Want Some AI debt with your Oil Bill?

Welcome to LazyListen. This is The Daily Rip for today. I.

trade faced a reality check on the cost side. The Consumer Price Index showed inflation running at its highest level in about three years, with headline inflation up four point two percent year over year—well above the Fed’s two percent target. While month-to-month gains were less alarming, energy prices, especially oil, were the main culprit, climbing nearly two percent and keeping the energy sector in the spotlight.

This inflation backdrop means the Federal Reserve is likely to hold steady on rates for now, with markets still pricing in a December hike. Friday’s strong jobs report adds fuel to that expectation. S.

responded to a downed helicopter with a series of attacks and pledged more action tonight. All eyes are also on the massive IPO set for Friday, which could shake up market sentiment. Let’s start with the big earnings story after the bell: Oracle.

The tech giant beat estimates on revenue and earnings, with revenue growing twenty one percent year over year and cloud revenue up forty seven percent. Cloud infrastructure revenue nearly doubled, jumping ninety three percent to almost six billion dollars. I.

demand linked to OpenAI and others. I. buildout is expensive.

The company revealed a backlog of nearly six hundred forty billion dollars in remaining performance obligations, up 363 percent from last year, signaling massive future revenue. However, Oracle plans to raise 40 billion dollars through debt and equity to fund this expansion, on top of 43 billion in debt and 5 billion in equity raised already this fiscal year. 7 billion dollars, and capital expenditures surged 162 percent to nearly 56 billion dollars.

Investors reacted by selling the stock, which dropped over eight percent in regular trading and fell further after hours. I. demand will translate into sustainable free cash flow, or if the heavy dilution and debt load will weigh on the stock longer term.

On Stocktwits, sentiment was bullish heading into earnings, with a crowded call option setup, but the after-hours selloff cooled enthusiasm. I. backlog a sign of unstoppable growth or a balance sheet risk?

I. infrastructure news, Supermicro turned heads with its own financing plan. I.

server demand. The stock initially jumped nearly nine percent but then plunged twenty eight percent after hours on dilution fears. I.

hardware—building out server capacity requires massive cash, and investors are wary of dilution and management trust issues. Supermicro’s financing also sparked volatility in related meme ETFs, with short and long funds swinging wildly. The Stocktwits community was bearish overall, debating whether the raise signals strong demand or just a cash crunch.

I. infrastructure is booming, but it’s expensive and not without growing pains for shareholders. Turning to the macro picture, energy prices remain a key driver of inflation and market caution.

May’s CPI report showed headline inflation rising four point two percent year over year, up from three point eight percent in April. Energy prices alone accounted for over sixty percent of the monthly increase, rising nearly four percent. Core inflation, which excludes volatile food and energy, was more moderate at two point nine percent year over year, giving some comfort to the Fed’s doves.

Still, the overall inflation trend keeps the Fed on alert. Moody’s chief credit officer noted that higher energy costs ripple through transportation and food prices, pushing headline inflation higher. New York Fed President John Williams emphasized watching inflation closely to avoid it becoming entrenched.

S. is taking oil barrels from Iran, a comment underscoring the complex geopolitical backdrop influencing energy markets. On the sector front, energy remains in focus with mixed moves.

Some major energy names like Coterra fell sharply as traders faded the recent gas rally, while power stocks like NRG Energy also pulled back from recent highs. Industrial and machinery stocks like Caterpillar saw declines amid broader market selling. -driven selloff, with Nvidia down over four percent.

I. I. theme.

Other notable movers included speculative growth names like Archer, which tumbled five percent, and generator stocks like Generac, which slipped from record highs. Biotech also cooled off, with Insmed down seven percent as risk appetite waned. m.

Eastern. Earnings continue with Aurora Cannabis and Lovesac reporting pre-market, while Adobe, Lennar, RH, and a few others report after the close. In summary, inflation and energy prices remain the market’s biggest macro challenges, keeping the Fed cautious.

I. trade is showing both explosive demand and the heavy costs of scaling infrastructure, as seen with Oracle and Supermicro’s financing moves. Geopolitical tensions add another layer of uncertainty.

Traders will be watching Friday’s IPO and the upcoming economic data for clues on where markets head next. Thanks for listening. Catch you next time on LazyListen.