Analyst talks AI trade bubble, Intel's new Panther Lake chip, Fed divided on economic risks

Market Overview - US stocks reached record highs, but concerns about the AI trade being a bubble are emerging [1][2][7] - The Dow is down approximately 140 points, with slight declines in the S&P 500 and Nasdaq [2][4] - Bond yields are increasing, and the US dollar is strengthening despite the debasement trade [3][4] AI Trade Insights - Seport Research Partners suggests the AI trade is in the early stages of a bubble, driven by spending from six major companies: Amazon, Google, Meta, Microsoft, OpenAI, and Oracle [7][8] - OpenAI is noted for its lack of cash flow, raising concerns about its sustainability compared to other companies in the bubble [9][12] - Oracle's recent decision to take on debt to fuel growth is seen as a sign of bubble acceleration, which can amplify both gains and losses [11] - The aggressive deal-making by OpenAI is prompting other companies to spend heavily to keep up, potentially prolonging the bubble [14][15] Airline Industry Developments - Delta Airlines reported strong third-quarter results, with revenue up 15.2% year-over-year, driven by premium and business segments [39][40] - The CEO expressed confidence in business travel recovery, with 90% of business customers expecting to travel the same or more next year [40] - Concerns about the impact of the government shutdown on air travel persist, with potential disruptions if the shutdown continues [44][49] Consumer Sector Analysis - PepsiCo narrowly topped earnings estimates, but faces challenges in its snack business due to price sensitivity among middle and lower-income consumers [95][97] - The company is expected to make price adjustments or increase promotions to address volume challenges [99][104] - The snack sector is seeing a shift towards private label products as consumers seek better value [109] Technology Sector Updates - Ferrari shares dropped significantly after issuing a cautious forecast and scaling back electrification ambitions [60][61] - Tesla is under federal safety probe regarding its full self-driving system, affecting approximately 2.9 million vehicles [62] - Serve Robotics is expanding its delivery partnership with DoorDash, moving beyond its previous collaboration with Uber Eats [63]