Google Boosts Nuclear Stocks, Nvidia-Backed CoreWe

Market Overview

Today’s session saw a broad rally on below-average volume at the NYSE. The S&P 500 rose by 0.8%, while the Dow Jones Industrial Average increased by 0.5%, both extending further into record territory. The Nasdaq Composite closed 0.9% higher, about 170 points shy of its all-time high.

Sector Performance

• The S&P 500 information technology sector gained 1.4%, driven by strong performances from mega caps and chipmakers.
• The utilities sector followed with a 1.3% increase, while the real estate sector rose by 0.7%.
• The energy sector was the only sector in negative territory, declining by 0.1% due to falling commodity prices.

Notable Stock Performances

• NVIDIA (NVDA, Financial) closed at $138.07, up 2.4% or $3.27.
• Apple (AAPL, Financial) ended the session at $231.30, gaining 1.7% or $3.75.

Commodity Market

• WTI crude oil futures fell 2.1% to settle at $73.87 per barrel.
• Natural gas futures dropped to $2.49 per mmbtu.
• Gold decreased by $10.70 to $2665.10.
• Silver declined by $0.42 to $31.32.
• Copper was down $0.10 to $4.39.

Global Markets

• In Europe, the DAX rose by 0.7%, the FTSE increased by 0.5%, and the CAC gained 0.3%.
• In Asia, the Nikkei market was closed, the Hang Seng fell by 0.8%, and the Shanghai index increased by 2.1%.

Additional Information

The Treasury market was closed for Columbus Day, and there was no significant U.S. economic data released today. Meanwhile, oil prices were pressured by demand concerns after China’s Ministry of Finance failed to provide detailed economic stimulus plans during a press briefing.

Today’s News

Advanced nuclear technology companies, Oklo (OKLO, Financial) and NuScale Power (SMR, Financial), saw significant stock rallies after Google (GOOG, Financial) (GOOGL, Financial) announced a groundbreaking corporate agreement to purchase power from small modular reactors. This move aims to meet the electricity demands for artificial intelligence, highlighting a growing interest in clean energy solutions among tech giants. Oklo and NuScale Power ended Monday with gains of 9.7% and 5.9%, respectively, as Google plans to source power from seven reactors built by Kairos Power, targeting 500 MW of nuclear power by the decade’s end.

Nvidia-backed CoreWeave, along with other companies, will invest over $8 billion in UK data centers, as announced by Britain’s Department for Science, Innovation and Technology. CoreWeave’s investment of £750M in AI infrastructure is part of a broader initiative including ServiceNow (NOW, Financial) and CyrusOne. This investment surge aligns with the growing demand for data center capabilities to support artificial intelligence advancements.

Broadcom (AVGO) and Taiwan Semiconductor (TSM, Financial) continue to be popular long positions among institutional investors, according to Jefferies’ survey. However, the percentage of investors overweight in the semiconductor industry has decreased, with Intel (INTC, Financial) remaining the most-crowded short for the third consecutive quarter. The survey also noted a rise in underweight positions in semiconductor stocks, reflecting shifting investor sentiment.

U.S. Acting Labor Secretary Julie Su visited Seattle to mediate between Boeing (BA, Financial) and the union representing 33,000 striking workers. The strike has entered its fifth week, and Boeing announced plans to cut 17,000 jobs, raising concerns about its credit rating. Su’s involvement aims to bring both parties back to negotiations amid these challenges.

ServiceNow (NOW, Financial) emerged as the most crowded long stock in the software sector, according to Jefferies’ survey. Despite a declining percentage of investors overweight in software stocks, ServiceNow maintained its position, while Snowflake (SNOW) continued to be a top short. This trend comes as software stocks have shown strong performance in the latter half of 2024.

Walgreens Boots Alliance (WBA, Financial) is set to release its quarterly earnings, with investors focusing on sales and margins in a challenging consumer spending environment. The company has faced rising costs and has previously revised its full-year outlook and announced store closures. Analysts anticipate earnings per share of $0.36, reflecting a significant year-over-year decline.

Bit Digital (BTBT, Financial) acquired Enovum Data Centers in Montreal for approximately C$62.8M, expanding its high-performance computing operations. The acquisition includes a fully operational Tier 3 data center and opens opportunities for new services such as colocation. Bit Digital’s stock gained 2.8% following the announcement, as the company explores debt financing to support further expansion.

Albertsons (ACI, Financial) could be valued at $21 per share if its sale to Kroger (KR) is blocked, according to RBC analyst Steven Shemesh. The Federal Trade Commission previously sued to stop the $25 billion merger. Shemesh suggests that Albertsons may revisit other strategies to enhance shareholder value if the deal falls through.

Uber Technologies (UBER) reached an all-time high after Tesla’s (TSLA) robotaxi event did not meet expectations, reducing competitive concerns for Uber. Jefferies analyst John Colantuoni noted that Tesla’s lack of evidence for autonomous driving progress benefits Uber, as Tesla’s aspirations in the robotaxi space remain unfulfilled without partnerships with existing rideshare platforms.

Wells Fargo & Company (WFC) extended its gains for the seventh consecutive trading session, buoyed by strong Q3 earnings results. The bank’s fee-based revenue helped offset net interest income challenges, leading to a 1.92% rise in stock value. The positive earnings report contributed to a 10.58% increase in Wells Fargo’s stock over six trading days.

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