Latest news with #S&P100
CNBC
6 days ago
- Business
- CNBC
The only path to 7,000 for the S&P 500 is through AI, Josh Brown says
Josh Brown thinks the only way the S & P 500 could climb to 7,000 by year end is through artificial intelligence. "If we're going to get to 7,000, it's going to be because of the AI build out," Brown told CNBC's " Halftime Report " on Tuesday. "That is the only pillar holding up the US economic growth story right now." The Ritholtz Wealth Management CEO made his comments in response to HSBC hiking its S & P 500 year-end target to 6,400 because of AI. The bank added that the broad market index can end the year at 7,000 in its bull case scenario, and fall to 5,700 in its bear case scenario. Indeed, AI stocks continue to power the market higher in spite of growing concerns the U.S. is headed for a recession, potentially even a stagflation scenario in which consumers experience higher inflation at the same time as they do lower economic growth. Those fears weighed on the major averages Tuesday, with all three indexes in negative territory after the the latest ISM data suggested there was weakness last month in the services sector. The soft figures comes on the heels of Friday's dismal jobs report that showed significant revisions to prior months. And yet, AI-related names such as Palantir was a bright spot in the market. The stock jumped more than 6% in midday trading. "The companies that comprise all of the market cap in the S & P 100 and certainly the Nasdaq, that's where the earnings growth is happening," Brown said, adding, "Everything that has to do with cloud computing and data center, it's on fire." DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. INVESTING INVOLVES RISK. EXAMPLES OF ANALYSIS CONTAINED IN THIS ARTICLE ARE ONLY EXAMPLES. THE VIEWS AND OPINIONS EXPRESSED ARE THOSE OF THE CONTRIBUTORS AND DO NOT NECESSARILY REFLECT THE OFFICIAL POLICY OR POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC. ASSUMPTIONS MADE WITHIN THE ANALYSIS ARE NOT REFLECTIVE OF THE POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC" TO THE END OF OR OUR DISCLOSURE. Click here for the full disclaimer.
CNBC
24-07-2025
- Business
- CNBC
Best Stocks: A unique financial stock riding the options boom with a chart sent from heaven
(This is The Best Stocks in the Market , brought to you by Josh Brown and Sean Russo of Ritholtz Wealth Management.) Josh — In 1973, The Chicago Board of Trade launched a subsidiary that would allow traders to place bets on a new standardized contract based on stock prices. These contracts, similar to but separate from the CBOT's bread-and-butter commodity futures products, were called options. They carved out a single trading pit on the floor for these stock option contracts and standardized how they worked. At first, there were options on just sixteen publicly traded companies, like IBM. In due time, more were added. Stocks were extraordinarily volatile in the mid-1970s with back-to-back bear markets and lots of opportunities for both speculation and protecting portfolios. The business was a hit. When the early 1980's bull market got underway, this "Chicago Board Options Exchange" or CBOE (usually pronounced as C-Bow) grew into a hive of trader activity. In 1983, the first contract on a stock market index came along when the CBOE unveiled its S & P 100 options offering. If you've ever seen the ticker "OEX" cross the bottom of your CNBC screen, that's the one. Cboe Global Markets (CBOE) is now one of the best financial services businesses in the world and this week it made the Best Stocks in the Market list. Ever since the next generation of retail traders came along during the pandemic, it's been a bull run for options trading. In its July 3, 2025 report, Cboe said that June 2025 trading volume hit a new all-time record. They reported the highest ever quarterly average daily volume for S & P 500 options at 3.7 million contracts, and zero‑day-to‑expiry (0DTE) options at 2.1 million contracts. Zero days to expiration trading — which we refer to as 0DTE — continues to boom. Did you know that over 60% of S & P 500 option trades are 0DTE? It's wild given how new this type of contract is. Retail traders are estimated to be responsible for over half of this activity. Sean's going to give you the set-up on Cboe stock, which has been moving in a tightly wound, neat little uptrend all summer long. I'll be back at the end with a risk management comment. Best Stock Spotlight: Cboe Global Markets Inc (CBOE) On the list since: 7/22/2025 Sean — Cboe Global Markets (CBOE) made it onto the list this week. When I pulled up the chart, I knew I had to show Josh right away. The stock's lack of volatility is remarkable as you can see in the logarithmic chart since inception. The lack of volatility has given the stock a beta of 0.43 compared to the overall market's beta of 1.0, which means CBOE has about half the volatility of the S & P 500. For obvious reasons, this makes for an attractive risk-reward and many portfolio managers love building allocations with stocks like these. Despite its lack of volatility, CBOE has been anything but quiet. The stock has massively outperformed the S & P 500 since coming public 15 years ago, returning a cumulative 854% (inclusive of dividends) since inception vs. a 647% total return for the S & P 500, or 16% annualized vs 14% for the S & P 500. (data via YCharts). Ever since the trading boom of 2020, CBOE's fundamental outlook has been stellar. The increase in trading activity has led to an increase in the need for exchange-traded products