Major indices are moving lower across the board and retreating from morning highs.

Energy (XLE) is the only sector with sizable gains, getting a boost from a tick higher in oil prices (more below). Notably, Technology (XLK) is still holding in the green despite a lower move in memory names following adverse earnings reactions to SanDisk (SNDK) and Western Digital (WDC). Meanwhile, Communication Services (XLC) is at the bottom of the list largely due to an adverse reaction to a miss on revenue from Applovin (APP).

Strait Talk

Yields and energy prices are higher today on mixed headlines regarding the Iran-Oman deal on managing the Strait of Hormuz.

The draft is reportedly finalized and awaiting Khamenei's approval, routing inbound ships through Iranian waters and outbound through Omani waters; however, transit fees remain the sticking point since Washington wants no tolls and no Iranian permission to cross. Separately, Iran's parliament is still advancing its own bill to formalize control of the Strait, barring US and Israel-linked vessels and fining violators. It remains under review and is not a law.

AI Update

Alphabet (GOOG/L) is looking to raise between $20 billion and $25 billion with another bond sale, as hyperscaler capex for the AI buildout continues.

Elon took to X today to note that the Terafab project is expected to use majority of its compute for AI spacecraft. This would have been considered science fiction just a few years ago.

Speaking of robots, China’s Unitree is making news as the first of the country’s robotics IPOs.

Aside from earnings, memory names are also seeing weakness in part due to reports that Nvidia (NVDA) is testing lower memory Rubin Ultra chips.

Economic Data

The Atlanta Fed’s Q3 GDP tracker rose +5.83% following Wednesday and Thursday data. Although, it is essentially unchanged from its +5.86% reading on August 4^th.

Challenger July announced job cuts declined 27% from June to 33.4k. This is the lowest monthly total in two years. Technology led industries again, with 9.9k in July and up 67% YoY.

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