Good morning. I'm Rupert Steiner, Barron's London Bureau Chief. You might see my name pop up in your inbox occasionally to help you make sense of market moves when Callum Keown is otherwise engaged. So let's dive in!
On day two of what is typically the gloomiest month of the year for markets, there are slim pickings to lift the spirits. All three major indexes are on track to open lower today and, as my colleague George Glover explains, the turmoil surrounding soaring bond yields hasn't eased. Another jump in oil prices after fresh strikes in the Middle East hasn't helped.
But there were two shining beacons overnight lighting a more positive path for markets. Dell stock jumped after earnings came in well ahead of expectations-and it's not the only tech stock having a good morning, coding platform GitLab was up 21% at time of writing and here's why.
Watch out later for Broadcom earnings after the bell. The stock has had a rough three months-falling 22% since disappointing on guidance for chip sales in its last update-and remains a key barometer of the AI trade that has driven markets for most of this year.
Have a great day.
P.S. Feel free to get in touch with any thoughts and comments.
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📈 Here's what's happening in markets today:
Tech stocks are on track to fall again as the 10-year Treasury yield tops 4.8%.
Dell, Broadcom, Palo Alto Networks, and more stocks that explain today's market.
GitLab stock soars after earnings. It's still not a Buy.
Broadcom looks for a reset with third-quarter earnings.
Snowflake stock's 46% AI rally faces an earnings test.
Micron stock can't catch a break. It does have this one big catalyst.
FuelCell Energy stock sinks as earnings miss estimates.
Low costs and no steering wheels: What to watch at Tesla's Cybercab event.
Why Nvidia's $14 billion Hugging Face deal would make total sense.
? Dell boosts annual sales outlook on surging server demand
Dell Technologies raised its annual revenue forecast by $25 billion, to $192 billion, fueled by massive demand for servers that run AI tasks. The company exited the quarter with a record $95 billion backlog in its AI server business. COO Jeff Clarke noted that in the past 12 months, Dell has booked more than $130 billion in server orders as IT environments shift from cost centers to value drivers.
🛢? Chevron is expanding Venezuela oil production in Orinoco
Chevron is on the verge of signing a new deal to expand its oil production in Venezuela, people familiar with the transaction said. The oil giant is expected to add operations in the Orinoco belt, an area of Venezuela known for its vast reserves of heavy crude oil. This is while the U.S. government makes its own separate bet on Venezuela's oilfields.
🛡? Palo Alto results confirm AI is a tailwind for cybersecurity
Like last week's earnings for its competitor CrowdStrike, Palo Alto Networks' results confirm that cybersecurity stands out as a likely winner from AI among enterprise software providers. The security company beat expectations and raised its outlook as AI actually makes it easier to launch cyberattacks, making it a "tailwind" for the business.
? Atlanta Braves stock benefits from sale of L.A. Angels
Atlanta Braves Holdings stock rose after reports real estate billionaire and L.A. Rams owner Stan Kroenke is buying the L.A. Angels MLB team for a reported valuation of $4 billion, which would be a record. Climbing sports franchise valuations have boosted shares of the Braves, MLB's only publicly traded team with a market value of $3.3 billion.
💥 Elon Musk shared thoughts on power crisis, AI with G-20
SpaceX and Tesla CEO Elon Musk sees a "crisis of power," with more electricity needed for AI computers and the coming wave of robots. He has even suggested that SpaceX would start producing blades for power-generating turbines, something companies like Howmet Aerospace do. Musk shared other thoughts with the Group of 20. Read about it here.
💡 California utilities reprieved from wildfire legislation
California utilities like PG&E and Edison International sprang back after the California State Assembly kill wildfire legislation that left out Gov. Gavin Newsom's proposal to limit insurance companies from suing utilities over wildfire-related legal claims. Wall Street had broadly believed California utilities and their investors faced liability pressure.
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💬 Quote of the day:
Other headlines moving markets:
MongoDB earnings beats expectations on cloud app spending.
Credo Technologies beats expectations on revenue gains.
Oil stocks hit new highs as strikes in Strait of Hormuz flare up.
Interactive Brokers gets bumped from Goldman's top pick list.
JetBlue joins race for premium travelers with first class seating.
How heart drug breakthroughs are impacting biotech stocks.
Why the weak housing market is a threat to the broader economy.
How SpaceX's speed and ambition are threatening legacy defense and telecom.
Tesla Cybercab hype is out of control-but can it save the stock?
Micron's workers are threatening to strike. What it means for the stock.
Keurig Dr Pepper is selling its Chobani stake. That's good news for the stock.
Inflation isn't causing the bond selloff. Blame this instead.
Jobs data could complicate the Fed's rate hike plans.
6 dividend aristocrats to play right now.
Nvidia-backed Anthropic inks $35 billion deal. Just don't call it 'circular financing.'
Fervo Energy will be powering Google.
The market's focus is shifting to macro. That's a big problem.
Kevin Warsh might spark a gold rush. How to play it.
A buyers' guide to 'Baby Bonds' yielding over 7%.
How this bond pro revived a legendary Pimco fund.
AI is supercharging elder fraud. How to protect your family.
Unions help build the middle class. They have been losing strength for decades.
-Edited by Liz Moyer, Stacy Ozol, and Patrick O'Donnell