Wall Street Breakfast
Listen on the go! A daily podcast of Wall Street Breakfast will be available by 8:00 a.m. on Seeking Alpha, iTunes, Spotify
Good morning! Here’s the latest in trending:Patriots! Lockheed Martin (LMT) lands a $58.6B contract to refill the U.S. interceptor arsenal.Getting hungry: Jersey Mike’s (JMKE) prices its IPO in the largest restaurant debut in years.FCC restrictions: China warns of countermeasures after U.S. humanoid robot ban
Are the fundamentals intact beneath the surface, or is this early froth coming off a market bubble? A painful selloff continues to hit Wall Street, with the Nasdaq 100 (NDX) closing in correction territory on Wednesday and other equity benchmarks notching steep losses. The Dow Jones Industrial Average (DJI) even tumbled more than 1,000 points, wiping out weeks of hard-won gains as momentum flipped to the downside.Catalysts: Three members of the FOMC dissented in favor of a hike at the latest Fed meeting. That’s the first time such a heavy split occurred since 2016, suggesting that rising rates may soon be in the cards amid fears about resurgent inflation. In fact, the yield on the 30-year Treasury soared above 5.20% in the immediate aftermath of the central bank decision, bringing the long-term bond yield back to levels last seen during the Global Financial Crisis.That’s not all. Two other factors have been triggering fear among investors in recent months. No clear end to the Iran war has led to outsized uncertainty, especially with the conflict now expanding to additional areas of the Middle East, like Egypt. Elsewhere, the pace of AI spending, and its delayed returns, have been questioned by many, with Meta Platforms (META) becoming the latest casualty of the selloff by sinking 9% following its latest earnings. Microsoft goes in the other direction on cloud strengthConcentration? Retail investors are selling the most amount of single stocks since COVID-19, according to data released this week from Vanda Research. However, the selling has been confined to select sectors or stocks, such as memory shares like Micron (MU), Sandisk (SNDK), Seagate (STX) and Western Digital (WDC). “This is a classic defensive move,” noted Vanda’s global macro strategist Viraj Patel, adding that “record selling was concentrated in a handful of individual stocks rather than a wholesale exit from equities.”
Here’s the latest Seeking Alpha analysis
Buy The Dip: 3 Top European AI StocksThe Market Lost Its Mind, But You Shouldn’tMicron: Elon Said Thanks, I’m Still Saying HoldNvidia: The Trade Of The Decade Has ArrivedMy Income Team Is Yielding Over 10%
What else is happening
Oil surges amid Middle East hostilities, depleting U.S. oil stockpile.Saudi Arabia eyes coalition to shield Red Sea; Houthis mull fees.Qualcomm’s Q3 handset revenue drops, but this may be the bottom.Starbucks (SBUX) soars after smashing same-store sales estimates.Procter & Gamble (PG) falls on flat organic sales, in-line guidance.Jeffrey Gundlach says Fed must raise rates to hit inflation target.SpaceX wins $1.6B Space Force contract for 18 Falcon 9 launches.Hims & Hers (HIMS) drops as FTC suit targets business practices.Toyota’s (TM) first-half sales decline as China, Middle East weigh.Iran said to strike deal for up to 400 Chinese air-defense missiles.
In Asia, Japan +0.7%. Hong Kong +0.2%. China -0.6%. India +0.4%.In Europe, at midday, London +0.2%. Paris +0.8%. Frankfurt flat.Futures at 6:30, Dow +0.3%. S&P +0.5%. Nasdaq +1%. Crude -0.4% to $84.15. Gold +0.9% to $4,134.30. Bitcoin flat at $64,534.Ten-year Treasury Yield +1 bp to 4.70%
On The Calendar
Companies reporting today include Apple (AAPL) and Amazon (AMZN).See the full earnings calendar on Seeking Alpha, as well as today’s economic calendar
Wall Street Breakfast
Wall Street Breakfast, Seeking Alpha’s flagship daily business newsletter, is a one-page summary that gives you a rapid overview of the day’s key financial news. It is designed for easy readability on the site or by email (including mobile devices) and is published before 7:30 AM ET every market day. Wall Street Breakfast’s readership of more than 1 million subscribers includes many from the investment banking and fund management industries. Sign up here to receive the Wall Street Breakfast in your inbox every business day.
