Crude Oil Slides Below $90 & MU Leads as U.S.-Iran Fears Wane

Ajouté : 2026-05-27

[00:00:00]And let me get to Kevin Hanks right away at the CBOE for our pre-bell playbook.

[00:00:04]You saw that eight handle on oil. I mean, I I can't believe it myself sometimes when I look up there. You know, we got so accustomed to $100 oil and ta here it is and markets are at highs. Good morning, Kevin Hanks live at the CBOE. Some of your thoughts after the records that we saw yet Friday and yesterday.

[00:00:24]>> Good morning, Nicole. Yes, uh crude oil down currently. I want to give down just over 5% this morning. There's leak of a memorandum of understanding between the US and Iran that really has crude oil uh moving lower. Hopes of the straight of moves being open and a resolution to this uh seem to be coming into focus.

[00:00:50]Obviously nothing confirmed just yet, but there is a sentiment and futures are moved often by sentiment and at least bare minimum. It looks like some of the tensions between the US and Iran are dissipating. Subject to change without notice as you know remember there were some shots fired over the over over Tuesday. Uh it looked like Iran deployed mine laying boats in the street of Hormuse. They also flew attack drones near American ships that drew some fire from the American ships. Not anything significant, but certainly crude oil futures are telling you that there's some good news going on at least right now. The momentum is to the downside on crude oil. That's got stock futures higher this morning, Nicole. Yeah, that coupled with all things uh Micron and SanDisk and and so on and so forth, it's unbelievable to see the continued run.

[00:01:48]Right.

[00:01:50]>> Well, here's the thing that that I'm really starting to catch my eye. It almost feels like with the lackluster price action in Nvidia and the gargantuan moves that we're seeing in some of the memory names and the others that they're almost seems to be a rotation out of Nvidia and into the others. Look, I mean the one trillion dollar club which Micron uh entered yesterday. Why? because of a UBS upgrade from I got to get the numbers right from $535 price target to $1625 price target. That's what fueled a lot of yesterday's rally and in in all reality Nvidia confirmed it in their conference call after their earnings that the demand and the and and the upcoming Vera Rubin release is going to increase the long-term demand for memory products which features Micron and so they do have a legitimate news are news that is making that stock go higher now valuations are getting a little rich. Do I know if it's high or low here? No, I don't. But certainly the news flow, which I'm such a uh follower of, is positive for Micron. I don't know if it's positive for Nvidia as that that stock continues to underperform. It almost looks like they're buying the pieces and selling Nvidia. So, we'll watch how that plays out in the next days and weeks.

[00:03:22]>> All right. And um look, I mean, you know, we see SanDisk with a $2,300 target today. Micron's looking up seven and a half percent. A few days ago, you know, we were look or whatever. And a few weeks ago, we were in the 700 range.

[00:03:36]Now we're at 9 962 this morning. I mean, we're saying hello to a,000. Originally, it was going to be triple. You know, it was a triple target. Now, it's going to be a double target. It's getting closer and closer to thousand. How about, you know, we h we talked about um the meeting at Camp David and you mentioned the Iran latest and now, you know, is there anything that might come of this.

[00:03:57]Is there anything we want to add to that? And then I want to get to mortgage apps. That's really important, too.

[00:04:03]>> Well, I think there there there was supposed to be a meeting at Camp David.

[00:04:06]It got cancelled because of weather. It looks like they moved it back to the White House. And I think the Trump administration and his cabinet are going to talk about the Iran agreement and all these other topics that that are coming right now. Obviously, that's the top of of the list is a Iran agreement. So, I expect, you know, the all the communications between the US and Iran to come up in this cabinet meeting. I think it'll be a headline maker for sure. I think it starts at 11:00 Eastern today. was supposed to be at Camp David, now moved back to the White House.

[00:04:42]>> That makes more sense. Thank you for that, Kevin. Um, last but not least, let's talk about the mortgage apps. I mean, yesterday I was having a conversation with John Corpina and he seemed optimistic. I know Goldman Sachs raised their target. We have NDR Denny at uh 8250 for the end of the year for the S&P and 10,000 for the end of the decade. People are feeling confident because rates, the way John Corpus said it, look, you know, housing's coming down a little bit. He was saying rates are coming down, oil's coming down, the market's going up. That's what he sees in 6 months. Um, and that's how people are feeling. In the meantime, mortgage apps decline. Um, you know, we're still at a relatively high rate, but anybody who thinks they're getting 3% again maybe uh not in this realm at this moment.

[00:05:29]So, mortgage applications, the the general consensus is that things may be getting better down the line and the second half of the year. Not this week, though, as the 30-year mortgage went from 6.56 to 6.65.

[00:05:45]Mortgage apps tumbled down 8.5%. Even though purchases held in there at only down point4, refies really took the brunt of it. Down 18.1% only 38% of the mortgage applications were for refies. That that that's the lowest number in a year. So big tumble in refinances as rates inch higher. You're right. The overall sentiment going forward for housing is starting to turn a bit positive. Some of the some of the numbers are getting mixed to actually better, but not in the m mortgage applications data this week. Nicole, >> understood. All right. Thank you for all of that. Thank you, Kevin Hanks. See you there at the CBOE later.