(This is a wrap-up of the key money moving discussions on CNBC's "Worldwide Exchange" exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m.
ET each day) The last week of August is typically a low-volume time for markets, but there are number of key decisions that need to be made by investors this week. We reviewed the market action from Federal Reserve Chair Jerome Powell's Friday speech and gave some key picks ahead of Nvidia's earnings Wednesday. Fed cuts: Celebratory or desperation? Callie Cox of Ritholtz Wealth Management said there have been 18 Fed cutting cycles since 1970 with 11 being "desperation" and seven being "celebratory".
"We are still in the 'celebratory, bucket right now which is great news for investors," said Cox. She added: "The job market is slowing down, but it's still pretty clear we are not in crisis mode yet. That shows the Fed is cutting on its own terms and we still have time to save this expansion.
" Cox's data shows the S & P 500 has risen 7% in the 12 months following "desperation" cuts and 11% higher in the 12 months following "celebratory" cutting cycles. Worldwide Exchange 'Word of the Day:' Juggernaut Kevin Mahn, president and chief investment officer of Hennion & Walsh Asset Management, said Nvidia earnings after the bell on Wednesday will be a major market inflection point, especially for the AI Trade. "I can't think of any better company to represent a juggernaut," Mahn said.
"Nvidia earnings have the potential to change investor psyche and also the outlook for AI investing overall. They are going to confirm their rollout schedule not just for Blackwell Ultra next year, But Rubin and Rubin Ultra over the next two year. Nvidia has become the hub of the AI ecosystem.
" Stock picks to start the week Delano Saporu of New Street Advisors said Walmart (WMT) is a good defensive pick if investor are concerned about seasonal volatility in September. Mahn says Nvidia earnings should give a lift to the broader tech sector and the AI trade. His picks are Broadcom (AVGO) and ServiceNow (NOW) as "adopters" and Digital Realty Trust and Vertiv Holdings as 'enablers'.
No 'bazooka' stimulus in china Top private equity firms have stopped investing in China this year, according to a new report from the Financial Times. Dewardric McNeal of Longview Global said the Chinese Community Party and The People's Bank of China have relied too much on monetary policy actions and short-term rate adjustments that have failed to restore confidence with investors and domestic consumers. McNeal added that the fiscal stimulus often described as "the bazooka option" is highly unlikely to happen.
"Philosophically Xi [Chinese Premier Xi Jinping] considers this welfarism, but also the levels of debt that China is dealing with does not lend itself to this big 'bazooka' style stimulus. I advise people to quit talking about it, because it's not happening," He said. Chart of the day Dow Transports turned positive for the year following Jerome Powell's comments at Jackson Hole Friday.
The freight and logistics index is often seen as a leading economic indicator..
