It's 5AM in New York City. Good morning. I'm Vonnie Quinn with your Bloomberg Brief.Let's get you set up for the day. Traders paring back rate cutbacks following that payrolls report. Jobless claims up next.Stocks recovering from another scare trade while anthropic inching closer to a deal that would value the farm at $350 billion. And midterm anxieties rise for President Trump as the House passes a bill targeting his levies on Canadian imports. So futures are pointed higher today.Now, yesterday, we had ano ...

THIS IS "THE CLOSE." KATIE: LIVE FROM STUDIO 2, I'M KATIE GREIFELD. >> I'M SCARLET FU. LET'S GET A CHECK.ON THIS TUESDAY. KATIE: IT'S WEDNESDAY. SCARLET: IT IS.MAYBE THAT IS WHY EVERYTHING IS SO CONFUSING, JOBS REPORT WAS DELAYED BECAUSE OF THE PARTIAL GOVERNMENT SHUTDOWN. RIGHT NOW, THE S&P IS HIGHER. THAT JANUARY JOBS REPORT CAUSED TRADERS TO REPRICE THE TIMING OF WHEN THE FED RESUMES RATE CUTS LATER IN THE YEAR.THEY ARE CERTAINLY MORE SENSITIVE TO RATE CUTS. YOU SAW MOVEMENT IN THE TREASURY MARKET, TREAS ...

About 2 minutes away from the end of the trading day. Katie Crutchfield here with Scarlet Fu Romaine Bostick out on assignment here to help take us through the closing bell. It's global simulcast.Joining us now is Carol Massar and Tim Stenovec. We bring together all of our audiences to talk about a market day that's ending again, Carol. Without fireworks, we came in, we saw futures surge after that jobs report.And now it looks like we're going to finish up pretty much unchanged on the day. Yeah, kind of. Ho ...

Market Overview - The Dow Jones Industrial Average fell 224 points, or 0.45%, to 49,891.55, slipping below the key 50,000 mark, while the S&P 500 edged up 0.06% to 6,936.48, and the Nasdaq Composite rose 0.29% to 23,097.46, indicating a market divided between old-economy stocks under pressure and selective strength in technology and AI-linked names [18] Commodities - Gold futures surged 1.44%, reclaiming the $5,000 per ounce level, driven by Wells Fargo's bullish price target of $6,300 and a 15-month buying streak by China's central bank, highlighting its status as a hedge against economic uncertainty [2][11] - Silver also saw a significant increase, gaining over 4%, as investors turned to hard assets amid macro uncertainty and inflation risks [11] Cryptocurrency - Bitcoin fell below $69,000, continuing a volatile trend, with the Nasdaq Crypto Index dropping 2.66%, reflecting a cooling of speculative interest in the market [3][12] - The recent selloff marked Bitcoin's sharpest daily drop since 2022, indicating a lack of confidence in the cryptocurrency market [12] Technology Sector - The tech-heavy Nasdaq found support from selective buying in AI and semiconductor stocks, with NVIDIA trading higher due to continued confidence in long-term demand for AI infrastructure [7][15] - However, the software sector faced challenges, exemplified by monday.com, whose shares plunged 23% after issuing disappointing revenue and profit guidance, raising concerns about AI's impact on margins and pricing power [9][10] Upcoming Events - Markets are focused on upcoming earnings reports from major companies like Coca-Cola, McDonald's, and Cisco, as well as macroeconomic data including the January jobs report and inflation data, which could influence expectations for interest rates and growth [13]

