Meta's five-year CDS hit a record 114.5 bps as the stock fell 6% at the open; Nebius secured a $3.5 billion Citi facility as Huang called neocloud capital scarce; American Airlines flagged $2.8 billion more fourth-quarter fuel cost; and the US signed for at least 850 Lockheed F-35s.
Markit data relayed on X put Meta's five-year credit default swaps at an all-time high of 114.5 bps, and the stock slid 6% at the open, erasing $100 billion in value. Meta disclosed $45.85 billion and $121.41 billion of commitments due in 2026 and 2027 for cloud capacity, infrastructure and Reality Labs. A JPM specialist said the new Class C shares likely mean an equity raise is coming, though not until early 2027.
Nebius secured a $3.5 billion, 364-day facility from Citi at Term SOFR plus 2.75%, potentially rising to SOFR plus 3.50%. Nvidia's Jensen Huang said neocloud demand is off the charts but capital is scarce, and called Nvidia's stakes investments rather than backstops. Per ORTEX, bets against Nebius generated $2.94 billion and against CoreWeave nearly $1.7 billion, while @aleabitoreddit calls financing a key distinction and has flagged CoreWeave's debt interest.
Brent crude futures rose more than 3% to $112.55 a barrel, the highest since May. American Airlines said fourth-quarter fuel will cost $2.8 billion more than a year earlier, forecast a full-year loss and said its 2027 growth rate will decelerate considerably. Southwest beat third-quarter expectations but cut its full-year profit outlook, planning as if elevated jet fuel prices persist into 2027.
The US signed a deal with Lockheed Martin for a minimum of 850 F-35 jets. Lockheed reported third-quarter net sales of $20.7 billion against a $20.47 billion estimate, a backlog of $291.98 billion against $231.53 billion expected, and full-year free-cash-flow guidance of about $7.8 billion to $8.0 billion. Separately, Thales nudged its full-year guidance higher on strong defense and aerospace demand.
Rudy & Rooster disclosed buying more of the SILJ silver-miners ETF after the market, without giving a rationale.
@finphysnerd reduced a third of the ECNS hedge on a long Prosus, short ECNS position, saying they are starting to move a bit long China as a trade.
@tacticzh sold part of a Nebius position at $260 and $281 and is not buying at the current price, believing it can overshoot lower; notes it is still up almost 100% year to date.
@aleabitoreddit is probably cautious on the neocloud sector as a whole, especially newer names, but remains long-term positive on one name.
@labubu_trader added EWY and SKHY puts back as a hedge, citing nine pending events including four CSP earnings, the midterm election, Anthropic's S-1, the Iran war, the Treasury QRA and FOMC.
@crypto_condom holds puts on the Global X Lithium & Battery ETF LIT as downside protection into next year and says the short thesis is intact.