The Morning Filter

Technology stocks reel amid AI monetization worries, while the Federal Reserve’s latest signals come under review. The discussion examines earnings and valuations for Apple, Microsoft, Alphabet, Amazon, Amphenol, and more. It also explores how to build core portfolio holdings before spotlighting refiners, Robinhood, and Johnson & Johnson to trim, plus Applied Materials, StandardAero, and Crown Castle as potential buys.

Markets endure a rough week as AI stocks tumble, Treasuries rally, and investors rethink growth versus value. The discussion looks ahead to Alphabet, Microsoft, and Amazon earnings, revisits SpaceX, Tesla, Meta, Hasbro, and Netflix, and explores how to use stock ratings strategically. Five deeply discounted ideas span AI chips, natural gas, athletic apparel, and connectivity hardware.

Michael Hodel, Morningstar’s communications-services equity research director, examines SpaceX’s spectrum purchase and its potential impact on Verizon, T-Mobile, and AT&T. The discussion spans inflation, rising Treasury yields, AI monetization, data-center risks, bank earnings, and semiconductor visibility. Four long-term undervalued picks round things out: Mondelez, Bristol Myers, L3Harris, and Alliant Energy.

Preston Caldwell, Morningstar’s chief economist, joins a market outlook spanning stocks, bonds, inflation, interest rates, and economic growth. The conversation explores concentrated AI gains, undervalued sectors and mega-cap leaders, shifting portfolio strategies, and Morningstar’s latest stock picks. They also examine how AI investment could reshape bond yields and why private credit risks are mounting.

Markets push higher despite rising interest rates, while upcoming inflation data and bank earnings could shape the next move. ASML offers a read on semiconductor demand, and Marvell gets a major fair-value boost. The discussion also explores barbell portfolio construction and five tax-loss harvesting candidates, including Roblox, Robinhood, Netflix, Cava, and Progressive.

September’s market action, rising Treasury yields, and the October outlook take center stage. The discussion covers Constellation Brands, Delta, Micron, McCormick, Nike, Carnival, and Clorox, plus the risks facing cyclical and speculative stocks. It wraps with three names to sell, including Robinhood and Garmin, and three potential buys such as S&P Global and Alliant Energy.

Rising Treasury yields, inflation data, and payrolls take center stage as markets weigh AI’s resilience and risks to data-center growth. The discussion covers Micron, Nike, McCormick, Costco, Darden, Lennar, and Berkshire Hathaway, plus challenges facing entertainment stocks. Four undervalued names, including Albemarle, CNH Industrial, Amphenol, and Becton Dickinson, round out the market outlook.

William Kerwin, Morningstar senior equity analyst specializing in semiconductors and AI infrastructure, takes a sharp look at Broadcom’s AI chips, networking business, and VMware software. He explores XPUs versus GPUs, Google’s partnership, rising ties with Anthropic and OpenAI, competitive threats, regulation, and the durability of AI spending. The discussion also examines Broadcom’s growth outlook, valuation, risks, and potential catalysts.

Markets face fresh pressure as Treasury yields near 5% and uncertainty over inflation and Fed policy grows. The discussion covers what Costco and Darden reveal about consumer spending, discounted housing and industrial stocks, and whether Tesla’s ambitious AI future justifies its valuation. It also spotlights defensive bargains in Procter & Gamble and Hershey, plus growth opportunities in Marvell and ASML.

Market volatility, inflation, rising yields, and possible Fed hikes take center stage alongside AI spending risks. The discussion compares Palo Alto Networks and Zscaler, revisits Ciena, Medtronic, Campbell’s, Amphenol, and Lululemon, and explains how ADRs work. It closes with seven undervalued mega-cap ideas, including Nvidia, Alphabet, Broadcom, Microsoft, Meta, Amazon, and Tesla.