Dear Trader,
If you own the QQQ, you’ve probably stopped checking your account before coffee.
Chip stocks have shed about $5 trillion since early October, and the Nasdaq 100 lost roughly the same amount right alongside them. Tuesday’s hot inflation print piled on.
Mark Sebastian goes live today at 10 AM ET with Olivia Voz riding shotgun, and the Q’s sit at the center of the whole conversation. They’ll dig into the chip carnage, an AI name that just posted a quarter big enough to make the bears check their math, and a Bank of America report showing your neighbors are back to buying generic cereal.
That last story landed a day after the CPI report got traders betting on a December rate hike. Higher rates rarely do the Q’s any favors.
Voz is also running her QQQ open house, and she’ll tell you how to get in.
Grab a seat with the link below.
Click this link to jump to the State of the Market live room.
This link adds State of the Market to your calendar.
The Daily News Breakdown
SIGN: CoreWeave (CRWV) just reminded Wall Street it’s still standing. The AI cloud provider posted $3.66 billion in third-quarter revenue Tuesday, beating the $3.56 billion analysts expected, and its $1.27-a-share loss came in lighter than the $1.46 they’d penciled in. It also bumped full-year revenue guidance to $13 billion to $13.3 billion.
CEO Michael Intrator said revenue grew more than $1 billion from last quarter, and the company expects $9 billion in customer prepayments and deposits over the next three months alone. Shares jumped about 5% after hours.
Don’t throw a parade yet. The stock got hammered more than 40% in the past month over its debt-heavy balance sheet, so one good print has a deep hole to climb out of.
SIREN: Chip stocks have coughed up about $5 trillion in market value since October 6th, roughly a quarter of what they were worth. That’s more than the $3 trillion the entire S&P 500 lost over the same stretch.
Tuesday’s hot CPI report kicked them again. Nvidia (NVDA) fell about 6%, on track for its lowest close since March 30th, as the Jensen Huang scandal drags on. Its RSI (a gauge of how hard and fast a stock’s been moving) hit 23, the most oversold reading since June 2019.
Meanwhile, the equal-weight S&P 500 (every stock counts the same) is up about 4% since October 6th. BofA’s Savita Subramanian now calls the S&P itself the most crowded ticker in the world. Nvidia reports November 17th.
SNEAKER: Americans are ditching name brands at a pace we haven’t seen since 2021, according to a new Bank of America Institute report. Shoppers are grabbing store brands, hitting discount retailers instead of department stores and trading sit-down dinners for fast food.
Millennials lead the charge, squeezed by housing, car and childcare costs. The biggest shift shows up in clothes and groceries. People put off buying jeans all the time, but trimming the grocery bill means the budget’s getting tight.
This landed a day after October’s CPI came in hot on food, rent and medical care. Now traders expect a December rate hike, and some are whispering about a jumbo 50 basis points (half a percentage point).