Jessica Inskip returns to the Big 3 and offers a glimpse into stocks she sees as beneficiaries in the AI trade. She points to GE Vernova (GEV) as a key player in the data center buildout with a higher margin compared to competitors. Jessica names IBM Corp. (IBM) as a strong multi-faceted tech company and sees Microsoft (MSFT) as an opportunity due to its backlog and expanding AI endeavors. Rick Ducat backs Jessica&#x27;s insights with a look into key support and resistance areas to watch. ======== Schwab Network ======== Empowering every investor and trader, every market day. Subscribe to the Market Minute newsletter - https://schwabnetwork.com/subscribe Download the iOS app - https://apps.apple.com/us/app/schwab-network/id1460719185 Download the Amazon Fire Tv App - https://www.amazon.com/TD-Ameritrade-Network/dp/B07KRD76C7 Watch on Sling - https://watch.sling.com/1/asset/191928615bd8d47686f94682aefaa007/watch Watch on Vizio - https://www.vizio.com/en/watchfreeplus-explore Watch on DistroTV - https://www.distro.tv/live/schwab-network/ Follow us on X – https://twitter.com/schwabnetwork Follow us on Facebook – https://www.facebook.com/schwabnetwork Follow us on LinkedIn - https://www.linkedin.com/company/schwab-network/ About Schwab Network - https://schwabnetwork.com/about

The Big 3: GEV, IBM, MSFT

Schwab Network

# Full Transcript

**Podcast:** Schwab Network

## Participants

- **Marlee Caden** (Stockbrokers.com)
- **Jenny** (Stockbrokers.com)
- **Rick Duquette** (None)

## Transcript

Welcome back to Trading 360. I'm Marlee Caden. It's time for the Big 3. We've got three stocks and three charts for you. Rick Duquette will take us through the charts. Taking us through the picks today, Jenny, Director of Investor Research over at Stockbrokers.com. Jenny, great to have you back on the show. Would love to get your thoughts on this market setup that we have. We've got some earnings coming our way after the close today. We've got PCE later this week. We've had our new Fed chair have his first meeting since last we spoke. What are some of your takeaways?

Yeah, there's certainly a lot to discuss. I think with what's happened with the Iran conflict, first of all, has given us the 60-day period of increased headline risk. It seems like markets are really looking through the conflict because oil is down and it remains down and that's boating very well. We've talked about this really strong earnings picture. That's going to be tested with the AI narrative tomorrow with Micron. But more importantly, with Kevin Warsh, since we last discussed the interest rate environment, if you will, I believe that's going to be a big deal.

I believe he introduced a little more uncertainty. He told us about his task forces. He alluded to more of the price stability part of the dual mandate, less away from the employment picture. So as we're digesting data and understanding how that's going to impact markets, that's really the big unknown for me.

But what I'm flagging is the two-year yield continues to hit new 52-week highs. The two-year yield always tries to front run the Fed funds rate. So that tells me short-term inflation expectations are elevated, but it's peculiar when that happens and the stock market is rallying. So we've seen the two-year yield spike while the stock market is rallying. And then today, as the stock market is falling, but today it just looks like a rotation out of those very large moved tech names, if you will, really tied to storage and analog.

So I still think we're in a healthy environment, but it's that uncertainty that, of course, we want clarity on. But when we have uncertainty, it creates volatility, creates term premium, moves across the market, if you will, Marley. It sure does. I mean, and let's move on to your first pick then, because we're looking at GE Vernova down considerably more than the broader market today, pretty much giving up all of its gains that it saw in the last month. But I mean, it is still maintaining a 60-plus percent move to the upside year to date. So walk me through your thesis on GE Vernova.

Sure, and I believe this is part of that rotation of those that just held that run up, are rotating out, especially from what happened overnight in South Korea. GE Vernova, I believe, is the leader in the infrastructure and the AI dat...

The Big 3: GEV, IBM, MSFT

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

The Big 3: GEV, IBM, MSFT

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.