Core Insights - Lantronix Inc. will showcase its Out-of-Band (OOB) management solutions at Cisco Live 2026 in Amsterdam, aimed at reducing unscheduled downtime through automated management and recovery [1][2] Company Overview - Lantronix is a global leader in Edge AI and Industrial IoT solutions, providing intelligent computing, secure connectivity, and remote management for mission-critical applications [3] - The company serves high-growth markets such as smart cities, enterprise IT, and unmanned systems, including drones, enabling customers to optimize operations and accelerate digital transformation [3] Product Features - The OOB solutions offer end-to-end workflows that connect console access, centralized administration, and operational automation across distributed sites and large-scale environments [2] - Key benefits include reduced downtime, quicker incident response, and faster recovery, maintaining secure access to remote infrastructure during outages or security incidents [6] - The solutions also aim to reduce manual work in Network Operations Centers (NOCs) and field operations by standardizing common tasks [6] Event Details - Lantronix will conduct a speaking session titled "Out-of-Band Everywhere," focusing on how OOB advancements enhance network infrastructure management and security while generating new business options [2][6] - The session is scheduled for February 10, 2026, at 15:20, featuring Ryan Hogg, the director of Product Strategy [6]

Core Viewpoint - Apple and GE Aerospace are leading five stocks that are signaling buy opportunities, with Apple showing resilience against recent tech market sell-offs [1] Group 1: Stock Performance - The Dow Jones Industrial Average has surpassed 50,000 for the first time, with notable stocks like JPMorgan, Apple, and Boeing entering buy zones [1] - Apple (AAPL) has remained unaffected by the recent downturn in the tech sector, indicating strong market positioning [1] - GE Aerospace (GE) is highlighted as one of the stocks to watch, suggesting potential growth and investment interest [1] Group 2: Other Stocks of Interest - Sterling Infrastructure (STRL), a data center builder, experienced a midweek decline but rebounded on Friday, moving towards a breakout point [1] - Toll Brothers (TOL), another builder, is expected to benefit from rumored developments, indicating positive market sentiment towards the construction sector [1] - The article also mentions other companies like Cisco, Halozyme, and Bloom Energy as being in or near buy zones, reflecting a diverse range of investment opportunities [1]

Group 1: Bitcoin Market Dynamics - Bitcoin has experienced a significant decline, down 13% this week and 27% over the past month, with its value dropping from a peak of over $126,000 to below $63,000 [4][5] - The selling pressure was exacerbated by leveraged positions being forced to liquidate, indicating Bitcoin's status as a risk asset rather than a stable currency [6] - The volatility in Bitcoin reflects broader market concerns about overvaluation and risk allocation in investment portfolios [3][6] Group 2: Software Stocks and AI Impact - Software stocks have seen substantial declines, with major players like Microsoft down 7%, Adobe down 10%, and Oracle down 16%, driven by fears that AI advancements may render many companies obsolete [10][15] - New AI tools announced by companies like Anthropic and Google have contributed to market anxiety, leading to a sell-off in related stocks [7][10] - The market is grappling with the dual concerns of high capital expenditures on AI that may not yield expected returns and the potential for AI to disrupt entire industries [16][18] Group 3: Earnings Reports and Market Reactions - Alphabet reported an 18% revenue increase and a 48% growth in cloud revenue, but its stock fell due to high capital expenditure predictions for 2026, which could consume a significant portion of its profits [12][13] - Amazon's projected capital expenditures for 2026 are also high, at $200 billion, representing 28% of its revenue and 256% of its net income, raising concerns about sustainability [14][15] - Hershey's stock rose 9% after beating earnings expectations and raising guidance, reflecting a shift towards more resilient consumer staples amid economic uncertainty [27][28] Group 4: Economic Indicators and Job Market Concerns - Recent job market data indicates rising initial jobless claims and the lowest job openings since September 2020, suggesting a weakening labor market [31][32] - Layoffs announced by major companies like Amazon and UPS contribute to a pessimistic outlook for upcoming job reports [32][33] - The defensive rotation in the market is evident as investors seek stability in traditional sectors like consumer staples and healthcare, moving away from riskier tech assets [26][31]

