CNBC Television
Settling and repricing of AI stocks is important, says Farr, Miller & Washington's Michael Farr
11/6/2025, 9:48:59 PM
Economic Summary
- Major averages pulled back with tech as the laggard; several high-flying, highly valued tech stocks have room to fall after extended gains, increasing concentration risk in the S&P 500.
- This earnings window (names cited: AFRM, WYNN, SQ, EXPE, DKNG, ABNB) is presented as key to assessing consumer strength — strong reports would support discretionary and travel-related stocks.
- Federal Reserve messaging is hawkish-to-neutral: officials emphasize data dependence, not easing or accommodation, implying markets should expect policy patience rather than renewed stimulus in the near term.
Bullish
- Earnings season could reveal consumer resilience and support stocks.
- AI remains a long-term tailwind for large tech, despite near-term repricing.
- Equal-weighted S&P approach offers diversification away from mega-cap concentration.
Bearish
- High-valuation tech names likely to be repriced after recent run-up.
- Market concentration in a few mega-cap names could drag broader indices down.
- Fed signaling it will not ease adds to market jitters and downside risk.
Bullish tickers
AFRMWYNNSQEXPEDKNGABNB
AFRM
Bullish
Earnings could show consumer lending demand and usage resilience if spending holds.
Bearish
High sensitivity to consumer stress; downside if spending weakens.
WYNN
Bullish
Resort and gaming results could demonstrate resilient discretionary travel spending.
Bearish
Vulnerable to a discretionary-spend pullback in travel and gaming.
SQ
Bullish
Payments and merchant services trends could reflect stronger economic activity if volumes hold up.
Bearish
Exposed to reduced consumer and small-business payment volume and competitive fintech pressures.
EXPE
Bullish
Robust booking trends would indicate continued discretionary travel spending strength.
Bearish
At risk if travel demand softens or bookings decelerate.
DKNG
Bullish
Sports-betting revenue could signal resilient consumer discretionary spending.
Bearish
High volatility and exposure to shifts in discretionary wagering and regulatory risks.
ABNB
Bullish
Sustained hosting demand would confirm resilient travel-related consumer spending.
Bearish
Sensitive to travel slowdowns and pricing pressure in the short term.
People mentioned
Michael FarrJohnJonathan KrinskyJim Labenthal