The Exchange 6/4/26

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**SPEAKER_2** (0:25)
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**Travis Prentiss** (0:48)
Investing involves risk, including risk of loss.

**SPEAKER_5** (0:50)
Fidelity Brokerage Services LLC member NYSE SIPC.

**Kelly Evans** (0:55)
You're listening to The Exchange. Here's today's show.
Thank you very much, Scott. SpaceX hits the road. AI is eating the crypto trade and worms are eating America's cattle. Welcome to The Exchange, everybody. I'm Kelly Evans. It's the Dow's turn to hit a record high with a 900-point surge today. The S&P is also in the green up 28 points. Interestingly, though, the NASDAQ is in the red. Today's trade, broadly speaking, is not at all driven by AI. It might be the opposite. It's healthcare. It's financials. It's the consumer. United Health and Goldman are your Dow winners. The credit card names are rising today as well. Merck rounds out the top five. Even Walmart, which has been lagging, getting in on the action with a 1 percent gain. Now, as mentioned, what's not working is the AI trade. The semis and the memory stocks are lower. Broadcom down 14 percent on its lackluster guidance last night. Does today's action mean the market can hold up even if the AI trade isn't leading the way? It is today the big broadening that we've been waiting for. Joining me now for our opening exchange, Travis Prentiss is Chief Investment Officer at the Informed Momentum Company. Travis, it's great to see you. Welcome.

**Travis Prentiss** (2:05)
Yeah. Thank you. Thanks, Kelly. Thanks for having me.

**Kelly Evans** (2:08)
This is what it used to be like covering the stock market. How did we even do it before AI came along? There's nothing else. It would be healthcare, and it would be financials, and ho-hum, and here we go.
What do you make of today's trading activity and price action?

**Travis Prentiss** (2:23)
Yeah. Obviously, a very fascinating day. Obviously, some important earnings overnight and this morning. But I think it's a reflection of just a reversal trade that we're seeing on a daily basis. It seems that momentum's done extremely well, and the AI trade's done extremely well very recently. It's natural for a little bit of a correction, a little bit of a consolidation. But there's also some good things happening outside of AI.
I think you see that within small cap markets, that so-called broadening out trade that you said. I think there's a broader market out there besides just mega cap tech. Today's a reminder of that.

**Kelly Evans** (3:00)
Just yesterday or the day before, we were talking about oil prices back on the rise, 10-year yield was moving higher. Russell hates when that happens. It's not like we've gotten an end or any major development on the Iran front. It just feels like everyone's in a better mood today. I want to point to Costco. If I'm not mistaken, they put up an 8 percent monthly comp. An 8 percent comp in the face of all of those supposed headwinds the consumer is facing.
Is that a catalyst?

**Travis Prentiss** (3:26)
Yeah, I think it's also a point to just look at the stock market as an opportunity set stock by stock. I think it's very hard to draw very large conclusions from just one company's report. For example, we saw a very good result from Victoria's Secret very recently too. So it's very much we think a stock by stock driven market.
You see that within software as well, as we saw kind of an indiscriminate selloff this year to date, but then we saw a very indiscriminate rebound. But I think now you're getting to the point where there's a little bit more differentiation within the software trade, and we think that's likely to happen in the market itself, and actually within the AI trade as we see much broader and newer momentum and trend in everything leveraged to AI agent traffic. So I think even within the market and even within a monolithic trade like AI, which it's been, there is some dispersion, there are some differing opportunities. So I would suggest your audience look at the market as stock by stock opportunities.