Anytime the S&P 500 (SPX) rallies without Technology (XLK) and Communication Services (XLC), it's a hopeful session. More than 80% of the index finished higher yesterday, and breadth improved noticeably, though some stocks hit new lows.

Shaking Off the Threat of AI

Data-driven business models have been under extreme pressure this year, driven by the assumption that superintelligence will eat their business models for lunch. They’re coming back, including Gartner, Inc. (IT), which published a doomsday scenario for the superintelligence buildout last week that continues to get mileage.

Earnings lifted shares of Hasbro, Inc. (HAS) and 3M Company (MMM).

Data Center Grief

Companies that build data centers and semiconductor equipment were among the biggest decliners on the day. I think they are all oversold: Comfort Systems USA, Inc. (FIX), Quanta Services, Inc. (PWR), Lam Research Corporation (LRCX), and KLA Corporation (KLAC).

General Motors (GM) and GE Aerospace (GE) fell after posting quarterly results, though the latter beat the consensus.

Factors

Good stuff is in factors, as buyers eschewed large-cap momentum and growth and returned to mid- and small-cap names.

Low volatility and value underscore the session’s cautious nature.

Russell 2000

The iShares Russell 2000 ETF (IWM) has bounced off its 200-day moving average twice in the past two days, and is trying to do it again.

SpaceX (SPCX) Delivers

Income Statement

All business segments are growing impressively. Right now, Starlink is the star:

• 13.6 million users
• 174 countries
• 11,100 satellites

Superintelligence

$16.4 billion in superintelligence capital expenditures (capex) is a huge commitment.

Super Quarter for Super Micro

Super Micro Computer, Inc. (SMCI) released preliminary numbers; the official financial release is on November 3. The numbers are mind-boggling.

There is insatiable demand for chips and compute – look for a powerful bounce today – the superintelligence story lives on!

Today’s Session

Anthropic released a draft S-1, which seems like a gift for bulls, bears, and the end-of-the-world crowd. From a business perspective, I think it's good enough to push the IPO, and maybe, get a $1.5 trillion valuation. The company’s commitments are north of $600 billion and it is seeking another $150 billion in deals.

NASDAQ 100

We would like to see it close above the 50-day moving average, around 29,862.

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