as well as the underlying data tied to those products. S & P 500 options trading volume has been growing 8% a year over the last five years, while VIX options volume has been growing at a 15% annual clip. In addition to the increased popularity of its trading products, CBOE is also in the midst of adding more recurring, higher-quality subscription products so they can become less reliant on transaction volume over time. Cboe's non-transaction revenue business includes Data and Access Solutions (DnA), providing data, infrastructure, and global market access to its customers. The exchange's infrastructure and proprietary market data are getting leveraged into recurring revenue streams through subscription-based services. Unlike transaction-based revenues that fluctuate with market volatility, their DnA business provides steady, predictable income that complements the trading business. Said otherwise, the firm is leveraging higher-quality revenue. You can expect the market to award this improvement in "earnings quality" with a higher multiple. From 2020 through their last reported quarter, CBOE has grown revenues 5%, operating income 13%, and diluted EPS 14% on an annualized basis. CBOE is due to report next week on Friday, August 1st. Analysts expect Revenue of $575M up 12% year-over-year and EPS of $2.43, up 13% year-over-year. (Data via Quartr) Risk Management: Josh: If this were heaven, and not earth, this is what every stock chart would look like and we would just buy them all. You can see below how perfectly the buyers came in to save this name from a 200-day trend break during the market volatility in April. Investors in this name know that volatility is actually a good thing if you're the largest options exchange and clearing operation in the world. Earnings next week could produce a blip, which I would most likely ignore so long as the company does the number and guides up. For shorter-term traders, I'd use 220 as a pivot point. It retested that level in mid-June and bounced off it clean. If it gets below, there might be better set-ups elsewhere. Investors should obey the rising 200-day and check back every Friday close. DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. INVESTING INVOLVES RISK. EXAMPLES OF ANALYSIS CONTAINED IN THIS ARTICLE ARE ONLY EXAMPLES. THE VIEWS AND OPINIONS EXPRESSED ARE THOSE OF THE CONTRIBUTORS AND DO NOT NECESSARILY REFLECT THE OFFICIAL POLICY OR POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC. JOSH BROWN IS THE CEO OF RITHOLTZ WEALTH MANAGEMENT AND MAY MAINTAIN A SECURITY POSITION IN THE SECURITIES DISCUSSED. ASSUMPTIONS MADE WITHIN THE ANALYSIS ARE NOT REFLECTIVE OF THE POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC" TO THE END OF OR OUR DISCLOSURE. Click here for the full disclaimer.
Business Insider
19-07-2025
- Business
- Business Insider
Block to replace Hess Corp. in S&P 500 at open on 7/23
Block (XYZ) will replace Hess Corp. (HES) in the S&P 500 effective prior to the opening of trading on Wednesday, July 23. S&P 500 and S&P 100 constituent Chevron (CVX) has acquired Hess Corp in a deal that closed today, July 18. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Time of India
19-07-2025
- Business
- Time of India
How Volatility Index (VIX) empowers traders with forward-looking view of risk
Tired of too many ads? Remove Ads What is India VIX and why Is it Important? Tired of too many ads? Remove Ads How is India VIX calculated? Interpreting VIX Levels: What Does a Number Mean? Historical Levels of VIX since May 2008 Tired of too many ads? Remove Ads India VIX and Nifty: A Negative Correlation Correlation of VIX with Nifty since May 2008 How VIX Moves Differently During Nifty's Gains and Losses Average Movement in VIX Levels in relation to Nifty since May 2008 Average Daily Change in Nifty Relative Average Daily Change in VIX < -5% 9.30% -5% to -3% 9.61% -3% to 0% 2.03% 0% to 3% -1.67% 3% to 5% -3.61% > 5% -1.46% Don't Ignore Volatility (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of .) The concept of a Volatility Index (VIX) was first introduced by the Chicago Board Options Exchange (CBOE) in 1993. Originally, based on the S&P 100 index, it was revised in 2003 to track the S&P 500 options, and soon gained popularity as the market's "Fear Gauge." It provided investors with a real-time estimate of expected market volatility derived from option the utility of this indicator, the National Stock Exchange (NSE) of India launched its own version called the India VIX in 2008, using the methodology licensed from the CBOE. The India VIX is based on the Nifty 50 Index options and represents the market's expectation of volatility over the next 30 calendar launch was driven by the increasing complexity in Indian capital markets, the rise in derivatives trading, and the need for a standardized metric to measure implied volatility, thereby empowering investors with a forward-looking view of VIX is a measure of implied volatility derived from option prices, which captures the market's collective expectation of near-term volatility. Unlike traditional equity indices that measure price levels, the VIX reflects sentiment and anticipated market fluctuations. Specifically, India VIX uses order book data from near and next-month Nifty 50 index options traded on the NSE.A VIX reading of 15, for instance, implies an annualized expected volatility of 15% over the next 30 days. The importance of VIX lies in its ability to serve as an indicator of expected market volatility. Higher VIX values correspond with greater uncertainty, while lower readings