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The S&P 500 (SP500) index on Friday just about eked out a five-week win streak, its longest such run since early February. However, since closing at a record level on Tuesday, Wall Street's benchmark gauge has stalled, and its weekly advance has been capped by a growing sense of uncertainty among market participants over expected interest rate cuts by the Federal Reserve. The latest Fed minutes, coupled with cautious commentary from Fed speakers and unfavorable economic data, dented sentiment. On the other hand, the tech-heavy Nasdaq Composite (COMP:IND) got a shot in the arm on the back of a massive surge in shares of Nvidia (NVDA) following yet another blowout quarterly report from the chip giant. The S&P (SP500) added +0.03% for the week, while the Nasdaq (COMP:IND) climbed +1.4%. Conversely, the blue-chip Dow (DJI) fell -2.3%. Read a preview of next week's major events in Seeking Alpha's Catalyst Watch.
Can't beat 'em, join 'em
The way publishers are approaching generative AI is changing as the media industry evolves its outlook on technologies of the future. Microsoft (MSFT)-backed OpenAI signed a major content licensing deal this week with News Corp. (NWSA), sending up the latter's shares, following similar deals inked with The Financial Times and Axel Springer. Google (GOOGL) has also partnered with Reddit (RDDT) to use the platform's content to train its AI models, while Hollywood could be next. Alphabet and Meta (META) are eyeing multimillion-dollar partnerships with major studios on licensing content for AI video generators. (14 comments)
Superpower unleashed
Nvidia (NVDA) surged 6% AH on Wednesday, breaking through the $1,000 level, after the semiconductor giant reported quarterly results and guidance that topped Wall Street's expectations. That wasn't all. The AI darling announced a 10-1 stock split, more than doubled its quarterly dividend, and sent the market on a ride, with the Nasdaq seeing some outsized moves. "The next industrial revolution has begun," CEO Jensen Huang declared. "Companies and countries are partnering with Nvidia to shift the trillion-dollar traditional data centers to accelerated computing to produce a new commodity: artificial intelligence." (444 comments)
More than a ticket
Live Nation (LYV) sank around 8% on Thursday after the DOJ filed an antitrust suit looking to split up what it called an illegal monopoly that has pushed ticket prices higher. "The complaint attempts to portray Live Nation and Ticketmaster as the cause of fan frustration with the live entertainment industry," the company responded, blaming elevated costs on production, artist popularity, and online ticket scalping. "This case will probably take years to materialize," noted SA analyst Yuval Rotem, cautioning that it could pressure the stock whether or not the breakup succeeds. (12 comments)
Crypto win
Security? Commodity? Does it matter anymore? Less than six months after approving the first spot bitcoin ETFs, the SEC continues to broaden the reach of the crypto world. The agency approved applications from Nasdaq (NDAQ), NYSE (ICE), Cboe (CBOE) and five others to list ETFs that invest directly in ether (ETH-USD). The issuers still need a separate greenlight from the agency before the products can go live. Ether, which rose 20% this week amid ETF optimism, fell back following the approval in typical "buy the rumor, sell the news" fashion. Other big winners this week that saw a late turnaround included precious and industrial metals. (27 comments)
Under the sea
It's official! Red Lobster filed for Chapter 11 bankruptcy after it buckled under mounting losses, costly leases, and rising material and labor costs. The seafood chain will use the proceedings to drive operational improvements, close restaurants, and pursue a sale of substantially all of its assets as a going concern. Red Lobster also announced a stalking horse bid from its existing lenders and $100M debtor-in-possession financing. The bankruptcy caps off years of financial troubles, which prompted top shareholder Thai Union Group (OTCPK:TUFBY) to look to exit its stake. (12 comments)
Notable Ratings From SA Analysts
Palantir: The Market Is Wrong Again by Yiannis Zourmpanos.
Blackstone: On The Verge Of An Upside Breakout by JR Research.
Big Lots Stock: Expect Big Pain After Big Gains by Daniel Jones.
Weekly Movement
U.S. Indices
Dow -2.3% to 39,070. S&P 500 flat at 5,305. Nasdaq +1.4% to 16,921. Russell 2000 -1.4% to 2,067. CBOE Volatility Index -0.5% to 11.93.
S&P 500 Sectors
Consumer Staples -1.5%. Utilities -2.1%. Financials -2.6%. Telecom -1%. Healthcare -1%. Industrials -1.2%. Information Technology +2.3%. Materials -1.7%. Energy -4%. Consumer Discretionary -2.6%. Real Estate -3.8%.
World Indices
London -1.2% to 8,318. France -0.9% to 8,095. Germany -0.1% to 18,694. Japan -0.5% to 38,615. China -2.1% to 3,089. Hong Kong -4.8% to 18,609. India +1.9% to 75,410.
Commodities and Bonds
Crude Oil WTI -2.8% to $77.8/bbl. Gold -3.4% to $2,335.2/oz. Natural Gas -4.7% to 2.503. Ten-Year Bond Yield -0.2 bps to 4.467.
Forex and Cryptos
EUR/USD -0.21%. USD/JPY +0.87%. GBP/USD +0.3%. Bitcoin +2.7%. Litecoin +1.9%. Ethereum +19.9%. XRP +2.6%.
Top S&P 500 Gainers
First Solar (FSLR) +40%. Moderna (MRNA) +25%. Deckers Outdoor (DECK) +16%. NVIDIA (NVDA) +15%. International Paper (IP) +12%.
Top S&P 500 Losers
Nordson (NDSN) -12%. Walgreens Boots Alliance (WBA) -12%. Dayforce (DAY) -11%. Lululemon Athletica (LULU) -10%. Target (TGT) -9%.
Where will the markets be headed next week? Current trends and ideas? Add your thoughts to the comments section.
