While the market was melting down on Monday, Rev calmly wrote 5 Stocks I’m Buying While the Crowd Focuses on AI Disaster . You should read the whole thing over on TheStreet Pro , because I’m only going to share three of Rev’s five picks.So, let’s look for the bullish side of the AI trade. Today, I’m sharing four stocks that AI will help, not hurt.So, what’s Rev’s game plan? As always, Rev is a trader. He thinks the best trades come from stock selection and timing. And that’s what he’s doing. Picking stocks ...

Group 1 - The article discusses the impact of AI on the job market, particularly the fear of a significant loss of white-collar jobs due to advancements in AI technology [2][4][10] - Citron Research's report titled "The 2028 Global Intelligence Crisis" suggests a bleak future for white-collar workers, predicting massive unemployment and economic downturns [2][4] - Despite initial market reactions to the report, the market has shown resilience, with the Dow gaining 308 points and the S&P advancing by 0.8% [3] Group 2 - Salesforce reported strong earnings but faced a decline in stock price due to conservative full-year earnings forecasts, despite announcing a $50 billion buyback plan [6][7] - The article highlights a dichotomy in the market, where Salesforce trades at 15 times earnings, indicating a potential undervaluation compared to other software companies [7][12] - Concerns about enterprise software companies are noted, with the potential for earnings degradation but not extinction, as they adapt to AI advancements [11][12][18] Group 3 - NVIDIA is highlighted as a key player in the AI boom, reporting a 75% growth in its data center business and providing better-than-expected guidance, which positively impacted its stock [21][22] - The article argues that AI will create more jobs than it destroys, countering the narrative of a job apocalypse [15][23][24] - The overall sentiment is optimistic about the future of AI and its role in the economy, suggesting that while some companies may face challenges, the industry as a whole will adapt and thrive [20][27][28]

President Donald Trump is proposing a change that could have a knock-on effect on your credit card rewards, making your points worth less. With bipartisan support — including from Sen. Bernie Sanders — Trump is proposing capping the interest that credit-card companies can charge at 10%. That’s more than a 50% reduction of the interest many companies currently charge (1). On the upside, as the Urban Institute notes, it could dramatically reduce borrowing costs for millions of Americans (2). But as CNBC ...

Core Viewpoint - The ongoing tech sell-off in the U.S. is significantly influenced by developments in AI, with IBM experiencing its steepest drop in history, reflecting broader market concerns about the tech sector's sustainability amidst AI advancements [1][5]. Group 1: Market Dynamics - The tech sector is under pressure, with a notable sell-off driven by fears that AI advancements are cannibalizing traditional tech stocks [2][3]. - FAANG ETFs and software stocks like Salesforce and Adobe are among the first to feel the impact, indicating a broader trend of U.S. investors divesting from tech [3][9]. - The consumer discretionary, tech, and financial sub-indices of the S&P 500 remain negative year-to-date, highlighting the rapid growth of investor fears [9]. Group 2: AI Developments - IBM's recent price action is linked to the emergence of AI programs like Anthropic's 'Claude,' which are seen as potential competitors to existing software solutions [5][9]. - Agentic AI, which can autonomously create code and fulfill roles traditionally held by humans, poses a significant threat to companies like Adobe and Salesforce, potentially reducing their revenue from SaaS contracts [6][9]. - The speculative nature of AI's impact on the economy is underscored by a report suggesting that AI could lead to a 'Ghost GDP,' where economic activity does not translate into consumer spending [14][15]. Group 3: Speculative Insights - A speculative blog post titled "The 2028 Global Intelligence Crisis" has contributed to market panic, suggesting that AI disruption could lead to a collapse in labor GDP and the mortgage market [11][12]. - The report's narrative resonates with existing market fears, indicating a consensus view among investors regarding the potential negative implications of AI on the economy [12][15]. - The concept of a 'Ghost GDP' suggests that while investments in AI may increase, they do not benefit the workforce, leading to decreased consumer spending and economic downturn [14][15].

Shares of credit card giant American Express (NYSE: AXP) plunged 7.5% on Monday as of 12:55 p.m. EDT. It's unusual for such a big and seemingly strong company as American Express to fall this much on a day with no company-specific news. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks » However, fears over artificial intelligence disruption hit the financial sector hard today, mainly du ...

