Tech, commodity, AI, and Cabot Explorer stocks struggled this week as concern over capital expenditures increased. Specifically, Banco Santander SA (SAN) shares gave back 2% as investors digested the bank’s Webster Bank acquisition and the stock paused to catch its breath, writes Carl Delfeld, editor of Cabot Explorer.
Mideast tensions intensified and inflation numbers came in at their highest rate in over three years, fueled by rising energy costs. The combination of anticipated higher short-term interest rates and rising bond yields impacted the price of precious metals, with gold sliding below $4,200 an ounce and silver falling below $64 an ounce.
Banco Santander SA (SAN)
What to watch next is how much US Treasury yields rise. As for tech and AI stocks, looking back in history, railroads were the Internet and Artificial Intelligence investment of the day. The Financial Times estimated that US railroad bonds represented a stunning third of the nation’s GDP by 1890. Some think AI could have a bigger impact. Count me in as an optimistic skeptic.
Finally, with Santander, the stock has not matched last year’s stellar performance. But the bank has peerless profit margins and is steadily bringing in new corporate and retail customers.
Recommended Action: Buy SAN.
