Morgan Stanley's Michael Wilson thinks the Fed has been slow to cut rates into the start of a new bull market, which could mean more rate cuts in 2026 than expected, supporting stocks. Wilson's view underpins Morgan Stanley's bullish take on U.S. stocks, contrasting others' calls for anemic growth in the coming years. Investors can find confirmation that a new bull market began in April in S&P 500 constituents' earnings, which are now growing close to 10%, the best in four years, according to Wilson. "That ...

Key Takeaways In October, job openings came in at 7.7 million, an increase from 7.2 million job openings reported in the August release of JOLTS Job Openings and Labor Turnover Survey (JOLTS). September data wasn't released due to the government shutdown, but the October report showed that job openings in the prior month were also near 7.7 million. Economists surveyed by The Wall Street Journal and Dow Jones Newswires projected that job openings would remain near August levels of 7.2 million. The data shoul ...

Core Insights - The article highlights the significant disparity between the interest rates offered by large banks and those provided by smaller banks and credit unions, emphasizing that many consumers are missing out on higher earnings by keeping their savings in big banks [2][4][10]. Group 1: Savings Rates Comparison - Major banks like Chase, Bank of America, and Wells Fargo offer a minimal 0.01% APY on standard savings accounts, resulting in negligible earnings for savers [3][9]. - In contrast, smaller banks and credit unions are offering high-yield savings accounts with rates of 4% or more, with some competitive options reaching 5.00% APY [4][5]. - Even banks with recognizable names, such as Citi, Ally, Capital One, and American Express, provide rates in the mid-3% range, which are still significantly lower than those offered by smaller institutions [5]. Group 2: Safety and Insurance - There is a common misconception that larger banks are inherently safer; however, FDIC insurance protects deposits up to $250,000 per depositor at all banks, regardless of size, and credit unions insured by the NCUA offer the same level of protection [6][17]. - The article emphasizes that smaller banks and credit unions are just as safe as larger banks, with the primary difference being the interest rates offered on savings accounts [6]. Group 3: Financial Impact of Savings Choices - Keeping savings in a big bank can result in missing out on hundreds of dollars in interest annually, with the potential earnings gap becoming more pronounced with larger balances [7][10]. - A comparison table illustrates the earnings difference between a 0.01% APY and a 4.25% APY for various balances, showing that a $25,000 balance could yield over $1,000 more in a high-yield account [9][11]. - The article suggests that linking a high-yield savings account to an existing checking account is a simple process that can enhance savings without disrupting daily banking habits [10][15].

Key Takeaways What the Fed's Move Could Do to Your Savings Rate Financial markets overwhelmingly expect the Federal Reserve to announce another quarter-point rate cut on Wednesday. That matters to anyone with cash in the bank, since the central bank's benchmark rate impacts what banks and credit unions are willing to pay on customer deposits. That means even a small shift is likely to ripple through to your savings account APY. If the Fed does indeed cut by a quarter point, savings and certificate of deposi ...

Key Takeaways Almost nothing seems to rattle individual investors lately. They've overcome fears about tariffs, inflation, and a potential stock market bubble, continuing to buy their favorite stocks and ETFs all year long. Despite concerns about economic policy, overvaluations in AI stocks, and rising prices, investors are mostly optimistic about the stock market right now, according to Investopedia's recent survey. More than 60% describe themselves as either optimistic or cautiously optimistic, while less ...

Core Insights - CVS Health has raised its full-year earnings forecast and introduced an AI strategy to enhance engagement [1][6] Financial Outlook - CVS now expects full-year adjusted earnings per share (EPS) of $6.60 to $6.70, an increase from the previous forecast of $6.55 to $6.65 [2] - The company anticipates revenue of at least $400 billion, up from the earlier outlook of at least $397.3 billion [2] - For fiscal year 2026, CVS projects adjusted EPS of $5.94 to $6.14 on revenue of at least $400 billion [2] Business Performance - Strong earnings growth at Aetna and an increase in new customers for its pharmacy-benefits business contributed to the improved outlook [3] - CVS CFO Brian Newman indicated that the company is closing out 2025 with significant momentum and expects continued strong earnings growth in 2026 [3] Strategic Initiatives - CVS has outlined a new engagement plan that includes developing a platform with AI capabilities to integrate various healthcare components into a single app [5] - The company's shares have increased by approximately 75% this year, although they remain below their highs from 2022 [5] Investor Confidence - The improved outlook may enhance investor confidence in CVS's turnaround efforts under new CEO David Joyner, who took over in October amid challenges such as rising medical costs and reduced store foot traffic [4]

KEY TAKEAWAYS The Department of Education announced an agreement with the states suing for the elimination of the Saving for a Valuable Education repayment plan.More than 7.7 million borrowers still in forbearance under the SAVE plan will soon need to transition to another repayment plan, and the Income-Based Repayment plan may be the most certain option for them. The Department of Education announced early Tuesday that it has moved one step closer to shutting down the Saving for a Valuable Education rep ...

Key Takeaways The Federal Reserve seems likely to cut interest rates again this week, but it probably won't do so as a united front. Fed officials are split on whether the economy needs lower interest rates, a debate that starts Tuesday and will also be on display when the Federal Open Market Committee's decision comes out at 2 p.m. ET Wednesday. The more dovish FOMC officials are likely to prevail. The Fed is widely expected to cut its benchmark rate by 25 basis points to a range of 3.5% to 3.75%, amid sig ...

Analysts from Bank of America and Morgan Stanley each recently raised their price targets for Broadcom stock, but noted that the chip designer faces long-term risks. The analysts said that Alphabet's (GOOGL) Google is looking to design its own future generations of AI chips in house, rather than the current generation that it has designed in partnership with Broadcom. That could put Broadcom's market share at risk if Google is successful and eventually looks to sell its designs to other current Broadcom cus ...

Core Insights - Two major tech companies, Oracle and Broadcom, are set to report quarterly earnings, with Oracle's stock down over 30% recently due to concerns about customer concentration and an AI bubble, while Broadcom's stock has risen nearly 20% since the launch of Google's Gemini 3, indicating a divergence in market sentiment towards AI investments [1][6][10]. Company Summaries Oracle - Oracle's stock surged 36% after reporting a significant increase in its cloud computing backlog, which grew to nearly $500 billion, largely due to a $300 billion deal with OpenAI [4]. - Concerns have arisen regarding Oracle's reliance on this single deal, leading to skepticism about its long-term growth potential [4]. - The company has increased its debt burden by selling $18 billion in bonds to finance data center investments, raising questions about its financial stability compared to competitors like Microsoft and Amazon [5]. Broadcom - Broadcom's stock has performed well, boosted by a $10 billion order for custom chips from a new customer, believed to be OpenAI, and optimism surrounding its AI business [7]. - The upcoming launch of Google's Gemini 3, which utilizes Broadcom-designed chips, has further enhanced market confidence in Broadcom's ability to compete with Nvidia in the AI chip market [7][8]. - Analysts have raised price targets for Broadcom, anticipating strong demand for custom chips and networking solutions to accelerate its AI business in the coming year [11]. Industry Context - Wall Street analysts are generally optimistic about the earnings reports from both companies, expecting them to reflect sustained AI demand [2]. - Recent research indicates a potential shift in the AI investment landscape, with a decrease in correlation among AI hyperscaler stocks, suggesting that not all companies may benefit equally from AI trends moving forward [12].