Small-Caps Lead a Broad Rally as Tech Bounce Stalls
Easing long-term yields and oil prices lifted the Russell 2000 to its best day since early August and saw 9 of 11 S&P 500 sectors higher, even as weakness in Tech dragged on the cap-weighted index.
Gap Between Market’s 2 Tiers Starts to Close
SpaceX saw beats on both the top and bottom line but is trading flat in front of the conference call.
SpaceX Rises After Earnings
Shares in SpaceX ($SPCX) are up 2% in the after-hours after reporting 161% revenue growth for the third quarter, driven by the company’s artificial intelligence business and Starlink Subscriber growth.
The company reported net income of $4.4 billion more than double estimates. That’s compared to the net loss of $541 million the company reported last quarter, and Starlink showed growth in consumer subscribers, now at 13.6 million, up from 12 million subscribers in the last quarter according to Bloomberg.
AI operating income was a positive $431 million vs street estimates of a $13.5 million loss. Capex on the AI side was below consensus while total costs and expenses of its Space segment, which includes launch, were up $367 million year-over-year. Still the majority ($16.4 billion) of its $19.59 billion in capex for the quarter was for the AI (now SI) unit.
While notably the SI unit overtook Connectivity (Starlink) in terms of revenues, the connectivity business represented the majority of the company’s profits with $2.37 billion in the latest quarter.
Laying the Groundwork for 2 Holdings on Our Shopping List
These are the data points we’ll be watching for as we continue to follow the technical setups.
How I’m Trading SpaceX Earnings as Rotation Gains Traction
Money is moving out of tech ahead of the big reports, and Oscar Health just gave me a reason to add.
South Korea’s Ants Renew AI and Data Center Pressure: 8 Key Items Shaping the Stock Market Tuesday
Ryanair CEO on airline fares, OpenAI races to complete fundraising round and other headlines moving the market this morning.
Rally Dreams, Millions of Jobs on Thin Ice, Canada Keeps It Together
Can the rally realistically continue another day? Also, when taken together, these 4 charts show a shaky situation for tens of millions of workers.
Are You Ready for a Stock Picker’s Market?
Seventy percent of active managers are trailing their benchmarks, and the pressure to catch up could trigger a focus on stock picking.
Tech Bounces Back but Rising Yields Pressure Non-Tech
The megacap growth sectors went from worst (Friday) to first (Monday) as chipmakers snapped an eight-session losing streak, but rising Treasury yields left seven sectors, the Dow Jones Industrial Average, and the equal-weight S&P 500 lower.
Amazon Leads Unconvincing Bounce After Morgan Stanley Price Target Change
The mega caps did the heavy lifting while most stocks went nowhere.