There’s the Magnificent Seven, and then there are dozens of smaller, riskier companies in their financial orbit. Two of them, CoreWeave and Super Micro Computer, exceeded expectations in their quarterly reports Tuesday afternoon, helping to boost stock futures overnight. Inflation data, U.S. crude inventory and a report after the bell from Cisco all worth watching today.
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This is an edition of the Markets A.M. newsletter, preparing you for the trading day ahead with expert insight into the companies and industries set to move markets. If you’re not subscribed, sign up here.
Stocks I’m Watching
↗️ CoreWeave: Shares jumped more than 15% in premarket trading after the cloud-computing company posted its fifth straight quarter of record revenue, fueled by sustained AI demand.
↗️ Super Micro Computer: Shares jumped more than 7% premarket after the company reported a surging profit and sales nearly doubling in its fourth quarter.
↗️ CAVA: Shares rose 10% after the Mediterranean fast-food chain reported that higher customer traffic boosted its profit in the second quarter.
↗️ Foxconn: The Taiwanese tech and electronics maker reported another strong quarter as it boosted production of servers for the global AI build-out. Shares climbed over 2%.
🔎 Cisco, StubHub, Coherent: The companies are all scheduled to report quarterly results today after the closing bell.
One Big Chart
Power generation stocks like Constellation and Vistra became stock market stars amid the AI boom, but now they’re losing steam. Politics is partly to blame.
What I’m Reading
Wall Street and Nvidia are building an exotic money pipeline for the AI Boom.Executives involved hail it as a new asset class; critics have concerns about using chips as collateral. (WSJ)Global oil demand is set for a deeper contraction this year as renewed hostilities in the Middle East and disruptions at key shipping chokepoints derail the recovery in supplies, pushing up fuel prices and weighing on consumption, the International Energy Agency said. (WSJ)You can check out any time you want. Paramount says is considering leaving California as its blockbuster deal draws state scrutiny, but will it? (WSJ)Now people can bet money on flight cancellations. What could go wrong? (WSJ)Mega-IPOs are coming to your index fund. Deal with it. (Advisor Perspectives)
Today in Markets History
📰 On this day 1920, Charles Ponzi was arrested for financial fraud in Boston after taking in more than $6 million from thousands of investors. He had been repaying each $1,000 invested with $1,500 just 90 days later, but only by taking more money from newcomers or, as a judge later puts it, “robbing Peter to pay Paul.” Such pyramid arrangements have since been known as “Ponzi schemes.”
Beyond the Newsroom
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About Me
Business and finance have fascinated me for a long time. Before writing this newsletter, I edited The Wall Street Journal’s Heard on the Street team for a decade, wrote two investment books and managed a team of stock analysts at a global investment bank.
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