Amazon shares jumped in extended trading Thursday after the company posted third-quarter earnings that blew past analysts' estimates, driven by growth in its cloud business. https://t.co/FtIzshZMca ...

It’s no exaggeration to say Amazon invented the cloud business. But three years into an AI boom, AWS is widely seen as trailing its peers in the technology. https://t.co/M2GovBB5oS ...

Market Overview - US equity futures are slightly up ahead of the CPI report, with S&P futures rising 0.2% and Nasdaq 100 futures up 0.3%, driven by tech stocks [1] - European stocks are also trending higher, while Chinese stocks have seen their largest advance since March, led by companies benefiting from China's push for homegrown technology [1][13] - Treasury yields remain steady at 4.05%, and the USD has seen a slight increase as the yen weakens [1][15] Corporate News - Citigroup's CEO anticipates a rise in deal-making as US companies gain confidence from clearer policy signals [4] - Brookfield has declared the debate over remote work to be over, indicating a shift in corporate work culture [4] - Tricolor, a used car seller and subprime lender, has filed for liquidation in bankruptcy [4] Stock Movements - Avidity Biosciences shares fell 19% after announcing a $500 million share offering [6] - Ecovyst Inc. shares rose 8% following Technip Energies' acquisition of its advanced materials and catalysts business [6] - Opendoor Technologies shares surged 36% after leadership changes, including the return of co-founders to the board [6] - Oxford Industries shares jumped 18% after reporting second-quarter profits that exceeded expectations [6] - Red Cat Holdings and Revolution Medicines both saw share increases of 9% following positive developments in their respective businesses [6] Economic Indicators - Expectations for the Fed to resume monetary easing have increased, with money markets betting on up to three quarter-point cuts by December [5][10] - A softer-than-expected CPI print could lead to speculation about a larger rate cut, while a stronger reading would support a more gradual approach [7][10] - The core CPI is expected to rise 0.3% for the second consecutive month, according to Bloomberg survey estimates [5][43] Investment Sentiment - The prevailing bullish sentiment in the market carries risks of increased volatility, especially after a strong rally [11][12] - Investors are weighing diverging narratives, with easier financial conditions supporting the rally, yet concerns about tightening trade margins and inflation impacting earnings forecasts [10][12] - US share buybacks are projected to increase by $600 billion over the coming years, indicating strong corporate confidence [10]

Economic Outlook - JPMorgan CEO Jamie Dimon indicated that the U.S. economy is experiencing a slowdown, with uncertainty about whether it is heading towards a recession [1] - A preliminary report showed that U.S. employers added 911,000 fewer jobs in the year through March than previously reported, suggesting a weaker labor market [1][1] Market Performance - Wall Street's major indexes closed higher, with UnitedHealth Group surging over +8% after announcing that 78% of its Medicare Advantage members are expected to enroll in top-rated plans next year [2] - Atlassian Corp. climbed more than +5% after announcing plans to transition customers to its cloud platform [2] - Nebius jumped over +49% after securing a deal worth up to $19.4 billion with Microsoft for AI infrastructure [2] Corporate Developments - Oracle's stock surged over +29% in pre-market trading after projecting that booked revenue from its core cloud business would exceed half a trillion dollars [3][14] - Taiwan Semiconductor Manufacturing Co. reported a 34% increase in August revenue, reflecting strong global demand for advanced AI chips [15] Economic Indicators - The U.S. Producer Price Index (PPI) is anticipated to show a +0.3% month-over-month increase and a +3.3% year-over-year increase, compared to previous figures of +0.9% month-over-month [6] - U.S. Wholesale Inventories data is expected to remain unchanged at +0.2% month-over-month [7] International Developments - China's consumer prices fell at their fastest pace in six months, with the August CPI unchanged month-over-month and down -0.4% year-over-year [11][12] - Fitch Ratings raised its 2025 growth forecast for China to 4.7%, up from 4.2% [11]

Core Insights - The "Ten Titans" of the S&P 500, which include the "Magnificent Seven" and additional companies, currently represent 38% of the index and have the potential to increase their share if they meet investor expectations [1][2]. Group 1: Oracle - Oracle's current market cap is $660.2 billion, with a remarkable increase of 70% in the last year and 318% over the past five years [5]. - The company's cloud business is outpacing competitors like Amazon Web Services and Microsoft Azure, attributed to its effective pricing model and partnerships [6]. - Oracle's forward P/E ratio stands at 34.6, making it pricier than larger cloud players, but it has advantages that could propel its market cap above $1 trillion by 2030 [7][8]. - As a pure play enterprise software company, Oracle focuses its capital expenditures on cloud infrastructure, differentiating itself from tech conglomerates [10]. - The company has aggressively invested in AI, although its operating income has not kept pace with its capital expenditures [11]. - If Oracle's investments yield earnings growth, it could maintain its premium valuation and reach a $1 trillion market cap [13]. - However, Oracle's balance sheet is highly leveraged, and its free cash flow is currently negative due to upfront AI investments [13][14]. Group 2: Netflix - Netflix's market cap is currently $515.8 billion, and it would need a compound annual growth rate of 14.2% to reach $1 trillion by 2030 [16]. - The company aims to double its revenue and triple its operating income by 2024, targeting $78 billion in revenue and a 40% operating margin [17]. - Achieving a $1 trillion market cap would result in a valuation of 32.3 times operating income, which is considered expensive [17]. - Netflix has successfully refined its content strategy, which may support margin growth over time [18]. Group 3: Investment Considerations - The Ten Titans have historically delivered market-beating returns, but their current valuations are stretched, indicating future gains will rely more on earnings growth than on valuation expansion [19]. - The influence of the Ten Titans on the S&P 500 can lead to significant market movements, both upward and downward, depending on earnings performance and investor sentiment [20].

Oracle shares closed at a record high on Monday after CEO Safra Catz disclosed bullish new developments about the enterprise software giant’s cloud business. Watch these key chart levels. https://t.co/EpMjNALMdt ...