On today’s episode of Free Lunch, Associate Stock Strategist Ryan McQueeney discusses bond yields, a major hack affecting Amazon and Apple, big changes at Campbell Soup, and the continued volatility of Snap. Later, he is joined by Dave Bartosiak to chat about AMD’s pullback and preview Costco’s earnings report.
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Free Lunch is the newest show from Zacks Investment Research. It is streamed live, four times per week, and features breaking news and analysis from Zacks strategists. Free Lunch is available on YouTube, Facebook Live, Twitter, Ustream, and more.
Major indexes were down in morning trading as bond yields reached multi-year highs, curbing investors’ appetite for stocks around the world. The rise in bond yields stems from fresh economic data and optimistic sentiment from the Federal Reserve—which may have put pressure on stocks but still spells good news overall.
There was also some increased pressure on the tech sector Thursday, as a major story from
Bloomberg Businessweek involving Amazon ( AMZN - Free Report) and Apple ( AAPL - Free Report) rattled investors.
These reports indicated that hardware from Super Micro Computer , a major server manufacturer used by dozens of U.S. companies, was found to contain tiny chips which could circumvent security precautions and siphon data like a Trojan horse.
Apple, Amazon, and Supermicro have denied any knowledge of such devices, but according to
Bloomberg Businessweek, Apple, Amazon, and broad swathes of the intelligence community have been aware of the infiltration for years and triggered investigations.
Elsewhere, Wall Street again has a wary eye cast toward Snap (
SNAP - Free Report) today as yet another analyst warned of headwinds for the social media stock. It was Evercore getting in on the bearishness today, lowering its price target for Snap to $7 and suggesting that Facebook’s ( FB - Free Report) Instagram has all-but crushed Snap’s ability to satisfy investors.
Another company in the news this morning is Campbell Soup (
CPB - Free Report) , which is reportedly in talks to sell its struggling fresh-foods division. The unit that contains juice brand Bolthouse Farms could bring in about $500 million to $700 million, reports said. Campbell is also dealing with significant activist pressure as Dan Loeb and Third Point continue to pursue changes to the board of directors.
On the first half of today’s show, Ryan recaps these stories. Make sure to check out that segment for all the key facts and Ryan’s perspective on the headlines!
Later, Ryan is joined by Dave Bartosiak to dive further into a few major stories. Dave shares a comedic take on the aforementioned hack, suggesting that if true, it confirms the fears of even the most ridiculous conspiracy theorists. Ryan and Dave are, however, careful to say that this is a big “if.”
Dave also updates investors on AMD (
AMD - Free Report) , which he famously declared as a $40 stock on an earlier episode of Free Lunch. AMD has hit a bump in the road to that target price, and Dave takes a crack at explaining why.
Finally, Dave previews the upcoming earnings report of Costco (
COST - Free Report) , which is due out today. Make sure to check out the show to hear more! 5 Companies Verge on Apple-Like Run
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