Oracle just raised a fresh red flag for investors worried that tech companies are getting ahead of themselves when it comes it their massive capex spending. Oracle stock plunged 14% on Thursday after the tech giant reported an earnings beat but delivered revenue that was below Wall Street estimates, posting $16.06 billion compared to $16.21 billion expected by analysts. Cloud sales rose 34% from the previous quarter but also fell short of estimates.Importantly, Oracle also pledged to spend about $15 billio ...

Some companies uh have been getting punished around earnings last week for coming out with these huge figures of capex spending plans over the coming quarters, the coming years. Are you confident that the demand is going to meet the spend. >> I can't speak for the whole industry. I can only speak for Microsoft.Yeah. >> And what I can say for Microsoft is that demand is clear. It is present.Our biggest challenge is not a risk of you getting ahead of demand. It's actually keeping pace with demand. And what we ...

Today we do begin with our talk of the tape. All that lies ahead this week with mega cap earnings, the Fed decision, and so much more looming large. Let's welcome in Solless's Dan Greenhouse and I Capitals Sali Basket.It's great to have you both with us. Dan Greenhouse, you first. Uh this is a resilient rally.This likes any positive headline it's getting on trade and it thinks it's going to get good stuff from the mega caps. How much is actually riding on what happens this week. Yeah.So, for viewers who wat ...

Economic Data and Market Sentiment - The Philly Fed index showed a significant decline from 23.2% last month to negative 12.8%, indicating a miss in regional economic data [1][2] - Corporate earnings reports from banks and airlines have been solid, with United Airlines and Delta performing better than expected, suggesting strength in the US consumer [3][4] Upcoming Earnings and Economic Indicators - American Express earnings are anticipated to provide insights into affluent US consumers, with several major companies set to report earnings soon, including Tesla on October 22nd and five major tech companies on October 29th and 30th [4][5] - The Consumer Price Index (CPI) report is scheduled for October 24th, which will be crucial for market expectations [7] Federal Reserve and Interest Rates - Recent comments from Fed officials, including Jerome Powell, suggest a more dovish stance with discussions of potential rate cuts, possibly starting in October [8][9] - Stephen Myron indicated support for at least two rate cuts before the end of the year, contributing to a favorable outlook for stocks [10] Commodity Prices and Inflation - Crude oil prices have decreased from just below $63 to around $58.5, which is a significant factor in the inflation landscape [10][11] - The stability of the dollar, along with declining crude prices, is seen as favorable for the stock market [11]

Market Sentiment - The market is perceived as somewhat frothy, with significant capital inflow, particularly into the AI sector, raising questions about sustainability [1][2][4] - The Federal Reserve is navigating a challenging environment with inflation concerns while employment is softening, leading to discussions about the necessity of rate cuts [2][4] AI Sector Insights - A report from Bane indicates that AI companies may face a revenue shortfall of up to $800 billion by 2030, highlighting potential challenges ahead [4] - There is confidence in the AI trade's ability to continue driving market strength, with expectations of spending reaching approximately $3 trillion [6][9] - The early stages of AI spending are noted, with ample private capital available to support growth, although the trajectory may not be linear [7][8] Earnings and Market Performance - The market is closely monitoring earnings to ensure they meet elevated expectations, as this is seen as a key factor supporting current market levels [9][10] - The S&P equal weight and market cap weighted indices have been trading closely, indicating a potential shift in market dynamics [11] Broader Market Trends - There is a belief that conditions are now favorable for a broader market rally, with potential cyclicality introduced by anticipated rate cuts [12][13] - The Russell 2000 index is highlighted as a potential beneficiary of this cyclicality, reflecting market sentiment over the past few weeks [13]

is joining me now is Andreas Garcia Amaya, CEO at Zo Zoe Financial. Um, so break this down for us because it feels like we've already done a lot of capex spending as it pertains to AI. Uh, you think it could be higher than the 90s.What about higher than what we've already seen so far. >> Yeah, so there's a couple uh analogies you can make to the late 90s to the infrastructure boom that led, you know, that led to the internet boom. Um the the first one being that you need to kind of lay the rails for then th ...