Major indices are moving lower across the board following an adverse reaction to Alphabet (GOOG/L) and Tesla (TSLA) earnings as well as continued tensions in the Middle East.

Notably, some names in the AI supply chain, including memory and semiconductor equipment names, are getting a boost from Alphabet’s higher Capex guidance.

Five sectors are moving higher with Industrials (XLI) in the lead and getting a boost from favorable earnings reactions, which include RTX Corporation (RTX), Lockheed Martin (LMT), United Rentals (URI), Honeywell International (HON), and Union Pacific (UNP). Energy (XLE) is the second-best performing sector benefiting from higher oil prices, while Health Care (XLV) is in close third place with notable strength in the diagnostics space after favorable earnings from Thermo Fisher Scientific (TMO). Meanwhile, Consumer Discretionary (XLY) and Communication Services (XLC) are lagging due to weakness in their Magnificent Seven components following Alphabet and Tesla earnings.

Middle East Moves

Oil is making a move higher today as Middle Eastern tensions continue and reports are circulating that Trump is considering a larger scale attack on Iran.

Trump also made comments that threatened the Houthis if they continue to threaten Saudi ships transiting the Red Sea.

AI Update

Yelp Inc. (YELP) and OpenAI entered into a licensing deal for reviews, ratings, photos, and business data so that ChatGPT can make local recommendations.

Meanwhile, reports are circulating that Anthropic is weighing up a requirement that rank-and-file employees sell only through preset 10b5-1 plans post-IPO. This is an unusual step that would treat the entire workforce as insiders.

Anthropic is also rumored to be releasing their new Opus 5 model soon, potentially this week, with early indications that it will raise the bar for performance and cost efficiency.

Tweet

 

Home | Products & Services | Education | In The Media | Help | About Us | Disclaimer | Privacy Policy | Terms of Use | All Rights Reserved.