Oil Spike, Curve Flattening, and Staying Disciplined on Tech Earnings
Brian Szytel records shortly before the close on October 8, noting a modest down day with the Dow and S&P off about a third of a percent and the Nasdaq down about two-thirds, as value holds up better than growth amid sharply higher oil (WTI around $92, Brent around $106) and slightly higher rates. He observes the yield curve has been flattening over the past two weeks as long rates come down somewhat, with news out of France adding bond-market reverberations, and highlights better-than-expected initial jobless claims. Drawing on meetings with multiple portfolio managers, he discusses strong near-term earnings expectations—particularly in South Korean memory names—but cautions that forward-looking markets can quickly reprice if longer-term demand, productivity, or capex payoffs disappoint, arguing against over-concentration. He also explains that a 15-basis-point move in the 10-year is dramatic but more common than assumed, occurring about 34 times in five years.
00:00 Welcome and Setup
00:31 Market Snapshot Today
00:51 Oil and Rates Impact
01:36 Economic Data Check
01:50 NYC Manager Meetings
02:22 AI Memory Stock Caution
04:07 Rate Volatility Explained
05:23 Wrap Up and Sign Off
05:40 Disclosures and Disclaimer
Links mentioned in this episode: DividendCafe.com
Brian Szytel is the Co-CIO and Senior Managing Director of The Bahnsen Group.
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