TMTB Morning Wrap

Good morning. Futures -1% staging a nice comeback after being down 3% this morning. The main news over the weekend was Iran’s decision to appoint Mojtaba Khamenei as the next supreme leader which means hardlines in Iran still in charge and read-through was that fighting might need to escalate further (as Trump says ground troops might be needed) while the Hormuz straight remains effectively closed. However, futures got a bid and oil took a step down from +20%+ to “just” +10% on reports G7 to discuss joint release of emergency reserves (300-400M) barrels (20-30% of the 1.2B reserves).

Asia was mainly red with Korea trading limit down at one point: TPX -3.8%, NKY -5.2%, Hang Seng -1.35%, HSCEI -0.54%, SHCOMP -0.67%, Shenzhen -0.66%, Taiwan TAIEX -4.43%, Korea KOSPI -5.96%.

BTC +1% trying to rally a bit despite being down earlier. Yields +2-3bps across the curve.

We get ORCL ADBE and HPE earnings this week.

Lots to get to, so let’s get straight to it…

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VRT/COHR/LITE/SATS: To Join SP500

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ORCL: Refutes the Bloomberg article from Friday saying ORCL/OAI endplans to expand DC in Abilene

Seems like core 1.2GW on track while canceled incremental phase was the additional 600mw expansion that faced power delays which is why OAI was going to other locations

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MU/DRAM: Samsung, SK Hynix win Vera Rubin HBM4 slots, widening lead over Micron

KoreaEconomicDaily:

Samsung Electronics Co. and SK Hynix Inc. have been chosen as the sole suppliers of sixth-generation high-bandwidth memory, or HBM4, for Nvidia Corp.’s next flagship AI accelerator, Vera Rubin, according to industry officials, handing South Korea’s two memory champions a fresh lead over US rival Micron Technology Inc. in a race for premium AI chips.

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WIX: Downgraded to neutral at Baird on valuation concerns following recent 50% rally and F26 investment uncertainty

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