Midday update
One earnings report moved both ends of Wednesday's midday tape.
One earnings report moved both ends of Wednesday's midday tape. $SPCX rose 9.47% to a $2.14 trillion market cap, the Nasdaq gained 1.04%, and the S&P 500 added 0.46%.
- SpaceX: Q3 revenue was $14.6B, up 161% year over year, against a $12.72B consensus. Net income was $4.4B versus a $1.05B loss a year ago. Morgan Stanley reiterated overweight, and Citi opened a positive 90-day Catalyst Watch.
- Tesla combination: Musk called merging SpaceX with Tesla "a good idea," and both boards are forming committees to discuss it. It remains a floated possibility, with no deal announced.
- Super Micro Computer: Shares rose 9.39% after preliminary fiscal Q1 revenue guidance of $18.5-19.5B came in well above the roughly $15B estimate. Gross margin was guided to 12%-12.5%.
- AT&T: Shares fell 6.38% despite beats on EPS ($0.65) and revenue ($32.32B) and raised profit guidance. Postpaid phone net adds of 379,000 missed the 387,410 estimate as competition intensifies ahead of SpaceX's potential wireless entry.
- Breadth: Semiconductors averaged +1.34% with 11 of 11 advancing, and Technology averaged +0.95% (15 up/3 down). Communication Services fell 2.05% (1 up/8 down), weighed by AT&T and Netflix's slower revenue growth.
AI infrastructure absorbed the upside from SpaceX's quarter, while telecom priced in the risk of a new wireless competitor.
Not financial advice. For informational and educational purposes only.
In July, Treasury fined a US company $200,000 because a subsidiary failed to report a $92,478 investment in a Chinese AI and robotics…
In July, Treasury fined a US company $200,000 because a subsidiary failed to report a $92,478 investment in a Chinese AI and robotics company. Treasury announced that first-ever penalty on Oct 7. It's the enforcement backdrop for the proposed rule Treasury put out on Thursday, Oct 22, and I think it tells you how seriously this program is going to…
Viral chart: global stocks down ~$10T from highs, South Korea -43%; a 43% drop needs a 75% gain to recover
A chart going around X this weekend says global stock markets have lost about $10 trillion from their yearly highs, with South…
US semiconductor producer prices +26% YoY in September; at that pace chip prices double in about 3 years
US producer prices for chips and electronic components rose 26% YoY in September, the 6th…
Black Monday 1987 — 22.6% in a Day, Still the Benchmark
On October 19, 1987, the Dow fell 508 points, or 22.6%, closing at 1,738.74 versus 2,246.74 on October 16, still the Dow's worst one-day percentage…
On October 19, 1987, the Dow fell 508 points, or 22.6%, closing at 1,738.74 versus 2,246.74 on October 16, still the Dow's worst one-day percentage decline on record. The S&P 500 dropped 20.47%, from 282.70 to 224.84, its own worst day. Analyses…