may imply market stability. Market participants, including institutional investors and asset managers, often monitor the VIX as one of several indicators to perform risk management, hedging strategies, and tactical asset allocation decisions. India VIX is one of many tools that can provide context on changing market calculation of India VIX is rooted in a methodology adopted from the CBOE, tailored to suit the Indian derivatives market. It involves using bid-ask quotes of out-of-the-money (OTM) call and put options from the near and next-month expiry contracts of the Nifty 50 index. These OTM options are chosen because they are more sensitive to volatility expectations and provide a clearer picture of anticipated market movements. For each selected option strike, the midpoint of the bid and ask price is computed. These midpoints are then weighted based on strike intervals, adjusted for the risk-free interest rate, and aggregated to calculate the variance. Finally, the result is annualized to yield the India simpler terms, India VIX quantifies the level of implied volatility embedded in the premiums of Nifty options. When traders expect high volatility, they are willing to pay more for protection, which in turn raises the VIX value.: NSE, MO AMC. Data as on 17th June VIX values can be interpreted to understand prevailing market sentiment. Generally, a VIX reading below 13 signifies a calm market with low expected volatility, while a range of 13 to 17 is considered normal. Values between 17 and 25 suggest increasing nervousness among investors, and a VIX above 25 indicates elevated volatility and potential market turbulence. These levels act as critical signals for asset managers and retail investors researchers have also explored how VIX can be used for timing strategies between large-cap and mid-cap segments. A rising VIX typically favors a shift towards large-cap exposure, while a falling VIX can encourage allocation to mid-caps and lowest India VIX level was recorded in July 2023 at around 10.14, during a period of market consolidation. In the following 12 months, the Nifty delivered a strong return of approximately 26.4%, reflecting investor confidence during low volatility. In contrast, the highest VIX levels were seen during major global shocks – above 85 in November 2008 during the Global Financial Crisis, and over 80 in March 2020 during the COVID-19 these periods of elevated volatility, markets rebounded sharply. After the 2008 spike, the Nifty returned about 80.8% over the next year. Similarly, after the COVID-induced VIX surge, the Nifty posted a strong recovery of nearly 83.6%. These patterns show that extreme volatility often precedes strong market rallies.: NSE, MO AMC. Data as on 17th June India VIX has exhibited a strong negative correlation with the Nifty 50 Index. When the Nifty experiences a sharp decline, the VIX typically spikes, reflecting heightened uncertainty fear and increased demand for protective derivatives. Conversely, during market rallies, VIX tends to fall, indicating reduced average correlation between Nifty and India VIX is -0.41 based on the data analysed since 2008. This inverse relationship makes India VIX a valuable tool for hedging, especially for passive and index investors who seek to protect portfolios from adverse studies have also emphasized the asymmetrical nature of VIX's relationship with market returns – it reacts more sharply to market downturns than to example, on 7th April 2025, India VIX surged by 65% when the Nifty dropped 3.24% due to global uncertainties. In contrast, on 28th October 2008, even as the Nifty jumped 6.35%, VIX fell by around 33%. This pattern illustrates that VIX reacts more aggressively to market declines than to market gains.: NSE, MO AMC. Data as on 17th June asymmetrical relationship between Nifty and VIX is evident in how VIX levels respond across different ranges of Nifty's average daily the Nifty falls, especially during sharp declines, VIX tends to rise significantly. For instance, if Nifty drops by more than 5%, the VIX shoots up by an average of 9.3%. Similarly, for a fall between 3% and 5%, the VIX still increases by around 9.6%. This indicates a strong spike in market uncertainty during negative events. On the other hand, when the Nifty rises, the VIX does not drop as sharply. For example, in cases where the Nifty gains more than 5%, the VIX decreases only by about 1.5%. Even for gains between 3% and 5%, VIX drops by just 3.6%.This pattern highlights that VIX is considerably more sensitive to market declines than to rallies. The market tends to react more strongly to downside risk than to upward movements. This imbalance reinforces why volatility indices are seen as early warnings for downside risk and not for upside is not merely a risk factor but a dimension of the market that holds valuable insights. The India VIX serves as a transparent, real-time indicator of investor sentiment and expected market fluctuation. For index fund investors, ETF product managers, and mutual fund professionals, integrating VIX into investment frameworks can offer a strategic advantage. Whether it is used for hedging, asset allocation, or sentiment monitoring, the importance of VIX cannot be India's financial markets evolve, the inclusion of volatility-linked products like a VIX ETF could deepen the passive investment landscape and provide new tools for portfolio resilience. While challenges remain, the foundation is already in place. With thoughtful design and education, volatility could indeed become a tradable and manageable asset class.
