Best Stocks: A capital markets name enabling the buildout of the digital economy

CNBC

a day ago

(This is The Best Stocks in the Market , brought to you by Josh Brown and Sean Russo of Ritholtz Wealth Management.) Josh here — When the price of oil goes up and stays up, it doesn't take long for the oil services stocks to react, but there's always some lagging effect. The same phenomenon is taking place with capital markets stocks, which probably haven't fully priced in the raging comeback for risk-taking and deal-making that began in 2023. Any time stocks and bonds are in a bull market for an extended period of time, the companies that feast on asset flows and price momentum are going to start doing very well. It's not early for the capital market stocks, but it's also not late. Sean is going to show you one of the biggest companies in the space. Sector Leaderboard As of July 7, there are 131 names on The Best Stocks in the Market list. Top Sector Ranking: Sean — Financials take up 11% of our names on our list, which is the third highest out of all sectors: Top Industries: Capital markets, an industry that sits within the financial sector, is neck-in-neck with software in terms of the best stocks by industry: Sector Spotlight: Financials are the 4th-best performing sector year-to-date, up 9.7% in total return. This sector has a max drawdown of 15.5%, meaning this sector saw a 25% swing in the first half of the year: Seventy percent of financials within the S & P 500 are above their 20-day moving average, 50-day moving average, and 200-day moving average. Within the S & P 500 late last week, we saw 5% of constituents making new 52-week highs. Financials tripled that breadth with 16% of constituents making new 52 week highs. Some of the largest and most important banks are making new all-time highs. JPMorgan Chase, Morgan Stanley , Goldman Sachs , Wells Fargo are all trading higher than their pre-liberation day levels. Financials are showing strong and improving momentum as we enter the second half of the year. Despite experiencing a significant 25% swing earlier in 2025, the sector has climbed back to become the fourth-best performer YTD. Breadth is broad and building and the group is leading the market in fresh highs, more than triple the S & P 500 average. This resurgence in financials may be signaling renewed confidence in the U.S. economy. New Addition: BlackRock (BLK) Date Added: 6/26/2025 Sean — Last week, the world's largest asset manager was added to the list. The addition of BlackRock (BLK) to our list is more than just a stock update — it's part of an ongoing trend: the financialization of nearly every aspect of the economy. As money moves faster, markets become more democratized, and assets become more digitized, the infrastructure enabling those transitions becomes more valuable. Companies like Robinhood (HOOD) and Coinbase (COIN) are obvious examples of this. BlackRock is doing it with private assets. Financials are no longer just about banks and insurance companies. The lines have blurred between tech and finance, and capital is flowing toward platforms, processors, and enablers. As the world leans further into digitized payments, tokenized assets, and real-time settlement, the companies that provide the financial rails are gaining favor, similar to the industrial rail companies of the 1800s. Just as the railroads enabled the industrial economy to scale in the 19th century, today's financial infrastructure firms are enabling the digital economy to accelerate, and investors are recognizing that new reality. Risk management Sean — BlackRock saw a significant rounding top in the winter of 2024. The stock was sideways for two months before starting a downtrend culminating on "Liberation Day" in April. The stock has fought all the way back to new highs, but because this has been a longer-term move, it may take some false breakouts above that winter high to create new support. This one is worth being early, and anticipating the breakout given how long it has been in the making. 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. 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.