wedbush picks with price targets.
For more market updates plus actionable trade ideas for stocks, options and crypto, subscribe to MarketDiem by Investor’s Business Daily. Dollar General shares DG, -1.77% are rallying nearly 8% in Friday’s premarket after the store chain said Todd Vasos is returning as chief executive having retired less than a year ago.