QQQs -35bps as the CPI came in cooler than expected which caused yields to fall 3-8bps across the curve. Here’s VK on US-China news today:
The US-China “deal” put the relationship back where it stood exiting Geneva, but details are quite vague, and (based on remarks from Trump and Lutnick), there won’t be any further relief on tariffs for the foreseeable future (and while China is set to ease rare earth export restrictions, they are only doing so for 6-month terms, underscoring how tensions between the two countries aren’t going to permanently subside).
A fairly quick recap today as I listen to Larry and Safra get bulled up on AI after putting up a monster RPO/OCI guide for FY26…The positive AI vibes continue…
Let’s get to it…
INTERNET
CHWY -11% after missing on margins fueling bear concerns of continues GM pressures from mix shift toward low-margin consumables and intensifying competition from AMZN/WMT. Bears also flagged management’s decision not to raise the FY top-line outlook, despite a healthy beat. Margins were a key part of the bull thesis here (ebitda expansion on shift into higher margin categories like ads pharmacy and private label) so a miss took some sails out that, especially given the high expectations going in. Large holder BC usually always sells some post-q, so some early exits ahead of that as well…
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