Core Viewpoint - Citic Securities maintains an "Overweight" rating for Cisco (CSCO.O) with a target price of $90, driven by strong guidance for FY2026Q2 and significant AI order growth [1] Group 1: Financial Performance - Cisco's FY2026Q2 guidance exceeded expectations, indicating robust financial health [1] - AI orders reached $1.3 billion, with projected annual AI revenue of $3 billion [1] Group 2: Business Drivers - The initiation of a campus network upgrade cycle is expected to drive growth in traditional business segments [1] - Strong demand for AI infrastructure is a key factor supporting the company's growth trajectory [1] Group 3: Valuation - The target price has been raised to $90 based on comparable company valuations [1]

Market Sentiment - The current market sentiment is characterized by significant fear and anxiety among investors, with predictions of a potential market crash [1][2] - Despite the panic, there are opportunities for good buys as the market has shifted from being overbought to grossly oversold [2] Market Analysis - A notable correction occurred on October 22, with the top 300 stocks in the Russell 3000 experiencing a 5.73% intraday correction, indicating a violent market adjustment [2] - The NASDAQ has seen intensified selling pressure, breaking through previous lows, while the Dow and S&P have not followed suit [3] Investment Strategy - The company emphasizes the importance of a structured exit plan, utilizing the A-B-C framework to navigate the bull market's final stages [4][8] - Investors are advised to focus on fundamentally strong stocks and look for buying opportunities rather than succumbing to market fluctuations [15] Performance Metrics - The S&P 500 would need to experience a nearly 9% drawdown to reach its 200-day moving average, indicating that current market dips are relatively minor [6] - The recent market corrections have seen a dip of approximately 2.5% in the S&P and 4.5% in the NASDAQ, which may not warrant panic [6] Notable Investor Insights - Michael Burry, known for his bearish stance, has closed his fund and returned capital to shareholders, highlighting a disconnect between his valuation estimates and market performance, as the NASDAQ has returned nearly 70% over the past two years [10][11] - The company warns against anchoring investment decisions to peak portfolio values, advocating for a process-driven approach instead [7][12] Economic Outlook - AI spending fears have contributed to market volatility, but evidence suggests that the return on investment from AI is substantial, with productivity growth linked to AI-related time savings [16] - Projections indicate that AI could contribute to a potential 15% GDP growth, translating to an additional $16.5 trillion in economic output [17] Trading Strategies - The concept of "renting" the market through short-term, high-conviction trading is presented as a viable strategy for those wary of long-term commitments [19][20] - Jonathan Rose's trading system focuses on identifying moments when institutional investors are likely to invest, which can amplify broader market trends [21]

Core Points - Nokia plans to close its significant research center in Munich, Germany, before 2030, affecting over 700 jobs [1][3] - The layoffs will occur in two phases, with over 300 jobs cut by 2026 and the remaining positions eliminated by 2030 [1] - Nokia currently employs approximately 2,500 people in Germany and aims to focus investments on key sustainable development hubs globally [1][3] Company Strategy - The decision is described as a difficult but necessary move to maintain long-term market competitiveness [1][3] - Nokia emphasizes that while the Munich base will close, operations in other German regions, such as Nuremberg and Ulm, will continue to play a crucial role in research and development [3] Industry Reaction - The German metalworkers' union (IG Metall) strongly opposes Nokia's decision, labeling it a "strategic error" that could jeopardize the company's competitiveness and technological leadership [3] - The chairman of the workers' council warns that cutting ties with Munich, a hub for high-tech and AI, could have detrimental effects on other German sites like Stuttgart, Düsseldorf, Ulm, and Nuremberg [3]

We recently published Market in Turmoil but These 10 Stocks Are on Fire. Cisco Systems, Inc. (NASDAQ:CSCO) is one of the best-performing stocks on Thursday. Cisco Systems propelled to a new 25-year high on Thursday as investor sentiment was bolstered by its strong earnings performance for the first quarter of fiscal year 2026, which exceeded its own expectations. At intra-day trading, the stock soared to its highest price of $79.50 before trimming gains to end the day just up by 4.62 percent at $77.38 ap ...

Group 1 - Futures for major stock indexes, including the Dow Jones Industrial Average, traded modestly lower after the government shutdown ended with President Trump's signing of a funding bill [1] - Walt Disney reported earnings that contributed to its decline in the stock market, indicating potential challenges ahead for the company [1] - Cisco's earnings exceeded expectations, and its outlook is above market views, driven by strong orders in the AI sector [4] Group 2 - Disney is inching toward a turnaround in 2026, with plans to boost content spending, which may impact its financial performance positively in the long term [4] - The streaming video industry is expanding, with Disney increasing its media footprint in collaboration with Netflix [4] - The stock market is observing a week ahead focused on Dow stocks and potential rebounds, indicating a volatile market environment [4]

Group 1: Market Overview - Major U.S. equities indexes experienced a decline, with technology shares significantly impacting the Nasdaq, which fell nearly 2% [1] - The S&P 500 and Dow Jones Industrial Average also reported lower performance following the end of the longest federal shutdown in U.S. history [1] Group 2: Company Performance - Cisco Systems (CSCO) saw its stock surge over 4% after the company raised its full-year profit outlook [3] - The Walt Disney Co. (DIS) shares dropped 9% due to weaker-than-expected revenue, particularly in its linear TV networks business [2] - Flutter Entertainment (FLUT) stock fell 11% after the company revised its full-year revenue and adjusted EBITDA forecasts downward [2] - WEBTOON Entertainment (WBTN) shares plummeted 25% after projecting a decline in fourth-quarter revenue [2] - Sealed Air (SEE) shares soared 19% following reports of potential talks with private-equity firm Clayton Dubilier & Rice for a private acquisition [3] - Firefly Aerospace (FLY) shares jumped 17% after posting better-than-expected results and a positive full-year revenue projection [3] Group 3: Commodity and Currency Movements - Oil futures rose nearly 1%, trading just above $59 per barrel [3] - Gold futures remained relatively unchanged at around $4,200 per ounce [3] - The yield on the 10-year Treasury note increased to 4.10% [3] - The U.S. dollar weakened against the euro, pound, and yen [3] - Cryptocurrency prices were mixed, with Bitcoin trading under $101,000 [3]

