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- 📈 D-Wave's Quantum Proof Point
📈 D-Wave's Quantum Proof Point
Intel best chip stock this year, SpaceX capsule docks with ISS, Southwest says goodbye to free bags, Nvidia stock down, D-Wave and Quantum's Commercial Crossroads
Evelio Silvera
March 17, 2025
Good morning.
⚡ The Fast Five → Intel best chip stock this year, SpaceX capsule docks with ISS, Southwest says goodbye to free bags, Nvidia stock down, D-Wave and Quantum's Commercial Crossroads
🔎 Market Trends → Wall St Week Ahead Fed on tap for tariff-jolted market as investors look for calm; US Futures Rebound on Friday
And now…
⏱️ Your 5-minute briefing for Monday, March 17, 2025:
MARKET BRIEF
Before the Open
As of market close 03/14/2025.
Pre-Market
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Fear & Greed
Markets in Review
Markets Surge as Shutdown Fears Fade, Tech Leads the Rally
Stocks bounced back Friday, with the Nasdaq rising 2.6% to 17,754.1, the S&P 500 gaining 2.1% to 5,638.9, and the Dow climbing 1.7% to 41,488.2. All sectors ended in the green, led by technology and energy.
The Big Picture:
After a week of turmoil, optimism returned as markets bet on a government shutdown being averted. Senate Democratic Leader Chuck Schumer reportedly dropped objections to the latest spending bill, clearing a path for a resolution.
Despite Friday’s rebound, the S&P 500 had entered correction territory Thursday, falling more than 10% from its recent peak. For the week, the Dow lost 3.1%, while the S&P 500 and Nasdaq fell over 2% each.
Treasuries saw renewed selling pressure, with the 10-year yield rising 4.4 basis points to 4.32%, and the 2-year yield climbing 7 basis points to 4.02%. WTI crude rose 1% to $67.18 a barrel.
Market Movers:
Ulta Beauty (ULTA) surged 14%, leading the S&P 500. While its full-year guidance disappointed, UBS noted that earnings revisions could turn positive in coming quarters.
Crown Castle (CCI) gained 10%, the second-best performer on the S&P 500. The telecom infrastructure firm sold its fiber and small cell businesses for $8.5 billion after a strategic review.
Abbott Laboratories (ABT) fell 2.5%, the worst performer on the S&P 500. The healthcare giant is facing a retrial over allegations its formula milk was harmful to infants, after a Missouri court cited erroneous rulings in the prior case.
What They’re Saying:
"Markets see a potential shutdown reprieve as a short-term win, but underlying policy uncertainty remains," Stifel wrote in a client note.
WHAT WE’RE WATCHING
Events
Today: Census Bureau - Retail Sales Ex Autos m/m - 8:30am
Why You Should Care: It's the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
Today: Census Bureau - Advance Retail Sales m/m - 8:30am
Why You Should Care: It's the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
Earnings Reports
Today: Eastman Kodak, Getty Images, JOY Y Inc., Altus Power
Tomorrow: Tencent Music Entertainment Group, XPeng, HUYA
MARKET BRIEF
Leading News
Quantum Computing Achieves Its "Show Me The Money" Moment
Photo Credit: Vishnu Monahan
Why it matters:
D-Wave's breakthrough could mark quantum computing's transition from speculative moonshot to commercial reality, potentially opening new frontiers for investors who've patiently awaited tangible results.
Zoom Out:
Quantum computing stocks surged this week after D-Wave Quantum (QBTS) demonstrated what CEO Alan Baratz calls "quantum computational supremacy on a useful problem" — not just theoretical physics exercises.
The company's quantum annealer reportedly solved in minutes what would take a classical supercomputer nearly one million years and consume more electricity than the world uses annually.
Key Insights:
Performance, not promises: Unlike previous disputed quantum milestones, D-Wave claims its breakthrough tackles practical optimization problems, potentially unlocking value for enterprises today—not decades hence.
Market validation: D-Wave shares rocketed 47% to $10.13, with peers Quantum Computing (QUBT), Rigetti (RGTI), and IonQ (IONQ) also gaining substantial ground. The sector has nearly quintupled (+383%) year-over-year.
Wall Street's awakening: Analysts are taking notice, with B. Riley raising its target to $12 and Roth MKM boosting its projection to $10, citing growing backlogs and vertical market penetration.
Market Pulse:
"I'm not talking about 15 or 30 years from now, I'm talking about today," Baratz told analysts, directly challenging Nvidia CEO Jensen Huang's assertion that meaningful quantum computing remains two decades away.
Bull’s Take:
The quantum computing sector might be experiencing its first genuine "escape velocity" moment after years of hype. For investors, the opportunity lies not in picking winners among pure-plays, but in identifying which sectors—pharmaceuticals, logistics, materials science—stand to benefit first from this computational paradigm shift.
Headlines
Elon Musk's SpaceX Capsule Docks With ISS To Rescue Stranded Boeing Astronauts (link)
Intel is the best chip stock this year in a surprising reversal (link)
Goodbye to ‘bags fly free’ on Southwest Airlines, the last freebie in America (link)
Apple Is Caught In Its Own Dangerous Catch-22 (link)
Nvidia Stock Is Down 20%. Is It Time to Buy the Dip on the AI Leader? (link)
Y Combinator startups are fastest growing, most profitable in fund history because of AI (link)
CRYPTO
Fear & Greed
Headlines
DAILY SHARE
On the Socials
*Hat-tip to MadsCapital