Oh, Reallllllly?
Market Talk
Monday's major indices, after successful Independence Day celebrations, traded ebulliently with CNBC pundits announcing the AI trade is back and this time it should stick.
"Oh, reallllllly?" says the Church Lady, recalling the old Dana Carvey SNL skit.
Yep, stocks like Micron Technology (MU) are up about ten points today. But wait a minute. Just last week, after reporting earnings, MU was nearly 300 points higher!
Just saying... today's hoopla doesn't even catch up to last week's whipsaws, and that goes for many tech stocks as well.
So, while the TV pundits proclaim Bull Land victory, many real people, traders and investors alike, may still feel like their stocks are stuck in Market Limbo.
With the above caveats, let's talk some specifics.
Stock Talk
With AI stocks still rolling, investors continue to focus on the data center theme and the large language models powering AI platforms such as ChatGPT from OpenAI and Claude from Anthropic.
The rumor mill has Anthropic's long-awaited IPO coming around October. Whether that timetable proves accurate or not, the market already appears to be looking ahead. That could keep AI, data center and infrastructure stocks in focus for some time.
Skepticism and opportunity do not have to be mutually exclusive. While today's market still appears vulnerable to sharp rotations and whipsaws, that doesn't mean investors should stop looking for new ideas. It may simply mean starting with small test positions and adding only if the investment thesis continues to improve.
One particular stock worth watching is SK Telecom (SKM), South Korea's largest wireless telecommunications company.
Beyond its core telecom business, SKM made an early $100 million private investment in Anthropic and has outlined ambitious plans to expand its AI and data center infrastructure throughout Asia.
Some traders have been buying a few shares of SKM here in the $30s as one possible way to participate in whatever ultimately comes from an Anthropic IPO. For investors looking to gain some exposure to that theme without chasing the higher-flying AI names, SKM may be worth considering as a small spec position.
In other Jones Watch Stocks, there is one that still seems to trade under the radar despite fundamentals that continue to improve. Perhaps that is because management prefers to remain "stealthy and scrappy," as the CEO has put it.
That stock is V2X (VVX).
Last quarter's VVX earnings jumped to $1.53 per share. Add in a record $13.8 billion backlog, and those numbers kind of speak for themselves.
And one more thing...
Those fighter jets flying all over on July 4 don't maintain themselves.
For other Jones Watch Stocks, scroll down if interested.
Stay Watchful.
- Jones Report
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More later so ....Stay tuned, if you dare!
For now, we close by noting that any view on the market and stocks on any particular day may change in the days to come. That is why we watch and see how our views match up with reality. Looking ahead a few months may be a way to do things - but thinking too deeply about world events and the recent alliances forming, can make projecting ahead a dicey endeavor.
All in all - we use the word maybe "some", not "too much" and play it accordingly. Never get arrogant in our notions because things do change - and individual stocks are subject to many factors outside our control. So, we try to -stay aware.
With all the above caveats and attempted prognostications, I will close this post. Stay tuned for more opining on the market and stocks to watch.
ALL in my humble opinion, scroll down and read more. This site does NOT make Buy / Sell recommendations.
