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Open Interest Changes

PREMIUM

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CES 2024, the world's largest consumer electronics show, kicks off today with a slew of new product launches by tech heavyweights. While the event is usually headlined by the presence of flashy cars, new PCs and TVs, analysts expect this year's attention to be on artificial intelligence.

New launches: Nvidia (NVDAtook the wraps off its GeForce RTX 40 SUPER Series family of GPUs, as it looks to maintain its lead in the space. AMD (AMD) gained more than 4.5% after it introduced its new Radeon RX 6700 XT graphics card, with other semiconductor names participating at the event rising too. PC makers Acer (OTC:ACEYY), Lenovo (OTCPK:LNVGY), and Dell (DELL), among others, have all launched new high-performance laptops.

CES has become more of a car show in recent years and automakers including BMW (OTCPK:BMWYY), Ford (F), and GM (GM) are expected to have a large showing. Increased use of AI in cars will also be a major theme, as well as advanced driving assistance systems and autonomous driving. Sony (SONY) and Honda (HMC) showcased their joint venture - the Afeela electric car - the highlight of which was the electronics maker's COO driving the car on stage with a PS5 controller.

Bigger picture: Sleek new cars and tech gear may garner the attention of CES floor walkers, but at the end of the day, the theme of the event is still focused on two letters: AI. More than half of all companies that Wedbush surveyed said they see more than 20 use cases for generative AI and over 80% said they see 10 or more, including data analysis and marketing content creation, to improve efficiency. "We believe companies will be executing and building off of this trend with CES a major launching pad to kick off 2024 as software, chip, and hardware tech players bet heavily on AI," said Wedbush analyst Dan Ives. (17 comments)

Loose bolts

United Airlines (UAL) found loose bolts on multiple Boeing (BA) 737 Max 9 planes during inspections carried out after a metal door plug blew off an Alaska Airlines (ALK) plane soon after takeoff on Friday. Alaska Airlines also identified loose hardware on some 737 Max 9 planes, raising more concerns about the aircraft's quality controls. The National Transportation Safety Board is investigating Friday's incident, while Boeing is inspecting the plugs on undelivered Max 9 jets at its Washington factory and at Spirit AeroSystems' (SPR) Kansas plant. SA analyst Tim Dunn sees schedule interruptions for several airlines, but Boeing and Spirit Aero (which makes the 737 fuselages) will likely bear the brunt of investor concern. (57 comments)

Adjusted stance

Federal Reserve Governor Michelle Bowman, a long-standing hawk, has adjusted her stance to signal that interest rate hikes are likely over, although she does not believe rate cuts are appropriate just yet. Based on the progress made on inflation over the past six months, Bowman's "view has evolved to consider the possibility that the rate of inflation could decline further with the policy rate held at the current level for some time." However, she pointed to upside risks to inflation from the food and energy markets, the recent easing in financial conditions, and continued labor market tightness. "I recommend scaling back on bets on declining interest rates for now," said SA analyst Jeremy Blum in his review of the latest jobs data. "It's higher for longer this time." (1 comment)

AI boost

Juniper Networks (JNPR) jumped 23% after hours Monday as Hewlett Packard Enterprise (HPE) is said to be in advanced talks to buy the networking name for about $13B. Shares of HPE fell 8.6% in postmarket trade. The deal, which could be announced as soon as this week, will likely boost HPE's artificial intelligence position via Juniper's Mist AI, which optimizes wireless access. Juniper is worth a little under $10B after declining about 5% over the past year. Prior to the development, SA analyst Normad Capital noted that HPE's long-term growth outlook remains bright, given strong demand for high-performance computing and AI. (10 comments)

Today's Markets

In Asia, Japan +1.2%. Hong Kong -0.2%. China +0.2%. India flat.
In Europe, at midday, London -0.1%. Paris -0.4%. Frankfurt -0.5%.
Futures at 7:00, Dow -0.5%. S&P -0.5%. Nasdaq -0.6%. Crude +2.3% to $72.37. Gold +0.3% to $2,040.20. Bitcoin +4% to $46,714.
Ten-year Treasury Yield +5 bps to 4.05%.

Today's Economic Calendar

6:00 NFIB Small Business Optimism Index
8:30 International Trade in Goods and Services
12:00 PM Fed’s Barr Speech
1:00 PM Results of $52B, 3-Year Note Auction

Companies reporting earnings today »

What else is happening...

WSB survey results: Tech stocks may be the biggest winners again.

Exxon, Koch Industries rejected by Supreme Court in climate lawsuit.

Cathie Wood expects spot bitcoin (BTC-USD) ETF approval this week.

JetBlue (JBLU) CEO Hayes to step down, COO Geraghty to succeed.

Sony (SONY) plans to call off $10B merger with Zee Entertainment.

Four drugmakers under Senate probe over asthma inhaler pricing.

ByteDance (BDNCE) eyes sale of gaming assetsTencent in fray.

Activist Elliott builds $1B stake in Tinder parent Match Group (MTCH).

Unity Software (U) slashes 25% jobs as it refocuses its core business.

JD.com's Dada Nexus (DADA) audit uncovers 'suspicious practices.'


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.

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