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- 📈 Intel's CEO Sparks 12% Jump
📈 Intel's CEO Sparks 12% Jump
Roomba maker may shut down, American Eagle issues weak guidance, Salesforce makes $1B Singapore investment, Food delivery startup buys Tastemade for $90M, Intel appoints Lip-Bu Tan as CEO
Evelio Silvera
March 13, 2025
Good morning.
⚡ The Fast Five → Roomba maker may shut down, American Eagle issues weak guidance, Salesforce makes $1B Singapore investment, Food delivery startup buys Tastemade for $90M, Intel appoints Lip-Bu Tan as CEO
🔎 Market Trends → S&P, Nasdaq end higher as cool inflation data calms tariff jitters
And now…
⏱️ Your 5-minute briefing for Thursday, March 13, 2025:
MARKET BRIEF
Before the Open
As of market close 03/12/2025.
Pre-Market
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Fear & Greed
Markets in Review
Markets Rally as Inflation Cools, Tech Leads the Charge
The Nasdaq gained 1.2% to 17,648.5, while the S&P 500 added 0.5% to 5,599.3 as easing inflation lifted sentiment. The Dow slipped 0.2% to 41,350.9, weighed down by consumer staples.
The Big Picture:
Fresh inflation data offered a welcome reprieve for investors concerned about overheating prices. The Consumer Price Index (CPI) rose 0.2% in February, cooling to 2.8% year-over-year, lower than the 2.9% forecasted.
Wall Street took the report as a sign the Fed can stay patient on rate cuts. Markets widely expect the central bank to hold rates steady next week, according to CME FedWatch.
The bond market adjusted accordingly. The 10-year Treasury yield ticked up 2.8 basis points to 4.32%, while the 2-year yield climbed 5 basis points to 3.99%. Meanwhile, West Texas Intermediate crude rose 2.1% to $67.64 per barrel, with OPEC maintaining its oil demand outlook.
Market Movers:
Nvidia (NVDA) surged 6.4%, topping the Dow and S&P 500, as the AI-fueled tech rally regained steam. Tesla (TSLA) jumped 7.6%, the S&P 500’s best performer.
Salesforce (CRM) climbed 2.7% after announcing a $1 billion investment in Singapore to expand AI adoption and digital transformation.
United Airlines (UAL) dropped 4.7%, one of the S&P 500’s worst performers, as multiple banks trimmed their price targets on the stock.
Apple (AAPL) slid 1.8%, making it one of the worst Dow performers, despite strength in other mega-cap tech names.
What They’re Saying:
"This was a well-behaved CPI report that should calm market fears of inflation heating up again," BMO noted.
WHAT WE’RE WATCHING
Events
Today: Bureau of Labor Statistics - Core Finished Goods Producer Price Index (PPI) m/m - 8:30am
Why You Should Care: Source changed series calculation formula as of Feb 2014. Food and energy prices make up about 40% of overall PPI which tends to mute the importance of the Core data.
Today: Department of Labor - Unemployment Claims - 8:30am
Why You Should Care: Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy.
Today: Bureau of Labor Statistics - Producer Price Index (PPI) m/m - 8:30am
Why You Should Care: It's a leading indicator of consumer inflation - when producers charge more for goods and services the higher costs are usually passed on to the consumer.
Earnings Reports
Today: Dollar General, Ulta Beauty, DocuSign, G-III Apparel Group, Xponential Fitness, Wheaton Precious Metals, Rubrik, ServiceTitan
Tomorrow: Buckle, Gogo, Li Auto, DouYu International, WideOpenWest (WOW!), Bit Digital, American Vanguard
MARKET BRIEF
Leading News
Intel's Chip Turnaround Bet: New CEO Signals Potential Renaissance
Photo Credit: Intel
Why it matters:
A battle-tested semiconductor veteran takes the helm at Intel (INTC), offering a glimmer of hope for the fallen giant as markets immediately reward the choice with a 12% stock bounce.
Zoom Out:
Lip-Bu Tan, the former Cadence Design Systems chief who understands chip architecture like few others, steps into Intel's corner office with eyes wide open. Having previously served on Intel's board, he departed last year—reportedly over strategic differences with then-CEO Gelsinger.
The appointment ends a turbulent chapter for the once-dominant chipmaker, which has cycled through four CEOs in seven years while watching its market position erode against nimbler rivals.
Key Insights:
Manufacturing crossroads: Tan must decide whether to double down on Gelsinger's costly foundry gambit or pivot toward a more asset-light model. The market is watching closely, with rumors swirling about a TSMC-led consortium eyeing Intel's manufacturing assets—a potential "have your cake and eat it too" scenario for shareholders.
AI catchup imperative: While Nvidia (NVDA) seized the AI boom, Intel has largely watched from the sidelines. Tan's deep industry connections and systems expertise could help Intel find its niche in the expanding AI ecosystem without trying to out-Nvidia Nvidia.
Capital allocation reset: Intel's ambitious $20 billion Ohio factory complex represents both opportunity and albatross. Expect Tan to conduct a clear-eyed review of Intel's capital expenditures, potentially dialing back the most ambitious timelines while preserving strategic options.
Market Pulse:
"In areas where we are behind the competition, we need to take calculated risks to disrupt and leapfrog," Tan stated—signaling a selective approach rather than trying to fight on all fronts simultaneously.
Bull’s Take:
Intel's stock remains deeply discounted compared to semiconductor peers, creating asymmetric upside if Tan can stabilize the core business while strategically repositioning for future growth. Patient investors may find this leadership change creates an attractive entry point for a potential multi-year recovery story.
Headlines
Adobe’s stock has been an AI laggard. (link)
Roomba maker iRobot warns it may go out of business, sending shares plunging (link)
Saudi-owned Scopely buys Pokémon Go in $3.5bn gaming deal (link)
American Eagle says consumer is slowing down, issues weak guidance (link)
Salesforce Ramps Up AI Strategy With $1 Billion Singapore Investment (link)
Food delivery startup Wonder acquires media company Tastemade for $90M (link)
CRYPTO
Fear & Greed
Headlines
DAILY SHARE
On the Socials
*Hat-tip to realDevSage