Morning Reads


Todays Open Interest Change




The competition for AI dominance is heating up as the world's biggest tech giants go all in on an area that will "impact every product across every company." That's the opinion of Google (GOOGGOOGL) CEO Sundar Pichai, who hastily released the company's chatbot called Bard in March after Microsoft (MSFTpoured billions of dollars into ChatGPT maker OpenAI (overnight reports also suggested that Samsung may turn to AI-powered Bing). The developing industry isn't limited to chatbots, with calls to pause many AI tools until new safety standards for the technology are in place, such as regulations for the economy, laws to punish abuse, and international treaties to make artificial intelligence safe for the world.

Is society prepared for what's coming? "On one hand, I feel no, because the pace at which we can think and adapt as societal institutions, compared to the pace at which the technology is evolving, there seems to be a mismatch," Pichai told CBS's 60 Minutes. "On the other hand, compared to any other technology, I've seen more people worried about it earlier in its life cycle... and worried about the implications." Knowledge workers could face the biggest disruption from future AI technologies, he added, and could unsettle professions like writers, accountants, architects and even software engineers.

There is no doubt that companies are on the brink of something big in terms of artificial intelligence, but it's also important to separate hype from reality when talking about any emerging technology (remember Web 3.0?). There has been a lot of talk about the sentience of chatbots and the genesis of a new humanity, as well as an end to privacy and personal liberty or the quick demise of entire industries. There are also countless AI startups that are looking to play up the news cycle for valuable sources of funding, and even capitalize on investment from the public sector in terms of defense and national security.

SA commentary: Ironside Research explores why Google (GOOG) (GOOGL) was smart to let Microsoft launch its AI first, while Deep Tech Insights says its AI is even three times larger than ChatGPT. Meanwhile, Investing Groups Leader Samuel Smith calls out three AI stocks that are poised to win over the next decade and Luckbox Magazine explains how to add AI to your portfolio. Deep learning and debate are additionally taking place around hot industry players like (AI), with Julian Lin calling it an AI meme stock and Stone Fox Capital flagging the recent pullback as a buying opportunity.

Survey Monday

It's back! Apologies for missing the survey last week, but the latest poll is exploring artificial intelligence and the stock market. How likely are you to use tools like AI trading software, robo-advisors or even explore AI-generated content when doing market research and trading?

· I already do!
· Very interested, just need more information
· Skeptical on this one, but anything is possible
· Never have, never will!

Take the survey and see the results here

Grain drain

Poland and Hungary have banned imports of grain from Ukraine, as well as its transit through their countries, despite a warning from the EU that the unilateral actions would go against the bloc's trade policies. The move by the two countries seeks to protect their farmers, which have staged protests in recent months due to a grain glut and crashing prices. Soon after Russia invaded Ukraine, the EU scrapped tariffs and quotas on Ukrainian grain imports, seeking to help the country that wasn't able to export its product due to logistical problems caused by the war and blocked Black Sea ports. Poland's ban is set to last until the end of June, but with another grain export deal - between Ukraine, Turkey, Russia and the United Nations - up in the air, grain markets could see some renewed volatility. (3 comments)

M&A Monday

Prometheus Biosciences (RXDX) is up 70% in premarket trade after Merck (MRK) agreed to buy the clinical-stage biotech focused on immunology, for $200/share in cash, indicating a total equity value of nearly $10.8B. Prometheus advances late-stage studies for ulcerative colitis and Crohn’s disease, as well as other autoimmune conditions. "The agreement with Prometheus will accelerate our growing presence in immunology where there remains substantial unmet patient need," noted Merck CEO Robert Davis. Seeking Alpha's Quant ratings raised its outlook on Prometheus from Hold to Strong Buy only two weeks ago (check out top Quant stocks by SA's popular stock rating screener). (33 comments)

Trial delay

The landmark trial between Fox News (FOX) and Dominion Voting Systems - the voting machine company suing the network for $1.6B in damages for defamation - was set for a high-profile start today, but at the eleventh hour, it was delayed to tomorrow. Media reports suggest that Fox is making a late push to settle the case after a number of pretrial losses. The case is likely to test long-held notions of media law and include a star-studded witness list that may include Fox hosts Sean Hannity, Tucker Carlson, Maria Bartiromo and even Fox chief Rupert Murdoch. Dominion has accused Fox News of issuing false claims that it worked to rig the 2020 election in favor of President Biden and executives have said they won't settle without a broad apology from Fox that it aired false information about the company. (5 comments)

Today's Markets

In Asia, Japan +0.1%. Hong Kong +1.7%. China +1.4%. India -0.9%.
In Europe, at midday, London +0.4%. Paris flat. Frankfurt flat.
Futures at 6:30, Dow +0.1%. S&P +0.1%. Nasdaq +0.1%. Crude -0.4% to $82.21. Gold +0.3% to $2021.80. Bitcoin -1.5% to $29,868.
Ten-year Treasury Yield +2 bps to 3.54%

Today's Economic Calendar

8:30 Empire State Mfg Survey
10:00 NAHB Housing Market Index
12:00 Fed's Barkin Speech
4:00 PM Treasury International Capital

Companies reporting earnings today »

What else is happening...

To Mars and Beyond! SpaceX (SPACE) set for debut flight of Starship rocket.

Sega Sammy (OTCPK:SGAMY) to acquire maker of Angry Birds.

Teck Resources (TECK) approached by miners to explore metal deals.

Streaming glitch: Netflix (NFLX) keeps Love Is Blind fans waiting.

JPMorgan's (JPM) Dimon sees some banks 'tightening' lending and credit.

Following Tesla (TSLA), XPeng (XPEV) to cut costs with new platform.

Upside? Deutsche Bank calls this U.S. airline a sector outperformer.

Hitting guidance, Chipotle's (CMG) store expansion is still going strong.

Assassination attempt: Second attack on a Japanese leader in less than a year.

Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

More Posts by UPB: View All | Private Twitter Feed: Access Now! (For Diamond Members)