Cristina Aquino

Geopolitical tensions are likely to drive oil prices higher at the start of the trading week, as oil has been reacting to supply concerns and risk aversion.

Apple outperformed as investors treat it as an anti-AI play with negative correlation to technology and chipmakers; while AI/tech names fell, Apple gained, and this defensive behavior is what excited investors.

Dell raised full-year revenue guidance to about $192 billion versus the $173 billion consensus and prior $165-169 billion range; full-year AI optimized server revenue is now seen at $74 billion versus $60 billion previously, and quarterly AI server revenue beat, supporting the AI infrastructure buildout.

Palo Alto Networks beat quarterly revenue and EPS, guided Q1 above estimates, and issued 2027 next-gen security ARR and revenue targets above consensus; shares rose after hours on the strong cybersecurity demand outlook.

Middle East conflict flaring again is driving oil prices higher, with WTI above $90 and Brent near $95; energy is the clear green spot while equities fall, implying oil/energy strength tied to geopolitical supply risk.

Cooler CPI and PPI data are easing inflation fears and fading expectations for a September Fed rate hike, while the AI trade keeps receiving stronger company guidance; that combination creates a Goldilocks environment that supports an everything rally and further S&P 500 gains.

During times of market turmoil, investors tend to flock to big tech companies because they are large, cash-rich, and unlikely to go bust, making them a relative safe haven.

Domino's Pizza (DPZ) reported a larger-than-expected rise in comparable sales, driven by "budget-friendly pies" and promotions. Stock finished up ~4%. In an environment where consumers are stretched (inflation/economy fears), they trade down to the lowest cost calorie options. DPZ is the primary beneficiary of the "trade-down" effect in food. LONG. A defensive play on the consumer wallet. Commodity costs (cheese/dough) rising could squeeze margins despite volume growth.

Novo Nordisk's (NVO) next-gen obesity shot fell short of Eli Lilly's (LLY) rival drug in data released today. Additionally, the FDA approved a label expansion for LLY's Zepbound. The GLP-1 market is a duopoly, but momentum is shifting. LLY is demonstrating clinical superiority and regulatory wins, while NVO is hitting pipeline stumbles. Capital will rotate from the loser to the winner within the sector. LONG LLY / SHORT NVO. LLY is solidifying dominance. NVO could release better data on other pipeline candidates; supply constraints could cap LLY's near-term upside.

Novo Nordisk's (NVO) next-gen obesity shot fell short of Eli Lilly's (LLY) rival drug in data released today. Additionally, the FDA approved a label expansion for LLY's Zepbound. The GLP-1 market is a duopoly, but momentum is shifting. LLY is demonstrating clinical superiority and regulatory wins, while NVO is hitting pipeline stumbles. Capital will rotate from the loser to the winner within the sector. LONG LLY / SHORT NVO. LLY is solidifying dominance. NVO could release better data on other pipeline candidates; supply constraints could cap LLY's near-term upside.