Watch These Key Levels for the Nasdaq, Treasuries, Tesla, and Alphabet
Tesla and Alphabet pulled the Nasdaq lower, while Treasury yields continued to climb.
Trump Unveils New Tariffs: 8 Key Items Shaping the Stock Market Friday
Intel’s earnings, Amex reports, mortgage rate headwinds, and other headlines are moving stocks this morning.
Intel, Defense Are Bright Spots as Market Descends Into Ugliness
Oil, yields, and earnings from Tesla and Google create a stench on Wall Street as war and tariffs pave way ahead with looming perils.
More Tales From Nvidia: Some AI Irony (Issue #222)
Am I the only one that finds it ironic that Anthropic and OpenAI are whining about the Chinese stealing their IP and then massively undercutting them on price, when they themselves have stolen everything to train their models?
And this (as mentioned previously) …. Alphabet’s ($GOOGL) free cash flow is negative for first time ever, and they are supposed to take CAPEX up? And Alphabet is in better shape then most of them. All the off-balance sheet stuff. Meta ($META) seems to be the worst and they are nowhere in AI — seems like all that money is going to be about as well spent as the Metaverse:
Position: Long GOOGL (VVS)
A Shift in Market Character, But This Is Not a Bear Market
While the technical damage is significant in places, the selling is driven by CapEx concerns, not deteriorating fundamentals.
Ouch, That Was a Rough One!
That was a rough day for most U.S. financial markets. The major equity indices took a hit on Thursday as tensions in the Persian Gulf and Red Sea pushed WTI crude oil futures above $93 per barrel. Additionally, disappointing performance by Tesla ($TSLA) and Alphabet ($GOOGL) for their second quarters put pressure on the tech/growth type names. Alphabet ran into a free cash flow problem. Tesla just had a sloppy three months, badly missing on profitability.
The S&P 500 gave up 1.21%, while the Nasdaq Composite was slapped around for a loss of 2.15%. The yield paid by the U.S. 10-Year Note ran up to 4.7% while the U.S. Two-Year Note paid 4.36% by day’s end.
Markets seemed to take it badly when President Trump warned that U.S. forces would destroy an Iranian bridge or power plant for every vessel attacked in the Strait of Hormuz. Iran threatened to target infrastructure and energy in the region where the U.S. has overt interests.
Industrials were leaders on Thursday, led by Defense as Lockheed Martin ($LMT) popped for a gain of 10.5% in response to earnings. RTX ($RTX), which is the old Raytheon, also ran 7.3%. Discretionaries were pummeled as Tesla put the whammy on the autos.
One more day this week, gang. Dougie is back tomorrow. It’s always a pleasure to go through the trading day with you when I get the chance. Have a nice evening and may God bless you all.
Sarge out.
Position: Long LMT, RTX equity
Market Takes 1-2 Punch From Oil and Capex Fears
Rising rates and capex fears hit at the same time, but the rotation is limiting the damage.
SK Hynix’s 32% Mystery: Why the Shares Trade at a Huge U.S. Premium
There are odd trading patterns developing for tech stocks on either side of the Pacific. And there’s a specific reason why trading in Hynix is particularly weird.
Investors Are Nervous. I’m Getting Interested.
Dislocations driven by market conditions rather than fundamentals are creating my shopping list.
Google and Tesla Boost Capex: 8 Key Items Shaping the Stock Market Thursday
Inflation pressures build, AMD’s chip event, United Rentals crushes it, and other headlines are moving stocks this morning.