Market Overview - U.S. equity markets are experiencing volatility with a shift toward a "risk-off" sentiment as major indexes retreat from recent highs due to a new 15% global tariff on imports announced by the White House [1][4] - The S&P 500 has fallen approximately 0.8% to around 6,835, while the Dow Jones Industrial Average has dropped over 750 points, or 1.3%, to about 48,857 [2] - The Nasdaq Composite is down 0.9%, currently at 22,596 [2] Economic Impact - The new trade policy has overshadowed previous optimism, complicating the Federal Reserve's path as the core PCE price index is running at a 3% annual rate [5] - Economists warn that persistent inflation and new trade costs may keep interest rates "higher for longer" [5] Corporate Developments - The pharmaceutical sector is facing a significant sell-off, with Novo Nordisk shares plummeting 15.9% after disappointing trial results for its weight-loss drug [6] - Eli Lilly benefits from this situation, continuing to lead in the obesity-treatment market [6] - In the technology sector, Nvidia is trading slightly higher ahead of its critical Q4 earnings report, viewed as a bellwether for AI infrastructure spending [7] - Other notable stock movements include Domino's Pizza rising 6% after beating revenue expectations, while American Express fell 7% due to concerns over consumer spending [7] Upcoming Market Events - The week ahead includes significant market-moving events, such as Nvidia's earnings report on Wednesday and the Consumer Confidence Index on Tuesday, which will provide insights into household reactions to the tariff news [8] - Earnings reports from Salesforce and major financial institutions like Scotiabank are also anticipated, offering a broader view of the enterprise software and global banking sectors [8]

Framed as a postmortem dispatch written from June 2028, Citrini’s memo describes a dystopian economy where aggressive AI adoption initially drives record corporate profits but—via mass layoffs—ultimately hollows out the American consumer base. There’s a simple problem at the heart of this picture. This is what Citrini calls “ghost GDP,” created by AI, inflating national accounts but never actually circulating through the real economy because of the inconvenient fact that “machines spend zero dollars on disc ...

Core Insights - Loyalty points are highly valued by consumers, with nearly 75% of Americans using credit cards that offer rewards, significantly impacting revenue for companies in sectors like airlines and hotels [1][2] - U.S. companies are projected to issue or redeem approximately $26 billion in loyalty points this year, alongside a substantial amount of uncashed points that keep customers engaged with loyalty programs [2] Legislative Changes - New legislation, including the reintroduction of the Credit Card Competition Act, could reduce the ability of consumers to accrue loyalty points by allowing merchants to choose cheaper transaction networks [3][5] - A recent ruling upheld the Illinois Interchange Fee Prohibition Act, which bans swipe fees on taxes and tips, potentially leading to increased card fees and diminished rewards for consumers [3][5] Impact on Business Models - The push for lower fees for merchants may threaten the loyalty economy, impacting the business models of airlines and other companies that rely heavily on loyalty points [4][5] - Industry experts warn that if retailers opt for networks with lower swipe fees, consumers may face fewer rewards and reduced fraud protections, which are often funded by these fees [5]

Core Insights - American Express (NYSE: AXP) has shown significant stock performance, with a price increase of 180% over the past five years, and a total return of 198% when including dividends [1] - Berkshire Hathaway holds a 22.1% stake in American Express, which has increased to represent 16.5% of its overall portfolio due to the company's stock buyback strategy [3] Company Performance - American Express has a strong brand presence in the credit card industry, offering premium cards that appeal to affluent customers, which contributes to its financial success [5] - The company has demonstrated pricing power, with an average fee per card increasing by 75% from 2020 to 2025, and it maintains lower delinquency and charge-off rates compared to industry averages [6] - Revenue (net of interest expense) has grown by 120% over the past decade, while diluted earnings per share have increased by 205%, with long-term growth targets set at 10% for revenue and mid-teens for earnings [7]

Core Insights - The discussion highlights the significant impact of credit card 'swipe' fees on small businesses, particularly restaurants, and consumers [1] Group 1: Impact on Restaurants - Credit card 'swipe' fees are a major financial burden for small restaurants, affecting their profit margins [1] - The National Restaurant Association emphasizes the need for policy changes to address the high costs associated with these fees [1] Group 2: Impact on Consumers - Consumers ultimately bear the cost of high swipe fees through increased prices at restaurants [1] - The discussion suggests that reducing swipe fees could lead to lower prices for consumers, benefiting both parties [1]