CNBC Television
Hackett: The earnings trajectory is very strong and broadening beyond AI names
11/6/2025, 12:10:15 PM
Economic Summary
- A stronger-than-expected ADP report and ISM data lifted sentiment, while Supreme Court skepticism about tariffs reduced uncertainty and bolstered markets.
- Expectations of tariff refunds imply higher Treasury issuance if enacted, which, combined with positive data, helped push 10-year yields up roughly 5–6 basis points.
- Earnings season is robust: dollar strength has aided outsized beats, margins are better than feared, and AI-led growth is beginning to converge with broader market strength (examples include META and PLTR movers).
- Investor behavior remains pro-risk with a buy-the-dip mentality since April, though some valuation froth in AI/mega-cap names warrants caution.
Bullish
- Stronger-than-expected ADP and ISM data support continued economic resilience and market optimism.
- Earnings trajectory is strong with resilient consumers and better-than-expected margins across many sectors.
- Potential repeal/refund of tariffs reduces uncertainty and boosts investor sentiment, aiding equity markets.
- Retail buy-the-dip flows concentrated in big tech have supported large-cap leadership and amplified rallies.
Bearish
- Valuation froth in AI and mega-cap tech risks sharp pullbacks on disappointment.
- Tariff refunds would force increased Treasury issuance, likely pressuring yields.
- Earnings reactions can punish extended winners despite fundamental beats.
Bullish tickers
METAPLTRNETJPM
Bearish tickers
METAPLTRNET
PLTR
Bullish
Rallied on beats and represents a rediscovered 'forgotten' name benefiting from the strong earnings backdrop.
Bearish
Highly volatile; extended strength can reverse quickly on small disappointments.
META
Bullish
Record buy-the-dip retail inflows and strong earnings momentum have supported its recent rally.
Bearish
Concentration risk in MAG7 and high expectations leave it vulnerable to pullbacks.
NET
Bullish
Highlighted as a focus (upcoming CEO discussion) amid a strong tech earnings environment.
Bearish
Tech sector froth could weigh on shares despite company-specific fundamentals.
JPM
Bullish
Noted record retail inflows into big tech, signaling persistent investor demand patterns.
Bearish
Flagged concentration risks in single-stock buying, implying broader market vulnerability.
People mentioned
Ted Pick