Market Overview - Bitcoin has dropped to $60,000 from a record high of $124,000, indicating a downward trend in market froth [1] - Share markets, including the ASX 200 index, have seen significant declines, with a 2% drop on Friday [2] - A local market wipeout of nearly $65 billion occurred, marking the largest fall since April of the previous year, with all sectors closing lower [3] Sector Performance - The ASX technology sector fell by 12.6% for the week, driven by concerns over AI investments and their potential returns [6] - Major tech companies like Amazon saw an 11% drop in shares due to high capital expenditure plans, impacting technology stocks in Australia [7] - Real estate stocks weakened, with Goodman Group falling 6.1% and REA Group down 7.8% after disappointing profit results [11] Commodity and Mining Sector - Gold and silver prices have weakened, with silver experiencing a 2% increase after an 18% fall in the previous session [8] - Major mining companies like BHP, South32, and Newmont saw declines in their share prices, with BHP down 3.1% [9] - Rio Tinto shares remained flat after ending merger talks with Glencore [10] Upcoming Economic Indicators - The focus will shift to household spending data expected to show some weakening, while new home loan data is anticipated to increase by around 6% [14] - US jobs figures are expected to show an addition of around 50,000 jobs, with the unemployment rate steady at 4.4% [15]

Investment Rating - The report suggests a focus on companies such as SanDisk (SNDK.O), SK Hynix (000660.KS), Samsung Electronics (005930.KS), and Micron Technology (MU.O) due to their potential in the AI-driven storage market [4]. Core Insights - The industry is transitioning from traditional cycles to AI-driven technological premiums and high growth, with storage becoming a critical bottleneck for AI computing efficiency [5]. - AI is driving exponential growth in storage demand, with significant increases in requirements for high-bandwidth memory (HBM) and solid-state drives (SSD) due to the scaling laws of model parameters [5]. - The valuation framework is being reshaped, with revenue growth and net profit margin expansion occurring simultaneously, indicating a period of high operational leverage in the storage sector [5]. Summary by Sections AI Value Chain - The AI value chain includes components such as computing chips (GPUs, CPUs, ASICs), storage (DRAM, SSD, HDD), networking, and energy solutions, highlighting the interconnectedness of these sectors [10][12]. - The storage segment is characterized by oligopolistic features, with high barriers to entry supporting high profitability [12]. Storage Demand and Hardware Architecture - Storage demand is categorized into cold, warm, and hot data, with different storage solutions (HDD, SSD, DRAM) tailored to each category's speed and capacity requirements [20]. - The architecture is structured in layers, with HBM for high-speed access, SSD for intermediate storage, and HDD for large capacity [29]. Large Language Model Storage Requirements - The report details the storage needs of large language models, emphasizing the importance of storage capacity and bandwidth in both training and inference phases [42][47]. - The growth in model parameters necessitates increased storage capacity, with significant implications for the demand for NAND and DRAM technologies [59]. Company-Specific Insights - Micron Technology (MU.O) is focusing on data centers and has made significant advancements in HBM3E technology, with a strong market demand for its products [64][70]. - SanDisk (SNDK.O) has undergone a restructuring, achieving notable revenue growth and improving profit margins through a focus on high-value enterprise SSDs [72][78]. - SK Hynix is benefiting from its early entry into the AI storage market, while Samsung is striving to catch up [79][81].

Core Viewpoint - Ciena Corp. is set to rejoin the S&P 500 index after 17 years, indicating a significant recovery and growth in the company's market position [1][3]. Group 1: Company Overview - Ciena is a networking hardware manufacturer specializing in high-speed fiber optical networks, with a market cap that has nearly tripled in the past year [2]. - The company reported that nearly 18% of its revenue for the 2025 fiscal year came from an unnamed cloud provider, while about 11% was generated from AT&T [2]. Group 2: Market Dynamics - The inclusion of Ciena in the S&P 500 is expected to drive stock prices higher as fund managers purchase shares to align with the index [3]. - Investor interest has surged due to increased demand for data center infrastructure capable of supporting generative artificial intelligence models, which is projected to significantly contribute to Ciena's growth in 2026 [4]. Group 3: Financial Performance - Ciena anticipates a revenue growth of approximately 24% during the 2026 fiscal year, marking the fastest growth rate since 2011 [4]. - The company's stock recently closed at its highest price since 2001, reflecting strong market performance alongside other network equipment firms like Cisco [5]. Group 4: Supply Chain Considerations - The company faces challenges in securing components, particularly memory and optical parts, due to increased demand, but is actively working with key suppliers to ensure supply stability [5].