Closing Bell Closing Bell: The Road Ahead for the Rally 7/2/25
Jul 2, 2025
Stephanie Link, a CNBC contributor and advisor at Hightower, along with Invesco's strategist Brian Levitt, dive into the current stock rally. They discuss key sector performances, including the rise of tech giants like Apple and NVIDIA. The conversation highlights the implications of job claims, inflation, and Fed interest rates on future market trends. The duo also examines the impact of AI on job dynamics and the evolving tech landscape. Insightful predictions for small-cap stocks and investment strategies round out this engaging discussion.
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Pricing Power Boosts Margins
- Companies, including cruise lines, have proven able to successfully raise prices, boosting margins.
- S&P 500 margins rose 61 basis points last quarter, led by major tech gains.
Earnings Drive Sector Leadership
- Earnings growth will drive sector performance, not just rotation between winners and laggards.
- Expect technology, industrials, and financials to see earnings and stock gains due to structural strength and buybacks.
Financials Exhibit Broad Strength
- Financial companies beyond big banks, like Northern Trust and exchanges, show strong performance.
- Significant bank buybacks, like Wells Fargo's 15% of market cap, provide powerful support for stocks.
