Dow Does The Carry 🏋️

Welcome to LazyListen. This is The Daily Rip for today. Markets closed mixed Tuesday with the Dow hitting fresh records while the broader indexes slipped a bit.

The spotlight stayed on SpaceX, which surged again to become the world’s fifth most valuable company by market cap after a three-day rally of more than forty percent. Investors are still digesting that meteoric rise as they await Wednesday’s Federal Reserve meeting, the first under new chair Kevin Warsh. Most economists expect no rate changes, making this a key moment to watch for any shifts in Fed tone.

Let’s start with the high-volatility names. Snap unveiled its new augmented reality glasses priced at just under twenty-two hundred dollars, aiming to push beyond smartphones into wearable tech. The product, called Specs, requires a refundable two hundred dollar deposit and offers about four hours of battery life.

, and France. While the glasses are ambitious, Wall Street reacted skeptically, sending Snap’s shares down nearly ten percent. The question is whether consumers will embrace such an expensive gadget from a company that has yet to turn a full-year profit.

The community on Stocktwits showed mixed reactions, with some seeing it as a bold bet on the future of AR, while others called the selloff an overreaction given Specs’ small current revenue impact. I. giant’s massive spending and growth.

The firm burned through about thirty-four billion dollars last year, including nineteen billion on research and development and nearly six billion on sales and marketing. Revenue hit thirteen billion dollars, with monthly sales reaching two billion by year-end. However, net losses soared to nearly forty billion dollars, largely due to a non-cash accounting charge tied to its investor structure.

I. growth doesn’t equal profitability yet. I.

scale. SpaceX kept the momentum going, climbing again to briefly surpass Amazon and Microsoft in market cap. I.

coding startup Cursor for sixty billion dollars. Cursor, which recently hit three billion in annualized revenue, had partnered with SpaceX for two months before the buyout. This move signals Elon Musk’s push to compete directly with OpenAI and Anthropic in developer tools.

SpaceX shares rose nearly five percent on the news. I. coding and a way to add software multiples to SpaceX’s Starlink and xAI ventures.

Bears caution that SpaceX is doubling down on capital-intensive bets, having posted a net loss of nearly five billion dollars last year with capital expenditures soaring to over twenty billion. Turning to the macro scene, all eyes are on Kevin Warsh’s first Fed meeting. Despite his dovish reputation, the committee has grown more hawkish, and most economists expect no rate changes through 2027.

The Fed is also likely to drop its easing bias in the statement. Interestingly, there’s growing debate about the Fed’s famous dot plot, with over half of surveyed experts wanting it eliminated or changed. Warsh is expected to shake up Fed communications, potentially skipping the dot plot altogether.

-related stocks like Nvidia stay tied to the broader macro outlook. Watch bond funds, credit appetite, bank liquidity, real estate, oil, and semiconductors for how they react to Fed signals. S.

and Iran to end the 109-day conflict and reopen the Strait of Hormuz sent oil prices sharply lower. Brent crude fell over five percent to just under seventy-nine dollars a barrel, while WTI dropped nearly six percent to about seventy-six dollars. The memorandum of understanding, signed electronically over the weekend, sets a sixty-day period for follow-up talks on nuclear issues, sanctions, and regional security.

However, conflicting statements from Washington and Tehran about sanctions relief and frozen assets have kept traders cautious. Israel’s reservations about parts of the deal add to the uncertainty. So, while the market is pricing in supply relief, this remains a fragile situation.

In sector movers, financials led gains as JPMorgan shares climbed nearly four percent amid rotation into banks ahead of the Fed. On the downside, semiconductor and optical stocks reversed recent rallies ahead of the Fed meeting. I.

chip enthusiasm. Energy stocks also pulled back with crude’s drop, dragging names like Coterra lower. Meanwhile, Cboe Global Markets slipped after breaking below a key technical support level.

Looking ahead to Wednesday, the market will focus on retail sales and business inventories data in the morning, followed by the Fed’s policy statement in the afternoon. Earnings reports to watch include CarMax and Jabil before the open, with Smith & Wesson, Safe Bulkers, and Cheetah Mobile releasing results after the close. I.

landscape with OpenAI and SpaceX making waves, and geopolitical developments impacting oil markets. Traders are balancing excitement over tech innovation with caution ahead of key macro events that could set the tone for the rest of the year. Thanks for listening.

Catch you next time on LazyListen.