Strait of Hormuz Stalemate Continues, INTC Rally Accelerates & CEG Beats

Añadido: 2026-05-11

[00:00:00]Let's bring in Kevin Green, senior markets correspondent, right away to help set up the action today. All right, KG, the negotiations are on between the US and Iran, but neither side seems to like what's at the table. Can you catch people up on the latest and good morning to you?

[00:00:13]>> Good morning, Diane. We continue to see this push back between both countries around the nuclear uh production uh within Iran uh as well as some other issues, especially when it comes to Lebanon and and trying to remove some of these sanctions. And this has been a headwind pretty much since this conflict has started and we continue to see a lot of this being pushed back. Now the market if you're looking at the equities are still holding up here relatively strong that uh with that tech trade still remaining uh intact here but we are seeing oil move a little bit higher.

[00:00:43]WTI got close to that $100 level. I think it crossed it briefly uh before trading at around this 98 $99ish area.

[00:00:50]Uh in the market right now if you're kind of looking at the dynamics of oil and I think this is actually very important. you are still seeing some countries trying to implement CO 19 style restrictions within the market.

[00:01:02]And if you're looking at India, they're kind of the the latest one to really try to press for individuals to start working from home, try to reduce foreign travel uh when when possible here as well as other measures. So that's coming from the prime minister Modi of India.

[00:01:16]And this just kind of shows that the energy uh I would say crisis but supply shock that we are seeing right now is having an impact especially on the Asia countries. Uh and you are seeing maybe a pullback when it comes to demand in some respects. And the reason why I call that out if you look at LG prices uh going to the East Asia markets. You're talking about China, you're talking about uh Japan, they actually have stalled out and actually has pulled back here a little bit. Now that's not because we are seeing more LG or liqufied natural gas hitting the market. uh that's because you are maybe seeing a stalling out because of the uh lack of demand or maybe a pullback in demand uh right now and this bidding war between the Asia markets as well as Europe uh hasn't been as intense last week as we have seen it in the uh the past here. So uh overall market's holding up but the energy situation is still going to be a problem. We have seen a couple of tankers get through over the weekend though. Two of them were actually carrying Iraqi crude and one of them is actually destined for Vietnam I believe.

[00:02:17]Uh so I will have that actually confirmed but we are seeing a couple of tankers move through the straight. They turned off their AIS systems uh and to try to avoid Iranian strikes and it seems like that actually did uh take place here. So not a lot moving within the straight. Still a stalemate when it comes to these uh particular talks here.

[00:02:33]still trying to contest that $100 level because things do escalate a little bit more. I think you're still kind of looking at that 120 level here before we start seeing maybe a blowoff top.

[00:02:44]>> All right. Uh KG, let's speaking of the tech trade. You mentioned that earlier.

[00:02:47]Let's talk a little bit about Intel, those shares on the move. Uh take us through what you're noticing here in terms of the levels.

[00:02:55]>> Well, we continue to move higher. Uh this is actually a pretty remarkable move for Intel over the last uh you know since March for that matter. We had this consolidation and we continue to move higher here. Stock closed at around $124 on Friday. We are seeing the stock trading at around $130 right now. Uh now there is reports that there has been a preliminary agreement to manufacture some of the chips for Apple. Uh and that's after discussions over a year about a year and a half or so. Uh now it's unclear what Apple products Intel will be producing these chips for. Uh but we know that they actually did have a relationship in the past. Intel used to be a processor or used to actually fabricate processors for the Mac uh product line until they Apple kind of uh reverted and started focusing more on custom uh A6 for that product offering here. But this is another tailwind for a company that has been backed by the United States government. uh you are seeing individuals and companies trying to diversify their supply chains going away or trying to trying to move some of that concentration away from Taiwan semi into an Intel uh and this is once again a benefit for uh the company. Now there's also maybe a deal that could be had here with uh uh Intel and other companies out there. I think Elon Musk took a picture uh of uh with an Intel executive I believe on Thursday or Friday as well that was also seeing a little bit of traction online. So uh they have everything going for them right now. The fundamentals uh for the most part are also holding up for this company, but everybody is excited about the fabrication process and that uh we have other companies really try to diversify away and kind of keep things in house here in the United States.

[00:04:34]>> Okay. And Constellation Energy, I want to pivot and look at that one. That stock is a little bit higher right now.

[00:04:40]Uh walk us through uh the latest there.

[00:04:44]>> Yeah, you're seeing a lot of volatility with this name. Not a lot of activity from a volume front when it comes to pre-market trading, but the company did report earnings. Revenue came in at 11.12 billion. That's a 63.8% increase on a year-over-year basis, and it did beat the street's expectations by $2.4 billion. Now, if you're looking at the adjusted earnings per share, once again, it did exceed coming in at $2.74. SH was looking for $2.57.

[00:05:10]Beat the streets expectations once again. Now, if you're looking at their operating income, that's in the positive. Their operating expenses for the most part are moving up, but not as aggressively as what they are seeing for topline growth, at least for now. And they did reaffirm their 2026 guidance, especially for adjusted earnings per share. They're still expecting that between $11 and $12. So the midpoint there is $11.50. The street actually is looking for that number to come in at $11.62.

[00:05:37]So a little bit of a slight miss when you're looking at the fiscal year guide for adjusted earnings per share. uh and you're just seeing once again a little bit more volatility. I haven't seen if they have said anything on the conference call as of yet, but they continue to diversify. Obviously, we know that they're trying to reopen some nuclear reactors. They do have exposure to the solar market as well. It looks like one of their deals uh within California was actually able to get off the ground as well. Uh and this is a very diversified player. When you're looking at the m multiple, it got to pretty stretched levels if you're just looking at utility companies or power companies in general. But it does appear that they have once again the ear of the administration. It seems like they have the right portfolio mix uh for this AI revolution, which is why we are continuing to see investors really like this.

[00:06:22]>> Okay. And then let's run out uh for the S&P 500, where are you noticing flows to the upside and downside for today?

[00:06:29]>> Yep. So to the upside, you're looking at 7425.

[00:06:32]to the downside. You're seeing the majority of the puts right now at around 7340 uh as far as gamma exposure for that matter. So, a pretty decent range.

[00:06:41]We do have VIX at 18 spot 15 right now.

[00:06:44]So, implying about a 1.15% move to the upside or downside. A little bit more put positioning this morning. We saw that late last week as well. So, uh not surprising that you might see some hedging activity taking place here. But if the tech trade is going to remain firm, it's going to be hard to kind of fade this market outside of a shock when it comes to this uh geopolitical risk and the China meeting uh theqi meeting with President Trump this week as well.

[00:07:07]That will be a big headline mover. And then Diane, last thing I will say, keep your eye out on the agricultural stocks.

[00:07:13]A lot going on within that space. Not only a potential deal to increase purchases of soybeans from China, uh but also we have some weather events within the the Midwest here that's actually impacting some of those crops. So prices are movable a little bit higher.

[00:07:26]>> All right, thank you KG. That's Kevin Green, senior markets correspondent is what you should keep on your radar today from the S&P 500 to beyond.