Mag 7 CEOs Join Trump in China, NBIS Rallies & OKLO Earnings

Ajouté : 2026-05-14

[00:00:00]Let's bring in Kevin Green, senior markets correspondent right away to help set up the action today. All right, KG, all eyes on this high stakes meeting between President Trump and Xiinping.

[00:00:10]We've got a bunch of executives tagging along, including the last minute edition of Nvidia CEO Jensen Wong. Can you catch people up on what we're watching here?

[00:00:21]There's going to be a lot that's going to be on the agenda for this meeting, but as you talked about, we are seeing a significant amount of CEOs and executives going with President Trump to the meeting here. And it does appear that it's going to be tech focused as well as industrials. If you're looking at Boeing could be a beneficiary. There are some uh you rumors out there that Boeing could actually ink a uh a potential deal from China as far as Boeing purchases uh when it comes to airlines and and I'm sorry, when it comes to airplanes. Uh and so that's going to be also interesting. We have Elon Musk, Tim Cook also uh going on the trip here and it seems like that is going to be uh the real uh sticking point or the selling point for the US.

[00:00:59]But if you're looking at some of the agenda items to keep on the radar for this meeting here, obviously AI and chips are going to be in focus. Jensen Wong is going to be in this meeting as well. Also looking at a purchases, aircrafts once again that we talked about some of the industrial purchases and then rare earths which is kind of in the background over the last couple of months as we have seen rare earth exports from China actually increasing and they have been able to hold their own end of the bargain here. That could also be another area of contention for this meeting here. Now we will also probably hear items around the Iran conflict how we may see a potential solution. Now, President Trump stated that he really does not need, and I'm paraphrasing, doesn't really need China's help in order to uh resolve the conflict, but that also will be a topic of conversation here. But overall, everybody's going to be looking at this meeting to see if we are able to see this dant actually still stay in effect.

[00:01:50]Uh if you look at China, their tariff rates that we are imposing on them theoretically, uh it's actually still lower than some of our allies that we have in in Europe. So they are already in somewhat of a favorable position when you're looking at the tariff rates across the globe. Uh will we see that continue? Could we actually see some headway here when it comes to once again the chip purchases, the agricultural purchases as well as the large industrial uh products uh between the US and China. I think that would be a big deal for a lot of the equity uh a lot of the equities and and key sectors out there especially when you're looking at US exports.

[00:02:22]>> Okay, speaking of chips, you got Nvidia moving higher off the back of this news.

[00:02:26]You got uh the chips back in focus again today, micron higher. What are you watching on this front?

[00:02:32]>> Well, we did see a pullback yesterday and this is uh something that is normal especially for the semiconductor sector that has been moving so aggressively pretty much since the the March lows uh here and so uh you did have a pullback yesterday, a little bit more enthusiasm this morning because of this trip. And this has been kind of this buy the dip type of uh strategy that a lot of traders and investors have been utilizing. anytime that we see a pullback of two or 3% buyers have stepped in that's exactly what we are seeing right now and in fact if you're kind of looking at the performance for the uh NASDAQ 100 uh which is obviously going to be tech focused here the positive days are being driven by semiconductors it's not really being driven by uh the the software trade so when we do see uh software outperforming semis uh it has kind of related and coincided with the NASDAQ 100 as well as the S&P 500 pulling that back to the downside here we saw that briefly Yesterday morning we did see a little bit of a recovery going into the close and today we are still seeing a bounce back to the upside here. There were also some positive news uh when it came to uh some of these NEO clouds as well when it comes to uh earnings and so that's providing a positive boost. So a little bit of a snapback rally here for the chips.

[00:03:39]>> Okay. And let's uh get across some quarterly results that you are after Oaklo and Nebius. Why don't we quickly get through Oaklo?

[00:03:48]>> Yes. Yeah. So, if we're looking at Oaklo, I mean uh the company's pre-revenue, so the earnings announcement itself isn't really a big driver, but you do get a lot of updates when it comes to the business. Now, their net loss for the quarter came in at uh 19 cents or they had a loss of 19 cents per share. That's on the adjusted basis. Street was looking for a loss of 20 cents. So, actually better than the street's expectations. A loss from operations sitting at around $51.2 million. But when you're looking at their balance sheet, the cash plus their marketable securities is sitting at around $2.5 billion. So it's 82% of total assets. So they still have enough cash on hand uh to continue their capex spend. And that's exactly what they are doing. Their capex actually grew to 32.8 million for the quarter. Street was looking for around 29.8 million and they were approved uh by the NRC for the principal design criteria for the Aurora Powerhouse uh last week as well. So we did get some updates from a corporate standpoint. Uh they also have this Atomic Alchemy uh subsidiary that's going to be selling some of these isotopes uh to the market. That's going to be a revenue driver for them. Uh and that is actually expected to be a relatively big business. It's a little bit new for Wall Street, but that could also be a driver for this name. Now uh we are seeing the shares slightly higher uh this morning but if you're looking at it from a technical standpoint it has been trying to base and consolidate and maybe we get a little bit more enthusiasm in this market if that high beta trade comes back into effect here up across the the broader equity space could be a beneficiary of that. So nothing really negative when it comes to this report. Uh but once again once they once they get revenue positive and they start generating res revenue that's when these earnings announcements are going to have a little bit more of an impact when it comes to this name. Right now, it's going to be the deal flow that's really going to drive Oaklo's performance.

