Squawk on the Street SOTS 2nd Hour: Bank Earnings Breakdown & Bank of America CEO Moynihan; Plus - DC Headlines Wrap-up 10/15/25
Oct 15, 2025
Brian Moynihan, Chairman and CEO of Bank of America, shares insights on the bank's impressive Q3 results, highlighting a remarkable 43% growth in investment banking revenue and strategies for improving credit quality. He discusses the bank's use of AI to enhance efficiency and the impact of lower interest rates on net income. Meanwhile, Sara Eisen recaps key takeaways from the Invest in America forum, addressing crucial issues such as the trade war with China, CEO sentiments on tariffs, and concerns about America's competitiveness in technology.
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Episode notes
Reduce Correlation, Add Healthcare
- Avoid overconcentration in highly correlated AI/semi trades; seek low-correlation names with margin expansion potential.
- Adam Parker suggests adding healthcare and select defensives to reduce portfolio correlation risk.
Prioritize Achievable Expectations Over Valuation
- Focus on owning companies where earnings expectations are achievable rather than relying solely on valuation.
- Parker warns that expensive stocks that miss earnings fall as far as cheap ones, so prioritize attainable forecasts.
ASML Signals Semiconductor CapEx Cycle
- ASML doubled orders year-over-year, signaling broadening AI demand and stronger semi-cap equipment spending.
- Analysts view ASML's guidance as a floor for 2026 and a potential catalyst for TSMC capex increases into 2027.