The real driver for stocks trading at all-time highs, according to this strategist
(This is a wrap-up of the key money moving discussions on CNBC’s “Worldwide Exchange” exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m. ET each day.) Dan Ives shares his bullish call on Apple; Plus Citi sees opportunities in a consumer data stocks analysts expect to benefit from rate cuts. ‘Worldwide Exchange’ pick: Equifax (EFX) Drew Pettit of Citi sees increased upside for credit bureau firm Equifax due to rate cuts that he thinks will improve demand and earnings. “Rates are actually a driver here,” said Pettit. “It’s bringing the macro into the fundamentals. When we look at our analyst expectations, it’s for earnings well above consensus for fiscal 2026 and 2027, driven by lower rates at which should show up in lower mortgages.” Mortgage rates have actually increased since the Federal Reserve cut its overnight rate by 25 basis points last week. Pettit said that move in mortgage rates doesn’t impact his thesis, however. “It’s shorter term versus longer term. We’re finally talking about mortgage rates closer to a six-handle, not a seven. So let’s think about what that means for spring demand, not just for refinancing, but potentially new home activity, longer term story. Housing is under built the United States, so there are some tailwinds beyond just the short term move in rates,” he said. Earnings impact on the market rally Robert Teeter of Silvercrest Asset Management sees earnings as the biggest factor in the major indexes trading at all time highs, noting second-quarter profits grew 13.3% year over year — while a July 1 consensus called for 5.8% growth. “Earnings have been surprisingly strong last quarter, looking for more of the same this quarter, and part of that’s built on a long term theme around expanding margins,” said Teeter. “I think there’s some long runway to be had there, perhaps the next couple of weeks, it could be in a little bit of a holding pattern until we wait and start getting some of those earnings reports in a few weeks.” However, Teeter admits the rally faces some risk from inflation data and the upcoming jobs data. “The thing that could derail this market is if you get any outside surprise, particularly on the inflation front or downside on those job numbers, those are the things to watch in the interim.” Dan Ives raises Apple target Dan Ives raised his price target on Apple to $310 from $270 on optimism over the iPhone 17 rollout. “We’re seeing actually massive demand in terms of online as well as in the stores. ASPs (average selling prices) are going to see an uplift as well. So you combine this with 315 million have not upgrade their phones in four years. This is finally, I think, the upgrade cycle the streets hope for.” Ives said. Ives added: “If you look at iPhone Air, that’s going to be the star of this show especially in the US. I saw the stores over the weekend, three of every 10 were coming in for the Air.” ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
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