Stocks hit record highs as Nvidia to invest $100B in OpenAI

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00:00Welcome back, everyone, here to Live Down from Fox. I'm your host, Mike Page. Thanks again for

00:03joining us. Well, it was another big day on Wall Street today for the stock market, the Dow,

00:10the S&P 500, and the NASDAQ, all hitting their third record in a row. So we want to talk all

00:17about that and so much more. I want to bring in our next guest. This is Matt Orton, the Chief

00:23Market Strategist with Raymond James Investment Management. Thanks so much for joining us here

00:28today, Matt. And you know, it seems all the time when NVIDIA has a good day, it seems like everybody

00:34else is going to have a good one as well. Yeah, absolutely. And the nice thing is it's not just

00:40NVIDIA anymore. The market itself continues to work. And I think the market's doing well for

00:46really two key reasons. Number one is that earnings and expectations for earnings of companies continue

00:52to improve. I think you see that by a lot of the deals that NVIDIA continues to strike companies

00:56using cash, companies going public. That's because they have confidence in their ability

01:01to earn going forward. And I think the other key reason the market continues to go higher

01:06is because there's more optimism around the growth trajectory going forward. There's a path

01:12for interest rates to come down. That's good for the market. And the economy itself is doing well.

01:17Data is starting to turn. It's holding up decently well. So that gives investors confidence in

01:22the future for the market and company's ability to earn in the future. Yeah, Matt, that's such a good

01:28point there, because not only are these big, big companies blowing out earnings, but then they're

01:33guiding so much better as well for the next quarter. I mean, it's getting everyone still super excited.

01:40Yeah, that's 100% right. Because again, what matters most for the markets, Mike, is the projections

01:45for earnings going forward. And we just came off of one of the strongest earning seasons that we've had

01:51in decades. And not only have earnings guidance been strong, but guidance for profitability of

01:56companies has also been really strong. So companies are making more money, despite a lot of concerns

02:02or the concerns that were out there around inflation and tariffs, companies ability to weather any

02:07problems I think is unmatched. And so we're seeing corporate profitability near record highs. And again,

02:13that bodes really well for markets going forward. And that's a key reason why I remain optimistic

02:18about the investment environment going forward, not just for mega cap tech, which I like, but for the

02:24broader stock market itself as well. Yeah, so, so true. And what about the news here of this

02:31tick-tock deal that President Trump is going to be announcing later this week, we saw Oracle get part

02:38of this and their stocks continue to rise. By the way, for Oracle, I mean, when they put out their

02:46earnings and their guidance, I think everybody in the world was wishing that they were on Oracle

02:51calls for that weekly because it just blew it out. 100%. I mean, it's so rare to see a stock the size

02:59of Oracle go up almost 40% in a single day. But again, that's because they crushed their earnings

03:05estimates, guided hire moving forward. And now there's even more optimism around what Oracle can

03:11do because they're going to be central in this deal that we're starting to see unfold with respect to

03:17tick-tock and China and US investors starting to take control of the business in the US for tick-tock.

03:24And Oracle itself is going to control the training of the algorithm. And it's going to store all of the

03:30user data in a secure facility so that it shouldn't be able to be manipulated by outside forces. So I

03:37think this deal is very constructive because it, again, it takes away some uncertainty that may have

03:42been out there with respect to US-China relations. We're seeing, I'd say, Trump and Xi very amicable

03:48towards one another. And the fact that we might get this deal signed also signals further progress on

03:53the trade front and wrapping up more of those trade talks, which are absolutely critical

03:58for the US and our competitiveness and really getting a good deal on trade into the future.

04:04So I think it's another signal of optimism and why investors should really be embracing the fact

04:09that markets are all-time highs rather than being worried about it, because there's a lot that I

04:13think can go right and will go right down the road for the market. Yeah, so true. And so from stocks,

04:19let's talk about metals, though. I mean, gold is surging as well. Look at that, $3,750. What's going on

04:26with the metals, and why are they rising so much? Yeah, you know, Mike, I've been bullish on gold

04:31for a while, and I've liked it because gold is no longer trading just in a reaction to the direction

04:37of interest rates. We're seeing that sort of decouple. And gold has done well because more

04:42investors want to own it. We're seeing central banks around the world buying gold and increasing

04:47their overall stockpiles. And we're seeing a lot more retail investors around the world also start

04:52by gold as a hedge for potential risks going forward. And I think that matches really well

04:57with owning equities, owning stocks in the market, owning some riskier assets like technology,

05:03but complementing that with something like gold that's fairly steady, even though it's up 40% or

05:09so this year, I can see gold getting to $4,000 an ounce or more by the end of the year, simply because

05:15there's a lot of strong demand behind it. And I like the fact it helps de-risk portfolios to a

05:21certain degree, even more than bonds to a certain extent. So it helps build a balance for investors'

05:27portfolios. Yeah, it's really good to see the metals starting to surge again, because I often wonder

05:33about this, Matt. Let's just say that crypto wasn't even a thing. It was never here. What do you think

05:40like gold would be at right now if there was no crypto? Because I felt like crypto took away a lot

05:46from gold and other metals when everything was starting to go crypto crazy. Yeah, it's an

05:52interesting point, Mike, because I think when we first saw Bitcoin, say two years ago, really start

05:57to rally and sustain a lot of the gains that it made, you saw gold fall to the wayside for a little

06:03bit. But I think investors have realized that crypto is its own distinct asset class. It has its own

06:09trading characteristics that are different from gold. Whereas gold, I think, is more of a long-term

06:15hedge for a portfolio. Crypto is now more of, I'd say, a speculative asset, but it's a risk asset that

06:20investors can again use to diversify portfolios. But gold and a hard metal like silver, platinum,

06:27things like that are really good diversifiers, because while they do have industrial uses,

06:33I think a lot of times investors just store it. And so you don't have as high correlation to the

06:38equity market. So again, that helps bring down your overall risk in a way that crypto isn't able

06:43to do for your portfolio. Yeah, that's all great things. Great insight there, Matt. Lastly,

06:49before we go, any companies that you are going to be looking at, any big earnings that you're looking

06:55at for in the future to take a look at? Yeah, so I'd say pay attention to what financials report

07:02in early October. That's going to be a really good barometer for the direction of the overall

07:07economy. I expect numbers to be fairly strong, especially because we have more M&A activity.

07:13But I think my favorite name, Mike, going forward is still Alphabet. Alphabet's a long-term winner in

07:19the AI trade. It's a long-term winner in the search trade. They have hundreds of billions of dollars

07:24of cash and free cash flow that they can deploy for acquisition. So I think that's a long-term winner

07:30that investors are going to want to stick with. Yeah, no doubt. I mean, when your company is a

07:34verb and everyone's using it daily, I think that's a good point for Google Alphabet, all in the mix

07:40there. Matt, thanks so much for joining us. I'm live now from Fox. Always great to have you on and great

07:44insight.

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