According to CNBC, Jefferies said investors should own “quality, low-stress” stocks over the summer as markets become more volatile amid concerns tied to artificial intelligence investment, including potential overcapacity and the profitability of hyperscalers investing an estimated $700 billion in capital spending. In a note Monday, Jefferies’ Desh Peramunetilleke said the S&P 500 momentum index has outperformed the broader market by more than 70% since 2024, and warned that AI-led momentum could unwind on adverse sentiment. Jefferies screened for companies with market values above $10 billion, long-term free cash flow yields above 3%, limited momentum and valuations below 20 times expected earnings over the next year; it highlighted AbbVie, Netflix, Lowe’s Companies, McDonald’s and American Express. CNBC reported that AbbVie posted $15 billion in first-quarter worldwide net revenues and agreed last week to buy Apogee Therapeutics for $10.9 billion, while Netflix forecast second-quarter revenue growth of 13% and is set to report results on July 16; AbbVie is scheduled to report on July 31.
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