We're downgrading 2 AI stocks
Every weekday, the Investing Club releases the Homestretch, an actionable afternoon update just in time for the last hour of trading.
TL;DR
- Markets are mixed, with S&P 500 and Nasdaq falling last week.
- Bond yields and oil prices are lower, but stock market rally is hampered by elevated bond yields and struggling AI infrastructure stocks.
- Political pushback against data centers is impacting AI stocks.
- The portfolio has taken action by selling Broadcom and may consider trims of Corning or GE Vernova, potentially at a loss, to preserve larger gains.
- Two AI stocks are being downgraded to '2s' to align ratings with current views.
- Positive catalysts for AI stocks include prominent politicians supporting data center development, strong Nvidia earnings, and reduced selling pressure.
- Upcoming economic data includes July new home sales and the Conference Board Consumer Confidence Survey on Tuesday.