📈 SoftBank’s AI Power Move

Good morning.

⚡ The Fast Five → Amgen loses $12B in value, DirecTV says no to Dish, Spirit Airlines prepares for Bankruptcy, Spotify shares pop, SoftBank and Nvidia team up on AI

🔎 Market Trends → Wall Street indexes dip with focus on economic data; US Futures Dip Ahead of Key Inflation Reports

And now…

⏱️ Your 5-minute briefing for Wednesday, November 13, 2024:

MARKET BRIEF
Before the Open

Pre-Market

Fear & Greed

Markets in Review

Election Rally Pauses as Inflation Data Looms

The S&P 500 shed 0.3%, closing at 5,984, while the Nasdaq dipped 0.1% to 19,281.4. The Dow fell 0.9%, ending at 43,911.

The Big Picture:

Investors hit the brakes Tuesday after last week’s post-election rally, with markets awaiting the next consumer inflation report. A win for Donald Trump brought a bullish start for equities, with the major indexes reaching all-time highs on Monday. Yet, as inflation remains a central concern, Fed policy expectations are the key driver, keeping traders on edge.

Interest rates ticked up, with the 10-year Treasury yield jumping 12 basis points to 4.43%, reflecting anticipation of resilient inflation data. Oil held steady at $68.01 per barrel, while gold softened by 0.5% to $2,604.50. As sectors adjusted, materials took the hardest hit, but tech and consumer staples continued to post gains.

Market Movers:

• Tesla (TSLA) dropped 6.2%, cooling after its recent surge linked to Elon Musk's campaign support for Trump. Musk’s endorsement boosted investor confidence in a business-friendly administration, yet some profit-taking seems likely after a $300 billion market cap increase.

• Mosaic (MOS) shares fell 7.7% as Q3 earnings disappointed. The agriculture giant missed analyst forecasts, driven by weaker fertilizer sales, contributing to the materials sector’s slide.

• Tyson Foods (TSN), on the other hand, gained 6.6% after surpassing Q4 earnings expectations. The firm’s guidance hints at tempered growth, but strong fundamentals in its poultry business provided optimism.

What They’re Saying:

“The U.S. economy is in a 'good place,'” remarked Richmond Fed President Tom Barkin, highlighting the Fed’s capacity to adapt policy as needed. Meanwhile, Minneapolis Fed President Neel Kashkari noted that rates remain “modestly restrictive,” aimed at controlling inflation without choking growth.

WHAT WE’RE WATCHING
Events

• Today: Bureau of Labor Statistics - Consumer Price Index - 8:30am

• Why You Should Care: Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate.

Earnings Reports

• Today: Cisco, Nu Holdings, Tetra Tech

• Tomorrow: Disney, Applied Materials, Brookfield, Dillard’s

MARKET BRIEF
Leading News

SoftBank’s AI Power Move: First Supercomputer with Nvidia’s Blackwell Chips

Why it matters:

SoftBank is diving headfirst into AI, banking on Nvidia’s cutting-edge tech to launch Japan’s most powerful AI supercomputer—a bold step that could set off a tech race in Asia.

Zoom Out:

SoftBank Group Corp., known for its ambitious tech investments, is partnering with Nvidia (NVDA) to build an AI supercomputer using Nvidia’s latest Blackwell chips. These chips, designed to handle massive data workloads, will power Japan’s push into AI at unprecedented speed. SoftBank’s telecom unit aims to leverage this powerhouse not only for data processing but also to provide advanced AI services over Japan’s cellular networks.

Nvidia CEO Jensen Huang joined SoftBank founder Masayoshi Son on stage in Tokyo, signaling a serious commitment to AI infrastructure in Asia. Nvidia’s expanding presence in markets outside the U.S. underscores its ambition to make AI a global backbone, moving beyond traditional hardware and software into AI-focused telecom networks.

Deep Dive:

• Nvidia’s Blackwell Chips: Engineered to accelerate complex AI models, Blackwell’s technology is set to handle intensive data tasks, giving SoftBank a competitive edge in AI capability.

• AI Radio Access Networks (AI-RANs): SoftBank plans to roll out AI-driven cellular networks optimized for remote robotics, autonomous vehicles, and low-power needs, addressing Japan’s AI adoption lag.

• SoftBank’s Strategic Pivot: After a challenging period, SoftBank sees AI as a “reset” moment for Japan’s tech landscape. By collaborating with industry giants like Fujitsu and IBM’s Red Hat, SoftBank aims to shift the nation’s telecom infrastructure toward AI dominance.

Market Pulse:

“This is the reset, this is the catch-up moment for this revolution,” SoftBank's Son emphasized to Huang, underscoring Japan’s readiness to embrace AI.

Bull’s Take:

SoftBank’s supercomputer plans signal a bullish outlook for Nvidia as it expands its global AI footprint. For investors, NVDA remains a strong play, especially as Asia’s demand for AI tech heats up. The takeaway? AI is no longer just a Silicon Valley game; investors should watch global markets for the next big wave.

Headlines

• A scrap of data on Amgen’s obesity drug candidate wipes out $12 billion in market value (link)

• DirecTV says Dish purchase is off (link)

• Spirit Airlines reportedly preparing to file for bankruptcy (link)

• Spotify shares pop on better-than-expected profit forecast (link)

• Sweden's Klarna confidentially files for US IPO (link)

• Justice Department sues to block UnitedHealth Group’s $3.3 billion purchase of Amedisys (link)

• Apple Developing AI-Powered Smart Home Device (link)

• Rocket Lab stock pops 25% after company reports strong revenue growth, first Neutron deal (link)

CRYPTO
Fear & Greed

Headlines

• Bitcoin Blasts to $90K as Crypto Rally Shakes Out $900M of Leveraged Bets (link)

• PayPal USD begins using LayerZero to enable transfers between Ethereum and Solana (link)

• Solana-based answer to Ethena wins ‘Radar’ hackathon (link)

DAILY SHARE
On the Socials