(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) Investors are pondering the Federal Reserve’s potential next move and the risk for more volatility this month with Mideast tensions, another hurricane hitting the southeast and bond yields rising. Worldwide Exchange Word of the Day: Tempest Victoria Greene of G-Squared said investors are facing both literal and metaphorical storms that they need to consider. Said Green: “We have hurricane Milton that could disrupt economic data going forward. We have all of this weight on CPI and the Fed meetings and finally we get to earnings on Friday. Right now, investors are having to weather this tempest we saw the yields spike yesterday because everyone is repricing what is the Fed path. We are watching yields carefully, I think a lot of that move is done. I think that 4, 4.25 area should hold.” Worldwide Exchange Picks: Pepsi and Zscaler Malcolm Ethridge of Capital Area Planning Group expects Zscaler (ZS) to benefit from companies diversifying their cybersecurity vendors after the Global IT outage related to a Crowdstrike update in July. Greene picked Pepsico (PEP) ahead of earnings saying she believes in the long term narrative despite Pepsi lagging the staples sector year to date. She also likes a recent acquisition. “I look at it as a quality stock, great dividend,” said Greene. “And they just had that great acquisition of Siete Foods which pushes them into healthy, more gluten free, more paleo. It’s a great acquisition. I thought Pepsi could pick up here,” she added. Best Q4 Ideas: LVMH and Estee Lauder Tiffany McGhee of Pivotal advisors said LVMH and Estee Lauder will be big beneficiaries of China stimulus. “When we think about the Chinese consumer and what areas benefit from stimulus it is clearly luxury and consumer staples,” she said. “Moisturizer is not a ‘nice to have’ it is a must have,” said McGhee about Estee Lauder. Chinese stocks traded lower on Tuesday on disappointment over an update to stimulus plans. McGhee added: “I don’t think we are seeing the entire implications of stimulus play out… this is going to take some time we like LVMH and Estee Lauder not in the short term, but in the midterm.” Chart of the Day: Financials ETF The Financial SPDR ETF (XLF) has underperformed despite an updated proposal requiring lower capital requirements for banks that many analyst expected to give financials a boost. Ethridge said investors appear to be overly focused on net income margins, the difference between what banks earn on loans and what they pay in deposits and missing other growth areas which he expects to be M & A.
(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)
Investors are pondering the Federal Reserve’s potential next move and the risk for more volatility this month with Mideast tensions, another hurricane hitting the southeast and bond yields rising.
Worldwide Exchange Word of the Day: Tempest
Victoria Greene of G-Squared said investors are facing both literal and metaphorical storms that they need to consider.
Said Green:
“We have hurricane Milton that could disrupt economic data going forward. We have all of this weight on CPI and the Fed meetings and finally we get to earnings on Friday. Right now, investors are having to weather this tempest we saw the yields spike yesterday because everyone is repricing what is the Fed path. We are watching yields carefully, I think a lot of that move is done. I think that 4, 4.25 area should hold.”
Worldwide Exchange Picks: Pepsi and Zscaler
Malcolm Ethridge of Capital Area Planning Group expects Zscaler (ZS) to benefit from companies diversifying their cybersecurity vendors after the Global IT outage related to a Crowdstrike update in July.
Greene picked Pepsico (PEP) ahead of earnings saying she believes in the long term narrative despite Pepsi lagging the staples sector year to date. She also likes a recent acquisition. “I look at it as a quality stock, great dividend,” said Greene.
“And they just had that great acquisition of Siete Foods which pushes them into healthy, more gluten free, more paleo. It’s a great acquisition. I thought Pepsi could pick up here,” she added.
Best Q4 Ideas: LVMH and Estee Lauder    Â
Tiffany McGhee of Pivotal advisors said LVMH and Estee Lauder will be big beneficiaries of China stimulus. “When we think about the Chinese consumer and what areas benefit from stimulus it is clearly luxury and consumer staples,” she said.
“Moisturizer is not a ‘nice to have’ it is a must have,” said McGhee about Estee Lauder. Â Chinese stocks traded lower on Tuesday on disappointment over an update to stimulus plans.
McGhee added: “I don’t think we are seeing the entire implications of stimulus play out… this is going to take some time we like LVMH and Estee Lauder not in the short term, but in the midterm.”
Chart of the Day: Financials ETF
The Financial SPDR ETF (XLF) has underperformed despite an updated proposal requiring lower capital requirements for banks that many analyst expected to give financials a boost. Ethridge said investors appear to be overly focused on net income margins, the difference between what banks earn on loans and what they pay in deposits and missing other growth areas which he expects to be M&A.
