Supermicro’s earnings call today takes place amid a probe that could be ‘fatal’ for the company |
Supermicro’s earnings call today takes place amid a probe that could be ‘fatal’ for the company
Good morning. On Fortune’s radar today:
Markets: Stocks take a breather.
Supermicro probe could be ‘fatal’ for the company.
Fresh missile strikes shut the Strait of Hormuz.
Prediction markets see Republican losses in the midterms.
Alphabet, Amazon, Microsoft, and Oracle have a $2 trillion to-do list.
The robots will see you now.
Traders flinch at renewed conflict in the Middle East
S&P 500 futures were up 0.33% this morning. The index slipped 0.41% yesterday but remains close to its record high.
In Europe, the Stoxx 600 was up 0.53% in early trading and the U.K.’s FTSE 100 was down 0.97% before lunch.
Asia: India’s Nifty 50 was down 0.3%.
Oil was $113 per barrel of Brent crude this morning, up from yesterday’s low of $105.
Bitcoin was up to $80K.
Don’t ignore the macro. Sure, stocks are doing well, Morgan Stanley’s Lisa Shalett says in a recent note. But don’t underestimate the ability of political risk to derail good earnings: “The Federal Reserve’s unique transitional situation could also foster volatility through 2028, [and] damage to institutions like NATO and OPEC could catalyze new destabilizers. Investors can be forgiven for ebullience around tech earnings and an exciting future, but dismissing macro factors with potentially long-lasting implications strikes us as brash.”
“Most investors appear confident that the GenAI-capex story can compound almost regardless of the macro backdrop, while seemingly dismissing variables experiencing clear trend breakouts (oil, inflation, rates, Fed policy, the U.S. dollar) as transitory noise. We aren’t as sure—not because the AI story is questionable, but because the narrative assumes that what is being priced as secular is truly durable, and what is being dismissed as transitory will, in fact, fade quickly. Both assumptions can fail simultaneously. Among those variables labeled ‘temporary,’ we see potential for headwinds to last longer than discounted, with oil supply disruption a case in point,” she said in her most recent note.
Supermicro’s earnings call today will take place amid a probe that could be ‘fatal’ for the company
Supermicro will report fiscal Q3 earnings today and investors will........