Dietze: All Eyes on NVDA Earnings, Bullish on KHC, SLB, MOH

Market Overview - The S&P 500 is currently only 2.5% off its highs, indicating that there is no immediate cause for concern despite recent volatility [1] - Investors are reassessing the AI trade, questioning whether there is a bubble, as evidenced by significant declines in blue-chip stocks like Oracle and Meta [2][3] AI and Tech Stocks - Oracle has lost one-third of its value since August, while Meta is down nearly 20% in the last month, prompting investors to reconsider their positions [2] - Concerns are growing regarding capital expenditures in AI and the timing and magnitude of potential payoffs [4] - Nvidia's upcoming earnings report is critical, as its performance could significantly influence market sentiment [7][9] Investment Strategies - A cautious approach is being adopted, with many investors taking profits and rebalancing portfolios due to the high concentration of market cap in top AI-related stocks [6] - Despite concerns about an AI bubble, there are still opportunities in tech, with analysts like Dan Ives highlighting potential investments [5] Company-Specific Insights - Craft Heinz is viewed as a cheap stock with an 11% free cash flow yield and a 6.4% dividend, despite its struggles [12][13] - SLB (formerly Schlumberger) is favored due to its position in oil field services and its recent performance, rising 11% in the last month while the S&P 500 remained flat [15][16] - Molina Healthcare is down 46% year-to-date, but is expected to rebound as it adjusts premiums in response to rising claims costs [17][19] Economic Indicators - The Federal Reserve is expected to cut rates, with current speculation around the true unemployment and inflation rates affecting market dynamics [22][24] - The 10-year Treasury yield has been fluctuating around 4%, indicating a stable economic outlook despite some concerns about unemployment [26][28] Tariffs and Affordability - The administration's focus on affordability, including potential tariff adjustments and housing affordability measures, is seen as a positive step for the economy [29]