7 hours ago
A cybersecurity play set to run even higher, and how to trade this week's inflation reports
(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.) Investors are looking for opportunities in emerging markets on the back of U.S.-China trade talks and at a cybersecurity play focused on AI and remote work. Worldwide Exchange pick: CrowdStrike Shana Sissel of Banrion Capital sees more upside in CrowdStrike despite the cybersecurity giant seeing a more than 35% gain this year. "It's the leading player in that space. … Its Falcon XDR technology is incorporating AI, remote work continues to be a tailwind to the stock," said Sissel. CrowdStrike reported Tuesday where revenue inline with estimates and a better-than-expected profit, but guidance that was below expectations. But Bernstein downgraded CrowdStrike on Friday to market perform from outperform, citing valuation concerns. CrowdStrike trades at roughly 133 times forward earnings. Worldwide Exchange pick: Mexican stocks Alastair Pinder, head of emerging markets at HSBC, said U.S.-China trade talks in London are a tailwind for emerging markets and believes Mexico will be one of the biggest winners. "A surprise market that could do very well this year is Mexico," said Pinder. "They are a beneficiary long term of these trade tensions and this rejiggering of supply chains away from Asia and towards America … this is a market that trades at 12-times earnings it's used to be 19 times a lot of the bad news is already reflected in the price." The iShares MSCI Mexico ETF (EWW) has gained nearly 30% year to date. The dollar has dropped 8% against the Mexican peso. The trade ahead of CPI and PPI Jimmy Lee of Wealth Consulting group sees inflation improving and growing opportunities in interest rate sensitive cyclicals and small caps. His comments come ahead of the latest consumer and producer price index readings due this week. "I believe if the headline number continues to come in lower that there may be one or two more cuts than what the market is pricing in," Lee said to CNBC. "I like the cyclical sectors that would perform better in a lower rate environment as well as an economy that is not going into recession. … I think the smaller cap and mid cap stocks that have not participated in this year will come back." Citi on Monday lowered its outlook for Federal Reserve rate cuts from 100 basis points in 2025 to 75 basis points. Tracking the TIPS Gilbert Garcia of Garcia Hamilton believes we are likely seeing a peak in U.S. Treasury yields, noting it's an ideal time to buy at any point on the curve. "If you look at the real rate on TIPS (Treasury Inflation Protected Securities) they are unusually high … the real rate is roughly 250 basis points, which it should normally be 50 to 75 basis points," he said. Garcia noted bond yields moved higher after the jobs report but expects continued downward revisions similar to the 30,000 in April and 65,000 in March. Garcia expects those revisions to be eventually be reflected in bond pricing.
