Momentum improved overnight, and our cap-weighted readings are back in positive territory this morning. The Russell is still underwater, so small caps haven’t joined in yet, but financials are improving.
Rates and oil both gave us some relief yesterday. The 10-year closed at 5.22%, down from 5.28%, and oil is pulling back again this morning. The AI trade took a hit after a report that OpenAI’s revenue is running about $20 billion below earlier estimates, with Oracle falling more than 5%. Most of that money stayed in stocks. It rotated into energy, staples and banks, and the equal-weight S&P finished higher on a day the S&P fell. Semiconductors are leading the bounce this morning.
It’s Friday with weekly options expiring, so everything is in play, and this market can go either way today.
Delta (DAL) missed estimates and cut its full-year profit outlook this morning on a $6 billion jump in fuel costs. If it pulls back to around $77, into the bottom band or lower, take a shot back up to the anchored VWAP.
SpaceX (SPCX) agreed to buy wireless spectrum for about $8 billion, and AT&T, Verizon and T-Mobile are down 5% to 7%. SpaceX is fading this morning. Keep an eye out for a bounce off yesterday’s anchored VWAP.