Core Viewpoint - US stocks experienced a decline on Thursday as the recent market rotation lost momentum, despite the Dow reaching new highs [1] Group 1: Market Performance - The Dow Jones Industrial Average fell approximately 94 points, translating to a decrease of 0.2% [1] - The S&P index also showed signs of decline, indicating a broader market pullback [1]

Core Insights - Cisco (CSCO.US) shares rose nearly 7% to $78.76 in pre-market trading following the release of better-than-expected Q1 FY2026 earnings and an optimistic outlook, indicating progress in capturing more AI-related spending [1] Financial Performance - Cisco reported Q1 FY2026 revenue of $14.9 billion, an 8% year-over-year increase, surpassing analyst expectations of $14.8 billion [1] - The company's Non-GAAP net income was $4 billion, a 9% increase year-over-year, with earnings per share (EPS) of $1.00 compared to $0.91 in the same period last year, exceeding the consensus estimate of $0.98 [1] Future Guidance - Cisco raised its full-year FY2026 revenue guidance to between $60.2 billion and $61 billion, up from the previous forecast of $59 billion to $60 billion [1] - The company also increased its Non-GAAP EPS guidance for the full year to a range of $4.08 to $4.14, compared to the prior estimate of $4.00 to $4.06 [1]

Market Overview - U.S. stock futures showed mixed movements following a mixed trading session on Wednesday, with major indices experiencing slight fluctuations [1] - The 10-year Treasury bond yielded 4.08%, while the two-year bond was at 3.57%, indicating market expectations for potential interest rate cuts by the Federal Reserve [2] Stock Performance - Cisco Systems Inc. (NASDAQ:CSCO) saw a premarket increase of 7.04% after reporting positive financial results for the first quarter, maintaining a stronger price trend across various time frames [7] - Walt Disney Co. (NYSE:DIS) was up 0.29% ahead of its earnings report, with analysts predicting earnings of $1.04 per share on revenue of $22.75 billion, also showing a strong price trend [8] - Applied Materials Inc. (NASDAQ:AMAT) rose 0.55% with expected earnings of $2.10 per share on revenue of $6.67 billion, maintaining a strong price trend [8] - SoundThinking Inc. (NASDAQ:SSTI) fell 3.32% after disappointing third-quarter results and lowering its FY25 sales guidance, reflecting a weaker price trend [8] - Dlocal Ltd. (NASDAQ:DLO) dropped 11.37% despite beating third-quarter estimates, as its gross profit margin declined to 37% from 42% year-over-year, indicating a weaker price trend in the short and medium terms [8] Sector Performance - Most sectors on the S&P 500 closed positively, with healthcare, financial, and materials stocks recording the largest gains on Wednesday [5] Analyst Insights - BlackRock maintains an "overweight" view on U.S. equities, supported by a softening labor market that may allow the Federal Reserve to cut interest rates, which could benefit U.S. stocks and the AI sector [9] - The firm emphasizes that AI developments are crucial for corporate earnings, which are seen as a key factor supporting U.S. market valuations compared to other developed markets [10] Economic Data - Upcoming economic data releases, including October's CPI and initial jobless claims, will be delayed due to the recent government shutdown, impacting market expectations [11][13]

Core Insights - A $10,000 investment in the Schwab U.S. Dividend Equity ETF since its inception in 2011 would be worth approximately $51,000 today, highlighting its potential for capital appreciation [1][15] - A study by Dimensional Fund Advisors indicates that income-focused portfolios have a significantly lower failure rate for retirees compared to growth-focused portfolios, suggesting the importance of income stability in retirement planning [2][3] Fund Overview - The Schwab U.S. Dividend Equity ETF aims to track the Dow Jones U.S. Dividend 100 Index, which includes 103 high-yielding dividend stocks selected for their fundamental strength [4] - As of the latest data, the ETF has a dividend yield of 3.8%, which is more than triple that of the S&P 500 [5] Holdings and Performance - The ETF's largest holding is Cisco Systems, comprising 4.43% of the portfolio, with a dividend yield of 2.2% and a history of 14 years of dividend increases [7][9] - AbbVie and Amgen are also significant holdings, with AbbVie having raised its dividend for 54 consecutive years and Amgen maintaining a 3.2% yield [10][11] - The ETF has underperformed the S&P 500 since its inception, with an annualized total return of 12.2% compared to the S&P 500's 15.2% [14] Sector Exposure - The ETF has rules limiting sector weightings to no more than 25%, with the largest sector being energy at 19.3% and consumer staples at 18.5%, mitigating risks associated with overexposure to any single sector [13] Valuation and Investment Appeal - The ETF's price-to-earnings ratio is 17, significantly lower than the S&P 500's ratio of 31, indicating it may be undervalued [16] - With a low expense ratio of 0.06%, the ETF is positioned as an attractive option for investors seeking income and capital appreciation [16]