Welcome to Yahoo Finance's flagship show, The Morning Brief. I'm Ally Canal. Let's get to the three things you need to know today.First up, US stocks bouncing off session lows. Futures slightly higher after a sharp tech sell-off that wiped about 500 billion in market value from chip stocks in the socks index as investors grow more cautious about lofty valuations. Crypto is also taking a hit.Bitcoin dropping below $100,000 per token for the first time since June. The sell-off has somewhat eased, but it's sti ...

Core Viewpoint - The article emphasizes the importance of momentum in navigating the technology landscape, particularly in the context of past market events and the current AI boom [1]. Group 1: Market Experience - The author has over two decades of experience in the market, specifically focusing on the technology, media, and telecommunications (TMT) sectors [1]. - The author has navigated significant market events such as the dot-com bubble, the credit default crisis of 2008, and the recent surge in artificial intelligence [1]. Group 2: Investment Strategy - The primary focus of the author's investment strategy is on risk mitigation and identifying momentum within the market [1].

Core Insights - The company anticipates revenue for fiscal 2026 to reach at least $36 billion, driven by increasing demand for AI-related Nvidia-equipped servers [1] Company Summary - The company is experiencing a surge in demand for its servers, particularly those equipped with Nvidia technology, which is contributing to the optimistic revenue forecast for fiscal 2026 [1]

Core Insights - The company is part of the AI server market and is expected to face challenges in the current quarter, with a focus on future guidance rather than immediate results [1][4] - Revenue growth is projected at approximately 2.5% year-over-year, which is considered modest in the context of the AI sector, while a more significant growth of 40% is anticipated in the following period [3] - The company pre-announced a revenue estimate of around $5 billion for the September quarter, falling short of the $6.5 billion consensus, and acknowledged delivery delays [4] Revenue and Earnings - Revenue is expected to grow about 2.5% year-over-year, indicating a relatively weak performance compared to the broader AI market [3] - The company has reiterated its full fiscal year revenue guidance for 2026 at a minimum of $33 billion [4] Stock Volatility - The stock has shown significant volatility, with a potential one-day move of about 10.3% and an estimated move of 11.5% by the end of the week [5] - Historical performance indicates that the stock dropped 18% following the last earnings report, and it has missed earnings expectations five times in a row [6][7] Options Market Activity - There is a notable interest in options trading, with a ratio of approximately 1.5 times more calls than puts, indicating a bullish sentiment [9][10] - The maximum pain level for options is identified at $51, suggesting that a slight upward movement could lead to significant losses for options holders if the stock closes near this level [10]

Core Insights - Super Micro expects fiscal first-quarter revenue to be $5 billion, a decrease from the previous guidance range of $6 billion to $7 billion [1] Company Summary - The company has revised its revenue expectations downward for the fiscal first quarter, indicating potential challenges in meeting earlier forecasts [1]

Core Insights - The company expects to miss its quarterly revenue target due to order timing [1] - Despite this, the company is maintaining its full-year outlook [1] - The company has a history of guidance disappointments [1]

Market Overview - Major averages are experiencing a rebound, with the Dow up approximately 350 points (0.75%), the S&P up nearly 1%, and the Nasdaq up about 1.1% [2] - The Russell 2000 index has reached a new record high, increasing by about 1.4% for the session and up 13% year-to-date [3] Banking Sector Performance - Bank of America and Morgan Stanley reported stronger-than-expected third-quarter results, driven by a surge in deal-making on Wall Street [8] - Morgan Stanley achieved a record quarter in its equity underwriting business, while Bank of America set a record for its lending margin and net interest income [9][10] - Goldman Sachs reported over $1 trillion in M&A volume advised year-to-date, indicating strong performance across major banks [10] - Analysts expect street estimates for bank earnings to rise for 2026, reflecting positive trends in loan demand and credit quality [12][15] Trade Tensions and Economic Implications - U.S. Treasury Secretary and U.S. Trade Representative criticized China for new restrictions on rare earth exports, labeling it as economic coercion [28][29] - The U.S. aims to diversify supply chains rather than decouple from China, with ongoing discussions at staff levels [30] - President Trump indicated potential retribution against China regarding cooking oil imports, which could impact U.S. farmers [32][39] ETF Market Trends - ETF net inflows surpassed $1 trillion, significantly ahead of last year's total, with strong interest in thematic and fixed-income ETFs [82][83] - The shift from mutual funds to ETFs is evident, with significant inflows into S&P 500 index-based products and thematic ETFs related to artificial intelligence and nuclear energy [84][86] - Retail investors are driving demand for thematic strategies, indicating a resurgence in retail-driven trading [88] Oil Seed Processing Sector - Bungi, a major oil seed processor, reported positive earnings and updated guidance, benefiting from potential reductions in Chinese used cooking oil imports [40][41] - The sector is expected to gain from a shift away from Chinese imports, with companies like ADM and Darling Ingredients also positioned to benefit [42]

Core Viewpoint - Netlist, Inc. has initiated legal proceedings against Samsung, Google, and Super Micro at the U.S. International Trade Commission (ITC) for patent infringement, seeking exclusion and cease and desist orders [1][2]. Group 1: Legal Action Details - The legal action involves six patents owned by Netlist, specifically U.S. Patent Nos. 12,737,366, 10,025,731, 10,268,608, 10,217,523, 9,824,035, and 12,308,087, which pertain to various memory products including DDR5 memory modules and high-bandwidth memory [2]. - The ITC is an independent agency that investigates unfair acts in import trade that violate U.S. intellectual property rights, with investigations typically progressing to trial within a year [3]. Group 2: Company Background - Netlist is recognized as a leading innovator in advanced memory and storage solutions, with a strong portfolio of patented technologies that are foundational to AI computing advancements [4].

Bring in show music, please. >> Hi, I'm CNBC producer Katie Kramer. Today on Squawk Pot, >> Jimmy Kimmel returns. >> There's no way Disney was going to have the spine to stand up to the woke mob. >> CEO Bob Iger's decision to suspend and then reinstate the late night host and manage political and public pressure once an insider the company, former Tik Tok CEO Kevin Mayer weighs in. >> Half is going to be angry and no matter what you do. So I think Bob just has to do what he thinks is right for the company > ...

Core View - CoreWeave's stock has seen significant growth since its IPO in March, rising over 200% from its $40 IPO price to $187 in June [1][3] - The stock is currently receiving attention due to upgrades from Melius Research and Wells Fargo, indicating strong analyst confidence [1][3] Analyst Upgrades - Wells Fargo upgraded CoreWeave to overweight from equal weight, raising the price target from $105 to $170, citing benefits from the elevated build cycle and hyperscaler industry shortages expected to last until the end of 2026 [3][4] - Melius Research upgraded CoreWeave to buy from hold, increasing the price target from $128 to $165, highlighting the company's advantage in cloud demand and its position to gain market share due to early access to Nvidia's next-generation AI systems [5][6] Market Context - The ongoing hyperscaler shortages are seen as a positive for CoreWeave, with expectations that the company will capture more market share [4][5] - The demand signals for CoreWeave are described as "too strong to ignore," indicating a robust outlook for the company [4] Trading Insights - Options strategist Tim Bigum suggests that while CoreWeave's stock may not see significant upside in the short term due to its rapid rise, it is unlikely to experience major downside risks [8][9] - The current trading environment shows a higher call skew compared to put skew, suggesting that speculative upside may be overextended [10]