[00:05:31]>> Okay, that makes sense. And and uh deal flow timelines as well in terms of getting to actual execution. Let's talk Nebius. Uh those shares are off to the races this morning off the back of its results. Uh walk us through what you're noticing here. Well, this is once again one of those Neoclouds uh that are out there kind of similar to Coreweave in a sense and we are actually seeing better than the streets expectations, especially when you're looking at revenue that came in at $399 million uh beating the streets expectations of around $371.4 million and obviously that year-over-year growth uh is is astronomical, which is why we are seeing a lot of this enthusiasm this morning.

[00:06:07]Now, their capex spend uh came in at $2.5 billion. Uh obviously that's actually still a little bit aggressive but for the most part actually in line with the street's expectations here.

[00:06:17]They also secured a 1.2 gawatt of power and land in Pennsylvania in order to uh build out a a factory here or pretty much expand an existing factory at this point in time here. So they are seeing some topline growth. They are seeing some traction taking some market share.

[00:06:32]They are spending dollars and capex in order to try to build out their operations. But we are seeing that topline growth a little bit different than what we are seeing for coreweave which is having a little bit more of a cash burn compared to the revenue growth that you are seeing on the top line here. So this is bringing some optimism not only for the neo cloud space but also once again the AI space when you're looking at these data centers GPU names like an AMD or an Nvidia for that matter which are going to be direct beneficiaries of their expansion and capex spend.

[00:07:01]>> Okay. All right. Uh let's get across what you're watching on oil today. Uh earlier we were a little bit higher. Now we're kind of choppy at the moment.

[00:07:10]Still in triple digit territory.

[00:07:13]>> Yeah, I would say for the oil complex, we're in that kind of like cruising altitude uh you know phase of this market in this bull cycle if you will.

[00:07:21]Uh we have seen obviously prices moving to the upside, WTI trading at around that $100 level. But you're seeing a couple of different dynamics that are shaping up here and the EIA report that we're going to get today is going to be very key for a lot of analysts to see what the direction is going to be for prices moving forward. And here's the reason why. You are starting to see the physical prices in the market uh spot prices actually moving to the downside.

[00:07:43]So the spread between physical as well as the futures are starting to narrow here a little bit and that's not really because the fact that supply is coming back online. It's because we are starting to see some demand destruction in certain pockets at least initially.

[00:07:57]I'm not saying that this is the overall trend, but you are seeing China imports starting to slow down. They're drawing on their own SPR or their own inventories right now. The US is really doing the same. We are still exporting aggressively. Uh but you are seeing run rates starting to get cut here in the United States and output might be a little bit different when it comes to the mix. The API report that we got yesterday, which is kind of the privatized data when it comes to oil inventories. Uh we did see oil inventories actually declined by 2.2 million barrels last week but it's a smaller draw than what we saw the week prior which was around 8.1 million. Now what's very interesting here is that the SPR actually was drawn down by around 8.6 million barrels. And if that's going to be confirmed by the EIA that's going to be the sharpest or one of the sharpest draws that we've seen from the SPR uh in its history. So something to be mindful there. But the big wild card and the reason why I'm saying that this is going to be an interesting report for today. the gasoline inventories according to the API actually rose by 502,000 barrels. Uh is that because of demand destruction or is that because the r the the the refiner mix is changing and I think that's the big question mark that I have right now. Um right we are still seeing you know straight of Permoose being contained but we are seeing some cheap ships going out. Over the last 24 hours, you actually have seen 18 ships transiting the straight either going in or going out. And that's really uh because of some of these deals that countries like a Qatar or even Pakistan have been inking with Iran in order to try to uh transit the straight. China is doing the same as well. Actually, China has a 2 million barrel uh tanker that's actually transiting the straight as we speak. So, very interesting dynamic in the oil complex. would not be surprised if we consolidate here, but supply shocks are still uh an issue and the price action kind of still signals that we can move higher here for WTI as well as Brent.

[00:09:44]>> Okay. And really quickly, uh what are you watching in terms of flows for the S&P 500 to the upside and downside?

[00:09:50]>> Yeah, to the upside you're looking at 7455.

[00:09:53]Uh that's where we're seeing the majority of the call flows pretty much at that 7450, but the gamut exposure is 7455. to the downside 7375 and we are pricing in around a 1.1% move to the upside or downside. A little bit more bullish today than what we saw yesterday when it came to uh the opening options uh volume flows. Uh so let's see if we actually have a little bit of of a bounce back for the S&P 500 today, Diane.

[00:10:18]>> All right, thank you KG. There's Kevin Green, our senior markets correspondent with your setup for today.