Squawk on the Street SOTS 2nd Hour: Software Slump, & Washington's Affordability Push - Energy & The Autos w/Transportation Sec. Duffy 1/16/26
11 snips
Jan 16, 2026 
Transportation Secretary Sean Duffy, a former congressman leading auto affordability initiatives, discusses plans to lower vehicle costs by rolling back CAFE standards and introducing tax credits for American-made cars. Adam Parker, Founder of Trivariate Research, analyzes the negative sentiment in the software sector, highlighting bearish trends and the need for increased capital expenditures. The conversation also touches on the White House's push for tech-fueled energy solutions and the impact of EV regulations on consumer choice.
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Momentum Predicts Fundamental Trouble
- Bad price momentum in stocks often predicts subsequent poor fundamentals according to Adam Parker.
- He notes heavily down stocks and momentum make shorting easier once declines start.
Tilt Toward Diversified, Achievable Bets
- Favor diversification and achievable estimates by overweighting healthcare as a hedge against concentrated AI/tech exposure.
- Be cautious as estimates are high and the penalty for missing them is harsher than the reward for beating them.
Tech To Fund AI Power Capacity
- The administration plans to push tech firms to fund new power generation to shield consumers from AI-driven electricity demand.
- PJM could hold auctions for 15-year power contracts aimed at shifting CapEx to tech companies.