Techday NZ
10-07-2025
- Business
- Techday NZ
AlphaSense unveils new brand & website amid rapid revenue growth
AlphaSense has launched a new brand evolution and redesigned website in an effort to reinforce its position in AI-powered market intelligence and support enterprise clients facing increasing business complexity. The latest brand rollout underscores AlphaSense's efforts to equip business leaders with tools that enable quick and confident decision-making, supported by artificial intelligence that prioritises verifiable and trusted insights. The company serves over 6,000 global customers, including a majority of the S&P 100, top international banking institutions, and the world's largest pharmaceutical companies. In a statement, Heather Zynczak, Chief Marketing Officer at AlphaSense, said, "We're entering a new era where the ability to move from complexity to clarity is the ultimate competitive edge. This evolution - and the digital experience that brings it to life – reflects our unique position at the forefront of AI and market intelligence, empowering our customers to lead in a world that's only getting faster and more complex." The updated brand is designed to signal AlphaSense's transition from a search solution to a broader intelligence system. The company's AI technology now integrates with a content repository of 500 million verified documents, including vital business information such as earnings transcripts, expert interviews, financial filings, and premium industry news. AlphaSense positions its service as being distinct from standard consumer-grade platforms, emphasising its focus on providing context-rich, reliable answers for enterprise requirements. Brand changes The brand evolution consists of several tangible components. These include a revised visual identity intended to communicate momentum and trust, a refined brand voice that stresses expertise and direction, and new design features modelled on proprietary AI-driven workflows. The company also launched a redesigned website aimed at simplifying the discovery of information, highlighting practical use cases, and demonstrating AlphaSense's platform capabilities for its users. The design and development of both the new brand and website drew on the same methodologies underlying the AlphaSense platform itself. According to AlphaSense, this approach showcases its ongoing belief in combining artificial intelligence capabilities with human insight for more robust business intelligence solutions. Growth and expansion The company's decision to refresh its brand identity follows a period of significant growth. AlphaSense reports that it surpassed $400 million in annual recurring revenue as of March 2025, more than doubling its previous figures from April 2024. The business also cites achieving 100% year-on-year growth in enterprise-level adoption. Recent product developments include the introduction of Deep Research, Generative Search, and Generative Grid - AI features designed to replicate the analytical functions of expert researchers. AlphaSense has also expanded its physical footprint, announcing a move to a global headquarters in Hudson Yards, New York City, along with new and enlarged offices in London, Singapore, and Chicago. Recognition for the company's trajectory has included its placement at number eight on the 2025 CNBC Disruptor 50 list, which ranks fast-growing private firms that are recognised as driving meaningful change in their industries. Focus on clarity The brand transformation was developed with support from Saffron, a global brand consultancy, which contributed to the strategic and visual direction of the evolution. The website redesign was led by Instrument, a digital agency tasked with translating AlphaSense's refreshed brand values into its online experience. Both partners worked to ensure the rebranding and website aligned with AlphaSense's principle of pairing AI expertise with human judgement in digital workflows. AlphaSense's continued expansion and product development reflect its stated mission to provide clarity for business executives in an increasingly complex and information-laden environment. The company's revised brand identity and website represent the latest step in its broader transformation efforts within the market intelligence sector.
