What Rising Yields and Nvidia Earnings Mean for Markets

Let's bring in the one and only Bob Lang, chief options strategist at Explosive Options.

My man, it's nice to see you here.

Great to see you, JD.

Thanks for having me.

I want to get your take on yields this week.

What do you think first and foremost, especially from Monday's session on?

What are the so-called bond vigilantes trying to communicate?

Well, they're trying to tell you that inflation is a real issue right now.

You know, the higher oil prices we've had over the past 60 days, about an average of about $100 a barrel of oil.

It's no bueno for the consumer.

It's certainly no good for businesses as well.

So I think the worry here is that inflation is going to stick around for a lot longer than most people hope for or think it's going to stick around.

And if the 10 year yield starts making a run towards 5%, look out.

I mean, especially the 30 year yield, which we've seen has already blown through 5%, making it much more difficult for homeowners to buy a home or to refinance and so forth.

So a lot of negativity going on with the high yields right now.

I know we are all eagerly awaiting what Jensen Wong and the team at Nvidia has to say, not just.

The impact for the stock, but how about other semiconductor names, other memory stocks, the kind of residual impact, that you'll be paying attention to this week.

Yes, there's a whole host of names that are going to do really well, JD, on this Nvidia earnings.

I'm looking at Arm Holdings, which is one that had a spectacular day today, probably close to 13%.

Broadcom, AVGO is a name that I think is going to do well.

Marvell Technology, and then you look at some of the ancillary names like Dell.

Also, like the memory names that you talked about Sandis, Western Digital, Micron are all going to do well off of those earnings from Nvidia.

So certainly when the big dog hits, everybody else seems to get a little bit wet when it hits the water, and I'm looking forward to some big moves over the next couple of days from some of these names.

At what point do we seek additional commentary from Jensen Wong about what comes next after artificial intelligence?

Hard to imagine there's anything else to talk about other than AI, but at some point.

Is there a bit of a post-AI future for the company?

You know, it's my view, I think Jensen Wong is somewhat of an innovator and a visionary, right?

And he understands and he knows that there's a certain lifeline of time on AI, right?

At some point in time it's just going to be, you know, just normal usage, but he's got to look for that next big thing, and I think he teased it out a couple of, a couple of weeks ago, JD, talking about, you know, what we're going to be doing next.

And I think that a lot of analysts, a lot of people on the call. are going to be listening for him to maybe speculate or even tease a little bit more about what's coming next.

I don't know if they have a chip coming out next year.

They've got another one coming out the following year.

What's beyond that?

What's beyond 2030, maybe 2031?

I don't think anybody's really prepared to hear what's next, but I think as far as Jensen Wong is concerned, you know, I really listened to pay attention to what he's got to say.

Speaking of paying attention, what are you following and paying attention to as it pertains to Kevin Warsh?

He's going to be officially sworn in here by the president.

Really any day he's got 5 FOMC meetings left between now and the end of the year.

That path forward for interest rate cuts, anything but certain for investors right now, you know, you know, JD, I've always liked Kevin Warsh.

I thought he was the right man for the job to replace Jay Powell.

Here's a man who's got some experience through the financial crisis.

He was right in the middle of it.

He was one of the architects of the bailouts that came in in 2009.

So here's a guy who's got some, who's got veteran experience in places where he's needed.

Uh, to help the economy and, and he's also, um, I, I, I, I really is an inflation hawk, you know, and I, I, what's really interesting is that, um, he's, he's talked about, you know, lowering the balance sheet, you know, selling off some bonds, and I think once Jay Powell's term was up on Friday, you started seeing interest rates rise, and I think that that's, that's the market also telling you that, hey, listen, you know what, more supply coming online with bonds being.

Hold off the Fed's balance sheet is going to create a little bit of angst as well for for the bond market.

I've got so many amazing topics to ask you about, but none more important than the book Know Your Options, co-author here, the great Jim Cramer giving you a great plug here.

Thank you.

What should people know about this book here, Bob?

So you know, Know your options.

This is really a soup and nuts book talking about how to trade options and how to use technical analysis to help analyze option trades.

It's really there's a beginner's chapter, there's an intermediate chapter, and there's an advanced chapter talking about different structures and how to do things.

So I was very proud to put all this together.

It took quite a long time to do it, but it's a, it's a, it's a great, great book, and I think that you'll really appreciate it and really I think anybody who buys it is going to get a lot out of it.

And I'm really proud to call you a friend, my man.

Thank you for being here, the great Bob Lang, author of the book Know Your Options.

We'll do it again soon.

Come back anytime.